Cashing in on the local food craze

Consumers increasingly see farmers’ markets as a place to connect with their food sources. These modern-day village squares link shoppers and local producers to the community and serve as a hub for local events. The concept appeals to natural products shoppers and gets right to the heart of the mission many natural products retailers have long held.

Rather than considering these markets a competitive threat, innovative retailers are partnering with existing markets or creating their own version of a farmers’ market to capitalize on the fresh and local trends. Done right, there is plenty of upside—the strategy grows your customer base and your brand in the community. But it also involves a lot more than just putting some produce in a tent.

Getting started
The first step in determining if your store should host a farmers’ market is to conduct an assessment of existing supply in the region, says Stacy Miller, executive director of the Farmers Market Coalition, based in Cockeysville, Md.  “And don’t think you can start the process in March and be ready to open in May. It will take more than a couple of months to pull everything together.”

Miller suggests talking to existing markets, farmers and cooperative extension services to see if they feel the community can sustain another market. This input will help determine if enough farmers are looking for a new outlet to sell product. If they aren’t keeping pace with existing markets, then additional competition doesn’t serve anyone, Miller says. Retailers also need to look at existing markets’ business. Are they crowded? Is there enough demand for another market on the same day or would you need to find a different time and day to attract enough customers to your store?

If the demand for a new market isn’t sufficient, a better option may be to look at how your store can partner with existing farmers’ markets by offering financial help and marketing, branding and merchandising expertise. “Many farmers’ markets receive annual financial sponsorships from stores,” Miller says. “This provides the same community recognition and benefit for a retailer without reinventing the wheel.”