From PLMA Live- http://www.plmalive.com/
A great discussion Jodi Daley news anchor and Brian Sharoff President of PLMA talk about Center Stores. How 73% of store sales and 77% percent profits come from the Center of traditional super market. Mr. Brian Sharoff says says that consumers trend is to purchase the various ingredients for a specific meal such as tonight’s dinner, next day’s breakfast, school lunches etc….. Consumers want to make things as good as a restaurant without all the time and trouble that a traditional meal would take.
They interview Todd Hale Senior Vice president of Nielsen Company, says that stores have seen a great innovation within the store perimiter versus in the center store.He says that shopper are in the store to shop the entire store. They don’t go to buy a category. They are their to buy a meal solution, whether it is for breakfast, lunch or dinner. A party or a special occasion.Retailers need to understand how best layout their stores for the right meal solutions. He suggests that stores can be more mission focused. So having a breakfast section in the stores, assortment of dry grocery, refrigerated, frozen and fresh in a section focused. So to have several mission focused sections throughout the stores versus category focused.
John Stanton, Proffessor in Food Marketing, St. Joseph’s University.
Says that retailers have to look at alternative actions. How to compete in the future and not do the same thing. He says that the world is changing every day. That grocery stores are not changing enough. That Tesco is changing and the walmarts are changing. All these new formats, yet the super market industry is not changing. Says that mass merchants and the deep discounters are taking the sales away.
He recommends that stores need to have more offerings and to focus on variety, and at the same time, make sure that you have private label at every point. His second recommendation is to focus on Customer service has to be a better job. Make your stores that people are happy to go to. Like Disney etc…. That you do not have to go that extreme. But custoner service is key and can be improved.
