Over The Counter

Deli operators are confident in the coming year and looking at training to better serve shoppers.

Research by Debra Chanil / Analysis by Jim Dudlicek

Performance in the supermarket deli department appears to have flattened over the past two years, while staffing is overtaking the economy as the leading challenge for operators. That's what supermarket deli operators told Progressive Grocer for the latest edition of our signature Deli Operations Review, reflecting responses to surveys sent to a random sample of grocery personnel at headquarters and store level.

Nearly three-quarters of respondents said their deli sales increased between 2011 and 2012, up about 3.8 percent since last year's review. With half of 2013 under their belts, almost two-thirds expect their deli sales to increase this year.

As shoppers continue to look to their grocery stores for answers at mealtime, deli operators are devoting more space to retail meal solutions — nearly 60 percent have increased allotted space, with the number of those reporting a significant boost roughly doubled. The chief challenge to operating that space continues to be pricing, but staff training has emerged as a significant task.

In fact, recruiting effective employees tops the list of problems facing the deli department, replacing the economy, which fell to third place, beneath employee training.

This corresponds with a growing demand from grocery shoppers for more information about their food — how it's made, where it comes from, how can they prepare it at home — as they seek to interface with store associates well versed in the store's offerings.

Insights gleaned for PG's exclusive Deli Operations Review research study were once again tabulated from a survey fielded in spring 2013 to a diverse range of retail deli executives from around the country The proprietary study polled a cross-section of national, regional and independent deli executives about overall category performance and demand trends over the past year, the end result of which provides a snapshot of benchmark sales and operations trends, inclusive of same-store sales and profits, top departmental challenges and opportunities, and department highlights.

Taking a closer look at results of the latest "state of the deli department" study, while rotisserie programs continue to be a mainstay of the deli/prepared food department, a growing concentration on daily specials reflects consumers' desire for good deals at mealtimes, with most shoppers not sure what they're having for dinner that night as they drive home from work, weighing the pros and cons of a supermarket stop versus cruising through a fast-food drive-through.

But rotisserie products and ready-to-go entrées are chief drivers of cross-department sales, as are sliced meats and cheeses, snacks like chips and dips, and cold prepared foods and salads to accompany hot items.

Data gathered for this year's operations review is illustrated in the charts on the following pages.