New Merchandising Strategies for Bakery and Deli
Grocery’s perennially popular deli and bakery departments have seen a lot of changes recently, from the pandemic-driven demise of salad bars to the rise of artisan breads and artfully decorated baked goods. As such, merchandising within the bakery and deli sections has become an ever-evolving task, although the latest consumer trends are offering clues to grocers and CPG companies about doing so successfully.
Tapping Into Trends and Evolving Tastes
According to recent research from Arlington, Va.-based FMI – The Food Industry Association, the in-store bakery remains a powerful supermarket destination, with a full 95% of shoppers eating a bakery item at least occasionally, and 63% eating a bakery item on a weekly basis. Further, 72% of shoppers say that they buy indulgent treats (such as doughnuts, cakes, cookies and pies) at the same store where they purchase their groceries, with a majority of these purchases being impulse buys.
Over in the deli department, which is seeing some of the biggest gains in supermarkets, bold new flavors and limited-edition products are two key drivers of sales. Many grocers are spotlighting items with these attributes, while others are figuring out a unique mix of products for both deli and bakery to grab their customers’ attention.
For Lidl, that product mix and merchandising is currently focused on stocking the baked goods that U.S. shoppers want.
“These new offerings are part of our strategic pivot here at Lidl US; bagels and doughnuts, in particular, are a testament to our commitment to bring more of what U.S. consumers expect to our assortment,” says Tod Seiling, VP fresh at Lidl US, which is also based in Arlington. “We pride ourselves on the quality and consistency of our bakery items, and we’re excited to continue tailoring our baked goods to ensure we’re delivering the best experience for our shoppers.”
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Taking another tack, Smithfield Foods recently launched its Made for More campaign in an effort to help consumers think creatively when using its line of meats and cheeses, and so has created new merchandising opportunities for grocers.
“Our deli programs go beyond product offering by also implementing best practices for retailers to draw attention to the grab-and-go section and giving consumers inspiration for deli options, including using new condiments, exploring beyond the traditional sandwich, and using descriptive language to stimulate and engage consumers in-store,” Lauren Talbert, senior director of marketing at Virginia-based Smithfield Foods, tells Progressive Grocer.
Fixtures and Displays
Employing unique fixtures and displays to add oomph to traditional bakery and deli merchandising has also become an important differentiating factor of late. For St Pierre Bakery, a fundamental understanding that the shopper mission in an in-store bakery is different from the shopper mission in center store is the cornerstone of its innovation and strategy in how it presents its products.
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“Our research has shown that the in-store bakery shopper is looking for inspiration, for new ideas and impressive items to help them entertain at home,” explains Jake Huber, U.S. sales director for the Manchester, U.K.-based company.
As such, St Pierre aims to “offer a taste of Paris with every meal” as part of its in-store brand experience. While its Eiffel Tower displays aren’t practical for every store, the company has developed a table-topper version to help drive the same sense of theater and understanding that its items are premium offerings. According to Huber, having that understanding means that shoppers are more likely to upgrade when they make accompanying purchases like deli meats and cheeses.
Additionally, St Pierre has developed cross-merchandising solutions with its Parisian-inspired “knee-knockers” that allow retailers to cross-merchandise the brand’s products with chilled goods. Further, the company is testing new displays, inspired by Paris’ newsstands, to take over aisle ends and offer additional in-store theater to drive shopper engagement.
