Retailers Weigh In on the Priority of Fresh Foods
Traffic continues to pick up around the perimeter, according to research from FMI - The Food Industry Association. The Washington, D.C.-based trade group is out with its latest report, "The State of Fresh Foods 2024," showing that 42% of food retailers’ sales in 2023 came from fresh departments.
Indeed, shoppers tend to stop their carts at many of those fresh food points. Produce and meat departments remain perennial attractions, each capturing 11% of fresh sales, per The State of Fresh Foods report. Dairy sections followed at 8%, followed by the deli (4%), fresh prepared (3%), in-store bakery (3%) and seafood (2%) areas.
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There is room for additional growth in fresh foods, the report affirms. While grocers contend with ongoing challenges such as shrink and labor, they are simultaneously eyeing new strategies like adding specialty fresh experts (think “produce butchers” and cheesemongers) and touting fresh offerings in their foodservice programs. For example, 79% of retailers are increasing space for fresh grab-and-go selections and 30% report that they are adding more labor to their fresh foodservice-at-retail sections.
Drawn in part from "The Food Retailing Industry Speaks" report published earlier this year by FMI, the fresh food edition highlights other trends in fresh categories, such as shoppers’ steady interest in convenience, health and wellness and locally-sourced products. The research also emphasizes the collective push to reduce food and packaging waste and the deployment of technologies that streamline operations and help curb loss. On that note, 40% of retailers surveyed said that their companies used technology tools within the past year for fresh foods inventory and demand/production planning.
FMI shared some of the key results during this week’s FreshForward meeting, held Aug. 5-7 in San Diego. In a blog post ahead of the FreshForward conference, FMI’s VP of Fresh Foods Rick Stein said that food retailers can get creative in categories that resonate with shoppers. “The fresh industry's story right now might be described as a tale of two missions. On the one hand, the industry is navigating near-term hurdles related to the economy. On the other hand, fresh leaders are eyeing longer-term opportunities to make progress on meeting consumer needs and accelerating their businesses,” he wrote. “This is a unique and essential time to act on both fronts. Success will rely on capturing the best insights and driving industry collaboration.”
