Wal-Mart hopes to woo consumers with ‘fresh’ guarantee

Fresh is the sexiest consumable category in grocery today, according to New Market Builders CEO Carol Spieckerman, so it’s no surprise that Wal-Mart is upping the ante with a 100% money-back guarantee.

As the nation’s largest grocery chain Wal-Mart has a lot to gain or lose in this new “fresh” game. So the retail giant said Monday (June 3) it is standing behind its promise to ensure the quality and freshness of the fruits and vegetables it sells.

"We're listening to our customers and delivering on our promise to offer great produce at the most affordable price," said Jack Sinclair, executive vice president of the food business for Walmart U.S. "We are so sure our customers will be pleased with the fruits and vegetables they buy in our stores, they can receive a full refund if they aren't completely happy."

Grocery accounts for 55% of the sales revenue at Walmart US, to the tune of $151 billion last year.

Spieckerman said fresh is “everywhere” as convenient stores, drug stores, upscale urban markets and dollar stores are all in the ‘fresh’ game because it’s a major trip driver for consumers. She also warns that it raises the performance bar for grocers because consumers expecting “fresh” are unforgiving when they don’t find it as advertised.

Wal-Mart said it has invested in expanded training for 70,000 of its employees who will ensure that fresh produce is stocked and restocked in its stores across the country. Sinclair said this training is key to the program’s success. To improve quality and freshness, Wal-Mart has hired produce experts to work directly with farmers in the key growing regions where the company has produce-buying offices.

Spieckerman said fresh can be challenging logistically because produce items don’t sit in a warehouse but they have to be transported from farm to store, often within 24 hours of harvest.

Wal-Mart said its focus on local farm sourcing since 2010 and ongoing efforts to streamline the supply chain have reduced the number of days produce is in transit to ensure the freshest fruits and vegetables get to its customers. The retailer also has hired third party teams to go into its stores and check produce departments each week. The results are then reported to every level of store management, according to the company release.

Berne Evans III, chairman of Sun Pacific and produce supplier, noted in the release that Wal-Mart efforts to store and handle produce “both its Cuties ,Ripe and Easy Kiwis have been tremendous sales success stories” for his firm. Sinclair said if customers are not completely satisfied with Wal-Mart's produce, they can bring back their receipt for a full refund. No questions asked and there is no need to return the produce.

The Wal-Mart guarantee follows similar offers at Safeway Inc. and Texas'-based H-E-B.