Quick meals drive growth as consumers turn to pantries

It’s back to basics for groceries. Data from Information Resources Inc. revealed that the drug channel also is grabbing a significant share of sales of basic pantry items. “Meal ingredients or components are the fastest-growing part of grocery,” said Thom Blischok, president of consulting and innovation at IRI. “People are moving back into the home and eating out less frequently.”

IRI research showed that 65% of store visits to food, drug and mass outlets for the year ended Dec. 28, 2008, were “quick trips,” visits in which customers purchased five or fewer items and spent under $20. “Drug stores are emerging as the new convenience channel of choice for quick trips, including groceries,” Blischok said.

IRI data revealed that drug chains have done very well with staple categories over the past year. Such categories as flour, sugar, shortening and oil had double-digit dollar sales gains in the 52 weeks ended May 17, according to IRI. Cold cereal, condensed wet soup and shelf-stable dinners and entrées also have shown solid double-digit gains in the channel for the same time period.

Drug chains are expanding their food offerings. “Hy-Vee is a company that is leading the charge in understanding that drug stores are the c-stores of the future,” Blischok said. He called Duane Reade, which has expanded its food centers at the rear of many of its stores, “innovative and impressive” in its approach to food.

Going forward, Blischok said it wouldn’t be enough for drug chains to stick to the same old assortments. “Fresh will be important to drug, and we are seeing chains experimenting with fresh foods already,” he said. “Healthy eating and nutrition is the single most important issue for consumers, and drug stores speak with authority around health and wellness.”