President of Northeastern Grocery Store Chain Underscores Beef's Important Role in Overall SalesTue, 20 Mar 2018 11:55:28 CDT
In the grocery business, meat is more challenging to market, but the rewards for doing it well can be worth it.
“You know the interesting thing about meat as opposed to the average basket in the store: if a customer has meat in the cart, it generates a lot more sales over a year,” said Ed Steinmetz, president of meat and seafood for northeastern grocery store chain Giant Eagle. “So, the average basket when customers have meat in it is high. When it has beef in it, it’s even higher yet.”
To watch a video clip featuring, Ed Steinmetz, president of meat and seafood for Giant Eagle, talking about how important beef is to overall store sales for his northeastern grocery store chain, click or tap the PLAYBOX in the window below.
He says that follows logic because shoppers often pair many other ingredients consumed with meat.
“You can’t come in and buy only hamburger and walk out of the store,” Steinmetz stated. “You have to buy the other items in the store. So, the meat department serves us as a traffic builder and a basket builder because if you can sell the meat they have to buy to condiments, they have to buy the buns. They’ve got to buy the produce. They’ve got to buy everything else around that item to build the basket. So, meat for us is a traffic driver and a basket builder.”
That’s why retailers often use their meat case to attract shoppers. For Giant Eagle, that means focusing on the highest quality beef and then adding value.
“If you cut meat in store rather than it coming pre-packaged. If you grind meat fresh versus it coming in packaged… there’s a whole lot of ways in the meat department where you can differentiate yourself outside of price,” he said. “Down the center store, down the center isles a can of Campbell’s soup is the same in every store. Meat, we have an opportunity to differentiate ourselves and therefore the whole store.”
Pricing decisions on canned goods don’t fluctuate as often as beef and other proteins.
Weather, seasonality and other supply and demand factors all impact contracts and what specials they’re able to run.
“The front page of the ad and the features are really designed to drive traffic into the store, and meat and produce are the big customer drivers,” Steinmetz explained. “In our particular store in our market-because we’re a more traditional retailer and we cut beef at the store and pork at the store-they are points of difference, so we use them on the front cover to drive traffic and sales.”
Well-trained staff who place an emphasis on customer service help seal the meat deal.
Source - Certified Angus Beef
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