Penn Traffic, owner and operator of leading food retailers P&C and Bi-Lo, recently inked an eight-year deal with C&S Wholesale Grocers to supply their more than 200 stores. Prior to this agreement, Penn Traffic maintained inventory, supplies and distribution for its own stores. In the wake of a shrinking economy and year over year losses, Penn has decided to eliminate the expenses associated with self-distribution and reallocate those dollars to invest in customers and stores.
This shift in focus for Penn Traffic exemplifies what not just grocers, but all retailers will need to do in order to buoy their businesses during this economy. Over and over we are seeing news and discussion around the importance of in store communications and enhanced customer experience. Retailers are going to have to work ever harder to convince shoppers to spend their money.
This month, TNS Retail Forward highlighted new data analyzing the current spending habits of shoppers. According to their research, 65% of shoppers are buying fewer things and 54% of shoppers are shopping less often. This means that the few times retailers come into contact with shoppers, impressions must be powerful and lasting. Strategies for attracting the attention of shoppers must be specific, creativity superb and implementation accurate — now more than ever.
For companies watching what’s happening to grocers like Penn Traffic, it’s an opportunity to evaluate their current marketing mix and decide if preemptive measures are necessary. Competition for shoppers is already ramping up. Whole Foods, the country’s largest organic and natural foods supermarket chain, is now offering “value tours.” Fighting their reputation as an expensive grocer, Whole Foods is enlisting employees to show customers around the store pointing out low cost and value items they may not have been aware of before.
Where having an employee offer personal tours may not be cost effective, signage, displays and digital media are going to play a pivotal role in capturing the increasingly elusive grocery shopper.
