Mixed Bag

Mar 16, 2009 12:00 PM, By CHRISTINE BLANK


Produce departments are benefiting from eat-at-home trends as value-conscious shoppers respond to lower prices, aggressive promotions and healthy eating concerns By: By CHRISTINE BLANK

Facing a deepening recession, many shoppers are closely watching their food budgets — dining out less, eating at home more often and planning their shopping trips more carefully. These trends are creating unique opportunities in some fresh food departments. For example, as SN reported last week, meat and poultry wholesale costs have fallen as a consequence of lagging demand from the restaurant industry, even as retail demand has risen.

Unfortunately, this hasn't been the case in produce departments. During the fourth quarter of 2008, average retail prices on produce rose 6.1% compared with the same period a year earlier, according to scan and loyalty card data compiled by The Perishables Group, Chicago. Meanwhile, 26 of the top 30 produce categories saw volumes decline in December, with total volume sales down 4.3%.

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