Supermarkets scale back produce ads during COVID-19 lockdown
In the continuing market disruption related to the COVID-19, supermarkets are not running their typical amount of weekly promotions for fruits and vegetables.
In the latest April 10 National Retail Report for Specialty Crops, the USDA reported:
"This week saw a slight increase in ads, likely due to Easter promotions and perhaps to an improvement of supply chain kinks. Recently instated policies such as quantity limits, no rainchecks, and social distancing requirements were still in effect with no sign of returning to normal.
Total ad numbers this week were 208,333, a 3% increase from last week's 202,735, and an 8% decrease from 2 weeks ago. Seventeen percent of regularly reported stores had no ad this week and specifically cited COVID-19 as the reason.
The total number of ads broken out by commodity groups: fruit 99,348 (48% of all ads), onions and potatoes 9,658 (5%), vegetables 85,007 (41%), herbs 259, and ornamentals 14,061 (7%). The number of ads for organic produce was 11,985, 6% of total ads. The number of ads for hemp were 282."
Hemp, huh? In the April 12 report from a year ago, the USDA commentary read:
"With Easter and Passover just days away, produce aisles abounded with everything shoppers needed for holiday celebrations. Spring favorites such as cantaloupe, watermelon, asparagus, corn, yellow squash, and strawberries were readily available. Staples for holiday meals were showcased heavily, including apples, grapes, pineapples, raspberries, avocados, green beans, carrots, corn, mushrooms, sweet potatoes and roma tomatoes.
Floral departments were decked out in Easter lilies, daffodils, and tulips. Most retailers featured a special section for Easter candy, decorations, and bakery items.
Total ad numbers this week were 369,234, about steady from last weeks 371,577.
The total number of ads broken out by commodity groups: fruit 139,379 (46% of all ads), onions and potatoes 31,746 (9%), vegetables 157,093 (43%), herbs 1,199, and ornamentals 9,817 (3%). The number of ads for organic produce was 50,685, 14% of total ads."
TK: Comparing the April 10 report this year to the April 12 report last year, total ad numbers in 2020 were a whopping 44% lower.
Here are further comparisons that speak to the importance of individual commodities compared with the whole pie:
This year, the percentage of fruit on ad (as a percent of total fruit) on April 10, compared with the same week last year:
- Apples: 16%, compared with 15% last year;
- Blueberries: 6%, compared with 5% last year;
- Cantaloupes: 5%, compared with 4% last year;
- Grapes: 12%, compared with 8% last year;
- Misc Berries: 7%, no change from last year;
- Oranges: 8%, no change from last year;
- Pineapples: 10%, compared with 6% last year;
- Strawberries: 8%, compared with 6% last year;
For vegetables, here are the percentages of individual vegetables on ad (as a percent of vegetables on ad), compared with the same week a year ago:
- Asparagus: 14%, no data a year ago;
- Beans: 4%, compared with 3% last year;
- Carrots: 7%, compared with 8% last year;
- Celery: 4%, no data a year ago;
- Corn-Sweet: 6%, no data a year ago;
- Onions: 5%, compared with 6% last year;
- Bell peppers: 8%, no change compared with a year ago;
- Potatoes: 5%, compared with 11% last year;
- Salad: 7%, compared with 6% lat year;
- Sweet Potatoes: 8%, no data a year ago.
TK: With retailers experiencing a new baseline of demand with the contraction of foodservice, the normal beat of supermarket produce promotions has changed.
I find it interesting that 2020 promotions of asparagus are way up compared with a year ago, however. Why is that? It could be that retailers did not feel the need to promote potatoes (or other hardware veggies) since they have been flying off shelves, and that asparagus simply seemed to make sense as a seasonally strong option that could pull consumers in the store. Give a gold medal to asparagus marketers to garner that much retail attention.
