Industry Analysis & Industry Trends
Fruit and vegetable retailers have weathered difficult trading conditions over the past five years, with sales growing at a compound annual rate of 0.3% to total $13.2 billion in 2012-13. Rising competition and price discounting by supermarkets have weighed on revenue growth. This has occurred despite rising fruit and vegetable consumption, as consumers responded to the 'Go for 2&5' public health message. Sales and market shares for smaller specialty retailers have declined, as larger supermarkets have expanded product lines to incorporate more exotic fruit and vegetable items. The rising popularity of packaged and ready-to-eat meals has affected consumer demand for fruit and vegetables, as time-poor consumers respond to busier lifestyles and heavier workloads... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity for fruit and vegetable retailers is medium. Traditionally, the industry has operated in a labour-intensive environment, given the need to employ staff for customer assistance and to restock store shelves. As such, expenditure on wages and salaries generally accounts for a relatively larger portion of sales compared with capital expenditure.
Capital expenditure is still required, particularly by new operators entering the industry, for fixtures and fittings such as display shelves, cash registers, weighing instruments and refrigerators. Capital intensity has increased over the past decade through the installation of point-of-sale systems, especially in supermarkets... purchase to read more