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Supermarket Model Depends on Meeting Customer Needs

April 16, 2013 by Newsfeed Editor  


In a rapidly changing world, we sometimes lose touch with some basics that will always ring true. In his recent VIEWPOINTS blog on Supermarket News, Editor-in-Chief David Orgel speculates on the health of the traditional grocery model and looks at it from a different point of view. He reports on recent statements by a Kroger executive that calls the grocery industry in the U.S. very healthy. His point is that taking care of the customer and giving the consumer what they want is the oldest rule in the book, and the key to success.

Orgel cites Michael Schlotman, Kroger Chief Financial Officer, as blaming the misconception of a failing grocery industry on how investors operate. They only tend to follow public companies when those are not always the best in class. Not looking at companies such as Publix, Hy-Vee and Wegmans skews the perception of the industry as a whole.

The traditional supermarket model is viewed as a middle of the road approach, with either higher end or lower end value formats being the flavor of the day. The reality is that none of these factors guarantee automatic success. It is more a matter of understanding and delivering to customer needs, regardless of format.

As purveyors of at-retail merchandising and marketing services, it is important that we understand how we can help our retail and manufacturer partners take care of their customers. The Retail Merchandising and Marketing Conference (RMMC) in Scottsdale is just under two weeks away and is a means to increase our understanding of trading partner needs so they might meet the needs of the end consumer.


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