While the initial response to trying to compete in the produce department against some of the top competitors in grocery is to replicate exactly what they’re doing. However, independents need to have their own identity when it comes to produce.
When it comes to a retailer like Walmart, most retailers need to carry a higher variety count and premium sizes all with top-level quality. Walmart won’t typically meet those levels and it will set you apart from Walmart and other similar retailers.
Additionally, your staff needs to be educated so they can assist consumers when they are shopping. Good luck finding someone who is knowledgeable about the produce they sell in a Walmart, Dollar General, or other retailers.
Obstacles in Competition
While the tactics to compete remain the same, all retailers have been faced with the same challenges in 2021. Year to date, prices for total fresh produce are about 6 percent higher than they were last year. Inflation for fruit is above average at 7.6 percent year-to-date through September 26, 2021.
Inflation and rising prices will affect the business for the remainder of 2022. It will affect the price on shelves, promotion strategies, pack size, etc. However, eating at home will still be preferred with its cost savings.
The good news is prices may be high across the board, so your competitors are also seeing these price increases. It’s important to ensure you’re working with your AWG to find the right items to promote and keep consumer expectations realistic.
Online Shopping’s Produce Impact
When looking at data pre-pandemic and since we see that behaviors of shoppers have changed when it comes to buying produce online. Produce has been one of the most difficult departments to get customers to shop, but since the pandemic, we have seen the preference to shop in-store drop by 10 percent and online buying of produce go up nearly 6 percent.
There are several reasons why this change is occurring. First, is obviously consumers making fewer trips to the store. But beyond that consumers have learned to love the convenience of shopping online and are looking at the health benefits of produce.
While your produce team should certainly put a priority on your in-store displays, if you offer online shopping, you must ensure that the same care goes into providing produce items. That means education order pickers on picking the best produce, storing produce properly as it awaits pickup, and even how items are pictured on the website. These things matter when it comes to getting consumers to make produce purchases online.
AWG is here to help with your needs in the produce department. Make sure you’re engaged with your AWG produce specialist and divisional team to make sure you’re winning against the competition in produce.
