As consumers' eating and shopping habits continue to evolve, grocers are responding by changing up the way they allocate space, according to the Food Marketing Institute’s (FMI) “The Food Retailing Industry Speaks 2019” research.
“In the food retail world, nothing is as good an indicator of category momentum as space allocation. In this important metric, some 89% of retailers are planning increases in the allocation for fresh prepared, grab-and-go sections in the next two years, taking advantage of shoppers’ demands for meal solutions,” said Leslie Sarasin, FMI’s president and CEO in a recent webinar hosted by the institute.
Here are other categories anticipated to gain more space at grocery stores ( figures below indicate % of retailers planning to give these categories more space):
- 63% fresh produce
- 56% deli-fresh prepared self-serve bars and buffets
- 62% online fulfillment
- 75% diet-focused foods--paleo, keto, gluten free
- 73% meat substitutes
And private brands continue to gain traction, said Sarasin, with food retailers indicating they plan to continue growing investments in private brands, with 56% of companies expecting to give more space and SKU allocations to these products over the next two years.
The survey captured responses from more than 100 U.S. and Canadian food retailers, representing 36,000 stores.
This article appeared in
Canadian Grocer’s November issue.