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As consumers shop the perimeter more, they are expanding their use of various grocery channels. Nontraditional retailers such as mass merchandisers must be sure that the quality of their perimeter products and the services provided at specialty counters are as important as value to successfully compete with traditional supermarkets.
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Table of Content
Scope and Themes
What you need to know
Consumer survey data
Abbreviations and terms
Figure 1: Total US sales and fan chart forecast of grocery perimeter food categories, at current prices, 2009-19
Meat, poultry, seafood account for largest share
Figure 2: Total US retail sales of grocery perimeter food categories, by segment, at current prices, 2012 and 2014
Respondents are most likely to use supermarkets for perimeter foods
Figure 3: Retailers used for buying fresh fruit and vegetables, dairy products, fresh meat, and fish and seafood, April 2014
Connecting meat to health is likely to drive sales at the meat counter
Figure 4: Attitudes toward red meat, poultry, and pork, April 2014
47% prefer locally grown produce
Figure 5: Attitudes toward fruit and vegetables, April 2014
Consumers say customization, freshness, value important at specialty counters
Figure 6: Attitudes toward shopping at grocery specialty counters, any agree, April 2014
What we think
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Issues and Insights
Can nontraditional stores capitalize on perimeter growth?
Insight: Mass stores must improve quality
How should perimeter departments increase convenience?
Insight: More convenient perimeter foods means more business
How can deli prepared foods increase share?
Insight: Leverage specialty deli items
Trend: Prove It
Trend: Make It Mine
Cake companies can look to completely new formats in their NPD (New Product Development), given the interest in these from one in four users. For example, companies could create their own versions of the hybrid sweet treats (eg cronut, duffin) which have garnered a lot of media attention in the foodservice arena.
Portion-controlled formats, higher-quality ingredients, and new flavors can help consumers indulge in prepared cakes and pies, while maintaining a sense of moderation. Positive perceptions of private label products, which represent the largest share of the market, will increase price competition, but also create opportunities for brand names to differentiate with premium offerings that...
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