Department upkeep and shrinkage control: two key variables in optimizing the performance of fruit and vegetables departments

Florent Saucède (), Hervé Fenneteau and Jean-Marie Codron
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Florent Saucède: ESCA - École de Management de Casablanca = Casablanca's School of Management, SKEMA Business School, UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Hervé Fenneteau: MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School

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Abstract: After highlighting that the deterioration of product quality on the shelves is a key particularity of FFV departments, the authors identify department upkeep and shrinkage control as key intermediate variables impacting the performance of FFV departments and show how these two parameters can be controlled using three main actionable levers: marketing, in-store logistics and procurement. The discussion of managerial implications sheds light on other phenomena requiring further investigation: team management practices, the buying role of the department manager and tailored criteria for assessing performance. The research shows managers that optimizing department upkeep allows turnover to be generated which exceeds the sector average without impeding the productivity of the department. The authors stress that it is imperative to control shrinkage in order to meet margin performance objectives. This research is a step forward because it takes account of the elements distinguishing FFV from other fresh products to highlight the factors underlying high performance levels.

Keywords: department performance; department manager; retail marketing; case study; repartition; fresh fruit and vegetables; store management; fresh product; supermarket; retailing; produit frais; fruit; legume frais; supermarché; hypermarché; commerce de detail; distribution; qualité du produit; performance (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (1)

Published in International Journal of Retail and Distribution Management, 2014, 42 (8), pp.733-758. ⟨10.1108/IJRDM-02-2013-0036⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01506331

DOI: 10.1108/IJRDM-02-2013-0036

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