U.S.A - Sales volume for packaged food and products is falling, while produce looks to be on the rise, according to Wall Street Journal. As consumers seek fresher means, the Journal’s Annie Gasparro reports that big center store names like Kraft Heinz Co., Kellogg Co., and Mondelez International Inc. are looking to catch up.
“We’ve got to maximize return on our shelf space,” said Don Fitzgerald, Vice President of Merchandising for Kroger-owned Mariano’s, telling Gasparro that current consumers are much more drawn to fresh than boxed or dry goods.
As for the numbers, sales volume for packaged food and products fell 2.4% in the first quarter of 2017 in number of items sold, according to market-research firm Nielsen, while sales volume for produce grew 1.9% in the year ended Feb. 25, according to WSJ.
A key strategy some of these big brands are employing to win back consumer support, WSJ notes, it seeking a spot in the fresh and prepared foods sections of the store. Fitzgerald seemed cautious on the approach, however, from the perspective of Marianos and other fresh-focused retailers.
“If we overrun perishables with all the big packaged brands, we lose our competitive edge,” he said.
Other chains cited for building new stores with more focus in-store restaurants and fresh meals shoppers can take home included ShopRite, whose Director of Health and Wellness, Natalie Menza, told WSJ, “It’s by demand of consumers looking for a quick meal.”
We too reported recently that Raley’s latest store, and the blueprint for stores to come, bring much more attention to fresh and prepared foods in the layout.
This, Gasparro says, means less space for traditional packaged-food brands.
Is this fresh-focused approach the brick and mortar of the future? Continue to follow AndNowUKnow as we report the latest.
