Smart merchandising can use the perimeter to boost center store.
It’s no secret that in the grocery channel, growth among perimeter departments is outpacing that of center store, and is anticipated to continue doing so through the rest of the decade.
While center store sales are projected to grow from $205 billion in 2015 to $216 billion by 2020, perimeter sales are anticipated to rise from $296 billion in 2014 to $346 billion by 2019 — a whopping $50 billion, according to Chicago-based market research firm Mintel.
The reason behind this switch is clear: Americans are increasingly “counting ingredients, not calories,” eschewing heavily processed foods for fresh and natural offerings, says Euromonitor, a market researcher based in Chicago, in its April 2016 “Fresh Food in the U.S.” report.
With the rise in e-commerce, however, trips to brick-and-mortar grocery stores are on the decline, warns Stacey Ring-Sanders, VP of category management with Battle Creek, Mich.-based Kellogg Co. As a result, grocers are feeling increased pressure to ensure that they’re meeting their shoppers’ needs, making it important to develop solutions and pair items across the store to maximize sales as much as possible.
A good way to do this is to work with suppliers and across departments, leveraging the perimeter’s booming popularity to boost exposure and sales of products typically seen as more processed — namely, shelf-stable and frozen items.
Shelf-stable Opportunities Abound
This story is from the January 2018 edition of Progressive Grocer.
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This story is from the January 2018 edition of Progressive Grocer.
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