Rising demand for produce prompts grocers to expand selection – Greater Baton Rouge Business Report

Posted: December 27, 2019 at 1:46 pm


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The demand for fresh fruits and vegetables has caused large-scale supermarkets to rethink their purchasing.

The Wall Street Journal reports produce sales rose to $62 billion this year, up from $60.8 billion in 2018. Krogers organic produce alone reached a reported $1 billion in sales last year.

To keep up with demand, grocers are expanding produce selections to include new, and sometimes exotic, choices. However, local grocery stores still struggle with profit margins as more investments are made in online grocery delivery.

Organic produce sales grew by nearly 7% in 2018, compared to conventional produce sales growth of 0.6%, although conventional produce raked in the bulk of overall sales at $55.8 billion compared to organics $4.1 billion.

Despite the higher loss rates than other food products, stores are expanding produce offerings to keep up with the demand. Shoppers that buy more produce also drive up traffic in other aisles, as those who buy more produce tend to spend more at checkout, The Journal reports.

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Rising demand for produce prompts grocers to expand selection - Greater Baton Rouge Business Report

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December 27th, 2019 at 1:46 pm

Posted in Organic Food