5 ways to boost fresh sales in 2017
For the past few years, in response to rising consumer demand, retailers have introduced a plethora of “fresh-focused” store formats playing up the produce, meat/seafood, deli/prepared food and bakery departments, often at the expense of perceived lower-value sections such as center store and frozen foods.
But how long will this interest in fresh last, and how can retailers prevent it from growing stale?
Following are five key pieces of advice to retailers to maintain a booming fresh offering. Although some comments refer to one category in particular, many observations are applicable across departments.
1. Stay on top of health and other trends
Since fresh products are so closely connected with consumer perceptions of better health and nutrition, retailers need to strike the right balance in communicating these properties to customers, so that they’ll be encouraged to incorporate more and varied fresh items into their diets.
“When promoting fresh food, retailers should be careful not to lecture or pressure consumers into eating healthy,” notes Dionysios Christou, vice president of marketing at Coral Gables, Fla.-based Del Monte Fresh Produce. “They should promote the nutritional value and many benefits that the products can bring to consumers and their families. Consumers like to have free will when making shopping decisions, and negative promotional tactics or comparisons to other products may make them feel forced and turned off from a particular message and/or product.”
2. Light it up
Another sage recommendation is to make sure that the products look as good as possible by presenting them, quite literally, in the best light.
“When it comes to merchandising, different colors can convey different feelings and moods,” explains Margie Proctor, marketing and design specialist at Conyers, Ga.-based Hillphoenix. “Warm tones, perceived as more pink-red tones of light … can impart a fresh, warm look to baked goods and a pleasing appearance to pink and red meat products.”
Meanwhile, she notes that temperatures “on the opposite end of the spectrum … can help impart a cooling visual [that] emphasizes the white and green in fresh vegetables such as lettuce and green onions, as well as the shining scales of a freshly cut white-flesh fish. The lighting you choose may even affect food spoilage and nutrients.”
3. Borrow ideas
When promoting fresh food, grocers shouldn’t feel locked into marketing and merchandising strategies from their own retail channel — or even limit themselves to retail ideas at all.
“Think of your own experiences at other retail outlets: You appreciate suggestions, whether from a display or an associate,” says Kathy Means, vice president of industry relations at the Newark, Del.-based Produce Marketing Association (PMA). “Make that work at your stores — it shows respect and understanding for your customers. People like to shop at a retailer that ‘gets’ them.”
4. Keep it simple
As with many things, simpler is better when it comes to fresh. “Avoid vast assortments in prepared foods,” says Jill Tomeny, senior manager of category solutions at Stamford, Conn.-based Daymon. “Focused programs help drive turn and freshness. There are ways to sell the same item in multiple formats — such as in the hot bar, in the service case and prepacked in the cold case — that hit on all shoppers’ needs but maintain streamlined offerings.”
Additionally, better organized departments will ensure that customers find what they’re looking for faster. This can mean rethinking traditional category management approaches.
Alan Hiebert, senior education coordinator at the Madison Wis.-based International Dairy-Deli-Bakery Association (IDDBA), notes that “we’ve seen at least one chain that has begun locating the specialty cheese department next to the dairy case, often next to the wine and craft beer. From a traditional category management and store layout perspective, some chains may not think it makes sense. IDDBA research, however, has shown that … positioning the two together can help strengthen the relationship between the two, increasing sales of both and helping shoppers fill their needs efficiently.”
5. Create a worthwhile experience
Above all, retailers must strive to make their fresh departments as inviting as possible.
Del Monte Fresh’s Christou says that “retailers must adopt various tactics such as eye-catching promotional items and merchandising activities that entice and educate consumers. This might include development of seasonal POS for shelves, in-store demos, and improved labeling information about product usages for different occasions. Recipe cards and coupons can also help boost engagement.”
Goldschmidt is managing editor of Progressive Grocer, sister publication of Store Brands.