Strategy backed by economic profit' formula showing costs of retailing each product Sainsbury's trials of North American farmers' market display techniques in its Hendon store ­ exclusively reported in The Grocer, September 30 ­ have been so successful that the concept is already being rolled out. The format uses a combination of boxes, barrels and special lighting. Hand in hand, Sainsbury is embracing a new formula called economic profit' which shows the costs of retailing each product. The strategy will soon be backed by a multimillion pound investment already upgrading their depots, communication, ordering and distribution systems, said Ian Merton, director of Fresh Foods. He expects the results "to show within two years". The news was given to 150 key suppliers at an internal conference held at White Hart Lane, home of Spurs, last Monday. Between them, they provide Sainsbury's with fruit and vegetables with a retail value of £1.3bn, or 20% of the total market. Mike Attwood, senior produce manager, said: "Produce sales are ahead of company performance." The complex development package will include linking suppliers more closely to e.commerce, which Sainsbury believes will ultimately revolutionise how it sources its producer partnership programmes. There are plans to introduce new product lines chosen for taste and value. Twenty five including novelties like yard long beans and jackfruit have already begun to appear. This is the role of three newly appointed product development specialists. Greater emphasis is also being given to stocking ready to eat fruit using high technology such as that achieved with Avoscan. In Japan a system has been discovered which can accurately gauge the maturity of melons. Other projects include the installation of salad bars and more freshly prepared convenience packs, added Peter Morrison, senior manager for commercial strategy. "In two to three years you will not recognise Sainsbury's stores," he said. A key element is also to increase staff knowledge in the produce departments ­ an area which most multiples accept needs improvement. Based on the success of a pilot scheme Sainsbury will launch 24 training courses. {{FRESH PRODUCE }}

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