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Grocery Stores See Holiday Shopping Bump

By Jenny Callison, posted Dec 21, 2012

Harry Balzer calls it the “eating season.” That season, when households spend more than they typically do on food and beverages, begins at Halloween and doesn’t really end until after Super Bowl Sunday, said the chief industry analyst and vice president for food and beverage at the consumer research firm NPD Group. 

In the Wilmington area, bells of the cash register kind have been ringing steadily for weeks, as people step up their cooking and entertaining and generally spread edible and drinkable cheer.

Sales pick up before Thanksgiving at Whole Foods, said Darrah Horgan, public relations specialist for the chain’s south region, which includes Wilmington. 

“November and December contain the two biggest food-focused holidays. Before Thanksgiving, we start ramping up, talking about turkeys very early on. The stores take on a holiday look. It’s all about the Thanksgiving table,” she said. “Right after Thanksgiving, we shift gears. It’s all about Christmas, Hanukkah and New Year’s.”

A 2012 study by the Food Marketing Institute – a national trade association for food retailers and wholesalers – in conjunction with Booz & Co. shows that consumers have become much more budget-minded in their food shopping since the Great Recession. Even though they may decide to splurge on holiday treats, they will still look for value. 

The study lists several value-driven shopper behaviors, and grocery stores everywhere are responding. Here are a few examples from Wilmington’s local mix of specialty food retailers:

E-commerce is a growing force in grocery sales. 

Both Whole Foods and The Fresh Market are making it easy for customers to order anything from a whole holiday meal to a party platter, side dish, appetizer or dessert online or in the store. Fresh Market also offers an array of gift baskets, which have proved very popular, according to store officials.

Customers value convenience and ease of shopping. 

Most stores create seasonal product displays at this time of year, making it easier and quicker for shoppers to find holiday specialty products. Whole Foods has honed that concept.

“We have a ‘Build Your Own Brie’ display,” Horgan said, explaining that the customer selects a wheel of brie and customizes it from a selection of toppings. 

“At the Wilmington store especially, we also do a lot of wine sampling, featuring sparkling wines and wines that go great with turkey or ham. Wine and cheese pairings are really big. We call out a cheese that goes well with a specific wine to make it really easy for people who might be on their way to a party.”

Budget-minded shoppers look to private label products for savings.

Trader Joe’s helps contain costs through selling its own private label products. Shoppers have learned to look for holiday versions of their favorite cookies and candies. Some products, such as the company’s chocolate truffles, are in limited supply, prompting shoppers to stock up before the product disappears off store shelves.

Retailers are using social media tactics and giveaways to increase shopper traffic.

Carolina Farmin’ announces special December Daily Deals to its social media followers, store officials said. The store is also conducting a 12 Days of Christmas Farmin’ Favorites giveway for the second year. Each day between Dec. 12 and 23, the store gives away some of its most popular local products, culminating with a grand prize on Dec. 23. 

The giveaway is promoted through Carolina Farmin’s social media outlets and on commercial radio, but shoppers must enter at the store. 

Entertaining means accommodating special dietary needs.

NPD Group’s Balzer has followed Americans’ eating and drinking patterns for more than 25 years. 

He said that Americans tend to serve the same foods at Thanksgiving, Christmas and Hanukkah year after year, but that every year there seems to be a new health concern that influences how shoppers prepare those foods.

“This year, it’s gluten,” he said.

Tidal Creek Co-op has niche markets covered, said the store’s general manager, Craig Harris. 

“We serve special dietary needs: gluten-free, vegan, vegetarian, low sugar,” he said. 

“We do a lot of catering and have things like cheese platters, made to order or ready to go. Our foods have no preservatives, no dyes and no high-fructose corn syrup.

“Over 30 years, we’ve gotten a reputation for specialty products,” he added. 

“We’ve gotten better at handling these requests and have developed ways to make products taste better. From mid-November through New Year, this is a very busy time for us.”

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