Yikes! Modern supermarkets no longer work

High-low pricing, standard merchandising, slotting fees are out of date
8/13/2013

The modern supermarket, born in the 1930s and ’40s, is a miracle of selection, safety and efficiency. But does it still do the job?

A new report says no and the proof is in numbers at the till. They’re not rising.

“When input prices and inflation are driving virtually all revenue growth in the average supermarket, it is clear that the growth engine has stalled,” says Dr. James Richardson, senior vice-president at Hartman Strategy in Bellevue, Wash.

Richardson recently authored a report called “Re-imagining the American Supermarket for a New Era in Food Culture.”

He says the supermarket’s stock in trade strategy of being all things to all people is out of date with today’s food culture and shopping habits.

Standard merchandising systems, slotting fees and high-low price strategies are among the areas that need to be rethought, he says.

Read the full story here.

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