Market Research - Total Bread Sales Comparison

The Bread Gallery Destination® was launched in a test store in early August 2007. Eight weeks prior to the launch date, the test store’s weekly totals of both DSD (grocery aisle) and ISB (In-Store Bakery) breads scan sales were tracked and a weekly average set as a base for comparison.

The Bread Gallery Destination® is designed to acheive three outcomes in terms of sales:

1. Raise the percentage of ISB bread sales to a majority of total bread sales,

2. Boost bread sales in both ISB and DSD categories, and

3. Grow the sale of fresh ready-to-slice, ready-to-serve sandwich and global variety breads with the exciting Bread Gallery theater and the just-in-time option of SELF slicing.

Raising the Percentage of ISB Sales

ISB sales typically yeild a higher profit margin than sales in DSD. Yet the majority of U.S. stores fail to realize these profits simply for the lack of effective merchandising for the breads baked in the store.

For eight weeks prior to the launch of The Bread Gallery Destination®, ISB breads in our test store garnered only 42.7% of total bread sales (Fig. 1). In the15 weeks following the launch of The Bread Gallery Destinaton®, ISB sales jumped up ten percentage points to 52.7% (Fig. 2).

Boosting Total Bread Sales in Both ISB and DSD

In Fig. 3 we looked at bread sales for both the test site as well as the rest of the stores in the same franchise, comparing bread sales from mid May 2007 (week 18 - pre Bread Gallery launch) to those in mid November 2007 (week 42 - post Bread Gallery launch).

ISB bread sales in the test location rose dramatically after the launch of The Bread Gallery Destination®; DSD bread sales also continued to grow by almost 20%. And while bread sales in other store locations also continued to grow, growth in bread sales at the test location doubled that of the other stores in DSD, and tripled in ISB!

Click here for sales results through week 27.

Fig. 1

Total Bread Sales 8 Weeks Prior to Bread Gallery Launch

Fig. 2

Total Bread Sales 15 Weeks After Bread Gallery Launch

Fig. 3

Bread Growth - Week 42 vs. Week 18