Supermarket Produce Sales Facing New Competition

Supermarket produce sales are shifting as shoppers increasingly choose mass merchants and club stores for fruits and vegetables. This trend highlights changing consumer habits and rising competition in the fresh produce market.

Shifting Trends in Supermarket Produce Sales

According to the Power of Produce 2024 report, traditional grocery stores’ produce sales share dropped from 42.9% in 2020 to 41.1% in 2023. Meanwhile, mass merchants and supercenters grew their share from 17.4% to 20.1%. Club stores also expanded, rising from 10% to 11%, while online sales climbed from 1.7% to 2.4%.

Why Mass Merchants Are Gaining Ground

The growth of mass merchants in supermarket produce sales results from bulk packaging and competitive pricing. Consumers increasingly prefer these stores for value-driven options that offer larger quantities at lower prices. This trend reflects efficiency rather than traditional grocers’ missteps.

“The shift is not because supermarkets are doing anything wrong,” said Russell Zwanka, food marketing professor at Western Michigan University. “Mass merchants simply excel with bulk strategies.”

How Supermarkets Can Compete

To maintain supermarket produce sales, grocers must focus on unique strategies. Enhancing local produce selections and promoting exclusive fruit and vegetable varieties can attract shoppers. Offering seasonal deals, personalized discounts, and educational content about fresh produce can also improve loyalty.

“Doubling down on what makes a retailer special is always the best strategy,” Zwanka advised.

Health and Sustainability Impacting Produce Trends

The demand for fresh produce continues to grow, driven by consumer interest in health and wellness. However, sustainability concerns are shifting some shoppers toward frozen produce to reduce food waste.

The Future

To stay competitive, supermarkets must innovate and highlight their strengths. By focusing on local produce, organic options, and eco-friendly practices, they can attract value-driven shoppers.

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