Supermarket Perimeter - September 2024 - 12

Promotion power
Over the past few years, for instance, traditional
While promoted prices remain far above
pre-pandemic levels, sales promotions are
the most powerful way to capture fresh
produce purchases.
Six in 10 shoppers check prices and
promotions across two or more stores and
even more check specials at their primary
store and/or across items. This means no
item or store is guaranteed the purchase
and the store/brand's price perceptions
are increasingly important.
Sales specials have the ability to influence
the amount, type and brand people buy,
but are less influential in driving new item
trial. 61% compare prices and specials
across stores. 71% check prices and
specials at the main store. 75% compare
prices/specials across items in the store.
In-store signage and digital are the top
ways consumers research specials.
In-store signage, followed by digital
coupons, the store app and loyalty
programs are now more important than
the paper circular, especially among
younger shoppers. The once dominant
paper circular has dropped to fifth place
in the list of ways in which shoppers
check fresh produce promotions.
Home-grown produce can have some
impact on sales. Of the 33% of shoppers
who grow some of their own herbs, fruits
or vegetables, three-quarters say this has
had no (17%) or little (56%) impact on their
buying habits. The remaining 28% say they
buy a lot less (of the items they grow).
Price and promotional perceptions
are important drivers of store and
department choice. Embrace creative
approaches such as shorter durations
or cross-departmental meal deals.
Personalized promotions provide an
additional layer of value. Underscore the
importance of merchandising excellence
with produce department associates to
drive incremental purchases.
Source: Power of Produce 2024
12 - SEPTEMBER 2024
supermarketperimeter.com
supermarkets have lost some ground in their share
of total produce dollars. Supercenters, mass, club
and other value-focused stores have picked up share,
she said.
Size matters
Fixed weight, pre-packaged produce, meanwhile,
continues to have a better-than-average performance.
Retailers have been reducing bulk sets, but the
strength of fixed-weight is also driven by the growth
in self-checkout and online sales, where packaged
is easier to ring up as well as the channel shifts,
Roerink said.
That said, it's important for retailers to keep in mind
that bulk displays bring important impulse power.
" There's nothing like the visual beauty of produce, or
the power of seasonal fruits and vegetables, " she said.
" It's important to find the right balance between bulk
and pre-packaged operationally and as a sales tool. "
There's been a little less focus on conveniencebased
solutions in the past year, both in produce and
other parts of the store, Roerink said.
Value-added produce makes up about 16% of
produce dollar sales, and year-on-year sales are down
slightly, whereas no value-added dollar sales are up
3.9% over the past year.
" The same is true for units and volume, " Roerink said.
" The below-average performance is certainly not due
to lack of interest - life is as busy as it's always been. "
Instead, inflation is the culprit. Value-added tends to
be more expensive. In addition, she said, consumers
oftentimes reference the limited shelf life and higher
chances of waste with value-added.
CONVENIENCE
68%
Purchase salad kits/
packaged salads
sometimes to
always, down from
76% last year
73%
Purchase valueadded
vegetables
sometimes to always,
down from 78%
57% Purchase
value-added fruit
sometimes to always,
down from 67%
59% Point
to price as the
biggest barrier to
purchasing more
$11.2B
Value-added
produce $ sales
14.7%
Category share of
all fresh produce
$8.0%
Category share of
fresh produce lbs
+1.4%
Change in dollar
sales vs. YA
-3.7%
Change in volume
sales vs. YA
-2.5%
Change in unit
sales vs. YA
Source: FMI -
The Food Industry Association,
Power of Produce 2024
Vasiliy - stock.adobe.com
Supermarket Perimeter - September 2024

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