How Retailers Can Grow Their Fresh Assortments
Consumer habits are shifting, driving unprecedented growth for Fresh departments. Perimeter products, such as dairy, bakery items, meat & seafood, and deli, now account for 42% of total food sales, according to The Food Industry Association’s (FMI) 2024 State of Fresh Foods report. Over the past four years:
- Meat sales reached $94.1B, growing 3.9% last year
- Deli sales rose to $49.1B, up 2.3%
- Refrigerated sales hit $93.7B and grew 5.4%
These figures show that this isn’t just a passing trend — it’s a fundamental shift in consumer shopping habits. Providing a vibrant, diverse selection of Fresh items drives more in-store visits, as most shoppers prefer to handpick their own Fresh products. This allows retailers the opportunity to strengthen customer connections and build loyalty. Armed with this insight, retailers should pursue advanced planning to optimize sales and keep customers engaged all year long.
Data Behind Fresh Assortments
The first step to winning in perimeter categories isn’t about jumping straight into expansion — it’s about taking a smart, data-driven analysis of the current market landscape to identify the best opportunities. Many large retailers are already responding to these trends, as 79% have ramped up their Fresh grab-and-go space. Analyzing sales data from the past year, along with seasonal trends, helps validate what resonates with customers and provides a clear roadmap for strategic adjustments.
As retailers enhance their perimeter offerings to attract customers, leveraging technology to collect customer data and better understand shopper preferences is critical. With 40% of retailers now using advanced Fresh inventory and planning solutions — double the rate from last year — technology provides valuable insights, creates personalized shopping experiences, and improves operational efficiency. Staying competitive isn’t just about keeping up with trends; it’s about leading with evidence-based strategies to provide consumers with the products they look forward to finding on shelves.
Perimeter Category Solutions
According to FMI research, 83% of successful retailers already use local assortments to stand out from the crowd. A strategic partnership with a distributor helps retailers stay ahead, overcome challenges, and focus on their core offerings and profitability. Here are three key solutions retailers can expect when partnering with an experienced food distributor:
- Labor Solutions
Fresh perimeter products offer significant sales opportunities but can come with their own unique challenges. Seasonal products, in particular, can be impacted by everything from spikes in demand to environmental or production challenges. Seafood, dairy, and bakery items can be affected by ingredient shortages, compromised crop yields, increased demand, or labor shortages at production facilities. FMI reported in 2024 that some retailers are navigating 8.0% of vacancies in seafood, 7.3% in dairy, and 6.2% in in-store bakeries.
With Fresh departments experiencing manager vacancy rates of 6-8%, partnering with a national food distributor like KeHE Distributors® helps retailers sustain premium Fresh offerings and tap into a network of category professionals while alleviating labor demands. Staffing specialized roles, such as cheese mongers, has been a significant challenge for retailers. To address this, KeHE has introduced a Cut-and-Wrap program, streamlining labor by handling everything from bulk cutting to precise portioning. This not only reduces in-store labor costs but also ensures retailers can focus on assisting customers while offering high-quality, consistent cheese products with an extended shelf life.
- Innovation Support
The right distribution partner doesn’t just support retailers — it drives innovation in planning, technology integration, and supply chain management, helping them stay ahead in the evolving perimeter food space. KeHE empowers its partners with a network of suppliers and manufacturers to offer a Fresh assortment of over 24,000 products, giving them a first-to-market advantage with emerging trends and in-demand products. Retailers also gain access to cutting-edge tools that streamline logistics and drive innovation, making everything from ordering and shipping to data analysis and strategic decision-making intuitive and efficient.
- Deep Expertise
An experienced distributor equips retailers with the insights and resources needed to offer customers high-quality, Fresh products that tell a story. KeHE’s in-house team of Fresh Category Managers ensures retailers have access to the best products, carefully curated to drive sales and store visits. With access to this deep expertise, retailers can confidently stock their shelves with standout selections that keep customers coming back.
With almost half of the potential total food sales on the line, perimeter assortments can make or break retailer success. As more consumers prioritize their health, this trend reflects a lasting shift in shopping behavior. By partnering with an experienced distributor like KeHE, retailers can set themselves up for long-term success in every category. Learn more about how KeHE can support retailers in Fresh here: https://www.kehe.com/fresh-perimeter-store/.