How to Boost Your Produce Categories

While formerly the director of produce merchandising and procurement for a major supermarket chain, I reviewed and analyzed all produce categories very carefully.

Each week, I received a data report listing all items and categories that sold through the retail system from the previous week. Each item recorded its movement amount, sales, gross profit rate, gross profit dollars, and percentage of total produce sales. The totals were also listed as year-to-date results as well. Finally, each category was compared with the previous year (plus or minus).

If product in a specific category generated a high gross profit, we always considered its percentage of total produce sales and especially the profit dollars it produced. If any of those high profit categories were lower than expected or revealed signs of slowing down, we acted immediately to rebuild their growth.

For us to increase specific category items, we would put an action plan together in the way of driving sales towards a targeted goal. 

In this case, let’s take grapes for example. We wanted to build up our grape category with a goal of doubling the sales volume —— thus doubling the profit. 

Here was our Six Point Program:

1. Identify the Category (In this case, we chose grapes)

2. Set Sales Target Goal (We wanted to double the movement)

3. Conduct a Meeting with Produce Field Supervisors (Introduce a plan and goal)

4. Schedule a “Produce Manager Show Store” (Show and discuss the grape display)

5. Set up Grape Displays (All grape displays set in stores by a completion date)

6. Start Promoting (Advertise grapes for several weeks on all varieties)

The results usually start to show in the first three weeks with intense boost in movement during weeks afterwards. 

• The main emphasis must be placed on “consistency.” 

• The displays must be constantly supervised and professionally maintained.

• The ad promotions must be sustained at a steady weekly pace. 

Eventually, the increases will start to show after about three to four weeks of consistently merchandising large visual displays accompanied by ad promotion support. The Six Point Program can increase the category by 10% or more in sales growth.

So, if you’re looking for more sales and gross profit, it makes sense to carefully study your category data reports. Then seriously consider selecting an item or two for the Six Point Program and watch it boost your gross profit dollars and percentages.