Cancel OK

The New World of Retail

How competition is giving rise to a fresh produce focus
MS_New World Retail

The quest for more and better produce is universal, to a degree, but is easier for premium formats. “It’s happening more at the high end where margins and profitability are better,” notes Strapagiel. “They’re finding economical means to experiment with more exotic and international foods that may not play as well in the discount formats.” He adds that price competition means retailers at the lower end have a fail-fast strategy where initiatives that don’t work right away are terminated quickly—a strategy that often doesn’t work well with exotic produce, which can take time to build a following.

Formula for Success
“Product quality and variety, while certainly important and the center focus of some formats, are not the focus in all formats,” Numainville says. “In other cases, elements like value and service are primary components. For example, Aldi certainly has a limited variety but offers an exceptional value and solid quality.”

The 2017 Supermarket Experience Study found 49 percent of Aldi shoppers were highly satisfied with quality and freshness, compared to 58 percent of supermarket shoppers overall who indicated they were highly satisfied with quality and freshness at their supermarket. “So in the end,” Numainville notes, “while all of what we call the ‘core experience factors’—variety, service, value, quality, and convenience—are important, different formats accentuate different components.”

“Great focus on fresh is pretty much universal and should be a component of every retailer’s focus for the future,” asserts Grinstead. “Product quality and variety have become more of an expectation, like food safety. It’s just the price of admission. The experience has to be created around that to entice consumers into the stores on a regular basis.”

The same is true for online shopping—fresh fruits or vegetables that arrive on doorsteps overripe or with blemishes and discoloration will set ecommerce back. All in all, one thing is crystal clear: the recipe for success begins and ends with fresh.

Image: Katya Havok/Shutterstock.com

Twitter

Karen Raugust is a freelance writer who covers business topics ranging from retailing to the food industry.