2019 Retail Produce & Floral Review: The primacy of produce

Produce still stands strong as the main reason that customers select a primary store, according to Progressive Grocer’s, a sister publication of Store Brands, annual Retail Produce & Floral Review, which informs readers about what’s going on in produce and floral departments across the United States. From CEOs to store managers, buyers to department specialists, this year’s review contains opinions for 2019 and comparisons to the 2018 report.

In the survey, labor is always a top issue for produce department managers: hiring, training, supervising and, many times, repeating the process. As one retailer says in the 2019 survey: “People are the most important ingredient to a successful produce operation. If you have the right people, they can make the produce department look like gold.”

Competition seems to be of somewhat greater concern this year, whether it’s from other supermarkets, Walmart, limited-assortment stores like ALDI or Lidl, or online.

Several retailers cite oversaturated markets. One respondent notes, “You have to maintain displays in the face of slower turns, with the increased competition.” Another retailer observes, “Costs are higher to buy produce for our store than for bigger chain stores,” and yet another says that because of competition, retail prices have had to be lowered, which affects gross profits. “Competition is brutal,” one respondent concedes.

Competition from other supermarkets was mentioned by 46% (up from 40% in 2018); Walmart by 34% (up slightly from 2018); other channels, including ALDI and farmers’ markets, by 30% (about the same); and online by 28% (up slightly). The fight for produce customers brought a response from almost 50% of respondents who are concerned about the price perception of fresh produce. These respondents know that produce can influence shoppers’ primary supermarket choice. 

To read the Progressive Grocer article, click here.