Perimeter fresh sees slow down

As inflation and other economic concerns continue to put pressure on consumer spending, sales momentum in perimeter fresh categories has slowed, according to the results of our 2024 Supermarket News Fresh Foods Trends Survey.

Many of you said food-price inflation was a significant factor driving negative sales trends, leading consumers to rethink their purchasing habits throughout the store. You also cited economic conditions in general as contributing to a slowdown in perimeter sales.

Some third of this year’s respondents — about 32% of you — said you expect sales to remain flat, and 12% said you expected sales to decline.

Despite the overall slowdown in perimeter fresh, many of you said your fresh departments performed well during the past 12 months, being given a boost by prepared foods and high-quality produce assortments.

As retailers continue to grow their prepared foods offerings, they find themselves increasingly competing with some of the leaders in restaurant, like Panera Bread, Chipotle, and others. In fact, 54% of retailers said fast-casual restaurants such as those were their No. 1 competitor for prepared foods sales, and 39% said traditional fast-food restaurants such as McDonald’s and Chick-fil-A were their top competitors.

The landscape is shifting and 2024 is wrapping up. We’ll have more forward-looking trend pieces for you as we approach the very futuristic-sounding 2025. Stay tuned.