IBBDA Research Offers Ideas for Boosting Bakery Bread Sales

The International Dairy-Deli-Bakery Association (IDDBA) and Nielsen Fresh have released original research that provides retailers with ideas and strategies for boosting bakery bread sales. The report examines the connections between in-store bakery breads and the rest of the store—in essence, how often product categories were purchased with bakery bread by shoppers on the same trip.

Total Store Connectivity: Revealing New Pathways to Win with Bakery Breads, an IDDBA-commissioned report prepared by Nielsen Fresh, identifies what products are most connected to bakery breads and how identifying these connections can generate larger baskets and boost sales, through new and innovative merchandising and marketing concepts.

According to the report, bakery department sales increased five percent over the past year—the second highest among supermarket fresh departments—with total annual sales of $11.2 billion. Sales of bakery bread, however, remain flat. Bread has a strong positive correlation with 56 out of 221 supermarket food categories, representing 20 percent of total store dollars and spanning eight out of 17 departments.

Fresh salmon and value-added vegetables form both a strong sales and basket connection with bakery bread, creating cross-merchandising opportunities. For example, displaying artisanal, naan, or sourdough bread with salmon and pre-chopped vegetables as an easy, quick-prep and healthy meal solution.

“Despite increased overall in-store bakery sales, bakery bread sales have remained flat and in some cases have declined,” says Eric Richard, education coordinator at IDDBA. “In addition to focusing on freshness and the simple ingredients—which many of today’s shoppers are searching for—identifying natural sales connections between bread and other store products can help retailers boost their bakery bread offerings, provide shoppers with appealing meal and entertaining ideas, and grow sales in the form of Total Store Connectivity.”

Total Store Connectivity: Revealing New Pathways to Win with Bakery Bread is the latest member research report developed by IDDBA. The research is available to IDDBA members only.