After more than four years of pandemic living, retailers have settled into a new normal. Gone are the days of the just-stock-the-shelves mentality that was rampant at the height of COVID. The industry has changed in so many ways — and so have the consumers we serve.
Today more than ever, retailers must provide value and tap into consumer insights that are shaping what’s on the shelves. The fact that consumers are more frequently shopping the Fresh foods of grocery stores—perimeter product sales increased by 7.4% from 2022 to 2023 for an estimated $277 billion in retail sales (Source: Circana InfoScan® Reviews; US Census Bureau, Economic Census/Mintel) —is changing the game and creating opportunities for retailers to cash in on consumer buying behaviors.
So why is this important? Now’s the time to power up your Fresh portfolio and give consumers the unprocessed, nutrient-filled, vitamin-rich food they are craving.
Here are some strategies to increase your value with Fresh offerings and boost your bottom line at the same time.
Prioritize promotions
The pandemic completely flipped the script on the ways retailers connect with consumers. Retailers were forced to enhance their outreach efforts and re-engage consumers. Many launched robust loyalty programs and digital marketing tactics, such as geo-targeting and social media marketing, to get the word out about promotions and seasonal items.
Additionally, we know that 41% of consumers are also shopping around to get the products they want at the best price. Putting even more pressure on retailers to not only stock items but also price them competitively. This makes promotions and sales all the more important to consumers and retailers alike.
Maximize retail space
The latest trends reveal consumers want to have an experiential shopping trip. This means they want to sample products, walk the aisles, and understand sourcing and origin stories — especially in the Fresh foods category. Curating an enjoyable shopping experience for customers is an intentional blend of science and art with lighting
choices, store layout, and visual displays all playing a crucial role in how long customers stay in the store. In fact, 70% of consumers say that perimeter displays elevate their in-store shopping experience.
The quality of a store is reflected by its fresh product selection, which not only drives retail traffic but also plays a vital role in attracting and retaining customers. The relationship between these factors demonstrates how the visual presentation of products directly affects customer shopping choices. What’s more, 86% of consumers prefer to hand-select Fresh products and, once they are in the store, they often buy more. Taking advantage of in-store drivers and creating an enticing shopping experience helps retailers encourage consumers to stay in the store and increase their basket size.
Improve core assortment
A sure way for retailers to drive value and differentiation is by offering a core assortment of products that are unique and in demand. How do you do this? Keep track of what’s selling, listen to consumers and monitor product trends.
Another winning tactic around assortment is for retailers to seek out variety and brands that have a special story to tell. Data found that 56% of consumers say stories about a brand influence their purchase.
There is no doubt that the last few years have been challenging for retailers and distributors. But we have learned a lot and now’s the time to put our learnings into action. Based on recent forecastings, the customer demand for perimeter goods will continue to grow, with an estimated increase of $289 billion or 4.4% going into 2024 according to Mintel. This figure demonstrates that customers are looking for high-quality Fresh products now, and will continue to do so for the foreseeable future. By embracing consumer trends and stocking shelves with what’s in demand, retailers can become the go-to source for Fresh foods and more at the very best price.
To learn about the new KeHE Fresh Marketplace™ and preview Fresh products in the catalog, please visit https://www.kehefreshmarketplace.com/.
