The cash register and check-out technology have come a long way. Take a look at this info-graphic which provides a chronological history of the technology in the grocery business. I found it interesting and hope you will too.
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by Ron Pelger | March 20, 2014 This story originally appeared in The Produce News and is reprinted with permission. All rights reserved. An industry friend called me not long ago and told me about his recent store visits. He explained that his trip took him to seven supermarkets and every one of the produce departments looked the same. They all had the usual displays of bananas, lettuce and apples. He claimed that he did not see anything new or different. This conversation got me thinking. If he didn’t see a difference, what did the customers see? What variations do departments need to make people stop in their tracks and draw their attention?A cut fruit and juice section is one way that a retailer can differentiate itself from its competition. In this day and age, retailers need to differentiate their produce departments from their competition. While most departments have a nice appearance, they are all too common with the same displays, same advertising, same product line and the same basic operating programs. The problem with this similarity is it doesn’t reflect any distinctive personality. Shoppers rarely take note of the displays around them. That’s mainly due to the fact that the produce departments are all too generic for them. When nothing is new, different or exciting, a shopper’s focus becomes blurry. They tend to just pick up a few basic everyday items and make their way to the registers. They are not motivated to make extra purchases. Display presentation has always been the main reason for drawing customers into the produce department. The way produce looks is oftentimes more important than the items being sold. Produce merchandising is an art and a science. In order to capture a customer’s attention these days, the produce department must provide a great shopping experience. People admire uniqueness and something that pops out at them while walking through the department. That uniqueness must grab a shopper’s attentiveness in a split second. Once his or her senses are captivated, they can become easily influenced into making additional purchases. That uniqueness will also stick in their minds and turn them into devoted customers. What characteristic do you have that is different from your competition? Is it unique? What is it that you want your customers to see in a split second? Research studies have shown that 64 percent of purchase decisions made by shoppers occur while they are inside the stores. This means that something triggered customers to buy specific items right on the spot. Most had no preplanned intentions of making those purchases. Those were impulse sales generated by displays that were extraordinary. Produce departments can capture the attention of customers with specialized displays that are also unique. These displays are called “Signature Sections.” A Signature Section is defined as a prominent niche that identifies an exceptional characteristic similar to a brand. These sections are special classification “departments within the produce department.” Types of Signature Sections include mushrooms, peppers, tomatoes, fresh-cut fruit, fresh-cut vegetables, value-added salads, fresh herbs and fruit baskets. These sections are similar to family groupings of items, except they are enriched with visual elements of enhancement. They are driven by the number of varieties and choices that attract customers to the displays. In produce, the differences between competitors comes down to who has the edge in the marketing area. Find a way to differentiate your produce from your competition. Signature Sections can give you that edge with niche merchandising vs. the common mainstream. The biggest challenge today is to define the niche that your produce operation does better than the competition. The main components of Signature Sections are: Make merchandising the focal point Create state-of-the-art displays, showcase the product items within the overall display window, and use superior workmanship. Go all out Offer every available variety and choices in the section; carry all sizes of packages and bulk. For example, display 15 to 18 different pepper choices rather than just eight, and present up to 25 various types of tomatoes in bulk and packages. Handle anything and everything your competition does not carry. Attract with colors Produce is known for its dramatic colors, and the use of blended colors can be very effective in capturing customer attention. Communicate persuasively Post overhead descriptive signs above sections for identification and use informative selling signs that educate shoppers about the product. These should be exceptional sections that are vibrant and picturesque. Make sure to frame your Signature Sections like masterpiece paintings hanging in a museum expressing uniqueness. When you do this, people will remember you as being different rather than common like your competition. Ron Pelger is the president and CEO of RonProCon, a consulting firm for the produce industry, and the chairperson of FreshXperts LLC, a consortium of produce professionals. He can be reached by phone at 775/853-7056 or by email atronprocon@gmail.com, or check his details on freshxperts.com for more information. Merchandise Food’s Raduns Receives Industry Honor Produce Business Magazine Recognizes Raduns with 40 Under Forty Somerdale, New Jersey - July 16, 2014 – Jonathan Raduns, consultant and owner of Merchandise Food, was recently recognized by Produce Business in its annual 40 Under Forty awards. The trade magazine recognizes young professionals throughout the U.S. making a difference across all sectors of the produce business. The impressive group of young food industry professionals includes many high level sales and operational managers, the North American Marketing Manager of the Chilean Fruit Exporters, a General Manager of the Oppenheimer Group, the Marketing Manager of the Idaho Potato Commission and the Political Affairs Manager of the United Fresh Produce Association. There is even a successful industry blogger. Raduns credits his background growing up on his family farm and mentorship and association with key industry leaders for his success. “It has been a pleasure and blessing to be mentored and supported in growing my business, Merchandise Food, by experienced industry veterans such as Ron Pelger of Power Produce, Anthony Totta of Freshxperts and John Shelford of Naturipe Foods”, said Raduns. Merchandise Food offers coaching and business consulting for independent food retailers nationwide. Typical clients are small to medium-sized specialty food stores, grocery stores and farm markets. Merchandise Food uses its expertise in visual merchandising with fresh produce, grab-n-go foods, prepared foods and café settings to help its clients increase profitability. For More Information Contact Jonathan Raduns of Merchandise Food at (856) 344-5680, email him at jonathan@merchandisefood.com or visit the website at http://www.merchandisefood.com This Guest Post was written by Rose Van Nieuwenhuyzen, Waverly Plastics Is it possible to save money on supply items and simultaneously enhance the image that you care about your customers? With the right bagging system in your produce department, it is not only possible, it is likely! Have you ever seen the produce department littered with bags laying all over the food, the floor, and being pulled like toilet tissue off the roll (usually by small children looking to overcome their boredom during the grocery shopping experience)? With the boxed produce bags, such as: the Tug & Tote bagging system, by Waverly Plastics there is a way you can clean up the department, and save a lot of mess and expense. The system is designed to be professionally integrated into the produce department; packed in a PBH sanctioned box to present the image of caring for your customer’s health. More Matters is prominently displayed as a healthy reminder that fruits and veggies matter to you and that you care for your clientele. There is no need for intrusive, sometimes wobbly and unsafe floor stands, which block the access to and the view of your beautiful produce displays. The one-at-a-time dispensing eliminates waste compared to exposed roll bags due to early change-out of stub rolls. This represents a savings of as much as 8% or more of your current bag expense! No mess, no struggling to re-start the roll or hang the bags. This saves labor and presents cleanliness in the department. The bag itself offers yet another unique cleanliness feature, since the closed end is the leading edge, and no-one except the person filling the bag will touch the inside of that bag! Something as “commodity” as a plastic bag can do wonders for your image in the store and will save money on a supply item where you thought it wasn’t possible in any other way than to buy a cheap, small bag. Your customers will appreciate the look and the result of this innovative system. Additional Comments and Product Review from Merchandise Food Blog owner Jonathan Raduns: In my consulting work at Merchandise Food I regularly present ideas to clients on how to save money while merchandising to make more! From time to time I like to highlight specific ideas I think will benefit the fresh produce industry, and give independent grocery retailers a competitive edge. While I have not done direct business with Waverly plastics I have found their follow-through and professionalism to be intact with my recent interactions. I have reviewed a sample of the system and find them highly functional, attractive and for some retailers offer an apparent cost savings. In that case I recommend giving a bag in box system a try or test in a group of stores. Cost containment can be a great way to increase produce gross profit and for most retailers produce bags are one of the greatest supply costs in the department. I found the system to work well and the brackets were highly durable. One might also consider private labeling a box for in-store messaging or proprietary branding if possible. Thanks Rose for sharing some thoughts on improving profitability in fresh produce departments. I have not done a cost comparison, however Waverly claims many clients have lowered costs using this system. In today's competitive environment, it makes sense to me to give it a test.
For specialty market owners, independent grocers, or fresh produce departments it's always a challenge to find new and creative ways to merchandise fresh commodities. Here's one quick idea: I noticed something unique in an email update from Cayuga Displays yesterday. Here's my disclaimer: NOTE: I am not offering an official endorsement of this product as I haven't worked with this fixture nor would I recommend implementing the display's product setting technique as exactly shown in the photos, however these units caught my attention. They would be great in the department, or easy solutions for mobile cross-merchandising displays in other department outside of fresh produce. I like the color and shape of the unit. The item actually has a built in inclined capability in the back to gain additional product view. I enjoy seeing fixture manufacturers coming up with new looks and interesting containers. These mobile bins offer a nice big massive space to show off a special item and work with or without ice. I'd like to see fresh in-store pressed orange juice in one of these guys! Here's a few more photos below. I also like this new take on the overhead banana racks. I've seen a number of companies heading in this direction, but really like the idea of this mobile opportunity. Banana's being highly impulse items have great opportunity for spontaneous buys if you can get the right amount in a good location where customers can see them. It may be helpful to pull the display to a refilling area at the beginning of the day, relocated to a prime selling area, then return at night once the unit has sold down. This unit might also have some room for a secondary item in the bin below, however I wouldn't put anything highly perishable. Since bananas offer significant tonnage sales, here's one more unique way to get them in front of prospective buyers.
Just a few thoughts on some creative new ideas. Jonathan |
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