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Market Minute with Ron Pelger: Banana market impacts retail level

By
Ron Pelger

The availability of banana volume is good along with the quality; however, the costs are increasing within the supply chain due to market conditions, packing material and production costs, along with the current inflationary trend. The grocery store pricing level of bananas has been steadily on the low side with little gross profit for many years in highly competitive markets. That is about to change with justified retail increases at the supermarket.

Regardless of this position, bananas are still one of the consumers' most popular desired fruits. The demand for bananas will still stand firm. Keep your display in place and fully stocked. Avoid stacking the bananas, as they are delicate and will easily bruise. This will cause shrink damage along with angry customers. Maintain a large, impressive section and display only one layer on a soft pad as shown in the photo.

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