Priorities dictate US purchase decisions

Shifts in the availability of fresh food across US retail channels spurred competitive promotional strategies at supermarkets in 2009, according to recently-released fresh department studies by the Perishables Group.

In the fresh produce, deli, bakery, meat and seafood departments, health remained a top priority for consumers, as did stocking up on purchases when a good value was available with consumers responding well to aggressive promotions across food departments.

“Consumers have developed the habit of buying items primarily when they are on sale,” said Perishables Group President and CEO, Bruce Axtman. “Retailers responded by offering deep discounts to draw in consumers and build loyalty in the face of competition from multiple channels.”

The increased availability of private label items, coupled with consumers’ desire to purchase products that offer low prices but high quality, also boosted private label sales by 1 per cent across fresh food department in 2009.

And although consumers were value-conscious last year, health still remained a top priority, with “natural” products gaining popularity with sales growing in all departments except meat, while sales of organic products declined in the bakery, deli and seafood departments.

The interest in health and increased distribution of ready-to-eat and fresh-cut produce helped boost fresh produce department volume growth in 2009.

Increases were recorded in the prepared vegetable category including beans, broccoli and cooking greens, and sales of herbs also rose as well as healthy snack fruits such as prepared pineapple and grapefruit.

“After keeping tight budgets in 2008, it became clear in 2009 that consumers are now willing to spend more for fresh food items if they perceive the value to be high,” added Mr Axtman.

“Though supermarkets are facing increased competition from other retail channels, they can come out ahead if they understand the balance between providing the appropriate assortment for their shopper demographic, and driving sales through value rather than price.”