How to overcome the consumer perception that seafood is expensive

Many fresh seafood shoppers need an attitude adjustment.

While consumers typically have a positive perception about seafood, including its key role in a healthy diet, a large segment of price-conscious buyers also view seafood as an expensive luxury item that is easy to skip, analysts said.

Changing that belief is essential for growing sales and will require an education initiative from merchandisers, said Rick Stein, vice president of fresh foods for Arlington, Va.-based FMI—The Food Industry Association. That includes spotlighting the portion price of seafood instead of the price per pound, which is typically greater than that of such competing proteins as beef, pork, and chicken, he said. 

“Instead of eating 10 to 15 ounces of protein at a sitting, the seafood customer will typically consume just four ounces or less,” Stein said. “Retailers should zero-in on the marketing idea that seafood is affordable based on the amount that consumers will eat, and that it also is easy to prepare and features healthy attributes.”

Having knowledgeable seafood counter workers converse with shoppers is an ideal way to convey such information, he said. “Many retailers are scratching their heads on how to merchandise products,” Stein said. “The most successful departments have engaging staffers.”

Related:Why it doesn’t take much when it comes to seafood messaging

Because such individuals who can put potential seafood buyers at ease “are hard to come by,” retailers should develop training programs that instruct associates on how to interest and talk with customers, he said.

“The work force must have the tools to be successful, and that is a struggle as it takes commitment from the retailer,” Stein said. “It is difficult for many operators to invest in seafood in tough economic times. Staffers want to be helpful, but many do not know what to say or how to say it.”

The focus by retailers on total store profits further hampers seafood merchandising, he said. “Seafood only accounts for about 2 to 3% of overall store sales, so operators are not emphasizing the category,” Stein said. “It doesn’t generate the same bang for the buck as the center store or meat department.”

While frequent seafood eaters do not need prodding, higher inflationary prices are limiting purchases from occasional buyers, Stein said, noting that the segment should receive the bulk of merchandising attention.

“Converting the non-eater is too expensive,” he said. “There is too much to squeeze, and it is not worth the juice. It is better to target the millennials with children who can afford seafood and eat it occasionally, even though some might perceive it as an unaffordable protein. Engagement at the store level will help change their behavior.”

Related:How to keep your supermarket’s seafood counter relevant

Spread the word

Retailers can spur further activity by introducing more seafood choices in the supermarket deli and prepared foods departments to attract convenience-oriented shoppers, he said, including such popular items as salmon and shrimp. “If the consumer likes it, they will buy more, and that purchasing will eventually roll back to the seafood department,” Stein said.

Along with counter workers, the store app and online messaging are effective vehicles for conveying information about seafood, he said, noting that shoppers often will overlook in-store signage because of the barrage they encounter throughout an outlet.

“There is more signage in stores than consumers can take in,” he said. “Just putting up a sign does not get it done. There needs to be greater interaction with shoppers.”

Effective messaging will illustrate the ease of cooking seafood while spotlighting product attributes, Stein said, such as being a reliable source of Omega-3 fatty acids, which many medical professionals attribute to reductions in the risk of heart disease.

In addition, retailers can profit from sending personalized emails to shoppers, particularly during Lent and National Seafood Month in October when retailers have greater motivation to capture sales, he said.

Related:Why supermarket shoppers are giving a cold shoulder to frozen seafood

Keep addressing the cost concerns

Further decreases in sector pricing will entice more consumers to purchase seafood as well, analysts said. Fresh seafood prices fell about 1.8% over the last year with the cost of three of the most popular selections, crab, shrimp, and salmon, declining approximately 11.7%, 6.5%, and 0.6%, respectively, reports Circana, a Chicago-based market research firm.

In the meantime, more retailers are seeking to attract cost-conscious consumers by increasing their seafood promotions and featuring seafood in the weekly fliers, Stein said. 

“Many shoppers cut back on their seafood buying as inflation hit,” he said, “as there is only so much money to spend on grocery shopping. Consumers will reduce their purchasing of what they consider to be indulgent items. But seafood sales will come back, particularly as many customers heavily connect seafood to health and well-being.”