Organize, Optimize, and Innovate in the Bread Aisle

The fresh bread customer is the kind of shopper retailers dream about. She buys enough bread to make the category the third largest in the store and second most profitable. She purchases so regularly (31.5 purchase occasions/year) that fresh bread is one of the most routine categories. She follows a highly disciplined, documented, predictable decision tree that begins with category segments.

So what’s the matter? In actual fact, most retailers have done very little to their bread aisle to make it easy for shoppers to shop the category. This ideal shopper is turned off in most bread aisles, so turned off that retailers are not realizing the full potential of fresh bread. For example, shopper engagement in the bread aisle is below average -- 26 seconds vs. the store average of 30 seconds. Many shoppers view the bread aisle as huge and confusing. Said one in a survey: “The bread aisle is overwhelming. It’s one side of a whole aisle. There’s too much to choose from.” And the strict adherence to vendor integrity may actually limit shoppers' purchase potential.

The message is clear: The bread aisle needs reinvention to effectively increase category shopability and reap the category’s full potential. A successfully tested reinvention, firmly grounded in shopper behavior, can be encapsulated in three letters: OOI – Organize, Optimize and Innovate.

Organize the aisle based on how consumers shop -- by segments, not brands or vendors. Shoppers think occasion first, then eater, type/form (segments), flavor/variety, and finally brand. Consequently, the historical brand/vendor set organization is not as effective. An aisle that is organized by segments has proven to drive category growth. Correct segment flow is also important -- bookend secondary segment (breakfast and buns/rolls) to drive additional exposure and conversion opportunities. Shoppers who buy more segments are more valuable to the category.

Optimize the aisle by focusing onSKU’s with the highest velocity, growth, margin, and loyalty. This will cut the clutter many shoppers dislike when they shop the fresh bread aisle. There should be no fear in optimizing: Consumers are ready for a reduced assortment set. The key is to eliminate duplication and open up space for days-of-supply issues relative to high-velocity SKU’s. Less is more.

Innovate in the aisle with navigational signage and communication cues. Navigational and selling cues, such as signs indicating breakfast or specialty products, for example, will help shoppers purchase more easily -- and purchase more of what they want.

While all retailers want to drive bread category growth within tough competitive environments, not every merchant is the same. That’s one of the strengths of this set of best practices: it isn’t a one-size-fits-all approach. Implementation of OOI is retailer- and market-specific and allows for different store images, strategies, markets, shoppers and retail organizations. But one thing about OOI is the same -- it brings results.  Implementing the OOI at retail has produced category sales lifts of 2-7 percent (vs. control stores), a significant gain.

Free Resource for Retailers

Use the form below to request a copy of Sara Lee's special strategic category overview, Fresh Bakery Aisle Reinvention.

Coming in Future Tips

Learn how to approach aisle management to provide space and leverage perimeter exposure to develop bread productivity even further.