Stores Magazine - November 2007 - (Page 38) EXECUTIVE SUITE / COVER STORY ers that stand out when it comes to this key “where-to-shop” driver. One that does is Publix Super Markets: SIRS’ data finds that the Lakeland Fla.-based chain leads the pack when shoppers were asked to rate various supermarkets based on trust and concern. Publix received a rating of 58 – six points higher than its closest competitor, and 15 points higher than the U.S. norm. What gives Publix the edge? Shoppers cite in-store health clinics, easy-to-shop store size and a friendly, neighborhood atmosphere. Not to be overlooked is the fact that chain execu- Again, the retailers identified as “winners” on this front are Bloom, Publix, Wegman’s and Safeway Lifestyle; all four hold a significant advantage in “emotional” drivers and are considered competitive on value. Each scored above average in overall ratings and all are recognized as “destination stops” for perishables and specialty items. Wegman’s and Publix outshine the competition in three of four “where to shop” drivers. Interestingly, Wegman’s operates large superstores; Publix shops are in line with a traditional supermarket in terms of square footage. The SIRS study finds that Wal-Mart’s appeal is singular — low prices — and, as any industry Wal-Mart prices are expert can attest, that’s a vulnerable position to regularly 13 to 18 percent be in. Shoppers rank the perishable and speciallower than traditional ty departments in the stores “below average.” supermarkets. While it’s hard for competitors to challenge WalMart in the staple groceries and non-food categories, the decline in trust and concern looms large. Still, Hauptman insists that Wal-Mart will continue to play the price card to its advantage, and suggests that in today’s economic climate, their strategy bears monitoring. Wal-Mart prices are regularly 13 to 18 percent lower than traditional supermarkets, he says, and “over the last few months we’ve noticed a shift in their temporary price reduction strategy.” The rollback pricing used to last 90 days; now, there are a number of items for which rollbacks are as short as 30 days. That change “creates excitement and builds traffic,” Hauptman says. “These temporary price reductions are another way that Wal-Mart is using its pricing expertise tives continue to innovate and make changes that mirror how to compete — and, let’s face it, they’re fierce competitors.” today’s consumer lives and works. SuperTarget stores also took it on the chin in the SIRS surPublix introduced the Sabor stores, which cater to Hispanic vey. While the company gets plenty of buzz for its apparel, shoppers, about a year ago; there also are GreenWise markets home goods and celebrity designers, the food business is often selling natural and organic foods. Publix is experimenting with mentioned as an afterthought. On three of four drivers, Supercurbside delivery service for deli items at one store, a mini ItalTarget was categorically average. Like Wal-Mart, SuperTarian Market inside another and there are plans to test meal-asget’s perishable and specialty departments are “below aversembly at two stores. age” performers, according to the SIRS findings. The stores Three other retail chains garnering high ratings (52) from enjoy a solid rating for delivering a fun and enjoyable shopping shoppers in the area of trust are Bloom, Wegman’s and Safeexperience, yet this could be a halo effect from Target’s strong way Lifestyle stores. general merchandise image. Sweetbay Supermarket, the reincarnation of the former Kash Balancing for a breakthrough & Karry chain, is considered “one to watch” among industry upermarkets that tend to be most successful at winning experts, but shoppers are not biting, according to SIRS findover shoppers and breaking through the sea of sameings. While the Sweetbay stores are achieving better ratings ness are those that satisfy consumers on both the rathan the old Kash ‘n Karry units, the concept is “average” in tional and emotional fronts. By SIRS’ measure, a “breakthe eyes of consumers. To be fair, the company only recently through concept” is one that outpaces the competition in at finished its transformation, which means shoppers may still be least two of four key “where to shop” drivers. StORES testing the waters. S 38 STORES / NOVEMBER 2007 WWW.STORES.ORG http://WWW.STORES.ORG
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