Demographic Variations Pose Challenges for Produce Merchandising in Supermarkets

The diverse consumer landscape, with varying purchasing habits and values, makes optimal marketing of fresh produce a complex task. While produce enjoys broad household penetration and appeals to shoppers from all demographics, maximizing sales across the board remains challenging. According to Russell Zwanka, associate professor of food marketing and director of the food marketing program at Western Michigan University, younger consumers, often with lower incomes, are hesitant to become regular fresh produce buyers due to cost concerns.

To address these challenges, retailers can offer smaller package sizes at lower price points, creating a perception of affordability. Zwanka suggests that merchandising these options could help increase engagement with cost-conscious consumers.

In addition to price adjustments, offering a wider range of produce varieties in certain outlets can cater to the core customer base, including higher-income households and culturally specific groups like Asian and Hispanic consumers. “Because produce is so deeply embedded in Asian and Hispanic cultures, selections targeted at these populations need to have a much higher presence,” Zwanka noted.

Supermarkets can also adapt their product mixes to attract the growing number of shoppers purchasing produce through alternate channels. This could include providing produce in bulk packages, similar to those found in club stores, as well as offering more organic and sustainable options. This adjustment is essential, as traditional grocery stores have seen a decline in their share of produce dollar sales, down to 41.1% in 2023 from 41.6% in 2022, according to Circana, a Chicago-based market research firm. In contrast, mass and supercenter formats have increased their share to 20.1% from 19%, and club stores saw a rise to 11% from 10.9%.

“Mass and club formats have made great strides in produce quality,” Zwanka explained, emphasizing the need for supermarkets to adjust to this competitive landscape.

To effectively market to all shopper segments, supermarkets can use in-store signage that highlights specific growers, promotes locally sourced products, and underscores health benefits. “Ensuring that the most seasonally relevant selections are front and center on displays is also vital for communicating freshness and seasonality,” Zwanka added.

Another opportunity lies in marketing to shoppers who receive benefits for nutritious food purchases through programs like the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Retailers can increase produce purchases by targeting these consumers, especially those in the more than twenty-five states participating in the Double Up Food Bucks program, which doubles the value of SNAP benefits used for purchasing fruits and vegetables.