Exploring FMI’s State of Fresh Report: Trends in Fresh Grocery Retail

Exploring FMI's State of Fresh Report: Trends in Fresh Grocery Retail

In the dynamic realm of retail, where consumer preferences and market trends are in constant flux, one resounding theme has emerged: the resurgence of fresh foods as a cornerstone of retail strategies. Retailers are realigning their priorities to meet the evolving demands of customers seeking healthier, more convenient, and diverse food options.  

The 2023 State of Fresh Report from FMI unveils a landscape where fresh foods, from meat and produce to bakery and prepared meals, have taken center stage. In this article we’ll delve into the report’s key findings and add our analysis on the driving forces behind this shift and the strategies retailers are adopting to cater to this new wave of consumer preferences.

Key Trends and Insights 

Fresh Prepared Foods Take Center Stage 

As the demand for convenience intertwines with a yearning for quality, fresh prepared foods are stepping into the spotlight. This evolution is underscored by the fact that a considerable 74% of retailers are planning to expand their allocation of space to accommodate foodservice aspects, with a special focus on enticing grab-and-go options. This strategic shift responds to the modern customer’s desire for healthy, delicious, and time-efficient meals that seamlessly integrate into their fast-paced lifestyles. 

The role of technology becomes even more pronounced, amplifying the efficiency and precision of production planning and inventory management for fresh prepared foods. The fusion of AI and automation revolutionizes fresh prepared foods. AI’s data analysis predicts demand accurately, refining production plans and reducing waste. Automation streamlines kitchen processes for consistent, efficient execution, ensuring each dish matches the chef’s vision. AI-powered inventory management maintains freshness and quality, while the dynamic interplay of AI and automation transforms tasks into culinary artistry, resonating with customers as both delectable and precise.

Labor Allocation and Specialty Help 

Amidst the digital transformation, there have been fears of job displacement: the biggest concern for some stakeholders in the grocery industry when it comes to automation. With the adoption of automated systems and technologies, many traditional jobs are at risk of becoming obsolete, leaving thousands of employees without work. However, the report shows that this is not the case, with many retailers still investing in the human element. In particular, grocers are sharing plans to increase labor allocation in foodservice (38%) and specialty departments like in-store butchers, produce butchers, cheese mongers, and trained chefs (24%). This trend not only showcases retailers’ commitment to expertise but also their eagerness to provide personalized guidance that elevates the shopping experience.

Online Sales Reflect Fresh Appeal

online sales reflect fresh appeal

The virtual marketplace is undergoing a transformative freshness revolution, with fresh or perimeter departments accounting for a substantial 41% of total online sales, reflecting consumers’ unwavering pursuit of quality across shopping channels. This digital shift has expanded the accessibility of fresh produce and prepared foods, offering a diverse range of culinary delights delivered directly to doorsteps. Beyond accessibility, retailers are infusing personalization into the online experience, curating tailored recommendations to guide customers through an extensive array of options. To preserve the promise of freshness, innovative packaging and delivery solutions are employed, ensuring that every order arrives with the assurance of unrivaled quality. In this digital age, the virtual marketplace not only redefines the standards of freshness and convenience but also invites customers to embark on a global culinary journey where flavors know no boundaries. 

Addressing Shrink and Technology 

In the ongoing pursuit of freshness, retailers are harnessing the potential of AI and automation to address the challenge of inventory shrinkage—losses in stock due to spoilage or mismanagement. AI algorithms accurately predict demand, facilitating finely tuned production plans that align precisely with customer needs. Through automated inventory management systems, stock levels and expiration dates are vigilantly monitored, triggering timely alerts and enabling swift corrective measures. Furthermore, AI and automation optimize supply chain efficiency, ensuring products reach shelves promptly. These innovative technologies equip retailers with data-driven insights to proactively identify vulnerabilities, thereby preserving overall inventory quality and elevating customer satisfaction.

Learn how Invafresh Helped Price Chopper Prevent 3,000 tons of Food Waste

Cultivating a Fresh Future: Redefining Excellence in Food Retail 

In the food retail industry, the pursuit of freshness stands as a guiding principle, driving retailers to innovate and redefine standards. From the emphasis on fresh prepared foods to the integration of AI and automation, the journey towards culinary excellence is marked by strategic shifts and technological leaps. As customers demand both convenience and quality, retailers respond by expanding fresh offerings and leveraging cutting-edge technologies to enhance efficiency, reduce waste, and safeguard the promise of freshness.  By embracing technology, reimagining customer experiences, and upholding the highest standards of freshness, retailers are not only satisfying immediate appetites but also laying the foundation for a future where convenience and quality coexist seamlessly on every plate.

About Invafresh

With a combined 500+ years of Freshology experience, the heritage of Invafresh has enabled fresh food retailers to create extraordinary store operations performance and differentiated customer experiences. As the leader of Freshology, Invafresh is deployed in over 350 grocery retailers spanning a global reach of 35 countries with more than $100 million of Fresh revenue being transacted daily, to provide AI/ML demand forecasting, merchandising, replenishment, and sustainability and compliance solutions.  

Learn more at About Us | Invafresh.

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