Subdued September Deli Performance

In the U.S. Deli Performance Review, the deli department generated $4.3 billion in sales during four September weeks, which reflects a slight dollar increase, but unit decline. Performances across deli cheese, entertaining, meat and prepared foods varied substantially. Deli cheese enjoyed strong demand growth in September as well as the full-year view, while deli-prepared foods and meals had another down month. In contrast to 2.5% unit growth during the lates 52 weeks, unit sales were down 0.4% in September.

Deli Meat

The decline in deli meat sales was primarily driven by service deli sales as well as pre-sliced programs. Grab & go had a strong performance with pound sales up 4.2% year over year. These patterns were the same in the full-year view.

Deli Cheese

Deli cheese sales were a mix, with pound growth for grab-and-go programs as well as specialty cheeses. This has been the case all year. Sales through pre-sliced programs and the service case were down substantially.

Deli Entertaining

Deli entertaining had a strong month, driven by substantial growth in pickles and relish. While this has been the case all year, pound sales growth accelerated to double digits, at +17.2%.

Deli Prepared

Restaurant trips declined ~2% year over year in September, according to Circana. This did not translate into strong growth for deli prepared foods and meals. Instead, dollar sales advanced modestly, but units were down 0.4% year over year.

At the category level, results were very mixed. Entrees did well, with substantial dollar and unit gains. Prepared meat had very modest dollar and unit gains, whereas sandwich sales were down year over year. While salad and leafy green volume sales in the produce department remained more than 16% below year ago levels, salads did gain growth in the deli department.

While smaller categories, appetizers, breakfast and combination meals had an excellent month.

Source: Circana, Integrated Fresh 

—  Anne-Marie Roerink, president, 210 Analytics