Alliance Fresh Produce Solutions RSS News
Ask yourself one simple question:
Is your produce operation a positive component in the makeup of your brand equity in the marketplace, or is it a liability?
Our goal at Alliance Fresh Produce Solutions is to make sure your produce operation is working for you and not against you.
Why is your produce operation so important to your success?
Because a “consumer positive” perception of your produce operation is a critical component of a winning go to market strategy for any serious food retailer. Your produce department is a vital cog in your ability to convey your commitment to many important elements of store operations such as:
- Customer service.
- Store cleanliness and sanitation.
- Quality and Freshness
- Price perception
- Variety
Just think about this for a moment. Where else in your stores are the majority of clerks on the sales floor commingling with consumers and not behind a counter or register? Where else can your customers touch feel and smell the products they intend to buy? Where are the majority of your products sold bulk and not hidden by packages? Your produce department is YOUR STORE BRAND EQUITY!
A poorly run produce department can and will force consumers to shop elsewhere, while an inviting produce department serves as a positive reflection on the entire store and will win, retain, and build a loyal customer base. As a matter of fact Produce is usually one of the top three reasons why consumers choose a store to frequent. What do your customers think about your produce department?
But as usual, what your produce operation is doing at store level is just part of the story. Just what is your produce division doing to manage the business to maintain and maximize sales and profitability?
It’s a given that along with the desire to build and retain positive customer impressions of your produce operation, there should be an expectation for positive sales and margin stability and growth. One can only raise retails, or lower costs so much to increase margin. Ask yourself these important questions:
- What steps should be taken to increase profitability beyond retail and cost?
- What is the relationship between store level execution and your sales and margin goals?
- What are your expectations regarding your produce division’s profitability and why?
- Are your goals realistic? If not, why not?
Let’s dig even a bit deeper and take a look at the total package; store level and corporate working hand and hand:
Sales, Gross Margin, Bill Out, Sales Per Labor Hour, and Shrink; all key buzz words used in the day to day challenge in managing a produce operation to its fullest potential and should be evaluated on a regular basis. When is the last time you properly evaluated your produce organization? Are you sure your produce organization is ready to meet the challenges of growing produce sales distribution and margin? Let us help you answer the following questions to find out.
- How much time does your organization spend developing processes for buying what it sells vs. selling what it buys?
- Does your produce organization have a winning relationship with its suppliers?
- What are your vendor relationships based on?
- How are your vendors chosen?
- Is your vendor partnering process on auto pilot?
- Are relationships measured? What criteria are used to evaluate your vendor relationships?
- Are your vendor relationships all about cost? Is there consideration given to partnering? If so, how?
- How does your produce organization determine the appropriate inventory to sales investment necessary to run a profitable produce department?
- Do you have a program in place to validate produce department inventories?
- Is your produce operation budgeted to attain optimum sales?
- Are your communications to store level clear and appropriate?
- Does your produce organization have a winning merchandising program?
- How are ads supported?
- How are ads written?
- What is your retail pricing structure based on? How is it managed?
- Do your store level paper work and training programs and policies empower your produce managers to grow to meet tomorrow’s demands? (Do you give a man a fish, or teach a man to fish)
- Does your produce organization have an up to date training manual?
- How does your produce buying department determine the validity of new items?
- Finally, what are your produce department strategic and tactical initiatives, and how do you plan to achieve them?
These are some of the many areas of your produce organization that should have solid concrete answers; the right answers.
Alliance Fresh Produce Solutions will evaluate your produce organization from top to bottom identifying areas to address and make actionable “No Nonsense” recommendations that will improve your produce sales and margin results.
For More information concerning our Retail Consulting Services please CALL US TODAY:
Alliance Fresh Produce Solutions
Call or Email Me Today:
ray@producetalk.com
205-277-6609
Ask for Ray
© 2007 All Rights Reserved Alliance Fresh Produce Solutions LLC.
