THE BLIND LEADING THE BLIND
Good morning and happy Wednesday. It amazes me that some weeks I can’t find a single thing to rant about and some weeks there are so many I can’t choose, this is one of those weeks. I have narrowed it down to Trader Joe’s ending its delivery service which will dovetail into technology in retail. Then we will discuss again Florida’s push to end the suspension agreement again.
First, I would like to do a little linkedin.com house cleaning. When I first joined LinkedIn, I was a connections collector as I am sure many of you are. Now after several years I only accept connections or ask for them in the produce industry or connected industries . So please don’t be insulted if you are not involved in produce and I ignore your request, it’s nothing personal I just want to do business.
BLIND LEADING THE BLIND
I have often said in my past postings that execs in the retail produce industry follow each other’s ideas good or bad, like lemmings going over the cliff. We saw that with meal kits where they all got on that bandwagon and the wheels fell off.
Meal kits where a bad idea to start and without wall street money they would have not had any impact at all.
Then we moved into the delivery business and all the retailers followed. Surprisingly Trader Joes is ending their delivery business in NYC. I am a big fan of Trader Joes. I wrote a few years back if Trader joes had more variety there would be no Whole Foods. Trader joes provides good value for their customers and Whole foods does not. Let’s get back to the delivery business. If you can’t, make a delivery business work in NYC you can’t make it work anywhere. There are buildings that have more people in them than some rural towns. I commend Trader Joes for putting the money back into their stores by eliminating the delivery business. This is the recipe for success. Give your customers value by eliminating unnecessary cost such as this, add plastic packaging and value-added items to this list because they provide absolutely no value and an increased cost. I have said a hundred times the battle for retail food supremacy will be won in fresh.
Another area where retail has invested heavily is in technology, yes, the executive lemmings have followed here too. One day see what Walmart or Amazon is doing and a week later 10 or more retailers are doing the same thing. Now I am a big believer in technology to make life simpler or easier, sometimes it makes it harder, but do you really believe that if a store has superior displays, pricing and value that they will shop in your store instead because you have no cashiers? Not going to happen! Spend your money on improving your stores first then consumers will be able to trust and make the transition to omni marketing more easily. You really need to get geeks, MBA’s and accountants out of produce and put produce people back in charge where they belong.
Here we go again, this will be brief because you know from my past postings how I feel about this totally fraudulent claim about dumping of Mexico tomatoes. Marco Rubio and other politicians are pushing for the end of the suspension agreement so they can restart dumping claims against Mexico. Here again are the facts. Florida use to have all the business. They didn’t improve their technology or practices and Mexico did and in turn had better product and it became more in demand than the Florida product. Produce no matter what the item sometimes gets sold below production cost and that is in the USA as well as every other country in the world. It is a true supply and demand market and that fact has and will not change. I am curious why the USA does not claim dumping on Canadian tomatoes as well? They are sold below production cost as well at certain times during the year as well. Lastly the big Florida growers that are making all the noise are also growers in Mexico, yes you read it right! This is more about them making more profits than they are telling us.
Before you go bashing me for being a USA hater, I bleed red white and blue. I am a veteran, I have tears in my eyes every time the star-spangled banner plays. I love this country, I believe in playing fair and the suspension agreement claim by Florida growers is for lack of a better word is BS.
RED PEPPERS- Right on cue red peppers started to go higher. I still think they can go higher still, this due to as previously discussed, colored bells being cut green for the past 2 weeks which means they will not be there to pick red for the next few weeks so volume will be down.
YELLOW PEPPERS. Same scenario as red peppers
GREEN PEPPERS – Well colored bell were picked Green which added supplies and prices dropped and will continue to drop.
Florida will also have to come of their ridiculously high prices to compete.
JALAPENOS – MINI SWEETS Both have come way off their highs. It’s time to sell again.
SUMMER SQUASH. – Still have plenty of volume here lets promote.
EGGPLANTS. Supplies are up and prices are down.
CUCUMBERS – Market remains strong and can go a few dollars higher.
ROMA TOMATOES. Off the minimum and may go just a little higher.
AVOCADOS too many suppliers, deals are everywhere.
LIMES. – Stay ahead market is strong, great demand.
I will be traveling to NY tomorrow for my once a month visit.
I am still looking for a job with your company? We will be better together! If you need it bought, sold or loaded I am your Superman ( I do the work of 10 men). Have a great day.