The chilled and fresh category is nowhere near its potential in the convenience channel, but with consumers trends dictating that a strong chilled offering will grow sales, it’s time that every local retailer was taking a look at what they could offer.
There’s no greater enigma in convenience retailing than chilled and fresh. All signs point to huge demand for fresh produce and yet it is an area very much under-developed in huge numbers of stores. Fears over wastage and not enough information on ranging and merchandising have held up growth, but many local retailers are now showing how successful a store can be when using fresh as a footfall driver.
When combined, chilled and dairy are showing +9.4% growth in convenience, proving there is demand – whether that’s in fresh produce, chilled meal solutions or one of the other chilled sectors.
“To win in convenience, it is increasingly important to win in chilled foods,” says Clare Bocking, Sales Director for Convenience, Kerry Foods.
Bocking says that getting the chilled fixture right means higher sales for retailers. The company has launched a new category vision aiming to build a nation of chilled experts, and it is looking to work with convenience retailers to ensure that they are managing shopper missions and offering suitable meal solutions.
The guide challenges retailers to identify their current ability in chilled food retailing and then use a series of tips and tricks to reach one of three levels of chilled sales excellence:
Get Chilled Fit is aimed at retailers with limited space (eg: a one bay chiller). Building a Nation of Chilled Experts offers a step by step guide on how to offer customers the right range, display and pricing structure, while Build The Basket is for retailers who already have two or more bays of chilled food, but who want to learn more about how to increase basket spend. Finally, Destination Chilled aims to equip best in class retailers with the skills to reach the ultimate level in chilled food retailing, promoting the management and development of cross-category display and offering promotions throughout the day to cover different occasions, as well as zoning stores by mission to spread the chilled offering throughout the store.
The key benefit of a better chilled fixture is better sales. It’s that simple. Susan Nash, Trade Communications Manager at Mondeléz International points out that chilled shoppers spend nearly double the average convenience store shopper, and chilled items are the number two reason for visiting a convenience store. “What’s more, these products are the most frequently purchased category in the convenience sector,” she says.
The little and often trend is also highlighted by John Armstrong, Marketing Director, Kepak Convenience Foods, who says: “People’s lifestyles are changing. The traditional three meals a day has been replaced by snacks and smaller meals throughout the day.”
Armstrong suggests this trend is set to continue, adding that it provides a major profit opportunity for retailers to boost their chilled sales. “It’s important for retailers to stock the key brands that are sought by young adults. Rustlers’ core consumers are 16-34 year olds – perfect for stores with a large young adult population nearby.”
For retailers looking to maximise growing demand for hot food to go products, Kepak is backing its Rustlers Super 6 – Rustlers top-selling SKUs all price-marked at £1.99 – range with major marketing.
Shelf tray success
In a bid to ensure the micro-snacking fixture is continuously well-managed, Kepak Convenience Foods introduced branded shelf trays. These not only draw consumers’ attention to the fixture, they also help retailers manage stock levels, and increase visibility and availability which ultimately drives sales.
Some retailers have experienced sales increases of up to 55% after introducing the shelf trays.
“It’s important that retailers keep their POS simple,” says John Armstrong, Marketing Director, Kepak Convenience Foods. “Where possible they should always look at POS from a category perspective to help shoppers navigate the store and use beacon brands such as Rustlers to direct shoppers to the fixture.”
For retailers looking to introduce hot food to their store, the Kepak branded Hot Snack Station microwave and stand has been shown to boost sales by 280%.
