Progressive Grocer - March 2010 - (Page 51)

Fresh Food Progressive Grocer’s 2010 Meat Operations Review Value on a Platter The latest installment of PG’s annual “state of the meat department” finds grocers rustling up respectable overall sales at the expense of premium-priced proteins. Analysis by Meg Major; Research by Debra Chanil n the aftermath of one of the most trying years on record — chockablock with bargain hunters and intense competition — aggressive promotions and prominent circular placement helped most grocers maintain stable performance in their fresh meat departments, according to the latest results of Progressive Grocer’s 2010 Meat Operations Review. I In a clear correlation with the economic downturn that gave rise to a more sophisticated breed of value-seeking consumers across the varied slate of U.S. grocery formats, nearly all supermarket categories felt the full brunt of skittish shopper behavior. Yet, the fresh meat and seafood departments remained among the few bright spots in a bleak year, a finding corroborated by nearly 50 percent of this year’s Meat Operations Review respondents, who reported increased total Meat Department Sales Performance meat sales during 2009. Meat Sales Change, Meat Sales Change, Based on the collective input of a diverse range of retail meat executives from around 2007-2008 2008-2009 the country, the annual “state of the meat department” survey evaluates benchmark sales Stayed Stayed and operations trends, along with category the Same the Same performance and demand patterns in retail 21.6% 21.5% meat departments over the past year, includIncreased Increased ing same-store sales and profits, foremost 58.9% 47.0% Decreased departmental challenges and opportunities, Decreased 19.6% and production and labor considerations, 31.4% among other issues. Survey participants in this year’s retail meat report represent a diverse cross-section of Net Change Net Change views from supermarket meat directors polled 5.2% 4.6% from national chains, regional retailers and Source: Progressive Grocer Market Research, 2010 independent grocers, who were asked to assess www.progressivegrocer.com A H E A D O F W H AT ’ S N E X T the performance of their average meat department for the 12-month period ended Dec. 31, 2009. Although prices have always been an influential consideration for consumers when shopping the meat department, the past year’s survey has brought forth a strong consensus among participants that targeted promotions, deeper discounts and smaller pack sizes drove volume growth in the meat category, largely at the expense of more pricey proteins. “The ad mix has changed, and shoppers are making larger purchases of ad items along with buying cheaper cuts of meat,” noted a retail meat official whose views were echoed by several others. “Our customers are buying more on-ad and value-priced items than before, resulting in fewer full-price rings.” Trading down to less expensive cuts was another prevailing theme that Meat Sales Change, Same-store 2009 Stayed the Same 32.0% Increased 36.0% Decreased 32.0% Net Change 3.4% Progressive Grocer • March 2010 • http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - March 2010

Progressive Grocer - March 2010
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Dairy/Yogurt
Green Grocer Awards 2010: Seeing Green
Multicultural Marketing: Use Your Common Census
Harold Lloyd on … “Making a Difference”: The Employee’s First 30 Days: It’s Now or Never
The Lempert Report: Enter the ‘Koodies’
Independent Retailing: Keep Cash Flowing With Trade Terms
Progressive Grocer’s 2010 Meat Operations Review: Value on a Platter
Progressive Grocer’s 2010 Seafood Operations Review: Seafood Hits its Stride
Executive Insight Series: Lasting Impressions: Forward Thinking
Produce: Tracking the Transition to Traceability
Meat: Heinen’s Freshens up Service Benchmarks
Natural/Organic: Nature’s Best on Ice: Natural and Organic Frozen Foods
Frozen/Dairy: Cold and Colder: Trends in Frozen and Dairy
Baby Food: Green to Grow On
Green Promotions: Along for the Ride
Foodservice: Loaded for Bar
Case Study: Clean Carts
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - March 2010