Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Sunday, February 11, 2007

Getting fresh

This story looks at makeovers at some of New Jersey supermarket chains.
It opens with a winner:

Call it "Extreme Makeover, Supermarket Edition."

The article notes that supermarkets are finding success in competing with big box discounters by focusing on their fresh produce department, often revamping the look and appeal of it to drive traffic.
Here is a passage that quotes Jim Hertel of Willard Bishop Consulting.

"The model for a lot of the big-box operators is to keep in-store labor to a minimum, and if you're not paying attention to produce, you are going to have bad-looking produce," Hertel said.
When done right, however, it can make a big difference. "The role of in-store execution is to make sure the presentation is appropriate, that the product is rotated," he said. "You really have to be working those areas. Most of the savviest retailers look at it as a marketing investment." If they can break even on fresh, it's "a way to drive traffic, a way to get return on equity. You bring people in," Hertel said.


TK: This trend of "breaking even on fresh" to drive traffic as opposed to viewing the department as a cash/profit cow is remarkable. I wonder about the extent of this transformation among retailers in reality.



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