The Fresh Business Boost Convenience Stores Expand with Produce

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1 Grocery Retailing Solutions in Fresh 16 News The Fresh Business Boost Convenience Stores Expand with Produce The increasing customer demand for fresh produce at convenience stores, combined with advances in distribution and merchandising, has created new opportunities for produce providers, distributors and convenience store retailers to grow sales. More than three in four (77%) convenience store retailers say they sell fresh fruits and vegetables, almost six in ten (57%) sell packaged salads and nearly half (47%) also sell cut fruit and vegetables. Convenience stores also have expanded selections of these items. Over the past six months, 50% of all convenience retailers say they have expanded their fresh fruit sales, 30% have increased their cut fruit and vegetable offers and 21% are offering more salads. Focus on fresh The new focus on fresh offers opportunities for convenience store retailers to seize best practices from traditional grocery retailers. In-store weighing, both at the deli counter and at the fresh produce section, can help streamline in-store processes, boost cross-selling opportunities, and strengthen customers' attitudes and awareness of convenience stores as fresh shopping destinations. The country s 152,794 convenience stores account for 33.9% of all retail outlets in the United States, according to Nielsen, which is significantly higher than the U.S. total of other retail channels including drugstores (41,799 stores), supermarket/supercenter (41,529 stores) and dollar stores (26,572 stores). A vast majority (80%) of items purchased in a convenience store are consumed in an hour or less from the point of purchase.

2 Trends According to The Hartman Group s 2014 report, Convenience Stores and the Fresh Opportunity, Convenience stores provide instant gratification and are a great resource for impulse buys. With the right enticements, shoppers who may have intended only to buy a drink or pay for gas will grab a few more items to eat on the go. Despite new competition from restaurants and others, the convenience store size, format and locations make them uniquely positioned to appeal to consumers looking for food everywhere. By tailoring their food and beverage offerings to new tastes and needs, including the growing demand from women and millennials, the channel can become a major success in the new food culture. Sales of snacks The average convenience store in 2013 sold $145,625 in snacks (salty, sweet and alternative snacks, plus candy bars). Of that total, 18% are better-for-you snacks like nuts, trail mix or protein bars. While a small percentage of those snacks were produce, there is enormous potential for growth. Convenience store sales of produce reached $328 million in 2013, an increase of 16.7%, more than doubling the overall 7.3% growth rate of produce in the United States. Consumers were asked a number of questions related to snacking, including: Thinking about snacks you eat, which did you consume in the past 30 days? Fresh fruit was cited by 54% (5th most popular choice); vegetables was cited by 43% (11th most popular choice). Which snack would you select over all others? Fresh fruit was selected by 11% (tied for 1st with chocolate); vegetables was selected by 5% (7th most popular). Where do you purchase snacks and how often to you buy them in each outlet? Grocery was cited by 92% (64% said often ); mass merchandisers/hypermarkets was cited by 64% (32% said often ); convenience stores was cited by 51% (16% said often ). There is a massive, untapped opportunity to gain market share in the nutritious, portable and easyto-eat meal alternative market that snack manufacturers could fill, says Susan Dunn, executive vice president of Nielsen s Global Professional Services. Self-service weighing Retailers looking to expand fresh offerings to meet customer demand need to be aware of the obstacles to consider when developing the business case for introducing fresh produce. Shrink and product merchandising are among the top two considerations. Convenience stores from Hawaii to New York are filling their shelves with fresh produce offerings to satisfy a health-conscious customer market. Photos courtesy of NACS: The Association for Convenience & Fuel Retailing. 2 METTLER TOLEDO Grocery Retailing News

3 Self-Service Optimization METTLER TOLEDO illustrates optimized user models for self-service weighing, and shares recommendations to successfully integrate self-service in fresh departments. To download a free copy of our Self-Service Best Practice Guide, visit: In-store self-service weighing is a means to reduce shrink, accelerate the checkout process, and enhance the small produce department with positive imagery on the scale's bright, shopper-facing displays. Self-service weighing solutions open up the prospect of more economical fresh food management and offer customers an enhanced shopping experience. Innovative self-service concepts combine customer demands with the requirements for cost-efficient sales processes. Self-service is the most economical and cost-effective way to achieve customer-oriented, optimized sales processes. Learn more about self-service weighing and other METTLER TOLEDO weighing solutions for convenience stores and their growing fresh departments. UC-GT Evo CT self-service scale Portions of this article were reprinted with permission from NACS: The Association for Convenience & Fuel Retailing; Trends in Self-Service Technology Webinar This free, on-demand webinar, moderated by Leslie Hand of IDC Retail Insights, provides a deep insight into self-service technology. Learn why self-service is so appealing and engaging to customers while taking a brief look back at where we have been, where we are today and where we are going. Self-service solutions that are currently being used and those that are on the horizon will be shared. To watch "Trends in Self-Service Technology," visit: retail-webinars 3

4 Interview Digital Chalkboard Makes Sweets More Tempting In-Store Marketing with Point-of-Sale Scales Traditional craftsmanship is the latest trend in candy stores and pastry shops. Consumers are looking for hand-made and home-made products real quality beyond the supermarket shelves. When it comes to marketing, on the other hand, they respond to the latest media, among them digital signage displays on the customer screens on point-ofsale scales. In specialty bakeries and candy shops, a large number of goods are sold by weight. However, the scales and the point-of-sale scale systems today can do a lot more than just calculate weight and price. Large, color customer screens are the ideal display area for digital signage. Julia Krügers, Head of Division Retail Marketing at METTLER TOLEDO, explains how bakeries and specialty candy stores can add a modern touch at the point-of-sale to generate more sales. Why is it worthwhile for candy stores and specialty bakeries to invest in digital signage? These specialty items are often made with a great amount of care, an elaborate production process and highquality ingredients. As a customer in the store, I don t see all of this. The large customer screen on the scales is ideally suited for telling and showing the customers more about the product. Emotive images from the production process, information about the ingredients and certification, photographs of the fair-trade UC-CWT Evo CT counter scale with digital signage disply on customerfacing screen. cocoa plantation the possibilities are virtually endless. That way, stores can emphasize the value and uniqueness of their products and reinforce customer loyalty. Modern consumers want to know as much as possible about the product. They no longer rely on the promise of quality they want to see it with their own eyes and to witness the care and passion that goes into the production. Apart from this look behind the scenes, what else is digital signage capable of? One of the great advantages of digital signage is that it is significantly more flexible than other advertising, and the time-consuming printing of often expensive sales literature is no longer necessary. Companies can communicate all kinds of content blended into slide shows on the customer screen. A new campaign or sales promotion can be created on a PC and posted with just a few clicks. Beside additional product information, brand reinforcement and customer retention measures can also be communicated via the screens. This begins with displaying the logo and 4 METTLER TOLEDO Grocery Retailing News

5 extends to presenting the company s loyalty card or Facebook page. Additional services, such as events and catering, can also be publicized very easily using digital signage. Why is the customer screen on the scale so well suited for digital signage? One can be sure from the start that the customers will pay particular attention here. The customers look at the screen again and again to check the weight and the price. That way, they also register the other displays at the same time. And there is another argument in favor of the customer screen: The digital signage displays reach everyone who is standing in line at the service counter. In this waiting situation, customers are very open to inspiring content and information. METTLER TOLEDO commissioned studies on this for the food retail industry. The findings show that customers spend an average of about three minutes at the service counter. The customer screen on the point-ofsale scales with the digital signage displays is precisely in their field of vision and attention for at least half of that time. How can sales be increased directly using digital signage campaigns? The most effective way to increase sales is by means of cross-selling activities that provide on-screen recommendations for additional purchases perfectly matching the product currently being weighed. You can program the system with PLU-based product recommendations that are displayed to the customer when the PLU code is entered by the operator. Rotating slide shows, with six to eight images showing for about 15 seconds each, are ideal. An important factor is the emotional concept of the slides it has to suit the business and be authentic. The texts displayed should be short and easily understandable. What else can retailers do to make their campaigns work well on the point-of-sale display? Regularly refresh the content, so that there s always something new to discover for regular customers, too. Thanks to easy-to-use software tools, an update every two weeks is absolutely no problem for most stores. For more information on in-store digital signage displays and best practice recommendations, visit: That sounds plausible but are there figures and studies to back this up? How do effective digital signage displays look? METTLER TOLEDO Grocery Retailing News 5

6 $ Traceability for Standard Compliance and Process Improvement Food Safety Introduction! Are you a food retailer? Did you know that under U.S. law, food retailers are expected to comply to the same traceability regulations as food manufacturers? Food Safety regulations, such as the Food Safety Modernization Act, EU Regulation 1169/2011, and the Global Food Safety Initiative, require food retailers to assure traceability. Good Traceability Systems Help a food retailer comply with legal and regulatory requirements Help to minimize number and impact of recalls and protects your brand image Help protect your brand image Food Supply Chain Supermarket Quality Meat Processing Lab Industry Meat Backroom Service Counter Checkout Back Office Software Definition Traceability is defined as the ability to follow raw materials and components intended to be, or expected to be, incorporated into a product, through all stages of receiving, production, processing and distribution. Traceability System Importance of traceability Traceability is a Legal requirement Basic element in food safety and quality management Risk management tool Documentation Meaningful documentation provides evidence of production history such as Goods records Warehousing and storage records Records of any subcontracted work Designing a traceability system Meaningful documentation provides evidence of production history such as General principles Labeling Risk assessment Quantity check Batches/Lots Timing Traceability testing method and frequency The company must prove how quickly Information can be collated Corrective actions can be taken Verifying safety and quality A traceability system is used to confirm that Safety and quality checks have been performed Records have been retained for verification Traceability Technologies Paper-based Barcode labeling Integrated Want to know more about traceability systems and how they will prove beneficial to you as a food retailer? 6 METTLER TOLEDO Grocery Retailing News

7 Fast. Precise. High-performance. Ariva-H Checkout Scale METTLER TOLEDO is pleased to introduce the Ariva-H, its newest advancement in weighing at the checkout. The Ariva-H combines a fast and reliable scale with a popular scanner of your choice into one system that can be integrated into your checkout lane. Create a lasting impression! The checkout lane at any grocery store requires optimum performance, speed and reliability from the equipment. Ariva-H delivers exactly what retailers are looking for: fast transaction speed to reduce customer wait times along with reliable and dependable performance. Robust and durable The Ariva-H is the perfect match for applications where a flat surface is desired. Thanks to its robust and durable housing, which effectively protects the interior against the penetration of dirt and liquids, the Ariva-H withstands the harshest possible demands and conditions in the checkout lane, offering the highest standards of quality. Ariva-H comes with single or dual-interval weighing technology. Depending on the option chosen, the Ariva-H can handle a maximum load of 30 lb, while also offering an extremely sensitive weight resolution of up to lb. The Ariva-H not only fits in classic checkout lanes in grocery stores for weighing bulk and staple foods, but also in retail settings such as specialty sale-by-weight establishments, where high-resolution weight is required. Ariva-H connects to most point-ofsale systems for checkout applications and many other applications that require weight data. Ariva-H supports technology from a number of scanner manufacturers, including Datalogic, Motorola/Zebra Technologies, and NCR. For more information on the Ariva-H checkout scale, please visit METTLER TOLEDO Grocery Retailing News 7

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