Cross-Merchandising: Where Magic is Made

Retailers use cross-merchandising to boost the bottom line in produce.

Shoppers look for convenience with grab-and-go packaging, quick and easy dinner ideas, healthy meal solutions, and snacking ideas. They may even be persuaded to drop additional products into their basket if a display grabs their attention. That’s where cross-merchandising plays a leading role in the produce department.

“The best way to increase the trip ring is through cross-merchandising, with the drawback of course being the additional labor and operational challenges,” says Anne-Marie Roerink, president, 210 Analytics, LLC, San Antonio, TX. “But the sales numbers don’t lie. Putting bananas by cereal moves the needle. Putting avocados in the chip aisle, fresh lemons in seafood, pineapples near ham, corn and mushrooms near steak, etc., all move the needle.”

CROSS-MERCHANDISING 101

The Fresh Gourmet Company in Westlake Village, CA, a leading supplier of retail food products and custom ingredients to nationally recognized supermarkets, foodservice operators, and manufacturers, uses three critical ingredients for making great displays in produce, including planning, location and promotion.

“For planning, focus on items with high sales volume, such as bananas, berries, apples, potatoes and tomatoes,” says Samantha McCaul, senior marketing manager. “Display these fresh items with non-perishable items that have a strong tie-in with fresh produce, such as banana bread mix, smoothie mixes, Wrapples, seasoning mixes and salad toppings.”

Brian Dey, senior merchandiser and natural store coordinator at Four Seasons Produce in Ephrata, PA, recommends pairing like commodities with each other to bolster produce sales and create impact purchases. “An example would be pairing apple cider with apple displays. Shoppers can buy some apples for fresh eating now, then pick up a gallon of cider to share with their families.”

Vic Savanello, vice president of produce merchandising and business development at Katzman Distribution in Burlington, NJ, says cross-merchandising efforts are “great practice because that’s where the magic is made.”

“One of our successful cross-merchandising efforts was our Super Bowl-inspired guacamole station,” says Savanello. “We took fresh avocados as our centerpiece, tied in tomatoes, onions, limes, garlic and jalapeño peppers. We added an assortment of salsas to the display, and the effort went to the next level when we stacked boxes of tortilla chips around the display.”

Brian Truax, vice president of sales and marketing at Indianapolis Fruit in Indianapolis, IN, suggests the most effective cross-merchandising strategy involves building around holidays, in-store events, local sports teams, or a specific meal.

“Select items to create a good margin blend — a mix of low margin sale items with high margin items,” he adds. For example, he recommends building a guacamole display with avocados, garlic, onions, tomatoes, limes, jalapeños, chips and beer.

Chad Hackenbracht, president of Tastee Apple, Inc., a premium caramel and chocolate-covered apple maker in Newcomerstown, OH, agrees and adds, “Cross-merchandise our apples with other holiday items, like pecans for Thanksgiving, and various holiday items around Christmas time when the stores are building the display tables with all the ‘staple items.’”

CROSS-MERCHANDISING OUTSIDE PRODUCE

Effective cross-merchandising simplifies the shopping process by encouraging the natural connections between products to create a seamless shopping experience.

“Make the produce department look neat, seamless and practical,” says Andrew Che, produce associate at Global Foods Market in St. Louis, MO. “Have easy-to-follow paths to guide the customer through the store for an expanded cross-merchandising experience.”

He recommends considering the order the shopper will encounter when walking through the store. For example, if the shopper walks to the deli department to grab a sandwich, fresh fruit, such as apples and oranges, should be prominently displayed near the section, along with signage for a beverage. “Make it feel like a seamless and eye-catching tour,” he says.

“Work with your peers to tie in some impact or impulse items during everyday selling,” explains Truax from Indy Fruit. “Citrus in beer and wine; lemons with seafood; kebab veggies in the meat department; and grab-and-go by the registers.”

“Since our products must be refrigerated, we team up with other refrigerated items from across the store, like meat or chicken, and create fun cooler displays touting party ideas like chicken nachos, burger for football and holiday parties,” says Tara Murray, vice president of marketing for Fresh Innovations, LLC, the Rhome, TX, manufacturer of avocado, salsa and queso products under its ¡Yo Quiero! brand. “We also utilize signage, when working with center store partners, that leads consumers to the fresh, refrigerated section to find our products.”

Lavanya Setia, director of marketing at the National Mango Board (NMB) in Orlando, FL, incorporates mangos into cross-category promotions, such as breakfast or grilling themes, to drive sales. “Mangos pair excellently with products like yogurt, granola, and meats, such as chicken and pork. Creating meal solutions, including mango chutney or mango chicken wraps, helps consumers envision how they can incorporate mangos into various aspects of their diet.”

FRESH AND CREATIVE

Effective signage and recipe ideas are essential for successful cross-merchandising displays. Clear, informative signs can guide shoppers to promotional products and provide usage inspiration for new culinary ideas and menu pairings.

For example, a display featuring fresh herbs might include a sign with recipe ideas or cooking tips, such as how to make a homemade pesto using basil, garlic and olive oil.

“Continued creativity in merchandising, and keeping up with recipes and popular items to stay current with the latest trends across the store and the industry is super important,” says Dey.

Truax suggests maintaining a log of past displays, including photos, to identify what was successful and what didn’t work, allowing for continual improvements. “Ensure displays are timely and relevant. Make sure all items are clearly priced, fresh and filled, and neat with sharp lines, using a variety of colors for color breaks when possible.”

WHAT DOESN’T WORK

Industry leaders agree that not cross-merchandising items is the biggest mistake. “What doesn’t work is not being creative and not doing everything possible to build the basket and drive more sales,” says Jose Troya, sales and merchandising specialist, Katzman Produce.

Che, from Global Foods Market, adds, “Have a reason for everything to be together, and make sure it pairs well together. If strawberries are on display, I expect to see other sweet berries and complementary products, such as dessert cups and whipped cream. Also, place pre-packaged, cut, bright colored fruit together.”

While retailers do an amazing job with signage and product promotion in-store, says Fresh Innovations’ Murray, “If I could wave a wand and ask for anything, it would be to see more produce mixed in with the RTE (ready-to-eat) section to encourage ease of eat with produce to go along with the easy-to-prep/eat meals.”