CATEGORY MANAGEMENT | DELI
Supermarkets enhance their focus on foodservice Deli operators are targeting the restaurant customer for growth
BY RICHARD MITCHELL
Retailers must meet price and quality standards if they are to make delis attractive shopper destinations.
SUPERMARKET DELIS are becoming more potent meal destinations. Greater numbers of shoppers are pur - chasing prepared deli selections as retailers expand assortments and position the items as affordable alternatives to eating out. The share of consumers choosing deli prepared foods in place of restaurant meals rose from 12% in 2017 to 28% in 2025, states Arlington, Va.-based FMI—The Food Industry Association. Helping to drive the increase are the 53% of Americans who combine deli-prepared options with items from their own kitchen, said Andrew Brown, FMI senior manager, fresh foods. “Shoppers believe hybrid meals help alle - viate the burden of cooking from scratch and that deli-prepared foods offer an eco - nomic option, timesaving, flexibility and support for consumers’ health needs,” he said. The deli department also is gaining strong traction as part of a broader fresh perimeter resurgence in grocery, said Jake Del Valle, vice president of food insights for NielsenIQ, a New York-based consumer intelligence firm. Spurring activity is increasing shopper
interest in options that deliver convenience and quality, “which are strengths the deli department is uniquely positioned to offer,” he said. Delis benefit too from the substantial amounts of consumers who cite quality of product (66%) and ingredients (56%) as top sales drivers, NielsenIQ research found. “The deli delivers on both fronts,” Del Valle said. “Customers can see what they are getting, and often with products that are prepared fresh in-store.” In addition, larger amounts of younger consumers are gravitating to the fresh perimeter departments of supermarkets, he said, noting that many millennials (persons born between 1981 and 1996) and Gen Z shoppers (persons born between 1997 and 2012) care about transparency, clean ingre - dients and protein, “which are all strengths of the deli department.” Prepared deli categories registering strong unit sales growth over the last year were salads (up about 6.6%), prepared meats (about 5.7%) and appetizers (about 4.2%), Circana reports. Such increases are occurring despite an average deli price increase of about 2.5%
for prepared foods and meals over the last year, Circana states.
SERVE THE SHOPPER Offering attractive products is vital for sustaining growth as shoppers are increas - ingly discerning, Del Valle said, noting that NielsenIQ research found that only 37% of consumers cite brand reputation as a trust driver and 72% would switch brands if they lost trust in their current brand. “The deli can’t just rely on its name anymore,” he said. “It has to prove itself every time a customer stops by.” Operators can strengthen customer interest by “telling the story behind the products,” including the origin of items; how staffers prepare selections; and the elements that make selections special, Del Valle said. “That visible freshness and personal service is a competitive advantage in an increas - ingly digital grocery world,” he said. Astute retailers also are fine-tuning their deli mix in accordance with local prefer - ences and daypart demand, Del Valle said. “Focus on items that drive traffic, whether that is a signature sandwich, premium
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