Commentary From Our President
This Holiday Season, Think Positive
Michael D. Sleeper, Chief Executive Officer, Imperial Distributors, Inc.
What’s to be merry about this holiday season? If you read the headlines, there‘s not much space for merriment. With the economy still lagging, heavy unemployment and home foreclosures, supermarkets are facing even more challenges.
Wal-Mart and Target are both expanding their food offerings. Target has set a goal of expanded grocery and perishables in 350 more of its discount stores throughout 2010, following encouraging sales results at the first 108 stores with the program.
Walgreens and CVS continue to expand their grocery “consumables” while membership clubs, led by Cosco’s 550 stores, are pushing deeper into food, even accepting food stamps for the first time. Family Dollar Stores are expanding their food offerings under an aggressive ad campaign.
However, there is a bright side. The economy’s picking up a bit, banks are making business loans again, and the mood of the general public, while still not entirely optimistic, is more upbeat. People are saying “the worst seems to be over.”
Supermarkets continue to drive larger customer counts with more people preparing meals at home.
And supermarkets continue to dominate in highly popular departments that provide them with a competitive edge. Examples include:
- Service delis – practically none of the other classes of trade can boast service deli departments.
- Fresh meat and produce – are not found in chain drug or dollar stores.
- Service bakeries – provide exceptional appeal in combating other competitors.
But perhaps the greatest competitive advantage for supermarkets is through innovation. Finding new ways to promote and merchandise include better health/nutrition/wellness programs, philanthropic endeavors and creative technologies.
Examples found in the pages of Supermarket News include a focus on Non-foods:
- Weekly specials available via a free Apple iPhone – enabling customers to see what’s for sale in real time.
- “Give at Home for the Holidays” promotions – where shoppers adopting a dog or cat will receive a $50 Gift Card toward purchase of pet supplies.
- “Courage Cards for the Troops” – which sends holiday greeting cards to local service men and women.
- 1,100 bicycles donated to fourth-grade students who were nominated by teachers for being outstanding role models in the classroom.
- Rewarding customers checking out with reusable bags with a $1-off coupon.
- Black Friday promotions with a stream of hot deals displayed on Facebook and Twitter with featured items including a 42-in. plasma TV, digital cameras and Huggies diapers.
- Devoting more ad space to Pharmacy, HBC and General Merchandise with flu testing and wellness promotions.
The spirit of the season can enhance the spirit of competition, which keeps us all going and growing. So “this holiday season, let’s think positive.”
With cheerful BEST WISHES and HAPPY HOLIDAYS to all our supermarket friends and their families; it’s still the most wonderful time of the year!
For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com