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PMA organized virtual roundtable on the grocery/retail sector for Fresh Produce
On April 22, PMA the Produce Marketing Association invited members of the fresh produce supply chain to a virtual event. The theme: the most pressing COVID-19 disruptions which directly affecting them and their business. The top themes, challenges and insights about grocery/retail in USA are here.
According to roundtables discussions, organic produce sales increased by 10% compared to conventional products in March. Strong continued pull for organic products exists because of next factors: very good supply chain; Organic brands are well known and trustworthy and customers focus on overall health and cook at home.
New opportunity in regards to the acceleration of people who are grocery shopping online now, creates a completely new platform and a new way of doing old things for retailers. Retailers must have a strong digital strategy that includes high-quality product images to help promote produce to the top of the site and make sure that what offered to purchase online can be completed. 49% of online shoppers said they would be interested in samples, so sample offer is another way to improve customer service.
There is a great opportunity now to look at self-service areas and think about what customers are going to do when they return. The handling of spoons and tongs will be the biggest problem to solve. Rebuilding of self-service bars will probably be a phased approach: First stage it is Extreme: all pre-pack; second - Hybrid: pre-pack plus bulk and third stage is go back to normal. It is hard to predict how they accept the self-service in the future, it will dictate by customer. Departments (such as produce and grocery stores) will have to reinvent themselves and transform service cases into current needs.
Merchandising has been low in the last six weeks. Fruit is down because merchandising is not a priority. Retailers are focused on quickly removing it from the truck to the shelves. Looking to the new season, retailers need to change their merchandising strategies to increase sales. Expendable income will be decreased substantially, so retailers should consider this. Merchandising and advertising will return and be in focus as the rules of social distance are relaxed and the summer season begins.
These roundtables are for PMA members. PMA announced other roundtables in following weeks: The next virtual roundtable focused on the grocery/retail sector of industry will be held Wednesday, April 29.
Source: PMA Produce Marketing Association
Contact: Mrs Mary LENHOFF
Marketing Operations Manager
