Encino, California, U.S.A.-based grocery chain Gelson’s is growing its range of sushi products and is committing to greater use of skin-pack technology that extends shelf life.
Gelson’s, a retail operator of 27 stores, all in Southern California, has sold sushi for 20 years in all of its stores, as well as at sit-down wine and tapas bars in 10 of its stores. It is suppplied by Santa Fe Springs, California- based Red Shell Sushi.
With the grocery sushi category showing great potential for further growth - sales in the category rose 2 percent year over year to nearly USD 956 million (EUR 881 million) for the year ending 19 May 2024, according to research firm Circana - Gelson's sees an opportunity to serve more of what its customers are looking for, according to Gelson’s Director of Meat and Seafood Operations Fernando Moreno.
During the Covid-19 pandemic, U.S. consumers turned to supermarkets for their sushi following the widespread shutdown of the restaurant industry. Gelson’s sushi sales shot up in 2021, and the chain experienced better overall sushi sales increases in 2022 compared to other operators, according to its in-house data.
“We believe this success [was] due to increased interest from millennials and Gen Z, who are more engaged in social media. They help in spreading awareness that quality sushi is available at their local Gelson's, and it's not necessary to go to an expensive sushi bar,” Moreno told SeafoodSource. “Although you may not get a fancy USD 100 [EUR 92.50] omakase-style dinner with exotic fish, you can enjoy a high-value product for under USD 20 [EUR 18.48].”
However, Gelson’s sushi sales have slipped recently, declining 8 percent in the second quarter of 2024 compared to Q2 2023.
In order to remain competitive, retailers have to adapt and offer new items that have not been available in retail before, Moreno said. To that end, Gelson’s worked with Red Shell Sushi to add several new items to its retail offerings. Two rolls, in particular – the Double Salmon Roll and the Jalapeno CA Roll – have been “quite successful,” Moreno said.
Gelson’s also upgraded to a short-grain rice and selected “one of the highest-quality rice brands available to add higher value,” Moreno said.
The chain has also placed a focus on handheld items like handrolls and onigiri, which have become increasingly popular due to their convenience and ease of consumption, Moreno said.
Moreno is bullish on the long-term popularity of retail sales of sushi. Over the past four years, sushi’s share of promotional activity in supermarkets increased to 5 percent, more than doubling the share it held in 2019, according to Datassential.
“[Sushi has] grown to become quite the powerhouse. The growth over the past few years is tremendous,” 210 Analytics Principal Anne-Marie Roerink told SeafoodSource.
Gelson’s has also expanded its product portfolio to include a wide variety of fresh prepared seafood items, with plans to also upgrade its fresh seafood packaging toward eco-friendly and recyclable skin-packs.
“These packs will improve the shelf life of our products and make it easier for customers to purchase smaller portions of our best-selling grilling offerings,” Moreno said.
The shelf life of products using the new packaging is extended by an additional three or four days, depending on the species, with salmon having a longer shelf life, Moreno said.
Once Gelson’s executives decide on the best items to offer with the new packaging, the retailer will brand the skin-packs with its name and “create a clean, upscale label,” Moreno said.
The skin-packs will be introduced during the first week of August at selected stores for further testing to gauge customer reception, Moreno said.
In 2023, Gelson’s expanded its ready-to-cook seafood meals program, which include a centerpiece seafood item and vegetable sides.
“They have become a customer favorite in a short period of time, and adding variety and options for the customer will help that category continue to grow,” Gelson’s Executive Director of Fresh Operations Sean F. Sáenz told SeafoodSource at the time.
Additionally, Gelson’s newly introduced line of gourmet soups – including clam chowder, lobster bisque, and seafood gumbo – is “performing extremely well,” Sáenz also said at the time.
