Walmart announces new produce initiatives for consumers
Walmart announces new produce initiatives for consumers
Walmart, the nation's largest retailer and seller of produce, announced to its customers, through the consumer press, that it was changing its produce-buying habits and would also institute "a 100 percent money-back guarantee" in its fresh produce department.
Making the June 3 announcement was Jack Sinclair, executive vice president of the food business for Walmart U.S., who said, "We're listening to our customers and delivering on our promise to offer great produce at the most affordable price. We are so sure our customers will be pleased with the fruits and vegetables they buy in our stores, they can receive a full refund if they aren't completely happy."
The announcement mentioned several "new" initiatives the company would be instituting, including:
- Delivering produce from farms to store shelves faster by purchasing fruits and vegetables directly from growers and leveraging Walmart's produce experts, distribution centers and trucking systems.
- Executing independent weekly checks in its more than 3,400 Supercenters, Neighborhood Markets and Express Stores that sell produce.
- Launching Fresh Produce Schools and other expanded training programs to 70,000 associates.
The release got widespread play in the mainstream media, with many of the stories indicating that Walmart was cutting out the "middleman" in its produce transaction. But there was no indication that it would result in any major changes with the company's produce suppliers.
Like all major chains in the United States, Walmart already buys the vast amount of its produce direct from grower-shippers, using wholesalers only to fill shorts.
Two Walmart produce suppliers contacted by The Produce News said they had received no notification of any changes in the retailer's buying habits.
The press release from Walmart, in fact, did quote one of its suppliers, who seemed to comment that the current business mode was working well.
Berne H. Evans III, chairman of Sun Pacific, who was identified in the consumer press release as a Walmart produce supplier, said, "Walmart has always been focused on providing its customers with top-quality fruits and vegetables, including our 'Cuties' brand. As a direct result of how Walmart has stored and handled our product, both Cuties and our Ripe and Easy kiwis have been tremendous sales success stories at Walmart."
The Walmart press release did indicate that the success with Sun Pacific would be expanded to other grower shippers.
"To improve quality and freshness, Walmart has hired produce experts to work directly with farmers in the key growing regions where the company has produce-buying offices," the release stated. "Building long-term partnerships with farmers while having Walmart associates in the regions — and in the fields everyday — where produce is grown has made it possible for Walmart to select farmers who grow the best fruits and vegetables. As part of this program, Walmart works closely with local growers in the U.S. to fulfill its commitment to double the company's sales of locally grown produce by December 2015."
The new aspects of the Walmart produce program appear to be internal with the price guarantee, more personnel training, and in-store produce checkers.
The press release said that Walmart is utilizing "independent teams responsible for checking Walmart produce departments" by going into stores each week to ensure only the freshest fruits and vegetables are on Walmart store shelves. Results are reported to every level of store management.
Through this program, Walmart is benchmarking itself and its competitors week over week.
The retailer also reported on the recent launch of "a produce training program for 70,000 associates. The program features a new produce school where associates — including store managers, market managers and produce department managers from every Walmart store in the U.S. — learn more about handling fruits and vegetables. Associates are also equipped with quality guides that clearly illustrate how to identify top produce."
Sinclair said: "Empowering our associates with the tools to guarantee our produce quality is a critical component to our 100 percent money-back guarantee. These efforts, combined with the weekly produce checks and operational changes, will ensure our customers bring home the freshest fruits and vegetables."