Bio • Email • Archive
 

Whatever happened to the center portion of supermarkets?

You remember those center aisles - canned veggies, ketchup, laundry detergent, soup, coffee. All the boring stuff. The black-and-white stuff. Well, it's all still there, but the real action these days is on the perimeters of supermarkets. That's where you find the deli and fish counters, the bakery, the cheese cases, and all the fruits and vegetables. That's creating some concern among the middle-of-the-store crowd. From the NYT:

Analysts have been surprised by the volume of sales declines over the last two quarters. Heinz reported a drop of 2.4 percent in its second quarter. Kraft unit sales were down 2.8 percent in its first quarter, and at Kellogg, its North American volumes were down 1.7 percent in its second quarter. With center store sales down, the most forward-looking supermarkets are rethinking the allocation of space -- shrinking the staid center and expanding the sexy perimeter. In the Eaton Cub, for example, the produce, bakery, deli, meat, seafood and other perimeter areas occupy roughly 40 percent of the store, Ms. Lessard said, compared to 20 to 25 percent of Supervalu stores that have yet to be remodeled. "There's been some stagnation in center-of-the-store sales," said Jeffrey M. Ettinger, chief executive of Hormel. "Frankly, I think those of us who sell products there have been a little slow to innovate, and in the meantime, sales around the store perimeter have been strong."

More by Mark Lacter:
Early assessments on the Paul Ryan pick
Whatever happened to the center portion of supermarkets?
Why Romney's put-down of California was so bone-headed*
State power officials ratchet down heat warning
Latest crackdown on local sweatshops
Friday morning headlines
Big bump in $1-million+ California homes
City can't figure out how many parking lots it has
State power officials declare flex alert
L.A. financial giant is sold
Recent Retail stories:
Whatever happened to the center portion of supermarkets?
Friday morning headlines
Wednesday morning headlines
Westwood gets luxury movie theater
Monday morning headlines

New at LA Observed
Follow us on Twitter

On the Media Page
Go to Media
On the Politics Page
Go to Politics

LA Biz Observed
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
LA Observed on Twitter and Facebook