Redefining the Border of Grocery Shops: Dairy, Deli, and Bakery Innovations
In the ever-evolving world of grocery shopping, a new trend is emerging that focuses on simplifying meal preparation for customers and enhancing their overall experience. This shift is particularly noticeable in the dairy, deli, and bakery sections of stores.
Cross-merchandising is at the heart of this transformation. By strategically placing fresh and dry goods together, retailers are creating convenient, one-stop shopping experiences. For instance, combining burger patties from the deli or meat case with buns from the bakery and relevant condiments or produce in a single location encourages customers to purchase whole meal kits easily without navigating multiple departments.
The trend towards prepared meal solutions is another significant development. Grocery stores are increasingly blurring the line between retail and foodservice, updating deli and foodservice menus to meet customer preferences for fresh, reasonably priced meals that fit their lifestyles. Hy-Vee, for example, has transitioned from a branded burger concept back to its Market Grille format, featuring new menus with breakfast, lunch, and dinner items tailored to customer requests.
Customer satisfaction is a key focus area. Retailers are striving to create rich sensory experiences and memorable in-store moments, particularly at the store perimeter where dairy, deli, and bakery sections sit. Vibrant, eye-catching merchandising like themed displays or illuminated cases increases product visibility and draws shoppers’ attention, making the shopping experience more engaging and enjoyable.
Data utilization is another consideration. While extensive data is collected, operators need to parse out what is uniquely relevant to their brand and customer base to avoid industry-wide sameness and enhance differentiation.
In summary, dairy, deli, and bakery departments are leveraging cross-merchandising to simplify meal prep for shoppers, expanding fresh prepared meal offerings aligned with customer preferences, and focusing on vibrant, sensory-rich merchandising to elevate satisfaction and sales.
Rick Stein, VP of fresh foods at Arlington, Va.-based FMI - The Food Industry Association, highlights that food retailers and suppliers aim to provide shoppers value beyond just price and quality, offering experience, relevance, and convenience. Erin Storm, SVP and chief marketing officer at Grand Rapids-based SpartanNash, emphasises that shoppers are looking for fresh, ready-to-enjoy meal solutions, not just ingredients.
Retailers are becoming more thoughtful about how to present those items in high-traffic areas like the deli, bakery, and dairy sections. The goal is to make shopping an enjoyable and memorable experience, encouraging customers to return time and again.
- Market research indicates a growing demand for convenient food-and-drink options, as customers seek ready-to-enjoy meal solutions for their lifestyle.
- To cater to this trend, home-and-garden retailers are increasingly merchandising home appliances alongside food-and-drink items, focusing on appliances that simplify meal preparation and enhance the overall shopping experience.
