By: Daniel Lohman, CPSA
Published By Whole Foods Magazine
Total store mainstream sales are up +1.9%—effectively flat across all departments. Meanwhile, organic product sales are up in the high double digits in every department. The health craze is exploding with consumers constantly looking for solutions to improve their health. Improving our diets with quality healthy food is the first thing all of the experts recommend. Organic products are up +16.9% yet organic products account for only 3.1% of total store sales.
Savvy retailers interested in growing sustainable sales need to capitalize on this important trend. Shoppers who are unable to find the healthy products they demand will leave your store and shop at your competitors.
Shoppers want transparency and authenticity in the products they purchase and the foods they feed their families. Package claims and labels can be very confusing and misleading. The rule of thumb has always been to avoid center store when shopping for healthy better-for-you products. That is no longer true as natural organic products continue to grow in their popularity—expanding into virtually every category. Organic products offer simple and easy-to-understand ingredients that shoppers can trust and have confidence in.
Most shoppers first learn about and develop a trust with organic products in the produce and dairy departments. Organic product sales are up +14.4% in produce and +13.7% in dairy. It’s important that retailers showcase organic products effectively in these two departments to build sustainable sales in center store. It’s up to the retailer to introduce shoppers to natural organic product alternatives by category. Retailers who do this effectively will develop a strong and loyal shopper base helping them compete more effectively in any channel and in any economy.
Effective merchandising strategies to capitalize on these trends include:
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