Traditionally, fresh products are purchased in stores. There's just something special about being able to see, touch, smell and even taste fruits and vegetables before you put them in your shopping cart.
However, with the rise of online shopping, retailers are now faced with the challenge of bringing the grocery shopping experience to the digital world. At the same time, grocery stores are increasing their efforts to make grocery shopping easier, more fun and more engaging.
Retailers and industry experts recently shared insights into successful strategies and best practices.
Local shopping remains strong
Brick-and-mortar shopping still accounts for the majority of the grocery channel share. According to Circana Integrated Fresh data for all stores for the 52 weeks ending November 5, 2023, in-store channels accounted for 97.6% of fresh dollar sales. Online product purchases totaled 2.4%, down from 2.6% last year.
FMI's “The Power of Produce 2024” report said that while the pandemic led to a surge in online shopping in 2020, engagement has since fallen below 2019 levels. In 2019, 54% of respondents purchased fresh produce online, compared to 64% in 2020. In 2024, only 37% said they purchased their products online.
Online shopping continues to focus on higher-income households looking for convenience.
Digital shoppers place too much value on high-quality fruits and vegetables and organic products. Many people look for meal ideas in digital sources such as store apps. Although channel share for online shopping remains low, the customer base is loyal; 78% of FMI survey respondents said they expect to continue the practice in the coming year.
When asked about the most important features of a great fruit and vegetable department, customers in brick-and-mortar stores valued freshness, quality and attractive prices. The report suggests that retailers can increase engagement by stocking locally grown products, running promotions and offering product samples.
(Photo courtesy of The Fresh Market)
Find new ways to engage online
Fresh Market has long had a loyal following for its vibrant produce department. In 2023, the Greensboro, NC-based retailer added shoppable livestream events to bring that excitement to the digital space. The grocer works with lifestyle host and TV personality Anna Rossi, as well as chefs and influencers, to create recipe demonstrations and how-to content – often focusing on seasonal themes – that allow viewers to shop along.
During digital events, users can click on pop-ups on the screen to add items directly to their online shopping cart. Shoppers can post comments and ask questions during the livestreams and receive instant answers from The Fresh Market team. Customer reception has been so positive since launching last year that the company now runs three events per month.
“It was a great way for us to create recipes, inspiration and storytelling in one place,” said Gloria Reardon, director of brand marketing and consumer research at The Fresh Market.
The videos also offer sponsorship opportunities for brands and producing marketing companies.
“One of the really interesting things we've done is partnered with groups like Fresh from Florida who are interested in promoting products,” said Reardon, who is responsible for the store's video content and magazine.
Sponsors partner with The Fresh Market to provide inspiration based on the season or trends. These products are then presented in the livestream event through recipes or demonstrations.
While it does require human resources to answer attendees' questions while the live streams are running – there are typically six team members working on the back end – Reardon says it's not overly taxing.
“We all bring our lunch and sit there and respond,” she said. “I’ll be watching the events anyway, so I’m happy to answer any questions.”
Walmart takes a similar approach with its Stream & Shop events. The videos are accessible via the store's homepage and feature social media influencers and Walmart creators.
Walmart is also delighting grocery customers with its digital recipe hub. Each recipe comes with a shoppable list of ingredients that customers can add directly to their online shopping cart.
(Photo courtesy of BRR Architecture)
Create excitement in stores
Technology also improves the customer experience in brick-and-mortar stores.
Instacart recently introduced the Caper Cart, a digitized “smart shopping cart” that provides customers with product recommendations, location-based offers and other benefits through a small screen mounted near the cart handles. The shopping cart is designed to provide a more personalized shopping experience. It automatically recognizes items as they are inserted and tracks spending in real time.
The high-tech buggy even has an integrated scale for weighing food. The checkout is completed directly from the shopping cart.
According to an Instacart spokesperson, Caper Carts are already in use or will soon be used by retailers such as Bristol Farms, Fairway Market, Geissler's, Kroger, Schnucks and ShopRite. This year, the digital shopping carts were introduced at Aldi in Europe and at grocery chain Davis Food & Drug in Utah.
Instacart expects to add thousands more shopping carts to the retail landscape as momentum builds.
On the analog side, retailers are revamping store design to create a more efficient and engaging shopping experience for fruit and vegetable lovers.
This year, Schnucks Markets expanded and renovated grocery departments at two locations in Missouri: Cross Keys and Hampton Village. Mike Tipton, vice president of produce and floral for the St. Louis-based retailer, noted that improved lighting and merchandising vehicles at these locations better showcase the variety and selection of items offered at Schnucks stores.
“With impulse purchases of fruit and vegetables at an all-time high, we need to be mindful of how we design our displays to capture our customers' attention and entice them to not just stop at a display but also purchase it said Tipton.
The store design itself also plays an important role.
“Experiential shopping is really at the forefront of our minds as designers because it brings customers into the store,” said Carol Bartolo, vice president of Overland Park, Kan.-based architectural firm BRR Architecture. BRR led recent renovations for Schnucks and has worked with more than 40 grocery brands across the country, including Whole Foods Market, Sprouts Farmers Market and Hy-vee.
(Photo courtesy of BRR Architecture)
Bartolo points out that fruits and vegetables are the most important factor in attracting customers, so the layout and functions of the department deserve special attention. Freshness and convenience are key.
“We need to consider the circulation and flow of the space so that it provides direct access to everything the customer needs,” she said. “People want it to be quick and easy to get their fresh food.”
To help customers find what they are looking for, recent BRR designs feature large wall signage and graphics that are clearly visible from all departments.
As customers become more interested in learning where their food comes from, many retailers are requesting additional space in the produce department for displays about local producers and sustainable farming practices, Bartolo said. Creating a farmers market atmosphere is another successful strategy to appeal to customers, as grocery departments expand from the front of the store to outdoor areas just outside the entrance.
The trend for theater and drama continues in the form of fresh juice bars, fruit salad stations and “butchers” that dice and spiralize fresh produce to ease the prep work of cooking.
Although butcher shops have been around for a few years, it took a while for the concept to catch on due to logistics, costs and labor, Bartolo said.
“It is [mainly] in upscale stores, but I know customers are starting to think about it,” she said. “It not only offers comfort, but also theater.”
The flavors of the products prepared in the store are another big draw.
“If you're in the produce department and someone is there cutting pineapples or mangoes, you can smell the smell throughout the store,” Bartolo said. “It’s all part of this experiential shopping.”