CATEGORY MANAGEMENT | PRODUCE
How to keep produce in growth mode Retailers can engage shoppers by responding to the unique product preferences in each market
merchandising doesn’t enable products to survive the sales floor without rotation dis - cipline and product knowledge,” he said. “The difference between success and shrink often comes down to how well teams understand freshness, timing and shopper intent.” In response, Save Mart is “doubling down” on education and engagement for both store associates and shoppers, Vargas said. The retailer trains workers on product standards while offering guidance and suggestions for interacting with customers, he said. “That human connection matters more than ever,” Vargas said. “Produce stops being transactional and starts driving loyalty when associates can explain how to use a product, why it is featured or how it fits into a meal solution.” CHOICE IS A CHALLENGE It also is necessary to ensure the availability of the wide range of products that consum - ers seek year round while offering the items at the right price and quality, said Amy McClellan, executive vice president and chief commercial officer at SpartanNash Co., a Byron Center, Mich.-based wholesale food distributor and operator of nearly 200 gro - cery stores in 11 states under banners that include Family Fare, Martin’s Super Markets and D&W Fresh Market. That requires a proper balance and space allocation for seasonally relevant items, packaged selections and conventional com - modities, she said. “Produce has personality and space is often in high demand,” McClel - lan said, adding that SpartanNash uses shopper insights and consumer purchasing data to develop display and assortment strategies. Tracking shopper behavior is important as more consumers are experimenting with less common selections, such as dragon fruit, while exploring exotic fruits and using pro - duce to recreate popular restaurant cuisines at home, said David Sherrod, president and chief executive officer of the Millen, Ga.- based Southeast Produce Council. “Produce departments are bringing in more Asian veggies, tropical fruits and limit - ed-time and seasonal fruits and vegetables,” he said. “Consumers will be looking for such selections as meals move from foodservice to retail.” SpartanNash is prioritizing conve - nience to attract shoppers, which includes
BY RICHARD MITCHELL
Packaged produce is appealing to convenience-minded shoppers.
PRODUCE ACTIVITY IS RISING but the need for merchandising mettle remains. Fruit and vegetable unit sales were up about 3.4% and 0.3%, respectively, over the last year, reports Circana, a Chicago-based market research firm. Yet to sustain and increase shopper purchasing, retailers must meet the needs of sharper and more inten - tional customers who are balancing value, freshness and versatility, said Mike Vene - ziano, vice president of produce and floral at The Save Mart Companies, a Modesto, Calif.-based operator of approximately 200 Save Mart, Lucky and FoodMaxx stores throughout California and Western Nevada. That is important as consumers also are making fewer trips to stores and have more calculated buying decisions, he said. “Waste, price sensitivity and confidence in quality all factor heavily into what makes it into the basket,” Veneziano said. “Not all consumers trend the same, so telling a story to broad shoppers to help them make their choices is
an everyday balancing act for merchandis - ing teams.” Properly executing sales strategies is another critical challenge, said Andy Vargas, Save Mart senior category manager, fruits. “Produce is unforgiving and even great “THE DIFFERENCE BETWEEN SUCCESS AND SHRINK OFTEN COMES DOWN TO HOW WELL TEAMS UNDERSTAND FRESHNESS, TIMING AND SHOPPER INTENT.” Andy Vargas
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