The Resilience of Greengrocers in the Retail Market

In the dynamic landscape of retail, where supermarkets dominate the scene with their expansive aisles and diverse offerings, greengrocers stand as a resilient and distinct channel, retaining approximately 21% of the value share of total fruit and vegetable sales as of December 2023.

In the dynamic landscape of retail, where supermarkets dominate the scene with their expansive aisles and diverse offerings, greengrocers stand as a resilient and distinct channel, retaining approximately 21% of the value share of total fruit and vegetable sales as of December 2023. (Source: Freshlogic Retail Market in Detail data)

Despite facing a slight decline in consumer patronage compared to the previous year, greengrocers remain a viable option for shoppers, who perceive them as purveyors of better-quality produce at competitive prices, while also viewing them as a means of supporting local small businesses. (Source: Freshlogic Food Consumer Insights data)

Freshlogic | Greengrocer graph
Source: Freshlogic Food Consumer Insights data, Proportion of Supermarket Shoppers that also use a Greengrocer.

While supermarkets like Coles, Woolworths, and Aldi are focused on integrating higher value products into their inventory, such as fresh snacking and convenience items, greengrocers continue to uphold their reputation for offering fresh, high-quality products. Read more, Peak Fresh Snacks article.

What sets greengrocers apart is their ability to provide a personalised shopping experience coupled with a consistent perception of freshness and value, factors that resonate with a significant portion of consumers. Approximately 24% of all supermarket shoppers still choose to frequent greengrocers, drawn by the promise of superior quality and a connection to local businesses. (Source: Freshlogic Food Consumer Insights data)

In regions like the UK where the greengrocer channel is less prevalent, the absence is attributed to a lack of central markets and self-supplied produce. However, in areas where these conditions are met, greengrocers thrive by leveraging a fluid inventory system that allows them to adapt quickly to consumer demands.

The significance of greengrocers extends beyond their individual market share; they serve as vital indicators of supermarkets’ effectiveness in capturing consumer spending. By analysing consumer behaviour, including the incidence of slippage—where shoppers bypass supermarket offerings in favour of greengrocer products—retailers can identify areas for improvement and capitalise on opportunities to regain lost business.

Freshlogic | Leakage
Source: Freshlogic Mealpulse Panel data, Leakage to Greengrocer

Consumers’ preference for greengrocers is underscored by their perceived quality, particularly with highly seasonal fruits and vegetables. The agility and discernment of greengrocers in selecting the freshest produce resonate with shoppers seeking assurance in their purchases.

Understanding the dynamics between supermarkets and greengrocers offers valuable insights for retailers seeking to optimise their distribution channels and capture consumer spend more effectively. By recognising the unique strengths of each channel and aligning product offerings with consumer preferences, retailers can navigate the competitive landscape with confidence, ensuring a robust presence in the evolving retail market.

To learn more about this topic or to learn more about your fresh fruit or vegetable category, please contact us.

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