Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.
Issue link: https://specialtyfoodmagazine.epubxp.com/i/282647
THE STATE OF THE SPECIALTY FOOD INDUSTRY ❘ 15A NUMBER OF SPECIALTY FOOD SUPPLIERS Average # of Suppliers 88 67 92 2011 2012 2013 SPECIALTY FOOD RETAILERS Average Annual Sales: $4.97 million Average Sales per Square Foot: $1,045 KEY STORE STATS PERCENTAGE OF SALES BY DEPARTMENT 2010 Avg 2011 Avg 2012 Avg 2013 Avg Source: Mintel Specialty Grocery 27 Deli and Prepared Foods 21 Meat and Seafood 16 Wine and Other Alcoholic Beverages 15 Cheese 15 Produce 12 Bakery 8 Non-foods 13 Other 10 % DOLLAR SALES CHANGE In 2013, specialty food retailers continue to focus on all natural, local, and organic offerings, as these characteristics account for the majority of products sold in stores, the same as in previous years. The change in 2013, though, is the dramatic rise in sustainable, fair trade, and eco-friendly products. Non-GMO was new to the 2013 survey, and a notable 67 percent of retailers reported selling products with this feature. 88% 92% 91% 95% 94% 2011 90% 82% 83% 84% 60% 77% 59% 64% 72% 56% 57% 65% 67% no 2012 data no 2011 data 61% All Natural Local* Organic Fair Trade Sustainable Non-GMO Eco-Friendly *"Local" is defined as within 200 miles of operator Multiple answers accepted CHARACTERISTICS OF PRODUCTS SOLD Source: Mintel 2012 2013 Specialty food retailers that participated in the 2013 survey appear to be slightly smaller in store size compared with 2012, yet carry more SKUs per store as well as a significantly larger value of inventory. Retailers continue to report growth in sales, with 35 percent reporting increases of more than 10 percent. Only one in 20 recorded a decrease. Data may not equal totals due to rounding Source: Mintel Retailers were asked whether they have given departments in their stores. Based on "yes" responses, they were then asked the percentage of total store sales that these departments represent. Consequently, results do not sum to 100 and should be interpreted individually. A major shift seen since 2010 is a decline in sales from bakery departments. Other departments have stayed roughly at the same share. Source: Mintel In 2012, the vast majority (88 percent) of retailers said they used fewer than 100 specialty suppliers, with the average number being 67. In 2013, the percentage of operators using fewer than 100 specialty suppliers dropped to 77 percent, yet the average number of suppliers jumped to 92—the highest in the history of this research. This shift is likely due to increased purchasing from local vendors. Source: Mintel Square Footage 4,430 5,010 5,113 4,748 SKUs 1,719 2,112 1,366 1,877 Transactions per Week 2,592 3,144 1,925 2,563 Transaction Size $32.45 $28.05 $32.73 $37.26 Value of Inventory $282,566 $315,357 $156,187 $317,075 Up 20% or more 10 Up 10–19% 25 Up 1–9% 37 Unchanged 23 Down 1–9% 4 Down 10–19% — Down 20% or more 1 2013 % SOI_2014.indd 103 3/17/14 2:24 PM