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.
What retailers can do now
Support consumption goals and highlight health benefits. For many, fresh produce is synonymous with nutrition and health. The more focused consumers are on nutrition, the higher fresh produce consumption across meal occasions.
Highlight health benefits, educate on portion sizes and provide tips to easily integrate fresh produce in all meal occasions, especially snacking. Highlight fresh produce’s multi-faceted delivery on value. Fresh produce purchases reflect a constant balance between money-well-saved and money-well-spent.
Cross-merchandise for convenience, educate about nutrition and focus on operational excellence in quality and freshness. Convert meal inspiration into fresh produce purchases. Inspire to shake up routine meals that hamper impulse and incremental sales by closing the gap between inspiration and purchase.
Have a strong digital presence, cross-merchandise meal items, provide click-to-order and leverage the app. Optimize loyalty among primary shoppers and focus on units. As consumers are more likely to move their produce dollars across brands and stores, focus on loyalty.
Be a fresh produce destination, leverage relevant sales promotions and optimize each trip for consumers through merchandising excellence.
Help manage food and package waste at home and in-store. Portion size variety, bulk offerings and storage tips can support consumers’ increased efforts to reduce at-home waste.
In-store, highlight speed to-shelf initiatives and sustainable package choices to further reduce food and package waste.
Source: FMI – The Food Industry Association, Power of Produce 2024
This article is an excerpt from the September 2024 issue of Supermarket Perimeter. You can read the entire Produce Power feature and more in the digital edition here.