Supermarkets are seeing some promising numbers from the bakery department so far in 2024. In fact, according to the International Dairy Deli Bakery Association’s most recent “What’s In Store” update, perimeter bakery sales are performing slightly better than center store, with breads and rolls looking especially strong.
In June, the bakery department brought in slightly over $2 billion in sales, the report said, listing desserts and sweet snacks taking in $1.1 billion; morning bakery representing a little more than $499 million; and breads and rolls seeing $400 million in sales.
Michael Docherty, senior vice president of marketing and strategy for Rise Bakery Co., a member company of the IDDBA, said economic fluctuations caused many households to become more budget conscious, creating a few bakery trends that arose from this uncertainty.
“Consumers are seeking out more affordable versions of their favorite products in the bakery section, seeking budget-friendly versions of their favorite delectable baked goods, such as individually sized cake squares,” he said. “Despite being budget-conscious, many are still willing to splurge on prepared items like artisan breads or a sweet treat to complement a meal and provide a taste of the restaurant experience.”
In response, Rise Bakery recently launched iced, precut cake squares to help retailers keep up with this demand and better utilize labor, delivering on consumer cravings in a smaller portioned, right-priced format.
Trending up
Maria Brous, director of communications for Lakeland, Fla.-based Publix Super Markets, continues to see a rise in customers looking for indulgent options, but perhaps in smaller quantities. For instance, the retailer offers customers the opportunity to purchase cake slices, mini cakes, two-pack options, etc.
“In addition, our customers continue to look for freshly baked and artesian options within our bakeries,” Brous said. “We continue to produce scratch-made fresh bread daily, with new options introduced such as our Tutto bread. Also, there’s appetite for bakery desserts that incorporate fruit filling and fresh ingredients. We’ve introduced new varieties in our Tres leche cakes, mini novelty cakes which include fresh fruits and add-ins like chocolate chips in the icing as well as the cake batter and mini glazed croissants.”
Whitney Atkins, vice president of marketing for the IDDBA, said there is a continued growth in the demand for gluten-free and vegan bakery items and believes this is a segment that will continue to be on the upswing.
The IDDBA has also noticed a continued rise in snacking in the U.S., driven by younger generations who are prone to snacking several times a day.
“We’ve seen retailers have success with creating smaller pack sizes using their existing cookies,” Docherty said. “This entices shoppers looking to have a snack but not wanting to commit to a larger package.”
Jacqueline Alfano, marketing and administration director for Pembroke Pines, Fla.-based Doris Italian Market & Bakery, has seen an increased consumer desire for pistachio-flavored items this year, including cannoli, cheesecake, biscotti, pound cake, and muffins.
“All flavored cannoli and eclairs are big right now,” she said. “We started making chocolate-covered cannoli with different fillings such as hazelnut, pistachio, and tiramisu cream. We also started selling different flavored eclairs such as blueberry, coffee, and mango passionfruit-flavored creams in the eclairs.”
To appeal to those shoppers looking for individualized desserts, the store carries a variety of specialty cake slices and flavored cheesecake slices, which allow customers to try multiple items instead of purchasing one single cake.
“We also offer different flavored breads such as tomato basil, rosemary olive, and cranberry walnut,” Alfano said.
Savvy display tactics
Whether it’s a seasonal flavor, a gorgeous cake design, or an exciting new flavor, creating stimulating, eye-catching displays are essential to help drive traffic to the bakery.
For instance, highlighting seasonal products or exciting flavors can entice consumers and spark one’s curiosity to explore the broader suite of products.
A savvy way supermarkets are getting the word out about their bakery offerings is by showcasing them on social media accounts — especially Instagram and Facebook.
“This provides a mouth-watering visual to our customers which increases the demand and awareness of our products,” Alfano said. “We also feature four to five items a week at a discounted advertised price to entice our customers to purchase different items each week.”
Special events and holidays can also be a boon to bakery sales. Whether it’s peaches, s’mores, or a classic like pumpkin, Docherty said building a display of products based on a seasonally craved flavor can attract consumers to the bakery.
“Placing this type of display close to the aisle of the bakery helps to draw consumers in,” he said. “And including bakery displays for impulse categories, such as cookies, crispy bars, and brownies in high-traffic areas can help appeal to those more unplanned purchasers or consumers looking for a grab-and-go option.”
After all, customers purchase with their eyes first, so creating warm, welcoming bakeries with fresh product displayed to engage the senses is a priority for all retail bakery departments.
“We also offer customers the opportunity to be assisted by a knowledgeable, friendly associate or they can self-serve with grab-and-go items as well,” Brous said. “In addition, customers can shop online and in-store. Our goal is to meet our customers where they are and to help them make memories to last a lifetime.”
With a focus on affordability, smaller portion sizes, and innovative flavors, bakeries are meeting the demands of budget-conscious shoppers while still offering indulgent and artisanal options that consumers crave.
