Sales Review: Deli 2018-01-01 (1)

Deli is the fastest growing department in the fresh perimeter in terms of both average dollars and volume sales, up 6.7 percent and 4.2 percent, respectively, for the week ended Feb. 27. This growth is driven by all super-categories within the department, but specifically by the continued growth in deli prepared, which increased average weekly per store per week sales nearly seven percent and made up nearly 60 percent of all deli department sales. In addition to large growth in deli prepared, the traditional mainstays of the deli, meat and cheese, also increased average dollar sales 3.9 percent and 4.1 percent, respectively.

Average dollar sales increased across deli prepared categories. Deli prepared chicken was the highest-selling category within deli prepared ($4,137 per store per week), followed by deli salads ($2,447 per store per week) and deli entrées ($1,706 per store per week). Categories including deli prepared sushi, deli soups and deli prepared breakfast increased dollar sales by double digits compared to the previous year.  

Despite the rise of and focus on deli prepared, traditional deli meat and cheese are still very important to the deli. Deli meat sales accounted for 20.4 percent of deli department sales during the tracked period. Within deli meat, bulk meat plays a large role with more than 80 percent of total deli meat sales, followed by pre-sliced meat and specialty meat. During the latest 52 weeks, specialty posted the fastest growth, up 8.3 percent compared to the previous year. During this period, deli cheese accounted for 17.4 percent of deli department sales. Specialty cheese accounts for the majority (66.2 percent) of deli cheese sales, followed by service and pre-sliced, which was the fastest growing cheese variety during this time.

Deli beverages accounted for 3.8 percent of department sales, with deli coffee accounting for 65.5 percent of deli beverage sales and increasing average sales 10.2 percent compared to the previous year. Deli “other” beverages and deli tea each posted strong growth during the latest 52 weeks, up 8.8 percent and 13.4percent, respectively.