inStore - June 2014 - (Page 3)

editor's note lessons in loyalty Staying Connected In a recent conversation with one instore bakery executive, the topic Just ask the once loyal shoppers of Dominick's in Chicago, where of accelerating supermarket consolidation arose and provided some Safeway closed the last Dominick's late last year. Twenty years ago, interesting thoughts about the state of the industry. While the food Dominick's was a shining star in the Windy City and a stellar example industry witnessed overall declines in merger activity in 2013, the of how to do perishables right. Now it's gone. So what went wrong? supermarket sector was increasingly busy, according to The Food "Dominick's had become an immensely boring grocery shopping Institute. Retailers accounted for 13 percent of all food industry mergers experience. Nothing in the way management designed or merchan- last year, in large part because of the supermarket sector's exceptional dised the stores made them distinctive enough to engage shoppers and year. Last year marked the most supermarket mergers and acquisitions build loyalty. Any sort of wow factor was totally absent," wrote reporter since 2007, and nine more deals than in 2012. And this trend continues. Lewis Lazare of the Chicago Business Journal. Kroger completed its Harris Teeter acquisition in January 2014, In Philadelphia, the same fate befell Genuardi's, which Safeway had elevating Kroger's store count to 2,641 supermarkets in 34 states. In bought in 2001 and sold in 2012. At the time of the sale, critics blasted March of this year, Safeway and Albertsons announced their mega Safeway for having drastically changed the merchandising and merger, creating a 2,400-store network. Banners include Safeway, Vons, marketing approaches that had served the family-owned chain of Pavilions, Randalls, Tom Thumb, Carrs, Albertsons, ACME, Jewel-Osco, 40 stores for so long. It's interesting to note that one Genuardi's is still Lucky, Shaw's, Star Market, Super Saver, United Supermarkets, Market standing today, operating in Audubon, PA, as a part of Safeway. Street and Amigos. When asked in April by the Idaho Stateman if both the Safeway and Albertsons names would continue, Albertsons LLC To its credit, Kroger takes a different approach when acquiring a CEO Bob Miller said, "We're going to take our time and analyze that, but regional chain like Harris Teeter, where local control and a close both names will definitely survive. We're too big not to." Miller advo- connection to customers are paramount. Kroger does not impose its cates a local approach to merchandising and marketing, which is wise corporate control over regional banners, and the results are impressive. in these days. The lesson here is never underestimate the power of customer loyalty. John Unrein junrein@sosland.com instore * JUNE 2014 * 3

Table of Contents for the Digital Edition of inStore - June 2014

inStore - June 2014
Editor’s note - Lessons in loyalty Staying Connected
Contents
News - On our Radar
Consumer insights - Trending Cakes
Consumer insights - Trendspotting: Portion Size Cake O erings
Consumer insights - Trending Deli Sandwiches
Consumer insights - Trendspotting: Sandwich Breads
Regulation watch - Regulation Non GMO
Consumer trends - Consider Gluten-free
Shopper demographics - Generation Fresh
Christmas - Making it a Merry Christmas
New packaging - Package Perfect
Product trends - First to Market
Ad Index

inStore - June 2014