inStorebuyer - February 2012 - (Page 30)

Deals, Meals & Appeals As the economy settles down, instore delis and bakeries brace for a new reality of consumer spending patterns. by John Unrein Bakery and deli shoppers are sharpening their focus on deals, meals and a wide array of foods that appeal to their inner cravings for affordable indulgence. Bakery shoppers spent the past year buying more cobblers, cannoli, dipped fruits, yeast donuts and almost any flavor of cupcakes, which continue to be in high demand as consumers seek out more products that are convenient and indulgent at the same time. In the deli, 2011 proved a successful year for specialty cheese, pre-sliced deli meats, deli sandwiches, deli prepared chicken, deli salads and deli entrees. Consider that pre-sliced deli meat more than doubled the sales growth of bulk deli meat, and you better understand the importance of convenience to the new breed of supermarket perishables shoppers. In other notable trends, wedding cakes in 2011 became a stronger profit center for instore bakeries, which are now positioned as an attractive lower-priced alternative to high-end cake shops. Sweet goods, specialty desserts, donuts, specialty dessert cakes, cupcakes and wedding cakes all ranked among the top performers for the instore bakery last year. Rising commodity prices disrupted the shopping patterns of a number of shoppers who, in some cases, traded down or even traded out of their favorite neighborhood store. Consider the big headline in January when Delhaize America announced that it will retire its higher-end Bloom banner and convert 42 Bloom stores in Virginia and Maryland to Food Lion this year. The conversions will begin immediately. In addition, seven underperforming Bloom stores will close. Other recent headlines reveal that supermarket operators are watching prices closely. Against a backdrop of persistent concern about the economy, Wegmans, for the second consecutive year, announced a freeze on prices effective Jan. 8, through April 28 — for a total number of 223 SKUs. This move follows the expiration of a list of 40 items, with prices guaranteed through the end of 2011, introduced in February 2011. Wegmans reported absorbing cost increases to hold prices on those 40 items cost them more than $8 million. “Customers wrote us, or stopped us in the store, to say how much easier it was to budget and shop knowing they could count on prices for an extended period of time,” says Colleen Wegman, president. “With that kind of feedback, there was no question that we would come back with another list, but we thought it was important to include what customers purchase at this time of year.” Wegmans’ new list takes into account seasonality by including such | 30 | inStorebuyer | February 2012 |

Table of Contents for the Digital Edition of inStorebuyer - February 2012

inStorebuyer - February 2012
Editor's Note - A Year of Opportunity
Table of Contents
Front Line News - Nielsen Acquires Perishables Group
Front Line News - WRAP Award for Stater Bros.
Front Line News - Fresh Market Promotes Crane
Front Line News - Peerless Unveils New Brand Look
Front Line News - Caravan Scores Superior Ratings
Front Line News - Costco CEO Recognized
Food Service Retail - Meal Add-Ons
Baking & Decorating - Mousse Appeal
Bakery Development - Specialty Desserts Stay in the Spotlight
Deli Development - Growth for Deli Side Dishes
Deals, Meals & Appeals
A Giant Step
Equipment & Technology - Mobile Solutions
Health & Nutrition - Explaining Gluten-Free
Cheese Corner - Create A Shopping Pattern
Product Trends
Product Showcase
Marketplace Network

inStorebuyer - February 2012