Studies show that as cash-strapped consumers are eating more meals at home, the perishable department (bakery, fresh meat, deli and produce) is growing faster, leading non-grocery channels to take notice, according to Nielsen data.
About half (46%) of U.S. households say they are eating out less, and as a result, value-priced meals at retail are seeing double digit increases in supermarkets, supercenters and club stores.
While supermarkets hold 50% of the deli business, smaller formats, including convenience stores that offer “in and out” convenience are posting the biggest threat to supermarkets.
In addition, the bakery department is reporting the most significant growth of any perishable sector for grocers. Supercenters are getting more into bakery, with 16% share of this market.
As more customers opt to make food at home, they are looking to the Web for food ideas, causing meal planning to become one of the largest and fastest growing online activities.