Stay on top of things to reduce mark-downs
The mark-down rack says lots about a grocer.
Every store has one. It's typically in the rear of the store, down a hall or near a backroom door.
Marked-down dented cans need little explanation. One or a few are the casualties that fell off a shelf. A lot of the same cans indicate wholesale damage, such as a case tumbling off the back dock. Other reasons abound, such as discontinued product, short-dated items. The sign shouts, "50% savings or more!"
What about marked-down produce?
In an ideal world, there would be no produce on a mark-down rack. Personally, I hate the sight of a fully loaded cart of reduced-sale produce. That's probably because, like so many, I was raised in a work environment where we sold only high-quality produce.
Marked-down produce goes counter to that claim.
However, as produce professionals we're committed not only to selling high-quality fare, but being responsible to the bottom line as well. The thinking from most store managers, when seeing distressed produce, is something along the lines of, "Well, see what you can get out of it."
Obviously, there's going to be a loss in some situations. What the store manager really means, is to try to minimize the loss.
For this, a produce manager has to retrace his or her steps.
To minimize losses, a produce manager must stick to a strict regiment.
First, order closely, only enough until the next delivery arrives.
Second, check off the load and compare it to what is listed on the invoice to make sure there are no discrepancies or shortages.
Third, ensure the load is promptly put away to maintain the cold chain and handled carefully, rotated and code-dated, following the first-in, first-out rule.
On the sales floor, the produce manager minimizes shrink by making sure proper handling extends to the display. Rotation should be on every clerk's must-do list, and anything that threatens loss should be reported right away, such as a refrigerated case breaking down or starting to freeze.
Sometimes mark-downs can be avoided by dealing with issues promptly. De-lidding banana cases will help slow the ripening process, and following a good leafy green crisping program will extend shelf life, for a couple of examples.
There will always be produce that slips through the cracks. It's best to mark down something only if it represents a value to the customer. Perhaps other, distressed produce can find new life in deli salads, for garnish or the juice bar.
The mark-down rack serves a purpose, I suppose. My take is to keep it as bare as possible.
Armand Lobato works for the Idaho Potato Commission. His 40 years' experience in the produce business span a range of foodservice and retail positions. E-mail armandlobato@comcast.net.
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