Inventory overload? Here’s How to Keep It Moving

Even subtle daily changes that take only a little time to invest make all the difference to impact your sales, says columnist Armand Lobato.

Armand Lobato
Columnist and produce industry veteran Armand Lobato shares his insight and perspective.
(Photo courtesy of Armand Lobato)

Sometimes, every couple of days or so, circumstances arose in the produce aisle that compelled me (and most produce managers I know) to change up the merchandising.

It may have happened due to an overorder situation or perhaps the warehouse was long on an item — or 10. That’s when we saw an increase, even an abundance, of unanticipated inventory that we hadn’t counted on. That merchandise instantly telegraphed to us as produce merchandisers to get creative and aggressively move product around to help push those long items front and center.

As has been said many a time in this space: Sell it or smell it.

It’s an ongoing challenge, all right. Stores that were content to disregard excess inventory in the cooler were doomed to see poor sales, low gross profit and aging inventory that would assure the cycle would continue.

This laissez-faire type of produce manager seemed to defend themselves when challenged with this question: “Well? You’re backed up on inventory. What are you doing about it?” An aggressive, seasoned produce manager typically was doing everything to merchandise his or her way out of the long situation. Most of the time, it worked and inventory got back under control within a day or so.

However, even if it isn’t this kind of situation, considering ads or seasonal changes, you must keep fresh produce on the move.

What does this mean? This means that you have to expand your displays or move a display from Point A to Point B. For example, consider moving the TOVs that have been on the orchard bin display all week to an end cap facing the packaged salads or across from the leafy greens and, you know, see what happens. Perhaps just make it as an additional or secondary display. See if you don’t move an additional 10 or 20 cases per day.

Multiply this example times a dozen other fresh produce items. That adds up.

Same goes for the entry or lobby displays, especially if they’re easily moved with a pallet jack. If the melon block of items up front has grown blasé to your customers after a couple weeks, line up the same area with a ribbon of bell pepper varieties, perhaps add some white onions and avocados. Bam! Sales spike.

Why? It could be because your customers are reading about purchasing trends in their latest foodie publication. Or more likely, shoppers are naturally hungry for something new, something fresh and different, and you, produce merchandising specialist, are the key to igniting new dinner ideas.

For years, we in the industry have long maintained that more than 80% of fresh produce sales are made on impulse. True. Every shopping list this produce scribe ever swept up mostly said the same thing, when it came to produce needs: “fruit” and “stuff for a salad.”

Not exactly the high-tech marketing news that we’re sometimes led to believe, is it?

It’s a simple business, really: Make the department shine; keep it immaculately clean, neat and organized; merchandise smartly; offer plenty of variety and selection; keep it rotated, culled and stocked level and as high as you dare; sign well; keep lots of bags handy; be on board with knowledgeable, friendly clerks; and keep the displays moving.

Even subtle daily changes that take only a little time to invest make all the difference to impact your sales. Try some cross-merchandising. Venture out with secondary sets. Keep a ready supply of fresh lemons near the seafood case, stock some mushrooms or potatoes near the coffin meat cases. Hang clips (like they use for novelty dry good items) and use these to hang your own dry dip mixes, guacamole mixes or croutons, or hang some fresh herbs near that popular TOV or garlic display.

Keep everything stocked, fresh and on the move. Order expecting the best and not fearing the worst. And watch how your customers respond.


Armand Lobato’s more than 50 years of experience in the produce business span a range of foodservice and retail positions. He has written a weekly retail column for two decades.

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