In-stores treading water gallery

Sales are up for gluten-free products, but bakers are still divided on whether to implement gluten-free programs or not.

"Our customer counts and sales are up in all of our bakeries," says Bob Thatcher, bakery director, Highland Park Market, Farmington, Conn. "Things are definitely turning around for the better right now. It has to do with customer confidence; they're feeling better about the economy."

Whole wheat/whole grain products posted a 90 percent sales gain, far surpassing the second-largest sales increase, which was 30 percent for organic/natural products.

Gluten-free products are up more than 190 percent, by far the largest growth category in the health or better-for-you category.

Regular bakery customer counts have been all over the place since 1992--25 percent at their peak 20 years ago, and 16 percent at their lowest point in 2002.

Less than 20 percent reported higher prices than independent retail bakeries, a 7 percent decrease from the 25 percent charging more than retail bakeries in 2010.

Only 73 percent of operators upped retail prices in 2012--that's better than the 30 percent in 2010. Operators are re-examining their operations to keep costs in line so they don't have to pass along the increases to the customer.

While ingredient costs are still the leaders, packaging costs increased considerably to 14 percent in 2012, compared to 6 percent in 2010.

Bread has the highest household penetration of any category in the bakery.

Profits and dollar sales per customer were the top indicators of overall performance in the in-store bakery.

Although in-store bakery operators are optimistic that per customer sales will increase, many are cautious in light of the tepid economic recovery. "I don't see the economy changing. I look for it to continue on the path it's on now. I think we'll continue to fight for sales," says Bill Mihu, vice president-bakery, Schnuck Markets, St. Louis.