Dive Brief:
- Almost all shoppers (96%) purchase deli/fresh prepared items at least once a year, according to a study conducted by 210 Analytics for the Food Marketing Institute’s Fresh Foods Leadership Council, and reported by The Shelby Report. Nielsen finds that only about 10% of grocery store visits include a stop at the deli counter.
- The survey showed that 52% of shoppers need to be in the store to learn of a store’s deli/fresh program.
- Consumers said email is the preferred way to receive messages about a retailer’s fresh prepared dinners, with texts being the least popular option.
Dive Insight:
The deli department may be the most underutilized space in the grocery store, and analysts predict that the store section is ripe for sales growth. This grocery category accounts for 17% of total fresh dollar sales, and was up 3.9% last October year-to-year.
Consumer health and convenience trends have converged in a way that benefits the grocery deli. Today's shopper demands fresh, ready-to-eat items that can be bought alongside produce and typical groceries, fueling the improvement of in-store bakeries and expansion of prepared food stations.
Savvy retailers will look to better leverage these deli amenities and cater to consumer health concerns by offering healthy and free-from baked goods alongside classics like muffins and cookies. Retailers can also capitalize on shopper interest in on-the-go breakfasts by offering healthy breakfast sandwiches and other morning foods.
Deli offerings are also a chance for grocers to lean into the grocery experience trend. Delis can advertise recipes that show how to cook the meat behind the counter, as well as clearly advertise specials on different cuts and types of protein. As the report notes, however, retailers should advertise these deals online in order to lure more people to the store.
Grocers shouldn't limit themselves to email correspondence, however. Social media is a prime opportunity for retailers to advertise their deli offerings and drum up traffic for the space.