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21 czerwca 2023
Keep It Fresh: Nuances of Healthy Food Management in Retail
Keep It Fresh: Nuances of Healthy Food Management in Retail


Datawiz expert



Fresh goods, main characteristics

The economics of fresh produce

About logistics



What features must be taken into account when managing "fresh" goods?

The trend towards healthier lifestyle is most clearly reflected in the culture of healthy eating. The demand for fresh food is growing every year, so retailers need to focus on an intelligent approach to managing the "fresh" segment in their stores. What specifics do you need to consider and what challenges do you have to face?

Goods in the Fresh category, main characteristics

"Fresh" departments in supermarkets are getting bigger and bigger. This is due not only to the growing demand for these products, but also to the increasing supply. Both agriculture and local private farms are growing rapidly in this sector. 

The product group of the "Fresh" category includes:

  • fruit and vegetables (FROV);
  • dairy products;
  • meat and fish;
  • bakery products.
    Vegetables layout in the store

The economics of the "fresh" category of goods

  1. Inelastic demand. Fresh food is a customer's daily need. In addition, people cook at home more often in times of crisis, so the "fresh" segment is more profitable. 
  2. Turnover. Due to the high level of demand, it is important to build effective relationships with suppliers and organise logistics, so that product gaps are cleared in time and goods are always fresh.
    Products logistics to the stores
    The Datawiz BI analytics service uses artificial intelligence to enable you to clearly plan your replenishment of stocks based on your data. For example, the figures in the Order/Delivery group will inform you about all kinds of changes to the goods in your warehouses. 
  3. Shelf life. "The Fresh segment is a perishable product, so it is extremely important to build a process to manage these categories. (We talked about the importance of category management here)
    In order to reduce write-offs, you need to conduct regular inventory control. This is the key to accurate ordering from suppliers as well as reducing the number of returns. 
  4. Seasonality. The fresh food segment is quite sensitive to the demand for certain products (especially fruit and vegetables) in our latitudes. In order to ensure that the share of exports of such products pays off at different periods and that demand for locally produced goods does not fall, the activity of the assortment should be carefully analysed. 
The main aim is to sell really fresh products. In order not to abuse write-offs, it is better to carry out popularity analysis and adjust your assortment matrix. 
In addition to this, you should not forget about promotions and discounts, as a loss of product quality always entails a loss of margin.


About logistics

Particular attention needs to be paid to the 'freshness' path of products from the manufacturer to the shopping basket. Product appearance has a significant impact on sales dynamics, so packaging, careful transportation in the right conditions, and maintaining freshness levels in warehouses and on display are a must-have for any grocery retailer.


To summarise

"Fresh" food segment in retail requires detailed category management. While having a high demand, the category is subject to risks due to short shelf life and improper storage and transportation.
 This category of goods, when marketed properly, can not only satisfy customer demand, but also create a positive reputation for the retail chain.

A structured approach to fresh food sales processes based on analytics data is the key to high profits. 



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