Newsletter April 2020

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Posted by Foodelice

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How to Maximize In-Store Bakery Sales

 

 

 

April 2020

 

Quote                          Let’s Bring Crazy Good Bread to Family Tables

 

Fresh Food Sales

During the week of April 5, US food sales continued to show highly elevated levels, with center store food dollars up 29.4% over the comparable week in 2019. Boosted by an increase of 41.2% in meat, the total perimeter increased 15.8% over the week of April 5 vs. the comparable week in 2019. The panic buying in paper goods and other nonedible appears to have slowed down significantly, resulting in total store sales increasing 16.9% over the same week in 2019.

 

Sales Growth vs. Comparable Week in 2019

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Category                        Bakery

 

Bakery saw more dollars shift from the in-store bakery to the bakery aisle. Total US bakery increased 9.3% in sales during the week of April 5 vs. the comparable week in 2019, boosted by an increase in sales in the bakery and cookie and cracker aisles. Some retailers have limited service counter offerings, hours or even having closed the in-store bakery altogether.

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Commercial Bakery Aisle

Sales continues to be mixed when regarding the more functional bakery aisle items vs. ones more indulgent in nature. Fresh bread, rolls, bagels and English muffins continue to see significant double-digit increases during the week of April 5, whereas bakery snacks, as well as things such as pies and cakes were off vs. the same week in 2019. 

Other baked goods, including cookies and crackers found in the center store aisles, saw big increases as well, likely driven by the combination of pantry stocking and increased everyday needs. Sales of crackers started to gear up at the onset of the coronavirus-related measures, at 9.1% over the week ending March 8. Sales continued to be highly elevated the week ending April 5, at 12.8%. 

Packaged cookies went from seeing some sales pressure early in March to a 15.1% increase for the week ending April 5 vs. the comparable week in 2019.

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Category               In-Store bakery

As many retailers have closed or reduced their in-store bakery offering, sales for the in-store bakery were off by more than 20% vs. those during the same week last year. Cakes, doughnuts and cookies saw significant declines, whereas the second-largest seller, breads, did increase substantially, as did other functional items.

“Impulse is a big driver of sales for the more indulgent bakery items,” said Jonna Parker, fresh team lead for IRI. “Much like trying to actively generate demand for deli-prepared items, reminding shoppers of buying some dessert or baked goods reward can be a good way to keep the bakery top of mind during these times.”

This is a good reminder that similar to prepackaged deli meat and cheeses, prepackaged baked goods may be a way to offset closed service operations. Some retailers are providing baking recipes on their social media feed and encouraging easy baking activities for kids.

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Trends       This crisis will accelerate trends!

The in-store bakery is challenged by new realities. As consumers are stay-at-home, should we expect a major increase of artisan bread and roll consumptions?

  • Consumers have restricted their outings and visits. They also concentrated these visits to shop at full department stores, where they find most of their goods.
  • Consumers have also reduced the number of grocery store visits and increased online shopping.
  • Store traffic is restricted, and opening hours are reduced.
  • Consumers who visit grocery stores less than once a week are looking for products with a longer shelf life.
  • Bread merchandised in crafted bags and/or bulk bins are no longer the norm.
  • With reduced opening hours and labor to prepare and bake breads, departments are not fully maximizing sales.
  • Planning is more complexed and shrink is higher than before.

Seize the Opportunity!

  • Differentiate yourself and offer superior quality products.
  • Limit to minimum preparation.
  • Maximize mass merchandising while eliminate risk of shrink – Thanks to artisan breads with shelf life of 6-7 days.
  • Offer hybrid products that are fully merchandised on bakery shelves, store entrance, freezer bunkers and home deliveries.
  • Marketing prices that defy competition.
  • Maintain good profit margins.
  • Become a destination for artisan bread of all level of consumers.

Ask about how The Mad Bakers proven “Thaw and Sell Bread Program” can help you maximize volume and profits!

Please contact us, we’ll be glad to build a custom program for you.

Info@nullfoodelice.com954-997-9965

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