Dive Brief:
- Though 91% of grocery retailers believe they are meeting customer expectations, according to a survey from Blue Yonder, said 81% of shoppers disagree and say they aren’t getting the amount of fresh produce they want in stores, online or at discount retailers, Chain Store Age reported.
- In a survey of 4,000 consumers, Blue Yonder found that 35% of shoppers are disappointed at least once a week due to the lack of produce in the store. More than two-thirds of shoppers — 69% — are let down by online offerings and 85% are disappointed by supermarkets.
- By not providing the produce shoppers want, retailers are losing business. According to the study, 20% of consumers will stop shopping with a retailer permanently, or at least for some time, when they feel it has let them down. Even more — 31% — say that about online retailers.
Dive Insight:
Organic produce is the No. 1 segment that consumers say they struggle to find in store and online, and recent shortages of apples, strawberry and citrus fruit varieties haven't helped consumer confidence.
Lack of in-store produce variety has allowed other business models to encroach on the retailer space. For example, a group of grad students began a mobile grocery business selling produce to areas in Pittsburgh where it is hard to find fresh fruits and vegetables.
Farmers markets have also been able to cash in on a lack of supply in the retail sector. According to the U.S. Department of Agriculture, there were more than 8,400 markets up and running across the country in 2015, and that number has been growing every year.
The fact that grocery executives feel they are meeting consumer demand for produce shows a concerning disconnect between store and shopper. Retailers should invest in new ways to manage their inventory and track consumer demand. The first step to better understanding consumer behavior is opening better lines of communication between retailer and shopper.
Social media is an easy way to take the pulse of a consumer base, allowing retailers to track trending food items and changing demand in response to seasons, holidays, and other major events.
Software that provides services like customer experience management can also help retailers identify consumer "windows of desire" to maximize promotions. This can help retailers provide the optimum amount and varieties of products that consumers want, avoiding under or over-stocking.