Breaking Merchandising Paradigms at Retail « Back

I’ve just returned from a meeting which included senior level executives from several high profile grocery retailers from around the country. In addition to the esteemed retailers in attendance, two of our speakers included internationally known experts in the retail grocery industry. As a nearly 30-year veteran of the grocery industry, participating in this meeting, with these individuals, was definitely a high point for me.

During our meeting, we discussed several merchandising concepts, which when implemented, will help increase the sales of dairy foods. The merchandising concepts provide suggestions to shoppers to include dairy foods in their choices for breakfast, dinner and snacking occasions.

What I found most interesting about our discussions is that the conversations we are having today about reaching the consumer with innovative merchandising ideas, are much like the conversations we were having 30 years ago. The conversations conclude with the need to break down old paradigms about how a store is managed, merchandised and measured. For example, does it make sense to cross merchandise milk with cereal; cheese with apples; sour cream with potatoes; or yogurt with strawberries? Or to provide meal solutions, which include recipe cards and a display of all of the ingredients necessary to make the recipe? Of course it does. But we need to allow ourselves to get beyond the traditional methods by which grocery stores have been measured and managed.

When designing a store or developing a merchandising strategy, retailers must get into the head of the consumer and understand what solutions he/she is looking for and design their strategies to fit those needs. This means breaking the old paradigms about which department gets credit for a sale within a store or worrying about giving up floor space in one department in order to cross merchandise a meal solution within the floor space of another department. When a retailer can effectively meet consumers’ needs, it will develop loyal shoppers who appreciate the retailer’s ability to identify and provide solutions to those needs. In a difficult economic time, with increased channel shifting, this could be the competitive advantage required to win against the “other guy” in town.

For more on the topic, The Wall Street Journal had an interesting article about cross merchandising departments within grocery stores, and specifically using dairy product placements in other departments.

I’d like to hear how your local grocer is providing solutions to your grocery shopping needs. What innovative merchandising ideas have you seen?