Holiday grocery merchandising won’t be 'normal', but not like 2020 either
Thanksgiving is the most bankable holiday of the year for produce sellers, but the other fall and winter holidays aren’t too shabby either.
This is an especially advantageous time to grab your consumers’ attention and pump up that sale, move that product.
As a specialty house, November and December are “hugely busy” seasons for John Vena Produce, a wholesaler in Philadelphia, said Emily Kohlhas, director of marketing.
“Most of our customers, whether in retail or foodservice, demand a wider-than-normal assortment of specialty and high-end items,” she said. “This is the time of year when consumers are most motivated to splurge, try new recipes and go beyond their normal, routine basket.”
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Merchandisers from wholesalers such as Four Seasons, Ephrata, Pa., or S. Katzman Produce, Bronx, N.Y., and in-house merchandisers at retail stores can maximize the benefits of this time.
Retail e-commerce sales growth in the U.S. for all kinds of products, food and non-food, will slow considerably this holiday season, from 32% in the 2020 season to 14.4% during the 2021 holiday period, according to eMarketer’s September report. The tracked sales exclude foodservice and bars.
Despite this deceleration, brick-and-mortar and online retail holiday season sales growth will increase from 6.2% in 2020 to 9% in 2021 — the fastest in years — as shoppers who purchased online last year re-enter physical retail spaces.
As a result, in-store produce displays may be seen by more shoppers compared to last year.
Fall merchandising means apples, pears and hard squash, including pumpkins, butternut squash and acorn squash. But don’t limit yourself to the mainstays, merchandisers say.
“It can be a crazy time, especially for Thanksgiving week — the week the produce departments and stores make the most sales all year,” said Timothy McBain, produce manager at Barons Market, San Diego. “But it’s also fun. It keeps you on your toes. I personally like to see all the new apples coming in, and citrus closer to December, like those satsuma tangerines.”
Pick your trends wisely
Supply chain issues and inflationary prices are affecting produce at all levels. McBain is feeling the high cost of produce these days, and it’s influencing him to pull back a bit and play it safer than in previous holiday seasons.
“So, instead of going big on displays like we used to, this year we are going to minimize our exposure by not putting out so much product and going after the best quality we can get for our buck,” McBain said.
These sobering facts make strategic merchandising more of a necessity during this celebratory time.
“Look at the newest holiday recipes from popular food publications – particularly those favored by the demographics in your store. What fresh ingredients keep showing up, or play a prominent role in features?” Kohlhas said. “Those are the fruits, vegetables and herbs you want to consider bringing into stock for the holiday season if they aren’t already in your lineup.”
But be wary: food publications may be developing holiday recipes in spring and summer. Double-check with a trusted supplier on availability before planning any ads or displays, she said.
In San Diego, McBain changes out the displays about the time that peach and nectarine availability diminishes, and the new crop of California galas and bartlett pears hit the market.
“That’s the sign that fall is here,” he said. “We put the apples in the front of the markets’ displays to showcase the new changes in season.”
Also, strawberries and some vegetable price points change, due to seasonal availability, so McBain and his team minimize their exposure on the displays.
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“We always color-break the fruits on the displays so we can get that wow factor,” he said. “No red with red, although it’s hard when there are so many blush apples out on the market.”
The best way to look at merchandising is by using the 4 Ps: product, placement, price and promotion, Mike Mauti, managing partner of produce industry consulting firm Execulytics, said in his Retail 101 series for Produce Market Guide.
In Mauti’s “How important is Thanksgiving for produce” webinar for Produce Market Guide, he provided historical metrics for the season and reviewed Brussels sprouts, cranberries, celery, pears, pomegranates and sweet potatoes.
“Obviously, this is a very important few weeks for produce,” he said.
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