NARMS Economic Survey Shows Savvy Members

At times, news of the economy and dismal retail conditions can grow tiresome. While indicators are starting to show signs of a recovery, sales numbers are yet to follow. The Conference Board reported this week a big jump in their Consumer Confidence Index. A number of your fellow NARMS members recently participated in a brief survey designed to measure direct impact on the at-retail merchandising and marketing business, and what exactly the reality is for our members.

Forty-four percent of those surveyed revealed that they have seen a recent growth in business, with 33% saying they have experienced recession. Another 21% said that their business has stagnated. For those on the growth side, 51% said they have accomplished growth through new clients and 33% reported additional work from existing clients. Half of the respondents also said that they have seen less work from existing clients.

The numbers seem to suggest that savvy NARMS members are finding new customers in areas where clients need help at retail. Seventy percent said that they have made changes to their sales and marketing plan to address their situation. The other 30% seem to be staying the course. It appears that at least some of the respondents are finding NARMS resources helpful in their marketing plans and sales presentations with 37% saying they take advantage. When it comes to making sales, NARMS members are self-sufficient with 56% saying they employ a dedicated sales staff and another 28% saying that new sales are acquired by company leadership.

It also looks like many members have been tightening their belts in order to deliver top service to customers while still delivering margin to the bottom line. Thirty percent reported having cut down on the amount of supervision that they employ. Another 24% said that they have reduced the amount of dollars spent on technological purchases. A significant amount of companies (48%) said they have made no changes to the actual field force and another 19% said they have increased in that area. Some (28%), of course, reported a reduction. On a corresponding note, activity on NARMS JobBank has seen a recent upswing.

While most are optimistic about retail conditions in the very near term, they still seem somewhat guarded. Thirty-two percent said they see any pull-backs in hiring or hiring freezes to end this year, but 59% said that they simply did not yet know when a hiring freeze would lift. The best bet is that it would coincide with an upswing in the retail industry which many (32%) say will happen in Q3 of this year. Another 27% believe it will happen in Q4. A significant 24% aren’t quite as sure, saying an up-tick won’t occur until Q2 of 2010.

We thank those who took the few minutes to help us take the temperature of the at-retail merchandising and marketing industry. The results help each us know where we stand in the industry, and if there is something we should or could be doing about the current situation. The results also help NARMS to, “Sharpen our saw,” in our service offerings to you.

Target Triumphs over Ackman

Hedge fund manager William Ackman’s proposed slate of directors is defeated at the retailer’s annual meeting

One of the most bitter proxy fights in recent history ended May 28 with a clear, albeit not surprising, victory for management as Target (TGT) shareholders rejected a hedge fund provocateur’s proposal to install new directors, according to preliminary vote totals.

Read the entire article.

Effectively Communicating Value: Avoiding the Top 10 Value Communication “Sins”

by Jon Hauptman

Effectively communicating value has never been more important than it is today. However, supermarket retailers across the country are making critical mistakes that are preventing them from getting full credit for the value they offer. This edition of Competitive Edge examines the top 10 most frequent value communication “sins” committed by supermarkets and identifies the path to redemption for each

Download the entire PDF from WillardBishop.com

Super-Marketing: Safeway Chains Offer Mobile Coupons

Two more supermarket chains are introducing mobile coupon services for shoppers, marking another advance for this increasingly popular marketing channel.

Tom Thumb and Randall’s — both owned by Safeway — are currently cooperating with packaged-goods manufacturers General Mills, Unilever and Kimberly-Clark to offer shoppers 21 coupons for goods like pre-packaged tossed salad and children’s cereal.

Read the entire article

Bill Rudolph, Vice President for Store Opening Solutions, recently completed the 113th Annual Boston Marathon

Store Opening Solutions Goes the Extra Mile

MURFREESBORO, Tenn., May 20, 2009 – Bill Rudolph, Vice President of Sales at Store Opening Solutions, completed the 113th Boston Marathon in four hours and fifty-eight minutes. This is the thirteenth year that Rudolph has participated in this annual event. “The Boston Marathon is a test of endurance that requires training throughout the year,” says Rudolph.

“As Bill trains for his next Boston Marathon, he also enjoys going the extra mile for our customers,” says Chuck Cline, President of Store Opening Solutions. “Bill is more of a business consultant to our customers than a salesman, he brings 33 years of retail experience which he uses to simplify the process of new store openings, remodels and relocations.”
About Store Opening Solutions, Inc.

SOS provides scalable, individually tailored solutions for new store openings, remodels/resets, and rollouts. From transportation, warehousing/consolidation, to interior construction, fixture installation and merchandising, SOS provides Customers with turn-key project solutions - one vendor, one solution, one call. Visit http://www.store-solutions.com.

# # #

Contact: Dawn Pernestti
Phone: (615) 867.0858 ext. 1129

IFBA Top to Top Means Business

What if you could take 137 individuals from 50 food broker companies from all across North America and combine them with 112 representatives from 50 manufacturing companies and put them all in one place? Sounds like a pretty good idea. Well the Independent Food Broker (IFBA) division of NARMS International did just that last week in Chicago as they held their 6th Annual Top to Top Conference. The three day meeting included meetings, networking events and educational opportunities. The agenda builds in ample time for individual sales reviews and interviews. The meeting returned to Chicago for the fifth time, after a year away in Las Vegas .

This was the first year that the IFBA event was not held in the same city as the FMI show. Judging by the turn out and spirit of the event, Top to Top has taken on a life of its own and is a testament to the strength of the division and its members. A few highlights of the meeting include IFBA Chair Jim Hall’s, “State of the IFBA,” address to the members. Attendees were also treated to an informative panel discussion entitled, “The Hispanic Market: Where it Was, Where it is Today and Where it Will Be Tomorrow”, hosted by Chris del Rey of Del Rey Marketing. Del Rey is a leader in multi-cultural marketing and promotion. The panel included Joy Mead, Marketing Director – NA Grocery Channel for Procter & Gamble; John Marquis, COO for Vallarta Supermarkets and Carlos Alvarez, KLVE Radio. Attendees could not help but walk away with a better understanding on how to better serve the growing Hispanic market, fast becoming an economic force to be reckoned with.

During committee meetings, several new appointments were made that will help ensure the future and vitality of the IFBA. Garrett Smith of American Pop Corn Company was named to head up the IFBA Manufacturer Advisory Council (MAC) for the next two years. Bill Schraad, Jr. of Schraad & Associates was designated to lead the IFBA Manufacturer Relations Sub-Committee of IFBA members.

It was also announced that the 7th annual IFBA Top to Top Executive Business Conference will be held May 18-20, 2010 at the Renaissance Hotel, Chicago , IL . If you are interested in building your business, you might want to mark it on your calendar now.

May 22, 2009 IRI / Morning NewsBeat

Below is the list of articles you will find for the week ending 5/22/09 edition of Retail Industry News.

- Let’s Get Small
- Health & Wellness Industry Grew Nine Percent In 2008
- Albertsons To Launch New Price Cutting Campaign In LA
- Sansolo Speaks: The New New Normal…Again
- The How & Why Of Kroger Private Brand Development
- C-Store Chain Charts Aggressive Growth Plan
- FastNewsBeat
- The MNB Wal-Mart Watch
- The Balance Sheet

Read the entire article

Exhibitions significantly more cost effective today to generate sales leads

As reported in Association Trends: Center for Exhibition Industry Research, Chicago, recently performed a study that found it is significantly more cost effective today to generate sales leads at exhibitions than it is to generate those leads through other means. Fifty-four percent of respondents say it takes three or fewer calls to close a sale when the lead is generated on an exhibit floor. By non-exhibit means, 61% say it takes four or more calls. With an exhibit lead, it costs a company $2,307 to close a sale - $215 to identify a customer at an exhibition and $2,092 to make 3.5 sales calls to that customer. Without an exhibit lead, the cost is $3,102 - $443 to identify a customer outside of an exhibition and $2,659 to make 4.5 calls.

Compared with a similar study by CEIR in 2001 the difference has narrowed between exhibition and non-exhibition calls to close a sale. Reasons include the volatile state of the US economy in 2008, which includes a current reduction in customer spending, forcing more sales calls. Also, people are more comfortable with face-to-face interaction offered by the exhibit floor – 69.1% of respondents say it takes fewer sales calls to close a sale with an exhibition lead because these events give them a “foot in the door” with potential customers; 6 % disagreed with this proposition.

Professional Convention Management Association (PCMA) is reporting 31% are projecting fewer convention participants in 2009 compared to 2008. In 2008, an average of 3,744 people attended PCMA respondents’ events compared to 4,400 in 2007.

All valid points to keep in mind when considering to exhibit at the 2010 NARMS Annual Meeting, Conference and Exhibition next April.

Strategic Merchandising Partners receives national certification as a Women’s Business Enterprise

Ventura, California – May 21, 2009 – Strategic Merchandising Partners, a business specializing in, nation wide merchandising services, received national certification as a Women’s Business Enterprise by the Women’s Business Enterprise Council - West, a regional certifying partner of the Women’s Business Enterprise National Council (WBENC).
Read more

Webinar to Discuss Retail Price Management

Pricing strategies at retail are now more important than ever. That point becomes apparent when you consider that Wal-Mart and the Dollar Store chains seem to be the only ones doing well during the economic recession. The next offering in the NARMS Webinar series will cover an important aspect of pricing. The Legality of CPGs Influencing Retail Pricing Through Trade Spend Management will take place on Wednesday, May 27 at 1:00 PM CDT. The NARMS Webinar series is sponsored by NaturalInsight and brought to you through the technology of ReadyTalk.

Daniel Kothchen, a partner in the law firm Kotchen & Low LLP, will lead the hour long event. Kotchen is a former antitrust prosecutor with the Federal Trade Commission and has substantial experience in the consumer goods and retail industry. He counsels CPGs and retailers on antitrust and other issues, represents manufacturers and retailers before government agencies, and represents manufacturers and retailers in litigation.

Before 2007, the antitrust laws prohibited manufacturers from agreeing with retailers on minimum retail prices for which products could be sold. A 2007 landmark Supreme Court case afforded manufacturers more flexibility in dictating minimum retail prices. That decision has spawned new retail price management strategies by manufacturers, which has affected the business of both manufacturers and retailers. Kotchen will discuss these strategies, legal implications of the strategies, and legislative efforts to nullify the Supreme Court decision and ban retail price maintenance.

The Webinar Series is offered free to NARMS members as a value added benefit of membership. It is also made available to other interested persons at a non-member rate of $99.95. We encourage you to share this invitation with other co-workers and anyone else who might gain value from this information-sharing opportunity.

With manufacturers currently pursuing aggressive pricing strategies and retailers trying to protect shrinking margins, this is sure to be an interesting and timely topic. We invite you to join the many NARMS members who are already taking advantage of this opportunity by clicking here.