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

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.