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Article Excerpt
If you have the typical retailer's love-hate relationship with the dinner/entree category, this past year brought you plenty of reasons for both.
The good news is that dinners and handheld non-breakfast entrees (Hot Pockets and such) both saw dollar growth of 7 percent or more--double the 3.5 percent posted by the total frozen department. The bad news is that entrees, which account for significantly more sales than the other two segments combined, rose only 0.5 percent as units dipped 1.8 percent, according to supermarket sales for the 52 weeks ending Jan. 26, 2003.
Average SKU counts per store edged up slightly, despite retailers' vows to rationalize the category and cut back on me-toos in varieties, brands, and pack sizes. And entrees, despite their moribund state, actually had more promotion over the recent 52 weeks vs. the prior year. Overall, category sales remain strong--dinners and entrees now make up 21 percent of frozen department dollars.
But SKU proliferation remains a concern among retailers, who see duplication in the category.
"There's been some innovation," grouses the buyer at one major retail chain. "But there's still way too much duplication. We have to do a better job of weeding that out and presenting more exciting products or the section's going to go the way of frozen juice. Already there are a lot of refrigerated meals around the perimeter that could ultimately take away a lot of our...
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