Supermarket delis are becoming magnetic shopper destinations.
Consumers from all demographic groups are relying on delis to offer a variety of foods that meet their flavor, nutrition and spending preferences.
Astute retailers are responding by merchandising items that are intended to appeal to their unique shopper bases. They include foods that are convenient, healthy, tasty, hot, cold, gourmet quality and value priced.
To remain vibrant, more delis also are leveraging sales initiatives that include cross-marketing, complimentary products and enhanced customer service.
Masters of the Deli illustrates some of the merchandising activities that are occurring in delis by spotlighting five of the sector’s dynamic operators:

•Giant Eagle Inc., a Pittsburgh-based chain of 223 stores in Ohio, Pennsylvania, Maryland and West Virginia.

•Central Market, an H.E. Butt Grocery Co.-owned banner with eight stores in Texas.
•Whole Foods Market Inc., an Austin, Texas-based chain of approximately 500 U.S. and international outlets that specialize in natural and organic foods.

•H.E. Butt Grocery Co. (H-E-B); which operates about 300 H-E-B supermarkets in Texas and Mexico.
•Carnival Supermarkets Inc., a chain of 24 outlets in the Dallas area that are operated by Coppell, Texas-based Minyard Food Stores Inc.

While the chains differ in size, scope, inventory and strategies, they are similar in their embrace of aggressive marketing concepts.

Giant Eagle Inc.: Playing the Cheese Fame Game

Generating a reputation as an authority on specific foods is a key way for retailers to standout in an ultra-competitive market. Giant Eagle is banking that cheese will be its latest route to that renown.  
Stores are merchandising more than 400 varieties of cheese and the company is training staffers to become category experts, or “Cheesemongers.”

Certified Cheesemongers, who are identified in stores by their berets, must go through 16 hours of cheese training. It is intended to enable them to answer all cheese questions from customers and better market the products.
The more than 200 Cheesemongers also take trips to dairy farms to see how cheese is produced.
Voni Woods, Giant Eagle director of deli, says her aim is to have at least one Cheesemonger in each of the chain’s 223 stores.

She notes that Giant Eagle emphasizes cheese because it is a category that can be leveraged to meet three crucial merchandising objectives: increased sales, innovation and prominence.
“Anybody can put 400 cheeses on a shelf, but we are able to create a point of difference by telling a story about a product that delights the customer,” Woods says. “That is important because customers are paying greater attention to cheese. They are more exposed to it from programs on the Food Network, stories in gourmet magazines and encountering new products during their travels.”

Giant Eagle also wants the deli to be a destination for fresh pasta. The retailer recently doubled the space allotted to pasta and also merchandises related items, such as sauces.
“Pasta is a small piece of the business that offers a huge opportunity,” Woods states. “People are searching for what is convenient, healthy and tastes good. They also are willing to try new foods and, in that regard, we have only scratched the surface of its potential.”

Offering more fresh pasta, meanwhile, enables Giant Eagle to cross-merchandise additional products, such as breads and olive oils, she notes.
The delis already cross-promote items with other departments, including bakery, seafood and produce, and expects to increase that activity. Woods, for instance, says fresh mozzarella cheese can be marketed next to vine-ripened tomatoes, and Indian sauces can be coupled with seafood.
“It is very easy to tie more products together in stores,” she states.

Giant Eagle also is responding to strong consumer interest in convenience by merchandising 27 SKUs of packaged salads. Recent additions include Potato, Macaroni, Three Bean, Chicken, Egg, and Tuna.
Sampling is another key deli initiative. Stores frequently demo Giant Eagle-branded proteins, which comprise more than half of the service counter offerings, Woods says.

“We want to focus on the items that we’re famous for, and to get them into as many mouths as possible,” she notes. “Selecting products to merchandise is a labor of love. We don’t put our name on items until they meet our specifications and we are convinced they are right.”

Central Market: A Texas Prepared Foods Power

With only eight Texas locations, Central Market is small in scope. Yet, store delis merchandise broad arrays of high-quality prepared meals.

The full-service counter at one of the two Austin locations, for instance, features more than 70 entrées, appetizers and side dishes behind the glass, including a host of ethnic selections.
In addition to such choices as Caviar, Herb Grilled Shrimp, Almond Crusted Tilapia and Buttermilk Pecan Chicken, are Braised Brisket, Potato Latkes and Traditional Haroset.

A deli associate says all the prepared foods are created at an in-store kitchen by 50 to 60 chefs. He notes that most selections are always available, though some rotate seasonally.
Chefs also produce the vast assortments of grab-and-go offerings. The foods are marketed in racks opposite the service counter under signs that designate the areas for salads, sandwiches, soups, sushi, desserts, ethnic fare, family meals, dinner choices and ready to cook meals.

Items vary in size and include containers with both entrées and side dishes.
Among such selections is “Dinner for Two,” meals that change daily and are marketed in brown paper bags for $13.99. A flier attached to the bag lists the components along with heating instructions.
Recent “Dinner for Two” choices included a bag with Home-Style Meat Loaf (featuring beef, veal and pork and a slightly sweet glaze), Macaroni & Cheese, Steamed Broccoli and Dinner Rolls.
Another bag contained Vegetable Frittatas (crustless Italian quiches made with spinach, tomatoes, artichoke hearts, red bell pepper and golden sun-dried tomato pesto), Mixed Field Greens with Balsamic Vinaigrette, Tomato & Mozzarella Salad and Parmesan Focaccia Bread.

Also available is a “Kids Dinner for Two” for $6.99. Intended for children between the ages of 3 and 7, the meals include a Coconut Chicken Tender dinner that also contains Bunny Love Carrots with Ranch Dressing, Mashed Potatoes and White Dinner Rolls.

In the family meals section, meanwhile, is a 9-ounce “Kids Spaghetti & Meatballs” for $2.99.
In addition, the deli markets a “Kids Lunch Box” in a plastic container with a handle. The lunches, for $1.99 and $2.99, respectively, include a Peanut Butter & Jelly Sandwich, Raisins and an Apple, or a Turkey Sandwich with American Cheese, Raisins and an Apple.

Delis also merchandise hot meals. A heated case, adorned with photos of the prepared dishes, features varieties of Roasted Chicken in 36-ounce containers for $7.99; and one- and two-pound packages of Tamales for $4.99 or $8.99, respectively. Selections include Chicken & Jalapeno, Bean & Cheese and Pork & Beef.

An adjacent sign encourages shoppers to purchase side dishes. Three suggestions are under the headline of “How to Make the Perfect Family Meal”: “Select a CM Rotisserie Chicken; Choose Your Sides From the Chef’s Case (full-service counter); Don’t Forget the Fresh Bread From the Bakery.”
Other self-service options include a Salad bar for $6.99 a pound, and a Hot Soup station with 10 varieties for either $4.99 or $5.99. Among the choices are Green Chili Chicken, Butternut Squash Maple Bisque, Tortilla, Chili Con Carne and AnchoGuajilio.

Whole Foods Market Inc.:Casting a Large Deli Imprint

Whole Foods stands out in a busy fresh foods sector by offering large selections of gourmet-quality prepared items with an emphasis on natural and organic. Yet, few outlets rival the chain’s flagship store in Austin for variety or venues.

Situated near the company’s corporate headquarters, the outlet’s deli contains a plethora of stations—including service counters and self-serve bars—offering hot and cold foods.
The wide mix of items—along with the prospect of fast dining—has made the Austin deli a key mealtime destination that features long lines at counters and crowded indoor and outdoor dining areas.
Indeed, the department more closely resembles an upscale food court than a deli.

Among the hot food destinations is the “American Grill,” which markets such comfort fare as Hamburgers, Chicken Sandwiches, Hot Dogs, Philly Cheese Steak, Onion Rings and French Fries.
It is adjacent to a grill offering “Bistro Meals,” including Salisbury Steak, Roasted Pork Loin and Beer Battered Cod, and such side dishes as Thyme Roasted Potatoes, Cauliflower Gratin, Garlic Sautéed Spinach, Green Bean Casserole and Grits.

The Austin deli also sells hearth-baked Pizza, Calzones and Asian dishes, and features the “6th Street Taco” station, which prepares Burritos and Tacos, including Breakfast Tacos.
An “International Cuisine” bar, meanwhile, contains 13 Indian and 12 Latin selections for $7.99 a pound. Among the choices are Chicken Tikka, Masala, Curried Indian Vegetables, Mushroom & Pea Curry, Adobo Chicken, Al Pastor-Style Pork, Black Beans and Spanish Rice.
Nearby is a Hot Soup station with such varieties as Potato Cheddar, Tomato Chipotle, Mushroom Bisque and Black Bean.

Finer dining is available at a circular station in the center of the deli labeled the “North Side Trattoria.”
Open daily from 11 a.m. to 10 p.m., the café has counter seating for 16 persons, as well as six tables.
The 10-item menu features a Mussel Appetizer, White Brushetta with Chicken or Crab, Smokey Shell Fish Soup, Caesar Salad, Pasta Fagioli, Pesto Cream Primavera, Smoked Mushroom Risotto, Penne with Shrimp and Andouille Sausage, Tuscan Chicken and Pork Scallopini. Prices range from $7.99 to $14.99.
Attached to the café is “Trattoria to Go,” a service counter that markets prepared Italian entrées, side dishes and desserts.

The 25 items include Stuffed Pork Loin, Chicken Saltimbocca, Fettuccini with Parsley and Cheese, Chicken Scallopini, Antipasta Salad, Fettuccini with Roasted Potatoes, Spinach Lasagna, Pasta with Pesto Crème Sauce and Eggplant Napoleon.
Indeed, rich desserts are prominent in deli. Along with a Gelato station is a self-service Dessert bar that offers about two-dozen selections for $7.99 a pound.
Among the items are TresLeches Cake, Key Lime Cream Cake, Chocolate Mousse Triffle, Walnut Orange Bread Pudding, White Chocolate Blueberry Bread Pudding, Caramel Latte Cake, Strawberry Short Cake and Chocolate Ganache.

Other prepared foods are available at a freshly made sandwich station and two side-by-side salad bars.
An additional 40 items are merchandised at a separate service counter, including Grilled Chicken Breast, Barbecue Chicken Breast, Meatloaf, Grilled Salmon Steak, Parmesan Crusted Tilapia, Spinach Cakes and Cornmeal Crusted Catfish. 

H.E. Butt Grocery Co.: A DeliCross-Marketing Crusader

H.E. Butt (H-E-B) leverages large selections of private-label and premium bulk meats and cheeses to drive shoppers to the deli service counter.

An Austin, Texas outlet, for instance, features close to 50 varieties of H-E-B-branded proteins, as well as 73 Boar’s Head-branded meat and cheese items.
But along with its emphasis on variety and quality is a focus on cross-merchandising.
The Austin store, for instance, markets entrées, side dishes and beverages together under a hanging “Mealz to Go!” sign. The display is dominated by a hot case with Whole and Half Rotisserie Chickens, Chicken Leg Quarters and Breasts, and Roasted Turkey Breast.
Signs at the hot case and service counter, along with fliers attached to the dome packages, promote a “Rotisserie Chicken Meal Deal.”

Shoppers who purchase the H-E-B-branded Chef Prepared Rotisserie Chicken and a Fresh Express-branded Premium Garden Salad in nine- to 12-ounce packages can get free items by using in-store coupons.
Among such items are 24-ounce H-E-B Bake Shop White Sandwich Bread; a two-liter bottle of Sierra Mist; a 14.5-ounce can of Rold Gold Tomatoes; and H-E-B Macaroni & Cheese Dinner Mix in 5.5-to-7.5-ounce varieties.

H-E-B states in its advertising circular that the deal can save shoppers more than $3.80.
The “Mealz to Go” display also contains racks and cases with two-liter bottles of Pepsi, 4.4-ounce packages of King’s Hawaiian rolls and 20-ounce packages of private-label Hill Country Fare-branded heat-and-serve side dishes. Varieties include Broccoli Rice Casserole, Macaroni & Cheese and Mashed Potatoes.
In another initiative called “Combo Loco,” the retailer offers coupons at different food displays that enable shoppers to get free items when purchasing specific products.
Those who buy 24-ounce packages of H-E-B-branded lunchmeats, for instance, also get a 12-ounce package of H-E-B-branded American Cheese Singles.

Shoppers who purchase H-E-B-branded Ready, Fresh, Go!“ 22-ounce Snack Pack Apples also receive a six-ounce package of H-E-B Premium Lunchmeat.
Those who buy a 16-ounce pack of Oscar Mayer Beef Franks also get an eight-ounce package of Kraft Natural Shredded Cheese.

And persons who purchase 14-ounce H-E-B Entertainment Assortment Crackers receive a half-pound package of H-E-B Artisan Aged Cheddar Cheese.
The cross-marketing even extends to the Tortilla station. The island display features coupons that enable shoppers who purchase two trays of Hill Country Fare Chicharrones to also receive a carton of large H-E-B eggs.

Carnival Supermarkets Inc.:Giving the Deli a Latin Flavor

Carnival Supermarkets Inc. is capitalizing on the growing Hispanic influence in deli merchandising.
The two-dozen stores in the Latin themed and focused chain are following a strategy that emphasizes high-quality fresh and prepared foods, while leveraging new products and concepts.
In its recently remodeled Plano outlet, for instance, the retailer operates three hot food kitchens that develop Tex-Mex, Asian Stir Fry and Home-Style Comfort foods, notes Faye Greenberg, vice president of deli, bakery merchandising.

The deli, which features a large dining area, on weekends offers made-to-order omelets with such ingredients as Ham, Bacon and Vegetables. Greenberg says the store typically sells between 200 and 300 omelets each day, and omelets could eventually be sold at other Carnival locations.
“It is a way to provide theater by enabling customers to see the food being made and to smell the aromas,” she states. “We’re competing with the fast-casual and fast-food eateries for the same dollar, so it is important to take our food offerings to the next step.”

Greenberg adds that hot food, “gives us an edge because of our variety and the fact that we make it from scratch in stores.”

Other hot food areas include a Taco station that sells chicken, beef and pork items along with fajitas.
In addition, a cafeteria-style counter offers such standards as Ribs, Barbecue Chicken, Refried Beans, Charro Beans and Rice, along with rotating items that include Orange Chicken and Kung Pao Chicken.
Carnival’s Plano store will soon merchandise Barbecue Chicken and Rotisserie Chicken in packages that also contain Tortillas, Grilled Onions or Jalapenos, Greenberg says. A Whole Chicken that feeds a family of four will sell for $8.99, and a half chicken will retail for $4.99.
Freshly made Tortilla Chips and Salsa, meanwhile, will be added to packages of Rotisserie Chicken for no extra charge.

The deli also will soon market slices of pizza with a variety of toppings. The square shapes are intended to make it easy for customers to eat while they are shopping, Greenberg states. The item, which will be priced under $1.50, was developed following customer requests.
She notes that developing new food ideas, “keeps the staff, as well as customers, excited. It’s exciting to see how well something sells and how long we can keep it going. We’re now planning on what we can do different for the holidays.”  MDR