In the competitive world of grocery retail, bakery and deli departments are witnessing significant transformations. The impact of the pandemic has reshaped consumer preferences, resulting in new merchandising strategies that cater to changing tastes and shopping behaviors. Bonding with shoppers through unique product offerings and impactful displays is essential for success in this dynamic landscape.
According to recent research from The Food Industry Association (FMI), the in-store bakery remains a critical component of shopping journeys, with 95% of shoppers occasionally enjoying bakery items and 63% indulging weekly. Furthermore, around 72% of shoppers purchase indulgent treats, such as cookies and cakes, during their grocery trips, indicating a strong impulse buying trend.
Understanding consumer desires is key to tapping into these trends. For instance, Lidl US is focusing on aligning its product mix with American preferences by adding widely popular baked goods like bagels and doughnuts. As noted by Tod Seiling, VP of fresh at Lidl US, this strategic pivot demonstrates their commitment to quality and consistency in delivering a satisfying shopping experience.
Similarly, Smithfield Foods has launched its “Made for More” campaign, aimed at inspiring creative use of meats and cheeses in deli offerings. Lauren Talbert, senior director of marketing at Smithfield, emphasizes that their approach goes beyond merely providing products; it’s about engaging consumers by enticing them with innovative ideas around deli items. This includes showcasing new condiments, moving beyond traditional sandwiches, and using descriptive language to enhance the in-store experience.
A unique blend of fixtures and displays can also enhance the shopper experience. St Pierre Bakery’s strategy revolves around recognizing that bakery shoppers seek inspiration and impressive items for home entertainment. The company’s goal is to evoke a sense of Parisian luxury, even if through smaller displays than an actual Eiffel Tower. Jake Huber, U.S. sales director for St Pierre Bakery, points out that this approach not only highlights the premium nature of their products but also encourages shoppers to purchase accompanying items like deli meats and cheeses.
The implementation of cross-merchandising solutions can further elevate visibility and draw customer attention. St Pierre has developed items that can be displayed alongside chilled goods, allowing retailers to maximize product exposure. Testing new displays inspired by Parisian newsstands promises to create an engaging shopping environment tailored to today’s consumers.
Effective marketing strategies don’t just stop at product offerings and visual displays; they also involve a deep understanding of customer preferences and impulse behavior. Research consistently shows that the combination of enticing visuals, strategic placement, and innovative product offerings significantly enhances sales in both bakery and deli sections.
For example, attractive displays paired with impulse-buy promotions can lead to a surprising increase in average transaction value. Retailers that curate their selections based on local consumer preferences can see greater success than those sticking to traditional ranges.
In conclusion, the bakery and deli sections are more than just food departments; they serve as strategic areas to engage customers and cultivate lasting relationships. As grocers adapt to shifting consumer behaviors in the post-pandemic reality, tapping into trends, innovative merchandising, and enticing displays will be essential. The key takeaway is to ensure that these departments not only reflect the latest consumer trends but also create a delightful shopping experience that keeps customers returning.
Baking up successful merchandising strategies is vital in navigating the new normal of retail grocery.
