According to Nielsen research, cookies sold in the perimeter of stores generate $1.2 billion in annual sales. This is up 7% in dollars and 4% in volume over the last year. Similarly, crackers sold in the perimeter are up 7% in dollars, 6% in volume and made up 74% of deli snack dollars spent in the same time period.
“The perimeter of the store is where growth is happening, whereas center aisles may be stagnant or may be overloaded with a bunch of brands,” Sarah Schmansky, director, business operations, Nielsen, recently told Matt Hamer, Baking & Snack’s multimedia editor.
One major force driving consumers to the periphery of the store is health and wellness. Surprisingly, that opportunity is still largely untapped by in-store bakeries.
“Of all in-store bakery sales, about 95% of items have no declared health benefit attached to them,” Ms. Schmansky said. “But when you also take a look at the demographics that are buying bakery goods, older consumers have special interest in health and wellness and better-for-you products. There’s a real opportunity to capture those consumers.”
In-store bakeries, she added, are selling more branded products as retailers search to offer more variety. Hitting a home run in this channel, however, isn’t easy, but it is another opportunity for smaller businesses.
“Although more than 1,000 brands were sold last year across the country in in-store bakeries, only four had sales greater than $100 million,” Ms. Schmansky said. “Unbranded and private label still hold the largest share within in-store bakery.”
As the holidays hit full stride, look for more companies to quietly find success in the perimeter of the store with seasonal and limited-time offerings.