A recent Hass Avocado Board (HAB) avocado channel segmentation study has revealed the fastest growing retail channels for avocado purchases.

As a companion piece to Rethinking Retail: Avocado Shopper Segmentation, released earlier this year, the research helps the industry understand key shopper segments better, by diving into the retail channels where shoppers purchase avocados, and outlines key purchase metrics within each retail outlet. 

According to the study, which was based on household purchase data from the IRI Consumer Network, grocery claimed the majority of avocado purchases across all shopper segments in 2020, but lost dollar share to the internet and large format channels since 2017. 

The Internet, Walmart, and Club channels contributed a combined $123.2 million in incremental avocado purchases, accounting for the majority of total net category growth from 2017-2020.

Moreover, the Internet channel emerged as the fastest growing channel for avocado shoppers over the past four years, showing growth of nearly 334 percent since 2017 for avocado purchases. This growth added $30.5 million in purchases to the category over the 3-year period.

Since 2017, the Internet channel has more than doubled its share of avocado purchases, driven by an 11 percent increase in annual household spend and a 30 percent increase in the number of avocado purchase trips.

Club Stores have the second highest share of avocado purchases at 14 percent, with the second highest growth rate at 26 percent since 2017. Club store purchases accounted for an additional $55.6 million for the category, making it the largest contributor of incremental purchases over the 3-year period.

In addition, Ultra shoppers were found to be more likely to purchase avocados across multiple retail outlets. The Ultra segment made up a smaller portion of avocado shoppers across all retail channels in 2020, yet these shoppers hold the largest share of avocado purchases in every channel. 

Furthermore, the study concluded that Ultra shoppers are also more likely to make repeat purchases, make more purchase trips per year, and have the highest avocado spend per trip of any other segment across all channels. These higher purchase trends and the multi-channel shopping behavior of Ultra Shoppers is a key factor in the changing retail landscape.

In conclusion, the channel segmentation study highlights that the industry can leverage key shoppers in the internet channel, capitalize on opportunities to generate engagement in high-growth channels with Ultra shoppers, and create marketing and promotional opportunities that bring in shoppers and increase purchase frequency in each channel.