Specialty Bakery Items Help Retailers Stand Out

Specialty and signature products are important to in-store bakeries, with many retailers citing their bakery as a destination and an image-builder, according to Progressive Grocer‘s 2015 Retail Bakery Review.

Breads are the top-selling bakery product for two thirds of retailers, followed by cakes, cookies, and doughnuts. The most profitable items, however, are cakes, followed by breads, cookies, and artisanal breads.

Bakeries can account for a wide range of a store’s sales, depending on the type of retailer. In a low-price-leader model, bakeries could make up about 2.5 percent of sales, while a specialty grocer may see as much as 8.5 percent of its sales come through the bakery.

Ken Downey, president of bakery consultancy KGDSR LLC, says offering a wide variety of flavors of baked goods is not that important, as the most popular flavors usually make up about 80 percent of sales. Offering different sizes of products, such as whole pies, half pies, and slices, is important, however.

Downey also predicts the next big trend will be sprouted grains, which will become more popular in the next two years. Full Story

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