Chickens Rule The Retail Roost

The Wall Street Journal: Rotisserie chickens “emerged as a supermarket staple in the 1990s, paving the way for the array of prepared foods that grocery stores sell today. Now they are many grocery stores’ best-selling hot food item and a rare bright spot in an industry struggling to adapt to a shift away from packaged foods … To continue selling them for $5 to $7 each, executives are working to trim supply-chain costs, cook chickens more efficiently and throw fewer of them away unsold.”

“One reason executives say it is so important to hold down rotisserie prices is that shoppers often buy higher-margin side dishes and beverages to round out a meal … Grocers also are tweaking their marketing strategy to make their chickens stand out. Some have introduced lemon pepper and barbecue flavors, as well as organic and antibiotic-free chickens. Others are placing stocked chicken warmers in checkout aisles to inspire last-minute purchases.”

“While Kroger and Mariano’s display their chickens near the front of the store, Costco puts them at the back, hoping people will add to their carts on their way to getting a chicken. Costco has sold rotisserie chickens for $4.99 since 2009. When a bird flu outbreak prompted higher prices for ready-to-cook chickens in 2015, Costco took a $30 million to $40 million profit hit to keep its rotisserie prices steady … Some stores sell deboned rotisserie-chicken meat at a higher price.”

Facebooktwittergoogle_plusredditpinterestlinkedinmail

Your Thoughts?

This site uses Akismet to reduce spam. Learn how your comment data is processed.