Banana box retailers

Guest blogger Lance Jungmeyer chiming in ....

We have banana republics, banana boats, banana splits ... but today was the first time I had heard of banana box retailers.

A banana box retailer is a small retailer of distressed or out of date grocery items. As this WSJ online article explains, these grocers come by their name honestly.

"Many smaller salvage grocers buy goods from so-called reclamation centers. Reclamation centers collect goods that conventional food retailers have received from manufacturers but deemed unsuitable for sale, often because they are damaged. Some reclamation centers then sell these goods to brokers, which hawk them to small salvage stores. The goods are typically contained in boxes that once carried bananas, so these smaller operations are often called banana-box grocers."

I doubt you'll see much fresh produce for sale at banana box grocers. After all, their stock and trade is food that's nearing the end of the life cycle or is otherwise unsaleable. But this trend could point to a change in the way people shop. If people are apt to get their consumer packaged goods items from a salvage grocer, will they take the time to visit a traditional supermarket and stock up on fruits and veggies? They may be content with their dented boxes of Hamburger Helper. Does the trend bode well for mom & pop grocers that carry produce? Or might it mean good things for some smaller in-and-out operations like Trader Joes?

It's too early to say, in my mind. As we traverse through 2008 and the recession that everyone says is coming, we will learn more.