Dive Brief:
- ShopRite is expanding its Locally Grown program throughout its 270 stores to include even more area sourced farm-raised beef, seafood, flowers, fresh fruits and vegetables, baked goods, honey, craft beer and roasted coffees, according to Progressive Grocer.
- Some of its stores are taking local a step farther by adding “hyperlocal” seasonal products supplied by community-owned independent businesses and growers. Items include coffees, pastries and breads, honey and small-batch sauces.
- “ShopRite has been partnering with local farmers since our inception almost 70 years ago,” Derrick Jenkins, vice president of the produce and floral division at ShopRite, told Progressive Grocer. “But more than ever, we are meeting increased customer demand for locally sourced products by working hand-in-hand with local entrepreneurs, family farms and businesses to procure and sell products that have been locally grown.”
Dive Insight:
Local sourcing has been a growing trend throughout the grocery industry as more supermarkets add produce and meats as well as other products like honey, sauces and baked goods that were raised or grown near their stores. Now hyperlocal is gaining traction as individual stores or groups of outlets buy right from the local community to tailor product assortment to not only meet local neighborhood demand but also differentiate from the store down the street.
Buying local is a big business and increasingly is seen as a way for grocers to drive traffic and sales. The U.S. Agriculture Department predicts sales of locally produced foods, which hit $12 billion in 2014, will surge to $20 billion by 2019. Management consulting firm A.T. Kearney found 78% of consumers said they would pay more for local products throughout the store.
“With an overwhelming percentage of customers still saying fresh is the most important factor in their purchasing decisions across categories, a strong stand in local food can bring increased sales,” AT Kearney found in a 2015 report.
Many large retailers, whose sizes might seem at odds with local sourcing values, are adopting the practice at many of their stores. Southeastern Grocers has a policy that prioritizes fruits and vegetables grown in the southeastern U.S. above other options. Meijer spends more than $100 million annually on local products grown within the six states where it operates. Even Walmart has gone the local route. So it’s not a stretch to think that the 270-store ShopRite can make local sourcing work.
Indeed local sourcing can be a win-win-win for all parties. Local farmers and producers gain business, which helps sustain local economies. Retailers get to differentiate by offering the freshest possible products available to drive traffic. But perhaps most importantly, the shopper wins. Shoppers want to support local businesses, ranging from neighborhood bakeries to ready-to-eat prepared foods made by a local startup. Offering localized assortments of fresh, high quality produce, meats and other goods provides the unique shopping experience consumers seek.