Help Isom IGA recover from devasting floods
Help Isom IGA recover from devasting floods
With $87.1 billion in sales, 98.3% household penetration and 50 shopping trips per year, meat is the most powerful of the fresh departments. As the summer grilling season heats up, so do meat sales. It’s a sizzling trend, with department sales increasing more than $9 billion in the last four years, according to a report by IRI and 210 Analytics.
Shoppers spend 118% more when meat is in the basket, according to IRI, so we have assembled top tips from industry experts to help independent grocers capitalize on this meaty opportunity.
1. Offer A Varied Assortment
A wide assortment caters to the diverse preferences and dietary needs of your customers. After all, Americans bought an average of 42 different cuts or kinds in the meat department in 2021, according to IRI.
"If you offer a wide range of cuts and types of meats, shoppers can find what they're looking for," said Bob Buonomano, owner of Bob’s Windham IGA in Willimantic, Connecticut. That includes premium products for special occasions like beef ribeye, lamb chops, pork ribs, and pork shoulders; in addition to everyday budget items like ground beef, chicken breast, and thighs.
2. Stock Top Sellers At A Reasonable Price
To establish your store as a reliable place for meat, especially in this unpredictable supply environment, stock your top sellers at a reasonable price. When customers can consistently find the meat products they need, they are more likely to choose your store as their go-to destination, creating a loyal, long-term relationship.
Jimmy Wright of Wright's Market in Opelika, Alabama followed this pricing strategy. He set an everyday fixed price on three core items in the meat department: ground beef, chicken wings, and ox tails, which have been in the store's advertisements for over a year. This approach has kept customers coming back despite inflation.
"We were fortunate that things stabilized so we never got to that point where we took a loss on [the core items]," Wright said, adding that the prices of these items have fluctuated a small amount.
Stodola's IGA in Luxemburg, Wisconsin is widely known for selling local Salmon's Meats sausages and hot dogs. These offerings are so popular, they helped the store earn a "Best Supermarket" award from a local radio station! Keeping these types of popular products in stock and priced fairly will earn shopper loyalty.
3. Consider Bargain Bundles
According to the USDA, total meat production in the U.S. this year is expected to decline by about 1%, to about 105.9 billion pounds. Beef production is expected to fall by about 5%, and pork production is expected to decline slightly (less than 1%). With
decreased meat production in the U.S. due to droughts, foodservice providers and grocers are paying more for their offerings, which means so are shoppers. Grocers can help keep costs down for shoppers by offering meat bundles and whole cuts at a lower price.
Bob’s Windham IGA offers a truckload meat sale every other month.
"It's very successful. We generate $200,000-250,000 in sales during each one," Buonomano said.
The butchers at Bob's Windham IGA stay busy all day.
Geissler’s Supermarkets, a seven-store group in New England, also knows the importance of meat bundles. They have made their stores a barbecue headquarters by offering bundles.
“We started these quite a few years ago, and we find it helps kick off grilling season and gets people thinking about it,” said Carol Carlson, director of electronic media at Geissler’s. “It allows both in store, online, and digital advertising to combine to give an omnichannel effect from home, online to store.”
For the griller hosting a backyard barbecue, Geissler’s offers a Grillin’ Bundle for $89.99, which includes the following packaged in a Geissler’s reusable bag:
Geissler's President and CEO Bob Rybick shows off their Grillin' Bundle.
4. Offer Healthy & Sustainable Meat Options
One trend that the pandemic did not stop: consumers are hungry for healthy proteins and seek to lead more sustainable lifestyles. Grass-fed Beef is a delicious and healthy choice for today's shoppers. The grass-fed beef market is estimated to grow at a CAGR of 6.9% between 2022 and 2027, and the size of the market is forecasted to increase by USD $12.15 billion.
With shoppers willing to pay 20% more for sustainable fresh meat, according to a Midan Marketing meat consumer tracking survey, grass-fed beef is an alternative worth exploring.
Want to know more about healthy and sustainable meat from Australia? Click here for resources and information.
5. Highlight Your Assortment
“I treat our meat case like a painting” Buonomano said.
Organize your meat case to appeal to customers' preferences and entice them to experiment with new cuts through in-store and offer online education. In store, post shelf signs that tout the benefits of different cuts, like whole top butt sirloins, flank steak, and pork shoulder. Use that same content in social media posts and on your website to promote your offerings. And remember to call out your differentiators, including specialty cuts, unique items, and (especially) healthy alternatives.
On a normal day, Bob's Windham IGA has 63 different cuts of fresh beef.
McCormack recommends merchandising grass-fed products with vibrant colors in your meat cabinet to help it stand out, along with signs that call out the grass-fed beef and/or highlight the its benefits.
6. Educate Shoppers
Grocery stores build trust with shoppers through education. In today's food-conscious era, customers seek transparency and information about the products they purchase. By providing accurate and reliable information about different cuts, types of meat, sourcing, and production methods, a grocery store can establish itself as a trusted authority on meat.
Buonomano established Bob's Windham IGA as a meat-first institution by becoming a source of knowledge on meat through training.
"I've been a butcher since I was 15, I have always run a quality meat department,” Buonomano said.
He took it a step further with the store’s Help Save The Butcher website, a hub of insightful content where their butchers answer questions like, “What’s a good steak for the grill?” or “What’s the difference in stew meat?”
It has paid off, as the store's meat department generates well over 35% of the store’s gross profit for the year.
Just as you can boast the benefits of each cut of meat, you can boast the benefits of grass-fed, local meat, and even Australian meat, connecting it to the environmental messaging.
IGA's signage can help shoppers choose the right meat.
7. Use Promotions To Attract Attention
Leverage every digital channel your store has, including social media, websites, emails, and digital ads, to get the word out about your assortment and any promotions running. Pair with in-store displays to reach a wider audience.
Buonomano makes his email subscribers feel special by giving them a heads up on the truckload sale specials. They can visit the day before the actual sale happens to receive the sale pricing. On that day alone, he will make about $20,000 in sales.
McCormack recommends running limited time offers (LTOs) on ground beef with attached recipe information.
As shoppers and retailers adjust to new ways of shopping and cooking more at home, finding and engaging with shoppers in non-traditional ways has never been more relevant. By implementing these strategies, your independent grocery store can stand out as an authority on meat, and drive success in the meat department and beyond.
These Stories on Restore the Shelf
8745 West Higgins Road
Ste: 350
Chicago, IL 60631
Phone: (773) 693-4520
Fax: (773) 693-4533
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