Table of Contents
Executive Summary
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- Key takeaways
- The issues
- Steady modest growth for the perimeter amid increased competition
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- Figure 1: Total US sales and fan chart forecast of perimeter-of-store foods, at current prices, 2014-2022
- Younger shoppers less likely to rely on traditional supermarkets
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- Figure 2: Perimeter retailers shopped, by age, June 2019
- Emphasis on freshness a common denominator across the perimeter
- The opportunities
- Shopping habits less well-established, younger shoppers a key target for perimeter
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- Figure 3: Perimeter shopping behaviors, by age, June 2019
- Adding convenience to fresh
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- Figure 4: Interest in perimeter product concepts, June 2019
- Younger shoppers open to ideas while shopping
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- Figure 5: Interest in perimeter service concepts, by age, June 2019
The Market – What You Need to Know
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- Steady modest growth for the perimeter amid increased competition
- Fresh produce leads perimeter sales and growth
- Center-store sales overall trail perimeter
- Most consumers report making an effort to eat healthy
Market Size and Forecast
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- Steady modest growth for the perimeter amid increased competition
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- Figure 6: Total US sales and fan chart forecast of perimeter-of-store foods, at current prices, 2014-22
- Figure 7: Total US sales and forecast of perimeter-of-store foods, at current prices, 2014-22
Market Breakdown
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- Fresh produce leads perimeter sales and growth
- Meat, poultry and seafood generate modest growth
- Declining milk consumption pulls down dairy sales
- In-store bakery an indulgent counterpoint to the rest of the perimeter
- Grocery retailers place increasing emphasis on prepared foods
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- Figure 8: Total US retail sales of perimeter-of-store foods, by segment, at current prices, 2014-19
Market Perspective
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- Center-store sales overall trail perimeter
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- Figure 9: Total US sales and fan chart forecast of center of the store, at current prices, 2014-24
- Frozen aisle emerges as a hot spot, possibly complementing perimeter
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- Figure 10: Sales of center of the store, in billions, by segment, 2014-24
- An expanding array of options beyond the store for fresh meals
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- Figure 11: Restaurant delivery and carry out net usage in the past three months, by generation, September 2018
Market Factors
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- Obesity rates rising
- Hispanics, particularly Millennials, seeking healthier foods
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- Figure 12: US population, by Hispanic origin, 2017
- Most consumers report making an effort to eat healthy
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- Figure 13: Approaches to healthy eating, May 2018
Key Players – What You Need to Know
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- Grocery retailers look to prepared foods for differentiation
- Small perimeter-focused stores could be a big part of the future of grocery
What’s Happening?
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- Grocery retailers look to prepared foods for differentiation
- Value-added fresh products appeal to interest in convenience and health
What’s Next?
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- Small perimeter-focused stores could be a big part of the future of grocery
The Consumer – What You Need to Know
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- Supermarkets hold the top spot but face challenge with young shoppers
- Emphasis on freshness a common denominator across the perimeter
- Breaking the routine
- Opportunities across the board to make local a point of difference
- Younger shoppers open to ideas while shopping
- Perimeter remains a focal point for shopper engagement and loyalty
Perimeter Retailers
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- Supermarkets continue to hold the top spot for perimeter shopping
- A variety of other retailers claim occasional perimeter purchasing
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- Figure 14: Perimeter retailers shopped, June 2019
- Younger shoppers less likely to rely on traditional supermarkets
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- Figure 15: Perimeter retailers shopped, by age, June 2019
Shopping Priorities by Perimeter Department
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- Emphasis on freshness a common denominator across the perimeter
- Secondary factors show greater differentiation across departments
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- Figure 16: Shopping priorities by perimeter department, June 2019
- Younger shoppers more likely to look beyond freshness and cost
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- Figure 17: Shopping priorities by perimeter department – Fresh meat, by age, June 2019
- Figure 18: Shopping priorities by perimeter department – Fresh produce, by age, June 2019
Perimeter Shopping Behaviors
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- Breaking the routine
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- Figure 19: Perimeter shopping behaviors, June 2019
- Shopping habits less well-established, younger shoppers a key target for perimeter
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- Figure 20: Perimeter shopping behaviors, by age, June 2019
Interest in Perimeter Product Concepts
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- Opportunities across the board to make local a point of difference
- Adding convenience to fresh
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- Figure 21: Interest in perimeter product concepts, June 2019
- Younger shoppers especially attuned to convenience
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- Figure 22: Interest in perimeter product concepts, by age, June 2019
Interest in Perimeter Service Concepts
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- Sampling stations an opportunity for retailers to show off strengths
- Nutrition signage more appealing than in-store dieticians
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- Figure 23: Interest in perimeter service concepts, June 2019
- Younger shoppers open to ideas while shopping
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- Figure 24: Interest in perimeter service concepts, by age, June 2019
Attitudes toward the Perimeter
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- Perimeter remains a focal point for shopper engagement and loyalty
- Opportunity to position prepared foods as complementary to home cooking
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- Figure 25: Attitudes toward the perimeter, June 2019
- Younger shoppers look to perimeter as a solution
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- Figure 26: Attitudes toward the perimeter, by age, June 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 27: Total US sales and forecast of perimeter-of-store foods, at inflation-adjusted prices, 2014-22
- Figure 28: Total US retail sales and forecast of fresh meat, poultry and seafood, at current prices, 2014-24
- Figure 29: Total US retail sales and forecast of fresh produce, at current prices, 2014-24
- Figure 30: Total US retail sales and forecast of milk, butter and eggs, at current prices, 2014-24
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- Figure 31: Total US retail sales and forecast of in-store baked goods, at current prices, 2014-24
- Figure 32: Total US retail sales and forecast of in-store deli/prepared foods, at current prices, 2014-24
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