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Monday, June 30, 2014

The secret to America’s most “disruptive” supermarket—fruits and vegetables

By Max Nisen

Quartz - June 30, 2014

Since supermarkets came of age in the 1950s, the American grocery store layout has largely been frozen in time. +  And for good reason. Every inch of the traditional track around US supermarkets—from the beautifully lit piles of produce and bounteous bakery section to the inviting prepared foods—has been honed to maximize the grocery industry’s tried-and-true business strategy: Promote the national brands and packaged goods that drive customers in the door, but steer them toward the more-profitable, perishable goods—such as fresh produce—where the supermarket really makes money. +  “The outside of the store, the produce, the meat, and seafood, it has much higher margins,” says Euromonitor International analyst David McGoldrick. +  And that’s why grocery store layouts almost always steer shoppers through those hillocks of lettuce and tomatoes immediately upon entering, before they wander off to the “center store” where less-profitable packaged foods are found. That tried-and-true approach been the unchallenged model of the grocery store business for decades. Here’s a typical “planogram”, in which customers enter but are forced to turn right at the checkout counters, ending up in the produce section:

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