Wants and Kneads: PG's Bakery Ops Review

Although rising in-store bakery (ISB) sales in recent years appear to be tapering off, the department remains an integral ingredient in supermarkets’ overall fresh statement, as reaffirmed by the latest findings of the 2013 Bakery Operations Review, set to appear in Progressive Grocer’s forthcoming August issue.

According to PG’s annual “state of the in-store bakery” annual research study:

• 56.3 percent of participating companies cite their in-store bakery programs as most influential as an image builder.
• 31.3 percent see the role of in-store bakeries as a requisite component of a one-stop-shopping format.
• 25 percent view their bakeries as destination departments and another place to elevate their stores’ fresh success.
• 12.5 percent classified their bakery departments’ role as simply offering the basics and/or necessities.

• 61.9 percent of panelists reported an increase in sales penetration, up slightly from last year’s 60.4 percent, but notably lower than the 68.2 percent gains reported two years ago.
• 9.5 percent reported decreased sales in the bakery department
• 28.6 percent reported status quo comparable sales

• 69.7 of retailers foresee a brighter bakery forecast for the next three fiscal operating quarters.
• 3.5 percent of retailers expect declines.
• 26.8 percent expect sales to remain the same.