The Argument for Reducing Fresh Seafood Options

Supermarkets may benefit from scaling back their fresh seafood offerings, according to Joseph Sabbagh, president of Sax Maritime Associates. While expansive fresh seafood counters may attract some shoppers, they also lead to higher labor costs, increased waste, and less appealing displays. Sabbagh recommends retailers focus on a smaller variety of the most popular fresh items, such as salmon, crab, shrimp, lobster, and catfish, while expanding frozen and value-added selections.

Challenges of Fresh Seafood Merchandising

Fresh seafood counters require significant resources to maintain. From stocking displays with fresh ice daily to managing thawed products that often appear less attractive, the labor and utility costs can outweigh the benefits.

“Reducing thawed product space and reallocating it to frozen offerings can cut costs while maintaining appeal,” Sabbagh said. He suggests cutting fresh counter space from 12–16 feet to 6–8 feet and adding more frozen seafood options in coffin cases placed in other store aisles.

Sabbagh also highlights the potential for cross-contamination in fresh cases where both raw and cooked seafood are displayed. “This setup doesn’t make sense and would never occur in the meat department,” he said, emphasizing the importance of separating raw and cooked products.

Consumer Trends and Strategic Selection

While there are hundreds of seafood varieties, most consumers are familiar with only a few. Offering too many niche or expensive options can lead to unsold inventory and spoilage. Retailers should focus on regionally and demographically relevant species, such as Dungeness crab in San Francisco or head-on shrimp in Dallas.

“It’s not a one-size-fits-all approach,” Sabbagh said. Retailers should analyze local demand and demographic factors, such as ethnicity and income levels, to tailor their seafood offerings effectively.

Expanding Beyond Fresh Seafood

Sabbagh advocates for a greater emphasis on frozen, deli-prepared, and ambient seafood products, which are more cost-effective and sustainable. Popular frozen options include shrimp, salmon, pollock, tilapia, and crab, while deli-prepared items like cooked shrimp and crab legs can appeal to convenience-focused shoppers.

Ambient seafood, such as canned tuna, salmon, and seafood-based soups, provides additional opportunities. These products require minimal labor and storage costs, making them attractive to retailers.

“Ambient seafood has held up well over the years and offers sustainable, low-cost solutions that can expand seafood’s reach,” Sabbagh said.

Balancing Profitability and Consumer Appeal

Ultimately, the role of seafood in a store depends on its profitability and the ambiance it creates. Sabbagh acknowledges that seafood once enjoyed a more straightforward path to success but now faces heightened scrutiny due to rising costs and changing consumer preferences.

“Retailers need to weigh the financial and operational value of seafood carefully,” Sabbagh said. By focusing on streamlined fresh options, expanded frozen and deli offerings, and innovative ambient products, supermarkets can better position themselves to meet consumer demands while minimizing waste and labor costs.