Data and insights firm Nielsen has found that, as more grocery sales move online, fresh is key for physical store success.
“We segmented stores based on the percentage of overall store sales from their fresh food departments, and top performers generate 43% of overall sales from perishable foods, compared to an average of 32% for the same measurement across all retailers,” Nielsen wrote in a new report. “They’re succeeding by taking ‘freshness’ to the next level.
“For the most successful retailers, deli and produce departments provide the greatest contribution to total perishable sales,” Nielsen wrote. “This debunks the long-standing belief that the meat department contributes the highest impact to the success of the perimeter of the store. And it likely reflects consumers’ changing wellness needs, as well as their growing demands for convenience.”
Nielsen also noted that the best fresh retailers outperform for produce items that shoppers tend to scrutinize: avocados, tomatoes, herbs, berries and apples. That group of retailers also offers nearly three times as many plant-based meat alternatives as others.
“Across all U.S. retailers, avocado sales are up 8%, and vegetables are succeeding even more than fruit, up 4.9% in sales versus a slight increase of 0.3% in sales for fruit,” Nielsen wrote. “As a result, investing in a stronger vegetable supply chain is a smart business strategy.”
Making the store a destination rather than a stock-up trip will be key to success, Nielsen indicated.
“Fresh is the last stronghold for brick-and-mortar,” the company wrote. “Retailers that want to win across the store need to focus on fresh.”
