Produce sets the tone
Produce sets the tone
NORWALK, CA -- Fresh produce sets the tone for Albertson's newer Southern California stores, according to Sue Klug, president of that 286-store division of SuperValu, which is based in Minneapolis.
Speaking June 4 at the bimonthly meeting of the Fresh Produce & Floral Council, here, Ms. Klug said that at the chain's newer upscale stores, "produce is up front and in your face. It sets the tone." She said the emphasis on fresh is very important in those stores and does drive sales.
Discussing fresh produce specifically, Ms. Klug said that she expects future growth in items touting convenience as well as in the organic sector. With regard to fresh-cut and prepared items, she said that the typical Albertson's shopper is always looking for ways to reduce meal preparation time. She predicted that organic produce could eventually capture as much as 25-30 percent of produce sales, which would amount to at least a six-fold increase over current sales.
But Ms. Klug also cautioned that consumers are feeling the effects of the economy. "It affects what they buy and where they shop."
She said that a promising note for the supermarket industry is that consumers are trading down and instead of going to restaurants - especially casual restaurants - they are trying to create that same experience at home.
However, she said that the trading-down concept seems to cut across all economic levels, as upscale customers are trading down from filet mignon to top sirloin, and top sirloin buyers are now purchasing round steak.
She fears that the same trend will motivate consumers to trade down with regard to their shopping experience, meaning that specialty store shoppers will start frequenting conventional supermarkets, and some supermarket shoppers will move down to discount grocers.
Partly to appeal to these shoppers, she said that her division will be opening additional Lucky supermarkets in the near future, which is the discount outlet for SuperValu in her marketing region.
Despite her warnings, however, Ms. Klug painted a rosy long-term future for fresh produce, reiterating that it is a very important department for the Albertson's division that she runs.
Speaking June 4 at the bimonthly meeting of the Fresh Produce & Floral Council, here, Ms. Klug said that at the chain's newer upscale stores, "produce is up front and in your face. It sets the tone." She said the emphasis on fresh is very important in those stores and does drive sales.
Discussing fresh produce specifically, Ms. Klug said that she expects future growth in items touting convenience as well as in the organic sector. With regard to fresh-cut and prepared items, she said that the typical Albertson's shopper is always looking for ways to reduce meal preparation time. She predicted that organic produce could eventually capture as much as 25-30 percent of produce sales, which would amount to at least a six-fold increase over current sales.
But Ms. Klug also cautioned that consumers are feeling the effects of the economy. "It affects what they buy and where they shop."
She said that a promising note for the supermarket industry is that consumers are trading down and instead of going to restaurants - especially casual restaurants - they are trying to create that same experience at home.
However, she said that the trading-down concept seems to cut across all economic levels, as upscale customers are trading down from filet mignon to top sirloin, and top sirloin buyers are now purchasing round steak.
She fears that the same trend will motivate consumers to trade down with regard to their shopping experience, meaning that specialty store shoppers will start frequenting conventional supermarkets, and some supermarket shoppers will move down to discount grocers.
Partly to appeal to these shoppers, she said that her division will be opening additional Lucky supermarkets in the near future, which is the discount outlet for SuperValu in her marketing region.
Despite her warnings, however, Ms. Klug painted a rosy long-term future for fresh produce, reiterating that it is a very important department for the Albertson's division that she runs.
