Nielsen’s Fresh Guiding Principles study reinforces the significance of Fresh.
There are some center store devotees who argue that fresh isn’t all its cracked up to be and center store will make a resurgence. They should read this report.
Nielsen shows that total food sales at high velocity fresh retailers are growing faster than their low velocity counterparts (+4% vs. +1%) and that 49% of total food sales at high velocity fresh retailers are from the fresh department, compared to just 27% at low velocity fresh retailers. They also find that these high velocity fresh retailers carry 45% more fresh products than low velocity retailers. Underscoring the importance of selection and assortment.
The deli is still critical and plays a crucial role in overall fresh sales with almost one-third (29%) of fresh sales at high velocity retailers coming directly from the deli department, compared to just 14% at low velocity retailers.
32% of U.S. households are organic produce buyers and they spend 8.6% more per trip across the total store and 5.8% more per trip on Total Store than the average shopper according to the study and organic matters:
16% of produce dollar sales are organic at high velocity fresh retailers, compared to only 6% in the bottom tier.
Organic meat sales account for 9% of dollar sales at top fresh retailers, and just 0.4% share at low velocity retailers.
Hy-vee’s new downtown Des Moines store is a perfect example of what tomorrow’s supermarket should be – 50% fresh and Grocerant.