What is produce agnosticism?
I coined the phrase because I saw in the industry, both on the retail- and supply-side, people in decision-making positions who don’t think produce is different from any other categories in grocery.
Throughout my career, I’ve seen the structure of grocery evolve continuously toward understanding how important the fresh part of the business is strategically, dedicating more space and resources. Today, you have to get fresh right if you want to be successful in the marketplace.
While advising on how to do this was not what I set out to do when I began consulting, the majority of people I’ve talked to and helped have wanted my input on succeeding in fresh. The interest is following the business, and seeing 90-plus percent of my customer base trying to get fresh right is an important indicator of us going in the right direction.
Yet produce agnosticism still causes a rift in the necessary partnership between retailers and suppliers. I say “necessary” because one of the key differences setting the fresh department from anything else in the store is the importance of relationships. The supply-side is usually trying to figure out how to help the retailer, which is key to their own success. The result is everyone trying to do the same thing: provide a fresh, convenient, safe item for the consumer.
A good example of this is how we price products: You have to consider not just the cost of an item today but also the margins the supplier and retailer are each charged with maintaining.
Consider, then, what’s the cost going to be tomorrow? Next week? Is it traveling? How far? What impacts does that have?
And, oh yeah—what is my competitor allowing me to do?
You always have to be looking downfield, and at the end of the day, it’s an informed guess anyway. The better relationships you have, all sharing everything they know, the better everyone can guess! Quite frankly, that’s what makes fresh fun.
Maintaining good relationships, both for suppliers and retailers, is a non-issue when everyone understands this.
No two years are the same—that’s a difficult business model if you’re not used to it. Nowhere else in the store is quite like it. Produce has a distinct position in the marketplace because of its freshness, spontaneity, and seasonality.
Across the grocery gamut, there are very bright, intelligent people in leadership positions who know strategy and business. The industry is always changing, and new perspectives can bring new approaches to help it be better than ever, but it is dangerous to think that produce can be approached like anything else.
"Nowhere else in the store is quite like it. Produce has a distinct position in the marketplace."
It is also a huge opportunity for those who understand this area is special. It is unique, and when you treat it as such, you’ll be successful. Those that don’t are missing out on all those opportunities. Or, the person who does see this is not in a position to make decisions, bringing us back to the importance of relationships and listening to those around you.
I started in produce 50-plus years ago, when produce was a smaller, infrequent department. I was fortunate the company I worked for understood how it could grow the business for the entire store and trusted me to do so.
I came up in the heart of California, in the heart of ag, and was lucky enough to have a front-row seat to the opportunities and benefits of strong supply-side relationships. Too often, it seems the burden and privilege of decisions are on the retailer—and there is a lot of power, with a lot of responsibility to go with it—but the ones who truly do well are those who see it takes both sides embracing each other’s importance that brings success to all.
Suppliers who help retailers be better retailers will be preferred by their buy-side counterparts. This comes in many ways—sharing information, supplying product, and understanding when each is in a jam are all pieces of the greater business relationship.
The more retailers who recognize their success is intertwined with their suppliers, the more everyone will enjoy what can be a really fun job. Recognize millions, even billions, of dollars go into a supply chain trying to deliver the freshest product possible. And you have to take advantage of that to deliver the best you can to your customer. This, I’m convinced, can only be done as a team.
When I ran produce, then directed buying at Save Mart, my relationship with suppliers was my favorite aspect of the job. You’ll get more out of the business than just being successful—and you will be more successful—helping support the side you are not on. It is a team effort, and the sooner that is recognized the better.