‘Retailers that make clear decisions will further strengthen their position in the retail landscape in the following years,’ says Perry Dekkers, Commercial Director of Growers United. ‘Of course, the recent inflation also adds to this, but this trend has been visible for a longer period in numerous European countries. Only during the COVID pandemic did the upward trend stagnate when shoppers preferred buying their groceries at one retailer instead of at multiple retailers. Service supermarkets keep playing an important role if they distinguish themselves. Growers United focuses both channels and adjusts the supply to meet the specific needs.’
‘We also see a major increase in private labels compared to brands. Predominantly discount supermarkets, that mostly sell private labels, have been putting in the work in the past years. That being said, this increase is also visible at service supermarkets. There will always be room for brands, but the fact that the majority of the fruit and vegetable brands are sold as private label, provides opportunities for our supply chain. How can we make this category even more successful?’
Increasing revenue and return per square meter
‘Retailers focus on increasing their revenue and return per square meter in the fruit and vegetable department. While the growers of Growers United focus on increasing their revenue and return per square meter in the greenhouse,’ Perry explains. ‘These two principles are related and Growers United aims to connect them. Each has a direct impact on the each other which is why a successful strategy would benefit the entire supply chain. When a retailer launches an in-store promotion, this impacts every supply chain partner in reverse order; from retailer back to the grower.’
‘Successful strategies are often linked to adequately meeting the needs of shoppers. In other words, by presenting the right fruit and vegetable range and packaging mix at the right retailer. Shoppers at a discount supermarket expect a narrow product range with high rotating fruit and vegetable products for an appealing retail price. While shoppers at a service supermarket expect a wider product range and more options in, for example, taste, size, and retail price. As fruit and vegetable supply chain, it is up to us to supply the right products to the right sales channel and therefore, meet the current needs of shoppers.’
Growers United’s approach different than regular route
Being successful at shopper level positively influences the entire supply chain. That is why at Growers United, the shopper is at the core of our decisions and campaigns.
Through analysing sales data and doing research amongst international shoppers, we gain insight into their selection and purchasing behaviour. Recent data shows what drives them right now. Then, we decide how we can adequately meet their demands, with adequate advice and suitable solutions for retailers. While the growers of Growers United keep supplying fruit and vegetable products that meet the specific needs of shoppers.
Insight in shoppers’ needs crucial for a successful fruit and vegetable sector
Not only does our international shopper research show the different needs and expectation of shoppers at a discount supermarket versus a service supermarket, but also the different needs and expectation of shoppers at for example two different service supermarkets. Shoppers visiting a service supermarket have other expectations of the fruit and vegetable department at, for example, Waitrose than at Tesco’s.’
‘Through analysing shopper behaviour at this level too, Growers United can adequately advice each type of retailer,’ Perry says. ‘It allows us, together with our supply chain partners, to find suitable solutions that positively influence the selection and purchasing behaviour of shoppers. Aiming to further increase the revenue and return per square meter in the fruit and vegetable department.
Growers United positions the (international) shopper at the core of its business. Curious to know how we can further increase your revenue and return, with up-to-date insights? Check the website of Growers United for more information or get in touch, via marketing@growersunited.nl or +31 (0)174 238 000.