Providing consumers with the type of fresh produce they can eat while on the go is one challenge that convenience store operators and their suppliers face.
Another is preventing shrink, which is a major concern, says Chad White, foodservice category manager at Rutter’s, the York, PA-based chain of 78 convenience stores.
“The big challenge is keeping quality up and reducing shrinkage,” he says. “We want fresh-looking produce—if it’s not fresh, it doesn’t sell.”
Of course, knowing how much to order can be a challenge. If it doesn’t sell, then there’s waste.
Jeff Lenard, vice president of strategic industry initiatives at the National Association of Convenience Stores agrees that these decisions are crucial.
“If you have shrinkage, you’re literally throwing money away,” he says. “It’s also potentially inhibiting your long-term growth if you don’t throw it away.”
Joe Watson, vice president of membership and engagement for the Newark, DE-based Produce Marketing Association, BB #:153708 says distributors can help C-stores master the fresh produce market by offering smaller amounts than a grocery or big box store would purchase.
“Traditional retailers purchase full-case inventory while convenience stores generally use smaller quantities,” Watson says. “They need access to half cases or even quarter cases.”
Acknowledging that some suppliers are not set up for making such adjustments, Watson says it may require a third-party distributor to break down cases into the amounts a convenience store wants.
Training and vigilance
Convenience stores investing in fresh produce also need employees who are produce professionals. At Rutter’s, for example, White says employees undergo training to learn about ordering and turning away produce that is not fresh or the right temperature.
“You get two deliveries a week: so how do you get from point A to point B without waste?” asks White, as an example of the type of questions the store and its employees face.
Another challenge for convenience stores is infrastructure, which isn’t necessarily set up for fresh produce.
“Most convenience stores do not have the proper storage areas, whether coolers or an ambient backroom—many have no backroom,” Watson says. “Value-added produce is different, in that it comes off the truck and into a refrigerated case.”
And, fresh produce requires monitoring. “As long as freshness standards are in place where rotation happens and short-dated products are not displayed, generally, valued-added works well in a convenience store environment,” Watson adds.
Lenard says distributors also need to look at how items are packaged to entice consumers who seek the same sort of grab-and-go convenience of apples and bananas, which are frequent purchases at C-stores.
This is an excerpt from the cover story of the November/December issue of Produce Blueprints Magazine. Click here to read the full feature.
