Not surprisingly, as inflation and general economic uncertainty have lingered, so has shoppers’ watchfulness related to price. According to the recently released Power of Produce 2024 report, published by FMI – The Food Industry Association with data collected by 210 Analytics, trips to the produce department increased compared to the prior year, but shoppers bought fewer items per trip. The study also found that one quarter of consumers ranked price as the top factor when buying fruits and vegetables.
The Power of Produce 2024 report shows that there is more than meets the eye when it comes to inflation, however. For example, produce didn’t experience as much inflation as other categories last year and didn’t swing between highs and lows. Despite the fact that volume was down a bit and dollar sales were relatively flat, this stability is notable.
A closer look at the data shows that that value is the big story in the marketplace for fresh fruits and vegetables, versus just price. Consumers scan in-store produce displays — and their phones — for favorable prices, but they want to get more out of the produce they buy and accordingly choose produce with a desired ripeness and appearance.
The value equation extends to practicality in usage. The fact that people are buying less on their average shopping trips means that frugality has become a way of life — shoppers do not want to waste food, especially perishable foods. Anyone who has cleared out their refrigerator on the night before trash pickup day or for their regular composting can attest to that.
To prevent waste and maximize their food budgets, shoppers are actively seeking out value. According to the Power of Produce report, consumers are increasingly pre-shopping, using apps and circulars. More than half (54 percent) of those surveyed say they plan their fresh produce purchases. Moreover, when pre-planned items are out of stock or seem to be of poor quality, 20 percent of shoppers will forego the purchase and 21 percent will opt for another store.
When pre-shopping, price is top of mind. Nearly two-thirds (61 percent) of shoppers told Power of Produce researchers that they compare prices and specials across different stores, while 71 percent check prices and specials at their main store and 75 percent compare prices and specials across items in that store.
These findings mean that pricing and promotional efforts are pivotal to staying competitive. As the Power of Produce data confirms, sales promotions are the most powerful way to capture fresh produce purchases.
Retailers and produce suppliers can offer a variety of promotions that resonate with value-minded consumers. Consumers mainly look to in-store signage, digital coupons, store apps and loyalty programs to find promotions, according to FMI’s latest report. Creative promotions, like meal deals with other store departments, can also lift sales, as can shorter-duration “hot” deals. As grocery technologies improve and expand, personalized promotions can move the needle in unit and dollar sales while delivering the multi-pronged value that shoppers seek.
In addition to attracting shoppers’ attention through promotions that emphasize value, grocers can take back some of the impulse buys that have long defined produce-buying habits. For example, a retailer can spotlight seasonal or locally grown varieties, using storytelling, signage and eye-catching displays. The perennial tactics of sampling and providing recipes can also spur unplanned purchases.
Offering new products can also get consumers to try something new, especially if it’s something relevant to their lifestyles and needs. For instance, as people want to avoid waste, stores can add smaller portions. Customers can also be enticed to try new varieties if items are priced similarly to existing familiar products and offer a different or unique taste experience.
Keep in mind the health and well-being aspects of the produce department. Consider leveraging the MyPlate program, which breaks down the Dietary Guidelines for Americans. For example, MyPlate recommends that half of your plate include fruits and vegetables which is easy for shoppers to understand and implement. You can also work with your retail registered dietitian nutritionists to educate shoppers more on fruit and vegetable portions and offer produce preparation and meal ideas that help shoppers meet their health and well-being needs.
Finally, the always-important approach of engaging with consumers — both digitally and on the store floor — is pivotal. They may be pre-shopping, but they likely appreciate information and recommendations while they are actually shopping. Helping shoppers throughout their journey ultimately helps the department and the industry.
