Progressive Grocer - October 2009 - (Page 92)

2009 Produce Operations Review downgraded their outlooks by a collective -1.2 percent deficit for the balance of the year, as a result of one-third (33.3 percent) forecasting same-store increases, 38 percent projecting decreases, and 28.6 percent anticipating no dramatic change in either direction. All told, flat margins, generally weaker overall sales and the abundantly cautious year-end outlook depict the dimmest near-term outlook for produce department sales in several years of conducting this study. Across the board, total produce department Floral Sales Change, 2007-2008 sales, which account for an average 12 percent of the total store pie, rang up $47.9 billion, up $1.1 billion from last year. As for weekly estimated sales performance, this year’s produce survey respondents tallied 1.1 percent more in average weekly sales of $31,625 (up just $344 from last year’s $31,281 weekly average), while the average produce department nabs a stillrespectable $1.6 million in average sales per store, an increase that’s most likely driven by a 1.2 percent increase in overall store count. Have Sales of Organic Produce Been Affected by Current Economic Conditions/Rising Prices? 42.1% NO YES 57.9% SOURCE: PROGRESSIVE GROCER MARKET RESEARCH, 2009 Stayed the Same Increased 30.3% 27.3% Problems Facing Produce Departments % of Respondents Competition From Supermarkets 4.71% 4.36 4.28 4.19 4.11 4.10 4.03 4.03 Decreased 42.4% Profits Shrink/Spoilage Quality of Product Competition From Wal-Mart Net Change -4.9% SOURCE: PROGRESSIVE GROCER MARKET RESEARCH, 2009 Wholesale Prices Transportation Costs Employee Training Produce Operations7%33.6% Attracting More Shoppers to Produce Dept. 3.96 Gross Margin Net Profit Average Department Size Percent of Total Store Area Weekly Sales per Square Foot Produce SKUs SOURCE: PROGRESSIVE GROCER MARKET RESEARCH, 2009 33.7% 18.7% 2,800 Square Feet 12.6% $11.17 321 Customer Satisfaction Levels Food Safety Labor/Recruitment Costs Competition From Other Outlets Availability of Locally Grown Items Availability of Items Rated on a Scale of 1-10,Where10 = Extremely Serious SOURCE: PROGRESSIVE GROCER MARKET RESEARCH, 2009 3.95 3.90 3.61 3.48 3.43 3.38 33.6% 18.1% 2,886 Square Feet 12.4% $10.96 324 • Progressive Grocer • October 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - October 2009

Progressive Grocer - October 2009

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