Topdì, now known as Todis, with a consolidated presence in central and southern Italy through its more than 300 stores, is a private-label supermarket brand focused on fresh products and customer orientation. Todis is owned by Iges, a sole proprietorship under the control of the PAC2000A Conad cooperative, and is expanding its business through both direct management and the franchising model. This model is supported by Addis, a joint venture with Conad Adriatico.
"Todis operates mainly in Latium, where most of its stores are concentrated, but it is also present in Tuscany, Calabria, and Sicily. The organization of the fruit and vegetable supply chain works as follows: today all purchases are centralized by the departments that buy from our supply points. Within PAC2000A we have five: two in Latium, one in Umbria, one in Campania, and one in Sicily. Then we have two more for the Adriatic area, served by Conad Adriatico," says Pietro Fiore (pictured), Fruit and Vegetables Manager at Todis.
Currently, most of the assortment in the stores comes directly from the central facility. It is important to note that the Todis network is made up of affiliated entrepreneurs. There are no direct sales, as all facilities operate as affiliates. "The entrepreneurs show almost total loyalty, with a 99 percent compliance rate with company policies," says Fiore. "However, in some areas, entrepreneurs buy local products that cannot be digitized on central platforms. In Sicily, for example, typical products such as long courgettes are purchased directly from local producers because national platforms cannot handle these specific references. This approach also extends to other regions, such as Campania, where unique territorial products are enhanced."
While the fruit and vegetable business benefits from centralized assortments at the national level, each region customizes its offer in accordance with local characteristics. According to Fiore, this system not only strengthens Todis' presence in the region but also demonstrates to local customers the company's ability to offer products that reflect the specific traditions and needs of each area.
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The fruit and vegetable production of Todis
It is mainly of Italian origin, with over 70% of its products coming from domestic cultivation. The company is committed to supporting local production and favors sourcing from the regions where its platforms are located. "In Lazio, for example, Todis prefers products from the Agro Pontino area and tries to promote them through its distribution networks. However, part of the assortment also includes foreign products, especially exotic fruits," explains Fiore. "The sourcing of products from abroad varies according to season and availability; for example, tomatoes are mainly Italian, but in the event of a shortage, Todis also turns to the foreign market. Iceberg lettuce is another example; while it is bought in Italy when it is available, 90 percent of this product comes from Spain, with a supplement from the Netherlands during the summer months when the quality is higher. This approach allows Todis to maintain a diversified and high-quality offer while continuing to give priority to domestic products."
In Todis' fruit and vegetable business, 55% of sales are made with bulk products, and the remaining 45% with packaged products. This distribution can vary according to customer preferences in different geographical areas. Organic production currently accounts for less than 3% of sales and demand is slow to take off.
In terms of fresh-cut and ready-to-eat products, Todis offers a range of between 180 and 190 references, including soups. The assortment is adapted to the size of the stores, which can vary from 220 to 2,000 square meters, with a display area of 2.5 to 7 linear meters for fourth-range products. On average, stores offer 60 to 180 references to meet the needs of a diverse customer base.
"Today, Todis offers more vegetables than fruit. During this period, the recommended premium fruit assortment varies from a minimum of 75 varieties in smaller stores to 150 varieties in larger stores. March and April are months when the fruit assortment is reduced, with citrus declining and strawberries as the only significant seasonal reference. Vegetables, on the other hand, remain stable despite the overproduction caused by the rainy season, which has led to an increase in supply and a change in prices," Fiore points out.
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The layout of the fruit and vegetable section
Regarding the layout of the produce departments, Todis provides standard guidelines to its member stores, generally positioning the departments at the entrance of the store. The layout includes wall units and central structures to create a homogeneous and recognizable environment. However, the size of the display areas varies according to the size of the store, with assortments adapted to three different clusters: small, medium and large. Every month, Todis also makes suggestions for seasonal displays to ensure that customers always find what they need.
Products are displayed according to corporate guidelines, but each store can be creative. "Todis supports the stores with a network of assistants who give advice on how to organize the departments to best meet the needs of the customers. One example is the organization of product categories, such as tomatoes, which are displayed together to make the shopping experience faster and more intuitive. The goal is to ensure that customers do not have to search in different areas of the store to find all the variations of a particular product.
In addition, during peak seasons, when demand is highest, it is recommended that fruit be given more space than vegetables. "This approach is designed not only to increase sales but also to improve customer satisfaction, as evidenced by increased store traffic and positive consumer response over time," says Fiore.
The 'A Tutto Sapore' product line
Launched in 2019-2020, Todis' 'A Tutto Sapore' line has quickly established itself as a distinctive brand in the fruit and vegetable sector, with the aim of enhancing premium products and standing out in the market. "Despite a subdued start, it now accounts for more than 15 percent of sales in the sector, with a growth in sales per reference of more than 29 percent compared to the previous year," says Fiore. "In 2023, the line included about 81 references, mainly in the fruit sector, with a few selected vegetables. One of the keys to success has been the collaboration with major brands and PGI products, such as lemons, oranges, and potatoes, which have enriched the 'A Tutto Sapore' product range. The initial goal was to create a brand that would build customer loyalty by offering a unique and easily recognizable product in the fruit and vegetable sector."
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Fruit and vegetable sales in 2024
"With regard to last year's sales, avocados were confirmed as a product with a strong upward trend, with an increasingly refined segmentation of references. Small fruits and melons also performed well, thanks to effective promotional campaigns, particularly under the 'A Tutto Sapore' brand. In general, vegetables had a good year, with a few exceptions such as aubergines, which suffered in terms of sales but recovered in terms of volume. Melons, on the other hand, continued to face difficulties in the Italian market, with a decline in sales. A shift in consumption was also seen in peaches, with a decline in nectarines offset by increased sales of yellow peaches."
How are you managing these challenges and what solutions are you implementing?
Faced with challenges such as climate change, inflation, and reduced consumer purchasing power, fruit and vegetable companies must adopt flexible and responsive strategies. "With more than 30 years of experience in the industry, I see new challenges every year," says Fiore. "Climate change is making production conditions increasingly unpredictable. A sudden storm can wipe out entire crops, resulting in product shortages. To deal with these and other difficulties, we try to keep references in the product assortment, but we are ready to remove them if availability becomes critical. During promotions, it is important to keep the promises made to consumers, even at the cost of reduced margins. For example, if courgettes are on promotion but production is insufficient, the brand is committed to maintaining the promotional price to meet customer expectations, even if it means a loss."
Long-term planning is complicated by climate uncertainty, which can drastically affect prices and product availability. When stocks are limited, stores receive reduced quantities, leading to dissatisfaction among customers who cannot find the advertised products. To improve consumer understanding, it is critical to develop effective information campaigns, according to Fiore. "Although stores try to communicate weather issues that impact product availability, the perception of the impact is often minimal. The use of social media could improve communication, but it is a double-edged sword: information can be easily manipulated in the case of both product surpluses and shortages."
Article photos provided by Todis Press Office
For more information:
www.todis.it