Fresh bakery on the rise at supermarkets
It’s no secret that the in-store fresh bakery department was one of the hardest hit by the COVID-19 pandemic, as people were hesitant about buying baked goods that weren’t in containers and the need for special-occasion cakes dwindled with many parties cancelled.
But with vaccinations in full swing and Americans returning to more normal lifestyles, most supermarkets are opening up their fresh bakery departments fully again, and that means plenty of cakes, bagels, breads and other fresh-baked goods available for consumers.
Eric Richard, industry relations coordinator for the International Dairy Deli Bakery Association (IDDBA), expects to see a big uptick in fresh bakery items this summer.
“There’s a lot of optimism among the in-store bakery department as we return to normal,” he said. “People are going to be celebrating this year, and many will be making up for lost time and have really big celebrations.”
Bakery desserts is a segment that was up 11% year over year in March, and Richard believes that will be an area that continues to rise.
“It’s reflective of people feeling safe and shopping more in person and not worrying as much about interactions,” he said. “It’s definitely trending in the right direction.”
Paul Kneeland, vice president, fresh operations for Gelson’s Markets, Encino, Calif., notes the biggest drivers for the decline in bakeries were that people had time at home to bake their own breads, sweets and treats and that gatherings and parties ceased for most of the year.
“As those two things change, with people getting back to school and work, there will be less time to bake and the sales will start to return,” he said. “In addition, as gatherings and parties start to increase, there will be more need for bigger cakes and sales will increase for other party items like cupcakes.”
Chris Mentzer, director of operations at Rastelli Market Fresh, based in New Jersey with locations in Marlton and Deptford, says early in the pandemic the stores made numerous changes within the fresh bakery department to assure safety for customers and, more importantly, a sense of trust with products that they were purchasing.
“As restrictions slowly lift, we are starting to see some of the self-service areas return,” he said. “Once we get to some level of normalcy, we can start loosening the requirements on the areas that have been hurt the most. For example, flexibility in buying assorted rolls and bagels; and mix-and-matching cookies and baked goods from the cookie bar. These were two of our top categories and now they don’t even rank in the top 20.”
Thankfully, with catering starting to come around as gatherings and events are allowed once more, the 20% of bakery sales related to that is coming back as well.
“The opening of local businesses, as well as outdoor events, will hopefully jump-start the bakery quickly,” Mentzer said. “The loss of specialty cakes, pastry trays, cookie trays and other specialty items that have a larger ring at the register have proven to be a difficult loss to recover. We are looking forward to seeing these types of events return as the pandemic restrictions loosen.”
Changing the tide
Many supermarkets are being proactive in getting the category started again.
For instance, at Gelson’s, the stores are expanding the assortment of items, which was cut back during COVID.
“We’re also starting to aggressively advertise on the freshness and convenience of bakery,” Kneeland said. “Holidays are an important time. We must take advantage of every holiday and make a big deal out of it and start to rebuild the business.”
John Buchanan, category manager, bakery for Publix Super Markets, Lakeland, Fla., explains that when everything shut down in mid-March of 2020, the bakery product mix shifted from wedding cakes, decorated cakes and platters to smaller items like breads, rolls and mini cakes.
“We noticed a change in customer purchasing habits as a result of quarantining and limited gatherings,” he said. “Heading toward summer, more people are having their weddings, graduations and family gatherings. As a result, customers are transitioning back to items like decorated cakes, larger desserts and platters.”
Publix also turned to do-it-yourself kits for customers to prepare and decorate cupcakes, cookies and brownies.
“By being adaptable during the onset of the pandemic with pivots like these, and offering smaller cakes and single-portion desserts, Publix has been able to maintain sales and can focus on continuing to expand its bakery selections to accommodate customers as their needs evolve,” Buchanan said. “Looking ahead, we are happy to see a rebound in the decorated cakes and dessert categories.”
Marketing measures
In-store bakery departments need to be enticing people to celebrate with delicious cakes, freshly baked pies and cookies, and use their marketing materials and social media channels to make that happen.
“We’re seeing things already start to come back,” Gelson’s Kneeland said. “Will it ever be the same? Maybe not, but how do we make it better? We need a connection between promotion and trial. We still cannot sample in store in California but that will change and we should get aggressive there once sampling is back.”