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Retailers admit they're often in the dark when it comes to measuring accurate costs of foodservice items. An exclusive Supermarket Business survey shows they may have somewhat differing opinions about [...]

Supermarket bakers need to improve the quality of their products to compete with other supermarkets as well as other retailers. With higher quality products, instore bakeries can position themselves between bakeries that sell bread at higher prices and other supermarket bakeries that sell commodity bread at lower prices. Such an approach will eliminate the price competition between supermarket bakeries, which prevents them from raising prices and risking loss of market share. Ultimately, this will enable them to offer better quality products to consumers and improve profitability., The supermarket bakery may be at a crossroads, torn between remaining a price-driven commodity department or going for higher quality products and customers. The question is not so much which [...]

Joe Joseph's application to buy an eight-acre site for his dream supermarket was denied by Charleston Mayor Kemp Melton who was targeting the site for a 17-agency human services complex. Joseph's only recourse was to ask his loyal customers to write City Hall. As a result, 3,500 letters and the largest number of telephone calls flooded City Hall in just three weeks. The 45,000 sq. ft. Bigley Foodland Fresh, which boasts of several innovations including having the largest frozen food section in Charleston, opened in Mar. 20, 1997, When Charleston, W.Va. told a supermarket operator he couldn't build his dream store, he took his case to his customers. They deluged officials with letters and phone calls, and the [...]

The dominant themes among supermarket operators when it comes to private label are increasing share for the high-margin products and controlling costs through efficiency. When Kroger's Nick Hahn addressed 150 [...]

Some Health and Beauty Care (HBC) products never seem to lose their popularity while others just simply come and go in supermarket shelves. It is due to several changes in the HBC industry that managers find it difficult to know which products are growing and those which should not be given much attention. Regardless of the introduction of new products, consumers are still looking for their favorites, making store managers more critical and choosy with new items., Some categories seem to be owned by one or a few brands. Others are hotbeds of competition, with leadership always up for grabs. IRI numbers assess the situation in 14 [...]

Supermarket retailers must take steps to retain their share of the prepared foods market and remain competitive against the foodservice industry. One suggestion is to allow store-level chefs to offer new menu items. Other retailers have increased sales by offering consumers freshly prepared foods while others have formed alliances with fresh food suppliers to increase the variety of foods offered at the store level.

A growing number of supermarkets are offering low-fat prepared foods products. However, they also face the dual challenge of developing healthy foods that will appeal to consumer taste buds and convincing them that these foods are worth their higher price. Among the suggestions of chefs for maintaining food flavors while reducing fat include grilling and smoking foods, and cooking with herbs, spices and fruits., Recipes and formulas yielding better nutrition create added value for consumers. But flavor is what sells. If the supposedly Machiavellian wiles of supermarket retailers could ever lay claim to a [...]

Northwestern University Center for Retail Management director Dr. Robert Blattberg believes that category management is most suitable for large and medium retailers. He claims that small retailers lack the manpower to apply category management and should instead use their wholesalers' category plans. He also says that motivating employees during category management can include changing titles, processes and investing in training and new technologies., Category management is clearly more than the latest consultant buzzword; even the greatest skeptics are convinced by now. Among some chains and suppliers, is becoming a mantra. But believing in [...]

Executives of various firms talk about the importance of category management in the supermarket industry. Thomas J. Lipton Co. customer development general manager Richard Collins, for instance, says that manufacturers play an important role in promoting category management while Ralston-Purina VP and managing director Brian Badger says that retailers should learn specialty stores such as Petsmart., To advance as an industry in category management, the trade must learn from its best-of-class partners. In an exclusive SUPERMARKET BUSINESS survey, the companies profiled in this section were all [...]

The expansion of vitamin products both in specialty and mass retail stores is attributed to the phenomenal boom of herbal products. In a period of 52 weeks, ending May 19, 1996, supermarkets posted sales of $483.8 million with the mineral supplement category giving a yearly increase of 20%. Aside from the emphasis on herbal products other reasons for the increase are the trend on alternative care and the flurry of information circulating about herbal products. However, supermarket owners should tap the market more, firstly, by increasing customer awareness of the product., The newest boost to the ever-growing vitamin category is coming from herbal products, a segment that until recently could seldom be found at mass market outlets. Just two years ago [...]

The trimming down of the general merchandising (GM) sections by supermarket operators is a strategic approach of preventing customer bewilderment and giving priority to profitable and saleable items. Despite the move however, GM sales grew in supermarkets, posting a 4.1% hike to $14.38 billion in 1995, according to SUPERMARKET BUSINESS' Seventh Annual General Merchandise Operations Review. The sales increase is due to emphasis on high-end GM products such as greeting cards. Other GM sales boosters of the year include photo supplies and processing, and audio and video products., Despite rising sales in the section, many retailers feel it's time to start reducing their commitment to general merchandise rather than getting into an array of products that confuses customers [...]

Supermarkets with foodservice operations should realize that pizza is one of the country's favorite foods. In addition to being a substantial money earner, a good pizza program can help bring in more customers into the store. Retailers planning on offering pizza can choose between franchising a turn-key operation, leasing a department or creating their own. Several tips on how to establish and manage a pizza program are provided., The ever-increasing popularity of pizza presents supermarket operators with another meal-solutions opportunity. But the variety of programs may be even greater than the variety of pizzas. Despite its origins in [...]

Larry's Markets has always been a trend-setter when it comes to food marketing. The company's newest outlet at the Seattle Center in Seattle, WA, is in line with this tradition. The 50,000-sq.-ft. Seattle outlet boasts authentic Italian, Japanese and Mexican cuisine in addition to traditional foodservice components such as a salad bar, rotisserie chicken, prepared foods and a cheese section., The newest Larry's at Seattle Center is further evidence that the foodservice trend-setter is tailor-made for ist stylish home town. One of the world's great water views is Puget Sound [...]

It's ironic that supermarket retailing has, through sheer size and product proliferation, evolved into one of the least consumer-focused of distribution businesses--one in which the burden of day-to-day 'mass' management [...]

The meal replacement business continues to grow dramatically, prompting supermarket operators to re-examine the place of prepared foods in their delis, as well as the direction the delis themselves will take in the future. According to Supermarket Business' 14th Annual Deli Operations Review, 1995 sales rose by 6.5% from 1994 figures to $19.99 billion. Experts believe that, in response to this trend, operators will have to improve their service delis to make them more responsive to consumer needs and to fit the identity the retailer wishes to project., The headlong growth of the meal replacement market is enhancing the pivotal role of prepared foods in supermarket delis and impelling operators to start developing strategies for how they will [...]

Wild by Nature supermarket has succeeded in building itself up as the store of choice for health-conscious consumers favoring natural foods. Wild by Nature, which started out with funds provided by King Kullen Grocery Company Inc., offers mainly perishables-intensive and made-from-scratch goods in line with its 'Foods for Living Principles.' All its offerings do not contain artificial colors, flavors, preservatives and additives and are based on recipes developed by natural food gurus., King Kullen, the company that helped invent the supermarket, has taken an unconventional turn in bankrolling Wild by Nature. The result? A scratch-made work of art. If $3.5 million, 18,000-square-foot [...]

Spartan Stores Inc. CEO Pat Quinn attributes his company's success to a total corporate re-engineering program called Business Automation Support Environment. The program, which involved the implementation of new systems and employee training programs, enabled Spartan to reduce warehouse inventory while maintaining high quality service., Although immersed in a multimillion-dollar remake from wholesaler to the distribution logistics specialist of tomorrow, Spartan Stores is right on top of business in today's polarized trading environment. Page six [...]

Supermarkets can keep their turnover rates from increasing by implementing effective recruiting, training and management programs. Employers can keep their workers and lower the number of employee resignations by increasing their involvement in store operations. They should also devise programs that will enable employees to work more effectively and efficiently in shorter time. They should also give workers incentives to encourage them to work harder and better., The blame for triple-digit turnover rates may belong to the system rather than to abstractions like the 'labor pool' or 'kids today.' Try searching for the real reasons workers decide [...]

Edina, MN-based Byerly's Inc. developed the Hazard Analysis and Critical Control Points to improve food handling and sanitation in the supermarket industry. The program, which provides techniques on improving foodservice, focuses on preventing operations from having problems. A large portion of the program is focused on employee education and training to help workers develop a strong sense of responsibility for the quality of products., The retailer's sanitation program, which is supported by classroom training and employee manuals, is designed to head off problems before they can occur. A student's respect for his ex-college professor [...]

Alfalfa's Market's new 16,000-square-foot store in Seattle, WA, features an extensive natural food selection as well as packaged and fresh specialty and gourmet foods. The store also boasts of well-trained employees who are dedicated to giving quality service to customers. It is considered by Alfalfa's Market officials as a potential source of huge profits since there is no other store of considerable size in the area which could offer competition., In branching out to Seattle from its Rocky Mountain base, Alfalfo's has taken on the challenge of promoting itself to a new market--and prepared foods are a big selling point. [...]

Supermarket owners can maximize sales during holiday seasons by implementing sound merchandising and scheduling strategies that will enable them to meet the temporary surge in demand. These strategies should be based on interdepartmental cooperation and should be tailored to meet the needs of the consumers. Among the supermarkets which have gained considerable profits by adopting such strategies during holiday seasons are West Point Market and Genuardi's Supermarkets., With more than a little planning, retailers can have holiday visions in their heads of something more lucrative than loss-leading, frozen turkey. The same consumer need driving sales of take-out [...]

Central kitchens for the food preparation of supermarkets offer a number of advantages, such as product consistency, economies of scale, streamlined operations and potentially higher income. While costly and time-consuming, a central commissary is often the most practical approach in handling increased business. Memphis, TN-based Seessels' has been preparing foods off-site since the 1980s, allowing it to mass-produce food for the restaurants and delis at its 10 stores. VG's Food Center in Fenton, MI, is also considering a central kitchen to attain greater product consistency., Moving food preparation from store-level into a single commissary can pay off big for a growing chain--if it's done for the right reasons. The question of whether a supermarket operator [...]

Supermarkets should consider spending for research, labor and equipment to achieve business success with prepared food products. Supermarkets should give freshly prepared foods the quality of restaurant food to survive in the future. However, retailers should be prepared to pay for labor costs that are higher than that being paid for other store departments. Customer research is also necessary to ensure that consumers will like the products being sold., Tomorrow's Meal-Shoppers Won't Meet You Halfway Supermarkets may need to make serious investments in research, labor and equipment if they want their prepared foods to be more than a quick-fix [...]

New replenishment methods are being developed to improve traditional distribution operations in the supermarket industry. Technological advances such as CRP, EDI and category management have improved supply chain distribution. However, the industry will benefit more if cross-dock and flow-through are considered as techniques for minimizing handling and hastening product flow. The industry should realize that different products have different flow paths and that all products can be shifted to a quicker flow process., Fast-flow logistics have been downplayed and misunderstood in the supermarket industry, but in the very near future they may be the key to distributors' survival. A great deal of confusion [...]

The 'food bar' concept has grown immensely since its humble beginnings in the late 1970s and today, the venerable salad bar has been joined by juice bars, coffee bars and a vast array of others. Many food stores have eagerly adopted the concept as they continue to strive to give consumers one-stop total shopping. Many have enjoyed success with their food bars but experts also caution that not all such bars will be appropriate for any given retailer., In the late Seventies on the West Coast, they began appearing like mushroom patches, in Burger Kings, Ponderosas and Sizzler Steak Houses. Salad bars were on the crest of the [...]

A growing number of supermarkets are beginning to view health and beauty care (HBC) departments as an increasingly important aspect of their operations. However, although supermarket HBC departments are becoming more profitable, they are steadily losing market share to mass merchandisers. Many industry experts believe that the only way to reverse the decline in market share is by establishing an in-store pharmacy to complement the HBC section., The numbers may not be as god as those of mass merchandisers, but supermarkets continue to generate greater sales volume from their health and beauty care operations. According to Supermarket [...]

A growing number of retailers are establishing their own foodservice operations in an effort to increase their share of the consumer food-away-from-home business. This trend is not one-sided and it has caused the traditional delineation between retailer and foodservice to become blurred. Today, it is not unusual to see a retailer acting like a restaurateur or a foodservice firm marketing retail product lines., The race is on and the pace keeps quickening. Retail goes foodservice and foodservice goes retail in a frenzied attempt to grab a bigger share of the consumer's food-away-from-home dollar. [...]

Balls Super Food Stores Inc.'s newest Hen House outlet in Prairie Village, KS, is relatively small at 18,000 sq. ft. However, the Prairie Village outlet can claim to have one of the most extensive and impressive fresh foods departments in the country. In addition, the store also has several food court stations offering everything from fresh bagels to gourmet sandwiches., Balls Food Stores' seventh and smallest Hen House, which opened February 11 in Prairie Village, Kan., has a tiny footprint. How tiny? The whole thing could fit in the space [...]

A recent survey conducted at the New York Restaurant and Foodservice show in Manhattan revealed that the overwhelming majority of restaurant patrons eat out simply because they do not have the time to cook for themselves. In addition, a substantial number of restaurant patrons would prefer to stay and eat at home if they had a choice. Food stores can tap into this potentially huge market by offering consumers nutritious prepared foods., Today, for many time-pressed consumers, eating out isn't necessarily fun - it's a necessary evil So if supermarkets can make nutritious prepared foods accessible to consumers more quickly and easily, [...]

W. Edwards Deming's total quality management concept revolutionized the Japanese automotive industry and made it a world leader. The supermarket industry can also learn from Deming's system of management and emphasis on quality for value. However, supermarket managers should also realize that adopting Deming's system is no simple task and that it requires a radical top-to-bottom transformation of the whole company. Several tips on how to apply quality management to supermarket operations are presented., Raising the productivity of knowledge and service work must...be an economic priority for developed countries. Whichever country first succeeds in satisfying [that goal] will economically dominate the 21st century.' - [...]

Several in-store bakeries have returned to the basics of in-store business operations instead of following the trend towards expansion and big sales to compete more effectively in the bakery business. They have realized that value and profit play a heavier role than novelty and style in achieving and maintaining quality of products. Reports indicated that bakeries in supermarkets which reverted to the traditional business approach increased their sales by 7.1% to $10.16 billion in 1994. Average gross margin also rose from 49.3% in 1993 to 53.3% in 1994., As labor, production and profit pressures continue to mount, supermarket bakery operators are finding it more and more necessary to re-emphasize the fundamentals of running a department. The instore bakery's [...]

Giant Food Inc. and Giant Food Stores Inc. will open several stores in the area of Philadelphia, PA. Both supermarket chains have existing stores in the area, which is considered a stronghold of Acme Markets Inc. The two chains are expected to do well since Acme's owners, American Stores Inc., has not invested enough on boosting Acme's position. Acme's newest stores are about 25,000 sq.-ft. big, compared with 50,000 sq. ft. or more for its competitors. A big portion of Acme's profits are also invested in southern California. Acme's books were opened to competitors when it was put up for sale in 1992. The sale was aborted, but it exposed Acme's weaknesses to its competitors., Two invaders with a name in common are casting large shadows over Acme Markets' stronghold. A rough-and-tumble, price-driven, overstored market where unions are strong would hardly seem attractive to any [...]

The general merchandise (GM) and health and beauty care (HBC) sections surprised many by generating respectable dollar sales increases from 1992. Both categories had a combined 6.6% increase in sales for 1993. GM sales made at food stores rose by approximately 9%, amounting to $14.6 billion. HBC sales, on the other hand, increased by about 4% to $12.9 billion. Supermarkets gained in many important categories and did not suffer in the HBC department as expected., Propelled by gains in some key categories, sales of GM and HBC products did wha many in the industry thought they wouldn't: They grew at a faster rate than in [...]

Carmel, IN-based O'Malia Food Markets is expected to gain profitability in 1994 after a lackluster performance the previous year. The firm's central baking facility has been briskly selling frozen baked goods. The addition of two wholesalers and suppliers to augment the baking facility capacity has greatly helped the shop to retain its product quality and variety and effective mixture of service and self-service marketing., The recent, rapid addition of wholesale accounts has added bottom line luster to the top-flight quality already turned out by O'Malia's central baking facility. Ron Williams is convinced he has [...]

Supermarket sales of general merchandise have been on a downward trend. This is unfortunate since the business has so much potential, giving its players as much as 30% profit margin. To arrest the decrease in sales, retailers or supermarket owners should be willing to price their products competitively, go into cross-merchandising of general merchandise products and emphasize certain products even at the expense of others., Not all general merchandise categories are suitable for supermarkets, particularly in today's marketplace. The key is to know your customers, be selective, watch your prices and promote what you do [...]

The decision by restaurateurs to open freestanding stores and conduct retail operations have resulted in a heated competition between the restaurant industry and supermarkets. Supermarket owners have implemented new marketing plans that will enable them to regain their market share which has been usurped by restaurant operators and food service specialists. However, observers believe that unless supermarket owners become active in all phases of food service, all their efforts will come to naught., After years of losing sales to burgeoning supermarket prepared food installations, fast food outlets and other foodservice specialists are coming at you with guns blazing. THEY'RE MAD AS HELL, and [...]

The executives of Dorignac's, an independent superstore located in Metairie, LA, described how they were able to maintain their profitability despite the entry of three chain superstores in their area. The store's fixtures are not new or beautiful, its prices are competitive and it has a small nonfoods section and no special nonfoods services. It does, however, provide a neighborly and folksy shopping atmosphere and its success has been attributed to careful selection of goods and quality service to its customers., Faced with three new superstore competitors in one year, Louisiana independent Dorignac's holds its own the old-fashioned way. In the past year, a bad dream turned into a recurring nightmare [...]

A recent study conducted by the periodical Supermarket Business indicated that product innovation was a major ingredient in the success of new health, beauty and cosmetic products in supermarkets. Chesebrough-Pond's Mentadent, Den-Mat's Rembrandt toothpaste and the Gillette deodorants were among the specific products which registered significant sales increases despite their categories' small overall price increases., What makes one product successful and another one unsuccessful? Some say luck and timing play major roles in a successful introduction. However, a study of the fastest-growing products in the [...]

Supermarket Business magazine surveyed the instore bakery managers to establish a ranking of the 10 most important bread categories. The percent of bakery sales and average gross margin of each category were presented. The categories are white bread and rolls, variety bread and rolls, cake and yeast raised doughnuts, decorated cakes, sweet goods, cookies, custom decorated cakes, pies, bagels, croissants, muffins and layer cakes., Men may not be able to live by bread alone, but bread is still the biggest category for instore bakeries. But there are plenty of other categories that put smiles [...]

A recent research survey conducted by Supermarket Business magazine indicated that customers of supermarket in-store bakeries wanted increased convenience in their buying decisions. The most important factor was quality, indicated by 88% of those surveyed. Other factors recorded were variety at 56% and convenient location and one-stop shopping at 34% and 25% respectively. As for trade perception and consumer reality, the factors which registered the highest divergences were quality, variety, one-stop shopping, convenient location and nutrition., Consumers think most instore products are as good as anything they can get anywhere. But they'd like a more convenient shopping experience. Are supermarket retailers missing an opportunity to give [...]

The value-based meat concept is the coordination of meat buying, pricing, merchandising and store decision systems in supermarket operations. This concept is part of the efficient customer response objective and is intended to increase a meat department's efficiency and profitability. Another factor of this concept is that of value-based pricing, in which the meat manager should be knowledgeable of the department's product mix and how price changes can affect sales and profits., Value-based meat management is to the meat section what ECR is to the entire distribution chain. Here are the steps you need to take to make implementation a reality. Each [...]

The Dallas-Forth Worht Metroplex branch of Minyard Food Stores Inc. carries a diverse food line aimed at the predominantly Hispanic market in the area. Minyard's 52 stores are attempting to reach a wider market through five formats, namely: conventional supermarkets, combination superstores, specialty gourmet stores, warehouse stores and ethnically merchandised stores. The Dallas-Fort Worth store offers a line of produce and grocery items supplied by Hispanic manufacturers., The Dallas-Fort Worth Metroplex's cultural and ethnic mix is reflected in the company's five different formats to 'market the market.' How many supermarket chains do you know of that have [...]

Supermarket owners are modifying their merchandising and production strategies for their in-store bakeries to enhance their profitability. While these departments help enhance supermarket competitiveness and contribute substantially to bottom lines, labor costs and other economic factors are affecting in their ability to sustain increased volumes and revenues. Most operators, however, remain committed to continuing their bakery operations and are exploring various opportunities to overcome these problems., Not so long ago, instore bakeries were prized primarily for their convenience and image-enhancing qualities. Now, managements have added more stringent profit demands to the mix. Skillfully-merchandised and managed instore [...]

Big Bear Supermarkets is hoping to boost sales by expanding the greeting card sections of their supermarket/discount stores. As an added promotional strategy, Big Bear has agreed to team up with American Greetings Corp to maximize the greeting card department's exposure. Over the years, supermarkets have realized the potential of improved sales by giving their respective card departments a better location and added space., Ohio-based Big Bear has teamed up with American Greetings to keep its greeting card sections humming--and profitable--day in and day out. Anyone can sell birthday cards. It's the ability to [...]

Harris-Teeter Supermarkets Inc's supermarket in Atlanta, GA, represents a new standard in supermarkets. The 45,000-sq-ft supermarket features a concierge, elegantly-dressed employees and 30 chefs. It offers exotic meats such as ostrich, deer, alligator, lion, moose wild turkey and wild boar as well as an spacious espresso bar. The supermarket's emphasis is on good food and good food service., It is Atlanta's time. This month, the city hosts Super Bowl XXVIII. In 1996, it will roll out the civic carpet for the Olympics. Southern hospitality has gone world class [...]

Supreme Court Inc packager and promoter Victor Cascio has found that nationally-known foodservice outlets and branded in-house take-out kiosks make the right mix for an in-store fastfood package. The package, claims Cascio, has the intended effect of attracting shoppers into the supermarket. Supermarkets benefit from the ability of high-profile restaurants to operate a food court more consistently. As a result, Supreme Court has 36 new supermarket locations in the offing in 1993. The restaurants Supreme Court has signed up in its package include Bennigan's and Godfather's Pizza., How has the Supreme Court fared since its opening last year? With contracts signed for 36 new supermarket locations, the fast-foodservice package is still attracting interest. But the verdict is [...]

Baltimore has proved itself to be a city of vision--in some ways. The showplace Inner Harbor, the jazzy new Light Rail transportation system and the city's own Field of Dreams--Oriole [...]

For rough 'n ready captains of the supermarket industry, taking pot shots at academia is often all too easy. So there's something about Smart & Final's story that's...ironic? Or perhaps, [...]

Industry veteran Leo Kahn's new venture, marketing healthful foods on the high side of the road, is primed for expansion. It is high noon on a glorious Saturday and the [...]

The old neighborhood favorite is a brand-new store. But seniors still finds its service exceptional, thanks to responsive efforts of a sensitive staff. Bigger can be better ... but it [...]