Produce retailers face an education gap

Effective shopper education is a key factor in driving produce sales, but many retailers are failing to make the grade, merchandisers said.

“The industry does not do a good job in educating consumers about produce, period,” said Daniel Bell, director of produce for Grocery Outlet, an Emeryville, Calif.-based chain of more than 520 Grocery Outlet and United Grocery Outlet stores in 16 states. He said at the 2023 Organic Produce Summit that retailers often “fail” at explaining why the cost of selections are higher or suggesting the best produce to substitute if specific fruits and vegetables are of inadequate quality.

“Providing information to consumers has a massive impact on the ability to move more units,” said Abhi Ramesh, founder and chief executive officer of Misfits Market, a Pennsauken, N.J.-based online seller of produce and other foods. He said at the summit, for instance, that while his site might sell about 2,000 units of broccoli that has purpling at the top, sales would double or triple following an explanation on why the purpling is occurring and how it does not impact flavor or quality. “An education gap with consumers exists,” he agreed.

Spotlighting alternatives for items that are not available because of seasonal outages can generate strong returns as well, said Sonya Constable, vice president of produce for Sprouts Farmers Market Inc., a Phoenix-based chain of more than 400 supermarkets in 23 states.

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“We need to be an expert for customers and help them navigate into the right products while educating them on how to care for the products when they get home,” she said at the summit.

High inflation also is enhancing the need for operators to communicate how shoppers can get more for their money, Ramesh said. “We have more value-conscious consumers,” he said. “They are trading down, and saving is a lot more top of mind.”

To effectively add such value, retailers should study sector trends and “be a good student of the industry before going to the market,” Bell said.

Meeting the customers’ demand for information also is crucial as more shoppers are willing to switch stores and channels to get better service and products, analysts said.

“Consumers have taken control, so retailers have to be at their best every day,” Constable said, noting that more shoppers are using social media to rate and describe a merchandiser’s performance. “No longer can I drive traffic to the store by just putting on a TV commercial,” she said.