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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 Ecole de Management, SKEMA Business School, UMR MOISA - Marchés, Organisations, Institutions et Stratégies d'Acteurs - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRA - Institut National de la Recherche Agronomique - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - Montpellier SupAgro - Centre international d'études supérieures en sciences agronomiques
Hervé Fenneteau: MRM - Montpellier Research in Management - UM - Université de Montpellier - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM1 - Université Montpellier 1 - UPVD - Université de Perpignan Via Domitia - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVM - Université Paul-Valéry - Montpellier 3

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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: fresh fruit and vegetables; store management; fresh product; supermarket; retailing; department performance; case study; retail marketing; department manager; repartition; 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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Published in International Journal of Retail and Distribution Management, Emerald, 2014, 42 (8), pp.733-758. ⟨10.1108/IJRDM-02-2013-0036⟩

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DOI: 10.1108/IJRDM-02-2013-0036

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