Merchandising greenhouse-grown produce for more sales

Courtesy of The Produce News

When category management became a significant role for every level of the produce industry, it sparked an improvement in moving more volume through the system. The data offers us new insights and trends on how consumers' shopping practices continue to transform the produce business. The analytics are most beneficial in building the growth of each produce category.

Data have shown that increased production of superior quality greenhouse-grown produce has boosted category items such as tomatoes, peppers, cucumbers and lettuce to higher sales growth over recent years. Greenhouse tomatoes are now 35 percent of the entire tomato category — showing a dramatic surge in popularity.

Greenhouse-grown, also referred to as hothouse-grown, has many benefits. Crops grow faster with larger yields. The product is clean, bright, and of superior quality, pesticides are not necessary, less land is required with the use of vertical stacking levels, crops are protected from harsh weather damage, and operating functions are automated by state-of-the-art technology.

Greenhouse produce provides consumers with what they want — fresh and safe food grown close to home. Access to local greenhouses will be advantageous for retailers. This is important in meeting customer demand for locally grown produce. It will mean locally grown fresh produce can be delivered faster with added shelf life. It gives retailers a 52-week program, especially in cold climate areas where the close proximity will also benefit longer shelf life and reduce shrink.

The advanced growth of greenhouse-grown product could open the door to another merchandising venture in supermarket produce departments. It could become another signature section similar to packaged salads, berries, fresh-cut fruit and mushrooms.

The top selling greenhouse-grown categories are tomatoes (40 percent of sales), Bell peppers (34 percent) and seedless cucumbers (17 percent). Lettuce and fresh herbs round out the top five.

Ken Green, a long-time friend and associate, as well as an expert in greenhouse-grown produce told me, "The items that continue growing across the board are beefsteak tomatoes, tomatoes-on-the-vine, Roma plum tomatoes, grape tomatoes and medley mix tomatoes. The biggest increases are in the snacking line. Cucumbers and mini cucumbers are huge crops, as are peppers. The growth in berries and lettuce varieties in the industry has been impressive and I see a lot more opportunity for those two items."

There is a huge opportunity to build sales of greenhouse produce items. It is already established, which makes it easier to expand off its base — unlike a new category.

Consider the berry and grape categories. How do you think the growth exploded over the years? It expanded by marketing and merchandising to consumers who were already buying berries and grapes. Those industries redefined their product variety, packaging, marketing programs and retail support. The retailers took it from there and sold more berries and grapes to the same customers.

The markets and category items change regularly and are influenced by the same consumers, not new ones. Growth should always be the priority. If a program just exchanges dollars resulting in the same sales as the previous years, it's a waste of time.

Repetition and monotony have no value. Differentiate your merchandising practices by giving shoppers a reason to purchase more.

Do more to sell more. Create an impression with customers by trying something different in presentation. Here are some simple basic tips:

• Display — Set up a table endcap of greenhouse tomatoes, Bell peppers and seedless cucumbers all combined.

• Quality — Focus on the visual merchandising of high-quality product. Offer only premium product to shoppers. People will pay for superior quality.

• Assortment — Include every variety available to offer more sales choices. There are several varieties of tomatoes in packages and bulk.

• Identification — The words "Greenhouse Grown" need more emphasizing. Post sufficient eye-captivating signage to enhance visibility. Make certain that all items are price-identified.

• Promotion — Advertise more often to drive shoppers' purchases.

The main intention of merchandising is to sell more produce. The same routine of only stocking product in the regular location won't generate incremental sales. That's why you need to do it differently today in order to achieve consistent sales growth. End cap and auxiliary displays will easily double and triple sales.

The impression you give your customers is the way they perceive your produce department, store and company. That impression helps them make a decision as to whether or not to buy your produce.

Source: The Produce News

Header photo created by pressfoto - freepik

Source: The Produce News