I doubt there would be much argument that the best thing about 2020 is that it’s behind us.
From my perspective, I don’t recall ever seeing a year like it. And the question I get asked about quite frequently is: “What’s 2021 going to look like?”
In all honesty, if I (or anyone) knew the exact answer to that question, we could become insanely wealthy. But I do believe 2021 needs to become “The Year of the Merchant.”
Now that might seem counterintuitive given the explosion of virtual shopping, with triple-digit increases reported in the last two quarters of 2020 for some online businesses.
The move to omnichannel, and its continued refinement, have been the definition of competition in the retail sector, especially for food companies. This much we know: the blending of online shopping and physical shopping is here to stay.
What’s unclear is whether online shopping will supplement physical shopping, or physical shopping will supplement online shopping. Said another way, in which channel will consumers spend most of their food dollars?
As 2020 was winding down, actual trips to the store declined, but the average ticket per visit rose. If society moves toward easing social gathering restrictions, will this continue?
Regardless of which channel consumers use more prevalently, there will continue to be a physical shopping trip to the store. And this is why 2021 needs to be the Year of the Merchant.
Fresh fruit and vegetable purchases has always been a sensory shopping experience as opposed to an intellectual one. Color, aroma, texture, and taste are the driving factors in deciding what a consumer will buy.
It has been noted that, historically, as much as 75 percent of produce purchases are bought on impulse. But the online shopping experience is an intellectual one. While online marketing can influence a disposition to trial, it is not as effective with fresh fruits and vegetables.
Let’s face it: people want to see the produce they’re buying. They want to look at the color, check ripeness, and ideally, have a sample. This is where the merchant comes into play.
Every time consumers choose to come into a store, it’s an opportunity to capture their attention and make an impression. And since the retailer might not see that customer in the store again for a few weeks, merchants have an opportunity to create an experience, which will influence future online purchases.
Data suggests that online produce shopping is trending to staple items. It’s easy to make an intellectual purchase decision for a bag of potatoes. But it’s a much different decision whether to purchase an unseen heirloom tomato.
But if the store has an attractive display of heirloom tomatoes, and the customer buys one, there is now a positive impression of heirloom tomatoes. The same thing can be said for a significant percentage of the assortment carried by produce departments.
I get asked a lot what 2021 will look like, and while I clearly have no crystal ball to answer this question, I will make this bet: successful food retailers, in produce, will be those with the best merchants.
While many, if not most retailers have good buyers, produce divisions will distinguish themselves by being great merchants.
When the opportunity presents itself with shoppers in the store, the great merchants will leave a lasting impression. The great buyers will sell a bag of potatoes.
This column appears in the January/February 2021 issue of Produce Blueprints magazine.
