Industry Insights: Transforming independent retail through produce partnerships

In today’s retail landscape, independent operators face increasing pressure to differentiate, drive traffic, and build loyalty. One of the most powerful, and often underleveraged, opportunities to achieve all three sits right at the front of the store: the produce department.

While fresh produce typically represents only about 10 to 11 percent of total store sales, industry data consistently shows it’s one of the strongest drivers of customer perception, store traffic, and shopper loyalty, impacting the entire shopping basket and overall sales.

This is why, two years ago, the Katzman family of companies BB #:103742 launched a dedicated distribution company: Katzman Distribution BB #:397376. We saw an opportunity to service our customers even better, and to help independent retailers transform their business through the produce department.

Every decision we make at Katzman Distribution, from sourcing to merchandising, is grounded in what today’s shopper demands. Flavor is paramount, and must be paired with freshness, quality, variety, and an engaging in-store experience.

When retailers align their produce strategy with these expectations, they don’t just sell more fruits and vegetables; they drive repeat visits, purchases, consumption, and loyalty—within the produce department and for the entire store.

As part of Katzman, we have 100-plus years of produce business experience, relationships, and expertise. We’re rooted in the New York/New Jersey area, one of the most densely populated regions in the country, with a diverse customer base and demand for every kind of produce you could think of.

We move not only product but information up and down the supply chain. This gives us a unique advantage to anticipate trends, understand competitive pressures, and help our customers position themselves effectively within their communities.

It’s the combination of these insights, and how we execute on these insights, that makes us the ultimate partner to help our customers succeed.

Our first distribution center, located in Burlington, NJ, is designed to support this objective. Our 70,000-square-foot, multi-temperature facility allows us to maintain optimal product conditions from receiving to delivery, ensuring consistency and freshness.

Every item is inspected upon arrival and throughout its time in our building, with strict adherence to SQF, food safety, and traceability standards. Just as important, our logistics network, powered by a fleet of refrigerated trucks with real-time monitoring, ensures product integrity is maintained all the way to the store.

Delivering a great product is step one; then we need to ensure it performs well on the shelf.

Delivering a great product is step one; then we need to ensure it performs well on the shelf. That’s where our merchandising and retail support services set us apart. Our customers need distribution partners who can help maximize every square foot of their produce department.

Our field merchandising team, made up entirely of seasoned produce professionals, works directly in stores to guide layout, improve presentation, and train staff. Because they’ve worked in top retail environments themselves, they understand both the operational challenges and the opportunities.

We also provide customers with actionable insights, from crop conditions and market trends to emerging consumer preferences, so they can make informed decisions about assortment and pricing.

Depending on the retailer, this might mean introducing a new value-added item, expanding fresh-cut offerings, or refining seasonal transitions. But the goal is always the same: being a dedicated partner with our retail customers so they can execute with confidence.

Product assortment plays a critical role in this process. Today’s consumer is looking for both staples and discovery. Through our strong relationships with leading growers and suppliers, we’re able to offer not only consistent core items, but also unique and specialty products that create excitement in-store.

Partnerships with brands like Melissa’s/World Variety Produce, Inc. BB #:111686, for example, allow our customers to differentiate their offerings and deliver a “wow” factor that drives incremental sales.

We’ve seen firsthand how the right combination of insights, assortment, merchandising, and execution can transform a store.

We’ve seen firsthand how the right combination of insights, assortment, merchandising, and execution can transform a store. Even small adjustments can reposition a retailer as the destination for produce in its market.

Ultimately, it comes down to partnership. The word gets used often in our industry, but delivering on it requires a deep commitment to understanding each customer’s unique business and goals.

At Katzman Distribution, we focus on building relationships that go beyond transactions. We work side by side with our customers to identify opportunities, solve challenges, and continuously improve performance. We’re committed to delivering the right products to the right partner, the right way.

Independent retailers have a tremendous opportunity in front of them. By investing in their produce departments and aligning with partners like Katzman Distribution who bring expertise, insights, and execution, they can transform not just a category, but their entire business.

And in doing so, they can deliver what matters most: an exceptional experience for the customer.