Fresh Foods Overview
BY NIELSEN PERISHABLES GROUP
Dollar and volume sales growth slowed across the total store in 2016, and the 2017 forecast offers only a slight uptick of improvement. However, the fresh perimeter of the store
still provides a bright spot of growth for retailers despite
fresh meat’s price deflation slowing overall perishable
dollar growth. Not only that, but Nielsen research shows
that retailers that place an increased focus on the perim-
eter are winning across the store. Retailers with a higher
contribution of fresh sales to total store dollars increased
total store food sales at four times the rate of retailers with
lower perishable sales. These successful fresh retailers use
fresh to connect products across the store for consumers’
convenience; they offer a wide variety of convenient meal
solution options to meet changing needs and stock more
premium and organic product.
But there is still opportunity to capture more of the
consumers’ wallet. With the growing importance of
health and wellness and demand for convenient products,
the perimeter is prime real estate for retailers to specialize and build points of difference from their competition.
For manufacturers, investments in fresh marketing and
media spend could accelerate brand growth. By viewing
the store holistically and understanding the strategies of
top fresh retailers, retailers and manufacturers can determine how consumers’ spend is shifting, and where to
allocate time and focus to grow branded sales and ultimately drive total food performance.