Reinventing the Edge of Grocery Shops: Transformations in Dairy, Deli, and Bakery Sections
In a bid to cater to evolving consumer preferences, grocery stores across the nation are implementing innovative strategies to transform their dairy, deli, and bakery sections. This shift aims to provide more meal solutions for shoppers across different dayparts and occasions.
One of the key trends in the dairy section is the focus on quality and transparency. Consumers are increasingly interested in high-quality dairy products, often made with natural ingredients and transparent labelling. This aligns with the broader move towards cleaner labels and better-for-you options. Additionally, the integration of digital tools and mobile apps for ordering and managing inventory is becoming more prevalent, helping maintain freshness and stock levels efficiently.
The deli section is witnessing the introduction of the "Pinnacle Deli" concept by Boar's Head. This innovative approach combines technology and culinary experiences, featuring visually appealing displays, easy touchscreen ordering, and aromas from fire-roasted and cold-smoked meats. Traditional deli favourites are being complemented by innovations like fire-roasted meats and cold-smoked sandwiches, catering to diverse tastes and preferences. The use of kiosks and mobile apps for ordering allows customers to interact more seamlessly with the deli, facilitating faster service and greater flexibility in ordering options.
In the bakery section, consumers are gravitating towards breads made with high-quality, simple ingredients, such as sourdough. Supermarkets are incorporating more experiential elements, like in-store bakeries or cafes, to enhance the shopping experience and provide consumers with fresh products. Some grocery stores are offering high-quality prepared foods similar to those found in restaurants, attracting customers looking for convenient, quality meals across different dayparts.
Common themes across these sections include experiential shopping, technology integration, seasonality, and occasions. Incorporating seating areas, wine bars, and other experiential elements redefines grocery shopping and enhances consumer engagement. Technology is crucial for streamlining operations and enhancing the shopping experience, whether through mobile apps, kiosks, or AI-driven personalization. Offering seasonal and occasion-based products helps grocery stores cater to diverse consumer needs and preferences.
Several retailers, such as SpartanNash, are working to deliver meal solutions, including at its recently refreshed Family Fare stores in Michigan. The focus is on providing solutions across dayparts and occasions, including prepared or nearly prepared meals and offerings for recipes and snacking. The recreation of a menu-like experience, where visuals, cross-merchandising, or recipes conjure up a meal in people's mind, is powerful in driving a full-basket sale.
As shoppers seek convenient meal solutions, prepared foods sold in the deli area are filling the gap, with dinner, lunch, and even breakfast emerging as key opportunities. Nearly one-third of consumers are dining out less frequently and turning to grocery stores for these solutions. The ongoing popularity of charcuterie presents a dream opportunity for the bakery and deli sections.
In conclusion, grocery stores are adapting their dairy, deli, and bakery sections to provide more solutions for shoppers across different dayparts and occasions. The trends and innovations discussed above reflect a commitment to quality, convenience, and a personalized shopping experience, as retailers aim to provide shoppers value beyond just price and quality, offering experience, relevance, and convenience.
In order to stay competitive and cater to shoppers' evolving preferences, market research indicates a growing interest in lifestyle-oriented food-and-drink and home-and-garden products. For example, consumers are increasingly interested in high-quality, simple ingredients for food-and-drink items, such as sourdough bread, which can be found in bakery sections. Similarly, grocery shopping experiences are being redefined through experiential elements, like in-store cafes or wine bars, and technology integration, such as mobile apps for ordering and managing inventory. This shifts the focus beyond traditional price and quality considerations towards offering a more personalized shopping experience, relevance, and convenience.
