Progressive Grocer - October 2008 - (Page 66)

Fresh food 2008 Produce Operations Review Shaking the tree PG’s annual “state of the produce department” study finds wholesale price hikes and elusive profits fighting against the industry’s continuing efforts to improve consumption. By Debra Chanil and Meg Major hile the flimsy economy and steep prices for food and fuel are keeping food budgets tight and spending cautious, retail produce departments over the past 12 months have mostly weathered the storm, save for a few key categories, according to retailers weighing in for PROGRESSIVE GROCER’S 2008 Produce Operations Review. W Produce sales change 2006-2007 Increased But it hasn’t been easy. The vast majority of produce study respondents said the especially demanding economic cycle has ushered in a new set of challenges as they try to increase produce consumption and retain departmental traffic, sales, and above all, profits. Many of them have been playing up locally grown and value-priced conventional products to keep demand stable and interest strong. Among the most significant results of this year’s Produce Operations Review, total produce department sales collec- While January through June was tough on some produce operators, with only 56.9 percent of respondents reporting sales increases during that time, there’s some optimism that year-end will find them in a better position, as 67.2 percent expect increases. January-June 2008 Expected total for 2008 74.1% Increased Increase 56.9% Decreased 67.2% 13.8% Stayed the same 17.2% Decreased Stayed the same Stay the same Decrease 8.6% 29.3% 20.7% 12.1% Net change +4.4 % SOURCE: PROGRESSIVE GROCER MARKET RESEARCH, 2008 Net change +3.3 % Net change +3.4 % 66 • Progressive Grocer • October 2008 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 2008

Progressive Grocer - October 2008
Contents
Front End:�Supervalu Will Make Its Lastest Green Prototype a 'Star'
Nielsen's Shelf Stoppers/Spotlight:�Produce/Spinach
Market Snapshot: Detroit, Mich.
Lempert Report: The Domino Effect of Weather and Money Woes
Independents Report:�Haggai Leads With Love
Store of the Month
Shopper Experience
Green Grocer Awards
Food Safety
Shopper Culture
Bottled Water
Heritage Brands
2008 Produce Operations Review
Special Events Marketing
Petroleum Operations
Technology:�Upgrading for Tomorrow's Shoppers
Equipment Innovations
Financial Insights: Are Better Days on the Horizon?
What's Next:�Editor's Picks for Innovative Products

Progressive Grocer - October 2008

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