The New Year brings with it a host of added revenue opportunities for perishables merchandisers.And as our cover story which starts on page 21 illustrates, retailers can seize the moment by responding to pressing shopper needs and demands.
A greater consumer focus on convenience-oriented products, for instance, will be occurring in most perishables departments, analysts say.
As a result, W. Frank Dell III, president and chief executive officer of Dellmart & Co. Inc., a Stamford, Conn.-based retail consultancy, predicts that astute retailers will respond with an “explosion” of new value-added products.
While some items, such as pre-marinated and pre-seasoned proteins, already are fixtures in many supermarket meat cases, Dell notes that prepared offerings also will become prominent in produce sections.
More retailers, he says, will be offering greater arrays of pre-cut and packaged fresh fruits and vegetables.
“The consumer wants value, which is the relationship between what they are paying and the perceived quality of the product,” Dell notes. “Just doing a little more for the consumer—it does not have to be drastic—will keep them coming back.”
Adding value to offerings, he adds, also will “increase the price and the gross margin for suppliers and retailers.”
Meat departments also will likely feature additional value-added selections in 2012, says Michael Uetz, principal of Midan Marketing LLC, a Chicago-based marketing, communications and market research firm.
“There also will be a greater emphasis on customer service, with retailers educating consumers on the products,” he states. “And not only will more retailers be setting up education programs for their internal staffs, but they also will provide information on packaging and Websites to make sure shoppers are more comfortable purchasing the items.”
Retailers seeking to optimize revenues also must respond to a host of other consumer trends, he says. They include the growing role of men in meal-planning decisions; a greater use of smart phones for meal planning; enhanced shopper interest in hot home-cooked meals that do not have to be prepared from scratch; and a stronger desire to learn where products were developed and how animals were treated.
“There is not one protein opportunity for everyone, but convenience continues to be a strong growth platform,” Uetz states. “Any offering that cuts preparation time and helps the shopper get close to the final product, such as pre-marinated meats, will have a huge impact.”


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