Sales Review: Deli 2018-01-01 (4)

The fresh deli department continued to drive fresh growth at retail, increasing dollar and volume sales during the 52 weeks ended Feb. 25, up 2.4 percent and 2.9 percent, respectively. During the tracked period each of the five deli areas (prepared foods, cheese, meat, beverages and “other,” which maintains miscellaneous deli products) increased dollar and volume sales, with the exception of meat, which maintained sales compared to the previous year.

Prepared foods accounted for 59.2 percent of total deli department sales and was the engine of deli department growth. Prepared foods increased average dollar and volume sales 3.5 percent and 3.7 percent, respectively. During this time, each of the 15 deli prepared categories increased dollar sales compared to the previous year, with the exception of prepared pizza, which decreased dollar sales 1.8 percent. Sushi posted the largest increase, up 17.5 percent; followed by soups, up 8.2 percent; and deli desserts, up 7.5 percent. Prepared chicken was the top-selling prepared category at 27.1 percent. The category posted average sales of $4,253 per store per week during this period. Salads was the second largest prepared category, posting average sales of $2,562 per store per week, followed by entrées at $1,720. 

Meat and cheese are still important pillars of the deli department. Meat accounted for 20.1 percent of department sales and maintained dollar sales compared to the previous year, down 0.2 percent to $5,336 per store per week. Bulk meat increased average dollar sales 0.1 percent, while deli pre-sliced meat decreased 2.9 percent, and specialty meat (which accounts for just 4 percent of deli meat sales) increased 2.7 percent.
Cheese accounted for 16.6 percent of deli sales and posted sales of $4,408, up 0.8 percent compared to the previous year. Specialty cheese accounted for 65.9 percent of deli cheese sales and increased average dollar sales 2.6 percent, followed by service and pre-sliced, which decreased average dollar sales 0.3 percent and 10.6 percent, respectively.