Retaining shoppers with right price-quality ratio of fresh vegetables

Recent research amongst German shoppers shows that they are far from loyal to one retailer and opt for the lowest price instead. But is it smart to fully focus on low prices as a retailer? Will such a tactic to attract shoppers prove sustainable in the long run? No. By continuously focusing on low prices alone, the quality of a product range will eventually deteriorate. This has major consequences. Curious to know which strategy does work? Read it in our latest blog!

German research maps shopper migration and loyalty

During this German research, more than 1.4 million receipts were scanned and uploaded to gain insight into shopper migration. Compared to Dutch shoppers, German shoppers are less attached to one specific retailer. Statistics reflect this too: only 19.6% of the surveyed German shoppers visits just one retailer. The remaining 80.4% shops at multiple retailers, with a low-priced range of products being the most important reason to visit them.

Focusing on low prices increases risk of weakened product range

Of course, attracting shoppers with special offers and promotions is a smart move, as it helps get people into a supermarket. But do make sure that next to the products that are (temporarily) on offer, you also provide a high-quality standard product range. As this is where retailers can create added value and distinguish themselves from their competitors.

When retailers also fully focus on low prices within their standard product range, its quality will eventually come under pressure. Another risk is a weakened product range. Something that isn’t beneficial to anyone; not to suppliers, not to retailers and certainly not to shoppers. Quality guarantee should be seen as an added value that keeps shoppers coming back for more.

Providing quality instead of quantity creates more revenue

A standard product range could be considered the core of a retailer and should therefore remain stable. If a broad product range no longer works – for example, because its quality can no longer be guaranteed – then, reducing the number of products can be a smart move. An example; in the past years, retailer Lidl has reduced its organic product range on an international level. In 2020/21, this range still existed of 454 products while in 2022/23 it only counted 403 products. Still, this deliberate decision did not influence sales.

Difference between non-perishable products and fresh produce

Within a standard product range, a clear distinction should be made between non-perishable products and fresh produce. Both categories have very different properties and should therefore be treated differently. The production of tomatoes for example, depends on external factors such as sunlight and temperature. To guarantee the same high-quality products year-round, it is crucial to invest in solutions that ensure optimal growing conditions. Due to such interventions, prices might be higher but at the same time, a constant quality can be guaranteed.

Added value of produce department including high-quality products

In addition, an appealing produce department including high-quality products immediately adds value to a supermarket. Of course, appealing prices are also important but in the long run, high-quality fresh produce seems to make a bigger difference. When shoppers encounter low-quality vegetables multiple times, chances are next time they will turn to another retailer instead. And if this retailer does provide a high-quality produce, shoppers will continue buying their groceries there. A missed opportunity, as retrieving shoppers appears to be quite a challenge.

Curious to know more? Do not hesitate to get in touch with Wim van den Berg of Growers United / Prominent: w.vandenberg@growersunited.nl of +31 (0)6 5756 4346.

Prominent is a brand of Growers United UA. This organisation is responsible for the sales, marketing, and quality control of the product.