Supermarket Perimeter - December 2019 - 6

WIRE
Walmart
revamping produce
departments
Walmart Inc. is refreshing the produce
department in its U.S.
stores, Charles Redﬁeld,
executive vice-president, Walmart U.S.
Food, said on Nov. 20.
Enhancements will
include an "open-market feel," wider aisles
and a dedicated organic
section.
"We're adding
low-proﬁle displays
in our fresh departments," Mr. Redﬁeld
said. "These new bins
allow customers to see
everything available in
the department right
when they walk into
the store. We're using
colorful, abundantly
ﬁlled displays to
highlight freshness

6 - DECEMBER 2019

and the quality of our
items - for example,
large bins of ripe red
tomatoes and sizeable
displays of seasonal
items like squash and
pumpkins."
The changes are
expected to roll out to
the majority of stores
nationwide by next
summer, Mr. Redﬁeld
said. Others will be
renovated as part of
store remodels.
"In addition to
improving the shopping
experience for customers, these changes
make it easier for our
associates to work in
the department," he
said. "Our new format
simpliﬁes workloads,
making it easier for
our associates to stock
produce. This way, they
can re-focus their time

fresh produce that
lasts longer at home,"
Mr. Redﬁeld said. "But
with all the work we've
done to increase
quality in our produce
department, we saw an
opportunity to change
up our in-store look
and feel to even further
emphasize the quality
of the food we sell."
Fresh food contributed to market share
gains at Walmart U.S.
stores in the recent
quarter, according to
the company.

Grocery fresh
food sales soar
Two thirds of consumers increased their
spending on the fresh
food category over the
last two years, according to Deloitte Insights'
new "Future of Fresh"
report. More than 60%
now spend a third of
their monthly grocery
budget on the category,
and 74% buy fresh foods
at least once a week.
The allocation of
space devoted to fresh
food reﬂects this rise
in consumer demand.
Deloitte found that
from October 2015 to
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October 2016, the fresh
perimeter of the store
grew nearly twice as
fast as the total food
and beverage space.
It is the key driver of
growth in the fast-moving consumer goods
industry, accounting
for 49% of dollar sales
growth, according to
Nielsen.
Despite increased
interest in fresh foods,
Deloitte said sales have
so far been incommensurate with the space
devoted to the category.
While the industry
tends to think of fresh
food consumers as a
homogenous group
of "health conscious"
shoppers, Deloitte's
purchasing behavior
research revealed
three distinct buying
personas.
Close to half (47%) of
fresh food consumers
are middle-aged
"followers" who balance
health and wellness
with price and convenience. About 20% are
"neutrals." This group
tends to be older and
values price over nutrition. The remaining
31% are "forwards." This
group is younger than
the average consumer
and is willing to pay a
premium for healthy
foods, Deloitte said.

Consumers more
interested in
sustainability
Americans are showing more interest in
sustainability issues,
and food and beverage
companies could do a

better job of promoting
the speciﬁc attributes
of their products,
according to a 2019
survey from The Hartman Group.
The survey found 78%
said they were familiar
with the term sustainability, which was down
from 83% in 2017 but
up from 56% in 2008.
When asked whether
they could identify a
sustainable product, 22%
said they could, which
was up from 21% in 2017
but down from 25%
in 2008. When asked
whether they could
identify a sustainable
company, 15% said they
could, which was up
from 13% in 2017 and
13% in 2008.
The survey asked
respondents to name
the top three issues
that companies should
address. The most
popular answer was
addressing air/water/
soil pollution with 32%
listing it among their top
three choices.
Other issues above
20% included decreasing
waste such as single-use
plastics at 29% among
the top three choices,
minimizing impact on
climate change at 27%,
switching to renewable
energy at 27% and
creating jobs with good
pay/beneﬁts at 24%.
Millennials are a prime
target for sustainable
claims. When asked how
sustainability affects
their purchases, 7% of
the total survey respondents said always and
24% said usually/always.

WALMART

the

on serving customers."
Walmart in recent
years has added more
organic and locally
grown fruits and
vegetables to improve
the quality of its
assortment.
"We deepened our
relationships with
farmers - and by
taking days out of the
supply chain, we've
been able to provide
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Supermarket Perimeter - December 2019

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