Against a trying backdrop of persistently weak economic conditions, fierce competition and financially wary shoppers, supermarket produce departments faced much harsher headwinds during the past 12- month period than they have in recent years, as evidenced by marginal comparable-sales gains and a tentative outlook for the balance of the year, according to results of
Progressive Grocer's 2009 Annual Produce Operations Review.
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Total supermarket sales were $430.3 billion, up $13.2 billion from the $417.2 billion recorded in 2007 -- continuing the trend of slightly higher percentage increases in each of the past five years, according to
Progressive Grocer's 62nd Annual Consumer Expenditures Study (CES), now greatly expanded from the eight-page print edition to 35 pages of research.
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At first glance, the bulk of statistical information in
Progressive Grocer's Super 50 report appears similar to last year, but a deeper look shows there are clearly plenty of change afoot within the ranks of these leading players.
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While deli retailers have good reason to be cautious, shoppers' preferred pattern of sticking closer to home at mealtimes continues to hold much promise for the deli section, which has made profound strides promoting high-margin premium meats, higher-quality prepared meals and signature offerings.
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Though profits remain elusive, the in-store bakery has been a major benefactor of the eat-at-home mealtime trend.
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As economic pundits continue to debate the state of the economy, the grocery industry's response to
Progressive Grocer's 76th Annual Report of the Grocery Industry certainly reflects the emotional drain of uncertain economics.
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The 2009 Meat Operations Review,
Progressive Grocer's annual "state of the meat department" study, tracks a 5.3 percent net growth rate in overall department sales in spite of a skyrocketing CPI, which has risen to all-time highs.
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Aggressive retailers that prioritize seafood reel in healthy turns, but shrink, sourcing and competition continue as foremost challenges in the retail seafood category.
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