Reinventing Supermarket Perimeters: Transformations by Dairy, Deli, and Bakery
Recent trends in grocery shopping are focusing on convenience and boosting sales, with a particular emphasis on cross-merchandising and prepared meal solutions, especially in the dairy, deli, and bakery sections. Retailers are creating thematic, easy meal combos by grouping complementary fresh and dry goods together, allowing shoppers to complete meals in one stop.
Key practices include cross-merchandising fresh ingredients and related products across departments, such as pairing deli sandwiches with bakery breads, dairy cheeses, and produce like lettuce and onions for complete meal kits. Using self-contained refrigerated display cases that are movable and allow dry goods (e.g., burger buns) to be merchandised alongside refrigerated deli or dairy items increases visibility and impulse purchases.
Creating eye-catching, experience-driven presentations that draw shoppers in, such as themed deli displays with creatively shaped breads or curated meal bundles, encourages customers to stop and explore a broader set of products. Merchandising strategies that tell a "story"—for example, displaying all ingredients for a particular meal (like a burger or sandwich) together—inspire shoppers and increase basket size.
Emphasizing easy, ready-to-eat or heat meal solutions by expanding deli-prepared produce combos and integrated meal kits caters to busy consumers seeking convenience. These trends reflect a broader shift toward seamless shopping experiences where grocery retailers use cross-merchandising to reduce shopper effort while promoting prepared meal solutions, mainly in fresh departments.
The approach also leverages enhanced displays with good lighting and thematic designs to highlight product visibility and inspire additional purchases around dairy, deli, and bakery offerings. Nearly one-third of consumers noted that they're dining out less frequently and turning to grocery stores for convenient meal solutions.
Family Fare stores, for example, offer shoppers the ability to find a chef-prepared entree, fresh-baked rolls, and a specialty cheese, all in one trip. SpartanNash is one retailer working to deliver options, including at its recently refreshed Family Fare stores in Michigan.
Some retailers opt to use paper/digital coupons instead of physically moving merchandise to overcome operational hurdles in such displays. The Fresh Market store in Algonquin, Ill., has a large case of ready-to-cook meal solutions and a nearby case filled with portioned cheese and pre-made dips and spreads.
Grocers are focusing on providing solutions across dayparts and occasions, including prepared or nearly prepared meals and offerings for recipes and snacking. The success in these areas is based on execution, according to Anne-Marie Roerink, principal at San Antonio-based insights firm 210 Analytics.
In addition, Rick Stein, VP of fresh foods at Arlington, Va.-based FMI - The Food Industry Association, states that retailers and suppliers aim to provide shoppers value beyond just price and quality, offering experience, relevance, and convenience. "Bakery and deli also have a dream opportunity in the ongoing popularity of charcuterie," according to Anne-Marie Roerink.
Research from NFRA shows how nutrition, convenience, and family appeal are redefining the trusted refrigerated foods section. The perimeter of modern grocery stores is being softened to create a more rounded approach to meeting shopper needs. Retailers can drive a bigger ring by putting whipped cream next to or near pies for even more households to purchase whipped cream with their pie, or for others to purchase a larger size.
Overall, the focus on cross-merchandising and prepared meal solutions is aimed at making grocery shopping more convenient and enjoyable for consumers. By grouping complementary goods together and offering easy, ready-to-eat or heat meal solutions, retailers are helping shoppers solve the question of 'What's for dinner tonight?' and providing a more seamless shopping experience.
- In an effort to cater to the growing demand for convenience and ease, market research indicates that retailers are increasingly focusing on cross-merchandising food-and-drink items such as pairing deli sandwiches with bakery breads, dairy cheeses, and produce, to create complete meal kits.
- To appeal to shoppers seeking a more integrated shopping experience, home-and-garden products, like reusable cake stands, can be merchandised near the bakery section, thus offering a lifestyle-focused solution for customers who desire to present homemade products attractively for special occasions.
