Shrinking Stores Equal Growing Opportunities

National chains in all channels of trade have been investigating smaller formats as a means to battle recessionary forces. According to an article in Retail Traffic, several retail consultants and real estate brokers said the smaller footprints allow chains to leverage multi-channel shopping trends, more easily adapt to urban settings and operate more efficiently. Wal-Mart, Target, Best Buy and Gap are among the chains getting in on the action.

Wal-Mart plans for 2011 include opening 30 to 40 Walmart Market or Walmart Express units. In February, Target launched the CityTarget concept, with stores about half the size of a regular Target. The company plans to open four CityTarget stores in 2012, in Chicago, Los Angeles, Seattle and San Francisco. Best Buy plans to open 150 Best Buy Mobile stores in 2011, giving it a total of 325 by the end of the year. Others pursuing smaller formats include Old Navy, Giant Eagle, Trader Joes, Publix, Fresh Market and Sports Authority.

Smaller and more frequent stores play into the strengths of the members of NARMS. The ability to provide consistent and professional at-retail merchandising and marketing services in multiple locations and geographies is a core competency of the members.

Part of the rationale behind the smaller store trend is that retailers can be more flexible and responsive to changing consumer needs, much like their Dollar Store competitors. NARMS members can be at the forefront of this trend by allowing retailers and manufacturers the ability to execute headquarter level merchandising decisions at the store level on-time and on-budget allowing for quicker realization of the sales lift.

The opening of new locations will be challenging for big-box retailers, who will have to rethink the logistics of more locations in the same geography, rather than one huge store. The PIC division members of NARMS are expert agents of change who bring the efficiencies of working in all channels of trade and applying that learning to each opportunity. The trend allows retailers to more easily move into existing vacant or acquired real estate. PIC members have played a huge role in the acquisition conversion activity of the Chain Drug and Dollar Store channels, experience that will be vital in similar size stores.

No matter what the trend or challenge, NARMS members have been there for their retailer and manufacturer clients and will continue to offer flexible and cost effective solutions to the challenges of an ever evolving go-to-market system.

Competitive Edge Predicts Inflation and Remedies

According to the March 2011 issue of Competitive Edge by Willard Bishop Consulting, food inflation is expected to reach 3.5% to 4.5% overall. Compare that to the 1% annual food inflation rate of the last two years and you can foresee more significant challenges for manufacturers and food retailers. As members of the at-retail merchandising and marketing service industry, the concerns of our customers become concerns to us, but they also provide opportunities to be of even more service.

The most obvious strategy for food retailers would be to pass along price increases to the consumer and hope for the best. However, author Jon Hauptman offers some more thoughtful responses that focus on enhancing overall value. Not coincidently, these suggestions may provide NARMS members with some openings.

Clear communication to consumers as to how they can save money and get value in the store is one such response. Being completely open about price increases or fluctuations by calling out weekly ads, temporary price reductions, private label options and shopper frequency programs is a way to build trust and loyalty. Signage, shelf tags, end caps and temporary displays become critical to retail communication programs. Combine that with shrinking store staffs, and third-party service providers become even more valuable for getting things done in-store.

Private label has picked up a lot of steam the last few years as a means for consumers to save money. At the same time, the quality of store brands has improved so consumers do not feel like they are compromising. As more and more chains utilize private label, the need for professional at-retail merchandising and marketing services for these products will reach the same level as national brands.

Many food retailers are discovering that the 80/20 rule is a huge driver of their business. In other words, 20% of their shoppers are producing 80% of their business. In order to cater product selection and price to these Top Shoppers, the ability to quickly collect and analyze at-retail shelf data becomes an extremely valuable commodity. Something that many NARMS members are already equipped to do.

Although Assortment Rationalization did not work out too well for some national retailers, it is still very difficult to carry a large variety of SKUs in an environment of rising cost and prices. Retailers may again take another stab at right sizing their assortment to remove clutter and create space for popular items and new items. Shelf level data is again important, as is the ability to perform product and category resets to minimize out-of-stocks and benefit from new item lift more quickly.

You can download the latest Competitive Edge report by clicking here. Keeping a finger on the pulse of industry thought leadership can provide many strategic advantages to the savvy third-party service provider. We thank Willard Bishop Consulting for the contribution.

April 22, 2011 IRI/Morning NewsBeat

Below is the list of articles you will find for the week ending 4/22/11 edition of Retail Industry News.
- Rising Gas Prices Expected To Affect Shopper Behavior One More Time
- Sansolo Speaks: Looking Through New Eyes
- Walmart Acquires Social Media Platform
- FMI Announces Store Manager Contest Finalists
- Ahold Said To Be Hunting For Acquisitions
- FastNewsBeat Thanks to MNB
- The MNB Wal-Mart Watch
- Executive Suite

Click here to read Retail Industry News

Spring Conference Meetings Bring Action

Meetings at the 16th Annual NARMS Meeting, Conference and Exhibition, held last week, resulted in significant action by the NARMS Board of Directors to ensure the future prosperity of our Association. Leaders from the at-retail merchandising and marketing service industry engaged in a candid conversation in several forums. The first was the annual Board of Directors meeting, the second was a joint session of the Board and members of each Divisional Committee, and the third was a town hall question and answer session as part of the NARMS Annual Business Meeting. Here are the action items brought forward:

A committee will be formed to provide recommendations on the location and format for future Spring Conferences. The recommendations for locations will be in effect after 2012, as the Board had earlier decided to stick with the prior commitment to Saddlebrook in Tampa, Florida. The board is actively seeking volunteers to serve on this committee along with Jim Fulk, Judy Einbinder, and Marc Shapiro. Contact Ken McKenzie at NARMS headquarters if you would be interested in serving in this capacity.

The Board is proud to announce the following Division Chairpersons: Ken Kress and John Gillis will co-chair the MSO Committee, Lucas Pierce will chair the Event Marketing Committee, Gregg Morrison will chair the PIC Committee, Jim Hall will chair the IFBA Committee until a replacement can be determined, Kelly Baker will chair the Manufacturer Committee, and Charlie Fanning will chair the Associate Committee.

During the town hall Q & A, some concern was voiced over the current relevancy of the NARMS Mission Statement. Subsequent discussion revealed the need to review and revise the statement to better reflect the current state of the Association. Judy Einbinder has stepped forward to be the point person for the project. The revision will be passed through the board for input and then forwarded to the Membership to be reviewed.

Much attention was given to filling the vacant Executive Director position. The Board spent significant time listening to the members as they voiced their opinions about what they desired in a new leader. The Board is currently compiling a list of requirements in order to craft a job description to use in the search process.

The final, major topic of discussion revolves around the future strategic direction of NARMS. The Board will provide members with updates on a 60-day cycle, and more frequently if needed, to make sure that all members understand and support the direction and strategy of the Association. In doing so, the Board is seeking a greater level of transparency in initiatives such as RORI, Accreditation, and development of a project in collaboration with University of Wisconsin, Madison.

Perhaps the biggest observation from the annual get together is that the NARMS Board of Directors and leadership have been listening to the members and that the members have been heard. If you attended the conference, we are seeking your input on the event. Please click here to participate in a brief survey. #NARMSCON451

Orgel to Discuss Trends at IFBA Top to Top

Only a month remains until the 8th Annual IFBA Top to Top Executive Business Conference, held this year on May 17-19 at the Chicago Renaissance Hotel. The three-day networking event is filled with opportunities for CPG manufacturers to meet with independent brokers from all across North America. In addition to networking, the annual event features a chance for attendees to hear market perspectives from industry thought leader David Orgel, Editor-in-Chief of Supermarket News. The Keynote Address will take place on Day One, May 17 at 4:00 PM.

As Editor-in-Chief of Supermarket News and Content Director of Penton Food Group, Orgel has his finger on the pulse of the trends that are shaping the food industry. Orgel brings over 25 years of experience as an industry observer holding editorial positions at Fairchild News Service, DNR (Daily News Record), Outlet News, Club News and ultimately Supermarket News.

Supermarket News magazine is a nationally circulated, paid, weekly trade publication edited for executive decision-makers in the food industry. Their lineup of annual features includes: Power 50 list of executives; Top 75 list of companies; award issues focused on Retail Excellence, Community Service, Marketing, Supplier Category Excellence and Technology. SupermarketNews.com is a comprehensive website that is increasingly a one-stop source for industry information online. Tools include real-time news throughout the day, profiles and feature stories, opinion columns, data and resources, photo galleries, and video.

With at-retail insights from David Orgel and all of the valuable networking opportunities, you will not want to miss this business building event. Registration is now open and on-line. Everything you need to know for your mid-May trip to the Windy City is available on the Conference Center page at www.narms.com.

April 15, 2011 IRI/Morning NewsBeat

Below is the list of articles you will find for the week ending 4/15/11 edition of Retail Industry News.

- The Return Of Retail Clutter
- Alec Baldwin Returns To Wegmans
- Walmart Seeks Redemption With New Ad Slogan, More Products
- In The E-Grocery Space, Everything Is “Coming Together”
- Hy-Vee Teams With Celebrity Chef
- Kroger Announces Sustainable Seafood Policy
- Sansolo Speaks: Take This McJob and Keep It
- Rising Gas Prices A Doubled-Edged Sword For Retailers
- Walmart Trims Electronics Offerings, Reversing 2009 Strategic Move
- Walmart Identifies Second Small Store Location In Windy City
- FastNewsBeat
- The MNB Wal-Mart Watch
- Executive Suite

Click here to read Retail Industry News

Conference Keynotes Electrify Final Day

Tuesday wrapped up the 16th Annual NARMS Meeting, Conference and Exhibition in fine style, as a star studded cast of keynote speakers took the main stage at the Monterey Conference Center. Each guest speaker added a unique contribution to the gathering of at-retail merchandising and marketing professionals. All in attendance agreed that it was a great way to cap off and engrain the lessons learned during the four days in California.

Early risers got a chance to hear from Al McClain of RetailWire.com as he presented Shopper Insights: Actionable or Academic at the MSO breakfast session. The PIC Division got their morning started with Mark Hunter presenting his ever popular Emerging Trends 2011 series. This year, Hunter focused on the trends that will be specifically shaping the future of new store set-up, remodel and at-retail installation services.

The General Session started with a moving and inspirational talk from nationally renowned motivational speaker and author Tommy Spaulding. Spaulding delivered his message: It’s Not Just Who You Know with deeply personal and heartwarming stories about building life changing relationships with everyone in your life, both personal and professional.

Dr. John Henderson then got things back to business with: Business Capability Platforms-New Models of Innovation and Operational Excellence. Henderson used relevant and real world examples of companies and vendors who are hugely successful at co-creating value. When looking at these case studies, Henderson identifies critical actions that develop a highly strategic business platform.

Doug Stephens pulled the world of retail into the mix with: What Now? Selling to the Post-Crisis Consumer. The recognized Retail Profit showed why the roots of the current economy actually reach back 40 years with vivid examples of the changing face of retail. He explained that the current frugality is just a coping strategy and that strategies and tactics to win back real purchasing power are attainable by understanding current consumers and global realities.

Finally, Myra Golden graced the main stage with: Social Media as the New Customer Service. This topic is very important to NARMS members who not only have their own customers to satisfy, but also are instrumental in providing great service to the ultimate consumer. NARMS members also utilize a large decentralized source of labor which becomes another very important group of consumers. Golden used her pioneering position in employing social media as a customer service tool to provide examples how companies are bridging the gap. The audience walked away with some very practical steps on how each could employ social media in their own organization.

The 2012 Conference will be held on April 14-17, 2012 at Saddlebrook in Wesley Chapel, Florida. If this year was any indication, you will want to put it on your calendar now.

#NARMSCON482, #NARMSCON483, #NARMSCON485, #NARMSCON489, #NARMSCON491, #NARMSCON493

Manufacturer-Retailer Connection Forum Hits a Home Run

It is hard not to use a baseball analogy in the springtime when describing the reaction of at-retail merchandising and marketing professionals attending NARMS Spring Conference to the Manufacturer-Retailer Connection Forum. The Conference is being held this week in Monterey, California at the Portola Plaza Hotel. Six industry professionals representing the kind of companies that make up the NARMS member customer base addressed an energetic and engaged audience to rave reviews.

The lead-off man for the day was frequent NARMS contributor Harold Lloyd who presented – Catching the Wave of Change - prior to acting as the facilitator for the Forum. Throughout the rest of the morning and afternoon, the line-up included Dave Balkaran of Spin Master, Gerry Demple of Vann’s Inc., John Drevlow of Best Buy, Josh Halpern of Just Born, Aaron Sims of Ghirardelli Chocolate and Geoff Sherman of Walgreens.

Each guest speaker took some time to describe their individual companies approach to at-retail merchandising, sharing the details of either their own in-house merchandising organization our how they utilize third-party merchandisers. They each ended their address with sharing what they want, need and expect from outsourced merchandising solutions. Each segment was followed by an active question and answer session.

A common thread among these manufacturer and retailer partners was the desire for additional training and education certification like that offered through NARMScertifyU. They also each expressed a strong desire to eventually serve the ultimate customer, the consumer.

For those who were in attendance, it was a refreshing, energizing and eye opening day. The 2012 Conference will be held on April 14-17 at Saddlebrook in Wesley Chapel, Florida. We hope to see you all there for a similar experience.

April 8, 2011 IRI/Morning NewsBeat

Below is the list of articles you will find for the week ending 4/8/11 edition of Retail Industry News.

- Walmart Plans To Test Online Grocery Service
- Sansolo Speaks: Get Off My Lawn!
- Whole Foods: Exported To Detroit?
- Dish Network Buys Blockbuster, May Try To Preserve Brand
- Where Will Walmart Pop Up Next?
- Convenience Stores Show Strong 2010 Growth
- The Return Of Retail Clutter
- FastNewsBeat
- The MNB Wal-Mart Watch
- Executive Suite

Click here to read Retail Industry News

NARMS Exhibitors Energize Conference

Each year, the NARMS Spring Conference includes an exhibit hall featuring some of the top service providers to the at-retail merchandising and marketing service industry. The 16th Annual NARMS Meeting, Conference and Exhibition is no different. The event this year will be held on April 9-12 at the Portola Plaza Hotel in Monterey, California.

As you are making your plans for Monterey, plan to stop by the exhibit booths and spend some time checking out the variety of goods and services being offered. The trade show floor opens at 1:00 PM on Sunday and is open each day for you to stroll at your convenience. There are some additional social events planned to give you even more access. Monday, April 11 will include a lunch on the trade show floor at 12:30 PM. Later in the day, an Exhibitor Reception will be held at 5:00 PM. Tuesday, April 12 will again feature a lunch on the trade show floor at 12:45 PM. Here is a list of the exhibitors and a link to more information about each:

Celayix Software

Computer Resource Center, Inc.

Corporate Lodging Consultants

Extra Space Storage National Accounts

Labor Ready

Metaworks Inc.

NARMS

NARMScertifyU

Natural Insight

PODS Enterprises, Inc.

Retail Tactics

Set and Service Resources

Each of these exhibitors offers solutions designed specifically for NARMS members. They may have just what you are looking for to tackle your day-to-day operational and staffing challenges.

If you are traveling to Monterey this weekend, we look forward to seeing you at our value-packed annual event. If you cannot make it this year, take some time to review the exhibitor information above. Either way, we know you will find it time well spent. #NARMSCON469