The research conducted by SgMarketing reveals the department’s strong power of attraction, which became the motivation of consumer trends and the space where the customer can evaluate the quality and convenience of a sign.
In the wake of the consumer’s increasing attention towards their physical well-being and a diet that could be as natural as possible, consistently based on fresh quality products, the produce section in recent years has stopped being a humble service category and has evolved into a retail space that is able to change an entire shopping experience.
This change in approach has resulted in an impact on the department’s layout: space allocated to dried friut (unpackaged and packaged) increased, as well as the space dedicated to fresh juices, and a new area dedicated to highly innovative products (ex. mousse) hase been introduced. Finally, it has come to integrate into a type of assortment with the category of dried vegetables and edible seeds, which are experiencing much popularity with consumers.
Based on this data, in 2015, SgMarketing, a company specializing in food marketing, conducted a thorough research on the category at a national level, presenting a rather detailed snapshot of the issue both from a consumer’s point of view and from the actions carried out by the distribution to intercept new market demands.
Salvo Garipoli, Senior Consultant at SgMarketing, affirms: “the produce section, positioned at the entrances of points of sale, is the calling card of the sign, with the task of receiving, managing, categorizing and communicating the different product families (from conventional fruits and vegetables to dry and exotic fruits, up to the organic and the IV and V range) present in the assortment of unpackaged references (80% of consumption) or packaged.” The research found that, from North to South, the consumer considers the produce section the most representative element of the quality and overall affordability of the entire point of sale. An aspect that a store chain cannot ignore.
The category as a whole consists of, in large sizes, about 300 references, and contributes to the average turnover of the points of sale about 10% in local shops, 8% in supermarkets and 5/6% in superstores. While the average margins, according to 2014 data from Cermes, amounts to 50% for vegetables and 30.2% for fruits.
Feedback and perspectiveS
On the one hand, if distribution has begun to approach the category in a different manner, to the shopper these efforts do not yet seem to be sufficient enough to guarantee a high degree of satisfaction, as evidenced by the SgMarketing research published by GDOWEEK in recent weeks.
To meet the consumer’s demand for freshness, vast assortment and affordability, the retailer will have to redesign the physical space dedicated to the category by offering greater distinctive features and value.
This is the only way the retailer could increase the level of attractiveness of the entire point of sale and maintaining, at the same time, the commercial strategies of the sign.