Target has organic produce in its sights

Organic produce merchandising is on the upswing.

With sales at many outlets increasing, and more shoppers seeking foods that are healthier and environmentally favorable, retailers have the potential for even greater category gains, presenters said at the 2024 Organic Produce Summit in Monterey, Calif.

Organic produce sales at Minneapolis-based Target Corp., for instance, have grown about 2% annually for the last three years and organic fruits and vegetables account for 20% of the retailer’s overall produce dollar sales, said Robby Cruz, vice president of produce. That includes organic bananas, which account for 33% of the retailer’s total banana activity, he said.

Target shoppers tend to be younger, and many are seeking organic products as “they are looking to have foods that serve as medicines,” Cruz said, adding that more consumers also want retailers to be transparent about selections and for stores to have additional organic varieties.

While such segments as Millennials (aged 28 to 43) and Gen Z (aged 12 to 27) tend to understand the meanings and benefits of organic produce, “a lot of other people still need to be educated,” about products, said Patrick Haines, vice president, produce procurement, for United Natural Foods Inc. (UNFI), a Providence, R.I.-based organic produce wholesaler and distributor.

Related:A more favorable pricing picture for organic produce

Such education can emphasize the decreasing price differentials between conventional and organic produce, Cruz said, when also encouraging customers to consider more than cost when contemplating product value.

Retailers, he said, can spotlight the wide varieties of organic products that can enhance the eating experience. Such action could turn shoppers into “brand ambassadors” who extol the virtues of a store’s organic produce to other consumers, Cruz said.

The optimal strategies for merchandising organic produce, however, will vary by retailer and store, he said. “You are not going to succeed by taking the cookie-cutter approach,” Cruz said.

In addition, it is important for retailers to be transparent about the development of organic produce and the products’ journey from farm to store, Haines said. “Many consumers want to understand how the product grows and how it got from Washington to Florida.”

Moving forward, consumer interest in organic produce will increase as more shoppers focus on sustainability and such elements as soil health and regeneration, he said. A greater number of shoppers also will seek to purchase produce digitally, Haines said, adding that “having an online presence is a requirement today and will be more of a requirement tomorrow.”

Related:How supermarkets can create a sound produce supply chain