Differences in sales of grapefruit in this experiment were not statisti- 

 cally significant whether displays were of packaged fruit, bulk fruit, or 

 combinations of package and bulk. 



The merchandising test was conducted in nine food supermarkets in 

 Minneapolis-St. Paul, Minn., in October- December 1958* Ihe purpose of the test 

 was to compare the effect of the different types of packages and displays on 

 sales, costs, and keeping quality. 



INTRODUCTION 



The produce department of a modern food supermarket accounts for approxi- 

 mately 10 'percent of gross sales and is the second most important department 

 among the perishables. 



Except for produce, most foods are sold in prepackaged form on a self- 

 service basis. Members of the trade estimate that only 55 percent of produce 

 items are offered self-service either through package displays or unit pricing 

 of the item itself (melons, grapefruit, etc.) 2/ Many stores offer bulk as 

 well as prepackaged displays of many items. Some offer bulk only and some 

 prepackaged only. 



Research indicates that packaged produce has certain advantages for retail 

 store operators. Packages protect the produce, preserve its quality, and reduce 

 waste; displays can be stocked more efficiently; and customers move more rapidly 

 through the produce department. In considering the use of packaging, the 

 retailer must decide whether these advantages outweigh the cost of packaging 

 materials, and the cost of removing unsalable items from packages and repack- 

 aging the salable merchandise; he must make sure that the types and sizes of 

 packages and the packaging materials are acceptable to customers. 



In a series of controlled experiments by Messrs. Henderson and Dominick, 

 significant increases in the sales of Mcintosh apples were observed when they 

 were displayed in 4-pound polyethylene bags instead of k- pound cellophane 

 bags. 3/ The findings also showed that adding bulk apples to displays contain- 

 ing packages did not materially affect sales when the packages held 5 pounds or 

 less; but for apple displays containing 6-, 8-, and 10-pound packages, the 

 addition of bulk fruit was necessary for the customers desiring smaller amounts. 



OBJECTIVES 



Objectives of the study were to assist the fruit industry (packers, ship- 

 pers, distributors, and retailers) in making decisions relative to merchandising 



2/ Moore, James B. Big Brands Coming in Produce. Food Business, 7 (6):13« 

 June 1959. 



3/ Dominick, Bennett A. Merchandising Mcintosh Apples in Retail Stores. 

 Cornell University Agr. Expt. Sta. Bui. 895, Ithaca, New York, May 1953- 



Henderson, Peter L. Influence of Selected Marketing Service on Apple 

 Sales. Unpublished Ph. D. Thesis, Cornell University, 1952. 



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