Wegmans: The Supermarket King of Private Brands

Wegmans is one of the leading — and the most-respected, according to Consumer Reports — supermarket chains in the United States: “Our roots go back to 1916, and we’ve hit many, many milestones that have gained attention in the supermarket industry since then. Wegmans is now a company with nearly 45,000 employees who serve millions of customers at over 85 stores (and still growing) in 6 states.”
Wegmans is a big believer in private brands and is considered an innovator in this field. As Denise Leathers reports for Frozen & Refrigerated Buyer:
Store brands are a big part of Wegmans’ master plan. ‘Their private label is everywhere, and many times there are multiple tiers of private label within one category,’ reports Don Stuart, managing partner at Wilton, Conn.-based Cadent Consulting Group. ‘And the private label always seems to be placed adjacent to the biggest national brand, right at eye level. So they make it easy to buy their brand.’ ‘There’s ere’s such an aura around the Wegmans name, and that clearly helps its private label,’ adds  retail food industry consultant Michael Sansolo. ‘The e store itself is so well done that consumers perceive its private label as top-notch as well.'”
However, is Wegmans overdoing its private labels?
“‘They get hung up…by misreading what’s actually important to a broader swath of consumers,’ says one private-label supplier. ‘Some of it is related to trends that are short-lived, some of it is because they haven’t compared conflicting data.’ A bigger problem with private label is there’s just too much of it, which limits selection, say manufacturers (most of them national brand, natch). But even Stuart admits that over-emphasizing the Wegmans brand could become a weakness at some point in the future, though he doesn’t think it’s there yet.” 
Click the image to read a lot more from Leathers about Wegmans and other supermarkets.

 

Photo source: Wegman

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Strategy Mix | Tagged , , , , , , , , | 1 Comment

Retailing A to Z’s Most Popular Posts for the First Half of 2015

Thank you for reading our Retailing: From A to Z by Joel Evans posts. :-)
Here are the most popular 12 posts thus far in 2015 (January 1-June 30). Take a look if you missed any of them:
  1. Rating a Store from the Shopper’s Viewpoint
  2. Great Retail Experience Innovations: A Slideshow
  3. Dealing with the Age of Disruption
  4. Making Fast Food Fast Again?
  5. An In-Depth Overview of Multichannel Retailing Today
  6. Where Do Consumers Research and Buy Apparel and Footwear?
  7. What Are the Steps in a Credit Card Transaction?
  8. Why Consumers Still Abandon Their Shopping Carts and How to Fix This
  9. Resume Tips: An Infographic
  10. It’s Not Always Great to Be a Businessweek Cover Story
  11. How Should Retailers “Connect” with College Students?
  12. Amazon Prime: A Loyalty Program That Really Pays Offs

 

 

Posted in Career Useful Information, Careers in Retailing, Global Retailing, Online Retailing, Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together, Social Media and Retailing, Strategy Mix, Technology in Retailing | Tagged , , , , , , , , , , , , | 1 Comment

Asking Customers for Support

When things are tough, especially for small retailers, it may be time to reach out to customers in a manner so that they know the retailer is facing difficulties. When customers consider the retailer too valuable to lose, they may very well pick up their purchase levels.
Consider the case of the Green Grocer in Dallas, Texas. As Maria Halkias writes for the Dallas Morning News:
“Cassie Green isn’t above asking for help. There’s no way the co-owner of Green Grocer was going to give up without first letting her customers know the shop on Lower Greenville had reached ‘a critical point.’ The grocery/cafe/juice bar caters to shoppers who want to eat locally grown, GMO-free, and organic as often as possible. The store opened in September 2012 at 3614 Greenville Ave. with its Dallas-based financial and online grocery partner Artizone.com.”
“Recently, Green spelled it out in a letter asking regulars to stop in one more time a week or a month and spend 30 percent more. ‘If you normally spend $20 with us, could you spend $26?’ Business had tapered off. Summer was here, and knowing people leave town left her thinking: ‘I needed a Hail Mary pass.’ She was convinced her enthusiastic customers just forgot to come as often. ‘I’m so thankful for people who do the majority of their food shopping with us, but you don’t even have to do that to make an impact,’ Green said in the letter. ‘Every single customer counts. Every purchase. That’s the beauty of a small business — you all matter.’ Business has picked up, and Green is hoping it’s a sustained uptick.”

 

Click the image to read more.

2014 Dallas News File Photo/Ron Baselice:  “Co-owner Cassie Green rings up a smoothie for a regular customer at Green Grocer, the grocery/cafe/juice bar specializing in locally grown, GMO-free and organic offerings. The store, which opened on Lower Greenville in 2012, is at ‘a dire point,’ Green said. She recently sent letters asking shoppers to stop in more often and increase spending by 30 percent. ‘I needed a Hail Mary pass,’ she said.”

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together, Strategy Mix | Tagged , , , , , , , | 1 Comment

Consumers Have Questions About Data Mining

Privacy and identity theft are important issues for all of us. With that in mind, a critical question for data miners is: How do consumers feel about data-mining practices being deployed by companies and other organizations?
Consider these observations from Natasha Singer, writing for the New York Times:
“Should consumers be able to control how companies collect and use their personal data? At a dinner honoring privacy advocates this week in Washington, Timothy D. Cook, the chief executive of Apple, gave a speech in which he endorsed this simple idea. Yet his argument leveled a direct challenge to the premise behind much of the Internet industry — the proposition that people blithely cede their digital bread crumbs to companies in exchange for free or reduced-priced services subsidized by advertising. You might like these so-called free services,’ Mr. Cook said during the event held by EPIC, a nonprofit research center. “But we don’t think they’re worth having your email or your search history or now even your family photos data-mined and sold off for God knows what advertising purpose.”
Now a study from the Annenberg School for Communication at the University of Pennsylvania has come to a similar conclusion: Many Americans do not think the trade-off of their data for personalized services, giveaways or discounts is a fair deal either. The findings are likely to fuel the debate among tech executives and federal regulators over whether companies should give consumers more control over the information collected about them.”
Click the NY Times infographic to read more of Singer’s article.

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Privacy and Identity Theft Issues | Tagged , , , , , , , , | 1 Comment

Increasing Customer Satisfaction — and Profitability

In this era of self-service and online retailing, some companies struggle with providing the level of customer service that shoppers want.
Consider these comments from Zendesk, which offers a customer service platform: 
“Welcome to the age of the customer, where businesses fly or fail based on the customer service they provide. Whether on mobile, chat, social, and self-service, a thoughtful customer service strategy is essential for conversion. A whopping 66% of customers will spend more with a company that they believe provides excellent service. Do you have a winning strategy?”

 

Take a look at this helpful infographic from Zendesk for tips. Click on the chart for a larger version.


 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Part 8: Putting It All Together, Strategy Mix | Tagged , , , , , , , , | 1 Comment

The Role of In-Store Technology in Omnichannel Retailing

What is the proper role of in-store technology in this omnichannel world of retailing? Is it typically “cool” or “creepy”?
As reported by eMarketer:
According to April 2015 polling by RichRelevance, creepy is more common than cool. Retailers have a wide array of toys to play with when implementing digital technologies in stores, but figuring out something that makes sense to customers—and fits with the brand — can be a challenge. When RichRelevance asked U.S. Internet users about certain use cases for in-store technologies, they were relatively enthusiastic about more ‘traditional’ tactics. More than three-quarters thought it was cool if they could use their phone to scan a product and find more info, like reviews and recommendations, on the web. And nearly seven in 10 liked the idea of interactive maps to help them get around stores efficiently and find the items they were looking for.”
“But when the location-relevant concept of a map was converted to location-based push messages promoting products or distributing coupons, the cool factor went down. Just 44% of respondents were into this idea, while 39% thought it was getting a little creepy. The creepiness factor went up as RichRelevance examined more sophisticated implementations of in-store technologies. While some high-end brands like Burberry may have success with facial recognition systems that alert sales associates when a high-value customer walks in the door, three-quarters of internet users thought it would be creepy for an employee to greet them by name when they walked in. They were equally put off by facial recognition that would identify demographic characteristics like age and gender and market to them appropriately.
Click the image to read more.

 

 

Posted in Part 1: Overview/Planning, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer, Strategy Mix | Tagged , , , , , , , , , , , | 1 Comment

Zarb Students Do Well in the 2015 Collegiate Effies’ Target Challenge

Under the supervision of Dr. Songpol Kulviwat, one of the Hofstra University, Zarb of School of Business student teams earned semi-finalist status in the ©2015 Collegiate Effie Awards Target Brand Challenge: “Congratulations on your entry, ‘Perfect Spot,’ being selected as a Target Brand Challenge semi-finalist. Attaining semi-finalist status is a notable achievement and your team should feel proud of your success in this year’s competition.”
The Collegiate Effie competition (North America) is a National/International student competition open to both undergraduate and graduate students. This year, the competition was about the Target Brand Challenge (Back to College). To enter the competition, students were required to create a ‘mini’ strategic marketing plan/communication along with a 4-minute creative reel.
Members of the “Perfect Spot” team were Mara Weiss; Daniella Scaglione; Christina Cappucci; and Lilli O’Connell.
Here is their creative reel. :-)

 

 

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