Retail Advertising Impacts on Fresh Produce

The strategic selection of fresh produce categories for advertising each week by retailers isn’t merely a matter of marketing whims; it’s a reflection of broader shifts in consumer preferences and industry dynamics.

In the dynamic world of fresh produce supply and demand within the retail sphere, promotional activities stand as the telling barometer of market conditions, wielding significant influence over sales trajectories and growth patterns.

The strategic selection of fruit and vegetable categories for advertising each week by retailers isn’t merely a matter of marketing whims; it’s a reflection of broader shifts in consumer preferences and industry dynamics. Understanding and staying abreast of these fluctuations is paramount for businesses keen on maintaining a competitive edge.

Take, for instance, the recent surge in promotional endeavours surrounding cucumbers, as evidenced by Freshlogic’s comprehensive data, Promotional Activity. Here, we see an increase of +109 adverts over the past quarter (+66.1% compared with LY).

Freshlogic | Cucumbers
Cucumber category retail advertising data – March 2024 quarter

Not only does this highlight favourable growing conditions, but it also underscores a burgeoning trend in the fresh snacking market, where innovative products like Baby Cucumbers and Qukes have carved out a substantial niche. This ripple effect permeates through the entire produce sector, igniting competition as players vie for supremacy on the proverbial salad bowl stage.

The peak in fresh snack demand creates a dynamic interplay of supply and demand, shaping market pricing, retail strategies, and export dynamics. To learn more, read our latest article, Peak Fresh Snacks.

FRESH PRODUCE MARKET: RETAIL ADVERTISING OVERVIEW

Delving deeper into fruit and vegetable Promotional Activity for the March 2024 Quarter, we unravel a tapestry of shifting dynamics, from fluctuations in advertised products to retailer strategies and price dynamics, painting a portrait of the ever-evolving landscape of retail promotion. The report highlights over 50+ categories, with key highlights and insights mentioned below:

  1. Top Advertised Products: Tomatoes, Cut leaf salads, Grapes, Nectarines, Packaged salads, Potatoes, and Mushrooms emerged as the leading products in retail promotions during this period.
  2. Advert Count: Despite the overall increase in promotional intensity, the total number of adverts experienced a slight decline of -5.1% compared to the previous year, totalling 5,130 adverts. This dip is attributed to various factors including adjustments in pricing strategies and a concerted effort to bolster customer loyalty.
  3. Product-Level Changes: Notable increases in adverts were observed for Cucumbers (+66.1%), Apples (+38.1%), Avocados (+36.1%), Spring onions (+345.5%), and Onions (+39.0%). Conversely, significant decreases were noted for Tomatoes (-42.5%), Broccoli (-65.5%), Nectarines (-26.4%), and Sweetcorn (-46.5%).
  4. Retailer Dynamics: Retailers showcased divergent trends with decreases recorded for Coles (-24.1%), Aldi (-17.2%), and IGA/Costco (-21.3%), while Woolworths (+16.3%) and Greengrocers (+4.9%) saw increases in promotional activity.
  5. Price Fluctuations: The average price per kg of advertised products for the quarter witnessed a marginal increase of +0.9% to $8.71 per kg. Notably, Woolworths experienced an uptick in advertised prices (+11.9%), while Coles (-4.4%), Aldi (-9.8%), Greengrocers (-1.9%), and IGA/Costco (-12.3%) registered declines.
  6. Cross Shopping trend: Increased promotional activity amongst retailers captures shoppers looking across multiple supermarkets to gain the best deal. To learn more, read our latest article, Cross Shopping Supermarket Trends.

Despite an overall decrease in retail promotional activity by -5.1%, attributed primarily to Coles & Aldi, there was a notable surge in activity from Woolworths, indicating shifting dynamics within the market landscape.

PROMOTIONAL ACTIVITY ONLINE DASHBOARD – 50+ CATEGORIES

Our Promotional Activity online dashboard, Adwatch, provides detailed insights into retail promotional activity at the SKU level on a weekly basis, offering a snapshot of the dynamic interplay between supply and demand in the fruit and vegetable category.

If you’d like to explore how our data and analytics solutions can benefit your business, please don’t hesitate to Contact Us.

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