Commentary From Our President
Breathing New Life into HBC/GM and Seasonal Non-Foods…. It CAN be Done!!!
Michael D. Sleeper, Chief Executive Officer, Imperial Distributors, Inc.
In a recent business review for a strong six store independent, I was extremely pleased to see same store, year-over-year Non-Food sales up by 10%.
The results were even more stunning when we compared their Non-Food sales to the modest growth in their overall center store. And what was particularly revealing was seeing how this six-store independent’s Non-Food growth was achieved, especially in light of industry data which shows most supermarket chains experiencing declining share in HBC and GM.
Insights from our business review showed the increases came from specific initiatives driven by the retailer and our account manager, who worked closely together to achieve success. The review highlights were:
- HBC promotional floorstand shipper sales grew by over 400%, supported by placement in high-traffic grocery aisles and circular ads featuring volume movers.
- Private Label sales increased by 35%, supported with attractive signing, compare-and-save danglers and a 25% increase in PL shelf SKU counts.
- Vitamin and Nutrition Bars increased by 25%, emphasizing the retailer’s commitment to health and wellness.
- General Merchandise floorstand shipper sales leaped 180% by featuring in-line GM cross merchandising tied in with grocery promotions.
- Dollar merchandise was emphasized by adding in-aisle cut-out sections including clip strips and power panels.
- Seasonal-Non-Food Merchandise grew by 55%, backed by strong retailer participation and commitment while attending our Seasonal Shows.
To be sure, good partnering relationships played a major role and can never be overlooked in achieving stellar performance. The results speak volumes. In 2009, this six-store retailer’s HBC margin dollars increased by 16.5%. General Merchandise margin dollars increased by 13.3% and Seasonal margin dollars by 28%.
I have a sign on my desk which was given to me as a gift with an inspirational reminder that says a lot in four words: “It CAN be Done”.
In these challenging times, when supermarket independents are fighting hard to compete with major chains and major food chains are fighting just as hard to compete with other channels, it’s nice to know that with good partnering and solid execution, it not only “CAN be Done” but it “WAS Done”, breathing new life into HBC/GM and Seasonal Non-Foods.
For comments or questions, contact us by phone at 508-756-5156, or e-mail: msleeper@imperialdistributors.com