A grocery store is a retail establishment that sells food and beverage products. It is usually divided into a produce section, meat section, dairy section, and bakery section. Each product category within these sections generates different levels of volume. This blog post will explore the different product categories and examine the ones that generate the most volume in a grocery store. So, if you’re planning to enter the grocery store business, this information will guide you in selecting the product categories to focus on. And it will also help you get a reliable estimate for grocery outlet franchise cost.
The grocery stores and supermarket industry generates $666 billion annually. However, this industry is one of the most competitive, and to be successful, it is important to understand what product categories generate the most volume. Here is a list of the top product categories that generate the most volume in grocery stores.
Soda
Americans spend more than $12 billion on soda every year. That’s not surprising because each American consumes 44 gallons of soda annually. This product category accounts for a large volume of sales in grocery stores and is the number one item on this list. One of the reasons for this high volume is that getting the taste of sweetness is easy with soda.
In addition, grocery stores will normally place soda near the entrance so that customers will see it as soon as they walk in. This product category also generates a lot of foot traffic because people often buy soda in bulk.
Cereals
The convenience of a fast and easy breakfast is one of the reasons cereals are so popular. As one of the most beloved breakfast foods in America, it’s not surprising that Americans spend about $6 billion annually on cereal.
In addition, cereals are also often marketed toward children with colorful packaging and characters on the box. Thus making children associate them with candy. That’s why you’ll always find them placed near the candy section to prod children into begging their parents to buy the colorful packed cereals.
Frozen Dinners
After a draining day at work, the last thing anyone wants to do is cook an entire meal from scratch. This is where frozen dinners come in handy.
They can be baked or microwaved in minutes for a hot meal. It’s no wonder Americans spend about $6.13 billion on frozen dinners annually.
Frozen dinners are also popular because they are often marketed as healthier than fast food options. In addition, by placing them next to an area where shoppers will be hit by the delicious smells of rotisseries chicken and other cooked foods, you can entice customers to purchase your frozen dinners.
Salty Snacks
Even the health-conscious have a hard time resisting the allure of salty snacks. After all, who can say no to chips and pretzels? Salty snacks are so popular that Americans spend about $8 billion yearly on them.
A winning strategy for these snacks is to put them on sale often and place them in strategic locations near the register or by the checkout line. This is because customers are more likely to purchase these products when they see them before leaving the store.
Milk
The expenditure of $11.2 billion on milk is a testament to its popularity. Milk is often marketed as being a healthy and nutritious drink, which is one of the reasons why it is so popular.
In addition, milk is an essential item people need to purchase regularly. This means that grocery stores can count on steady sales for this product category. For this reason, grocery stores will often place milk at the end to entice shoppers to walk through the entire store and see all the other items they may be interested in buying.
Bread
Bread is another essential item that people need to purchase regularly. In fact, the average American eats 53 pounds of bread per year. That’s why bread is often one of the first things people grab when they enter a grocery store. This product category generates about $10 billion in sales every year.
The success of a grocery store largely depends on the volume of sales. To generate more sales, grocery stores need to know what product categories generate the most volume.
Data shows that soda, cereals, frozen dinners, salty snacks, and milk. To increase sales, grocery stores should focus on stocking these items and placing them strategically throughout the store.
