The Enemy's Playbook: How To Fight Back Against Big Retailer Tactics

This year, don't go head to head with the big box stores. Instead, put these 3 small-business tactics to work for you to attract holiday shoppers.

NOVEMBER 13, 2013 

The holiday shopping wars have begun extra early this year, and major retailers are upping the ante. From promoting big discounts to opening their doors on Thanksgiving Day, large retailers appear to be pulling out all the stops this year.

It’s easy to see why: Retail analysts predict that consumers won’t be very merry with their spending this holiday season. A recent report from Morgan Stanley predicts that same-store sales will climb just 1.6 percent this year, which would make it the worst shopping season since 2008. Stores are working harder than ever to attract those frugal shoppers. And November and December are the most important months of the year for many retailers. The National Retail Federation says theholiday season can account for 20 to 40 percent of retailers' annual sales.

The smartest thing independents can do is say, 'We’re not going to compete directly with the Targets of the world.'

But what can small and independent retailers do to win over shoppers in this year’s hyper-competitive, perhaps downright dismal shopping environment? According to Candace Corlett, president of WSL Strategic Retail, a New York City-based retail consulting firm, "The smartest thing independents can do is say, 'We’re not going to compete directly with the Targets of the world.'"

Changing Tactics

So if you shouldn't go head to head with the big box stores, what should you do? Corlett recommends that independent retailers focus on their strengths—things they can do better than major retailers—and find creative ways to lure shoppers into their stores and convince them to buy.  

Here’s a look at three ways big retailers plan to attract shoppers this holiday season and how independents can fight back:

Major Retailer Strategy #1: Stay open longer—even on Thanksgiving Day.Several major retailers, including Macy’s, Kohl’s, JCPenney, Toys R Us and Best Buy, plan to open on Thanksgiving Day or in the evening hours before Black Friday. Their hope is to entice shoppers into their stores earlier by offering attractive “doorbusters,” whether that's low-priced TVs or a free snow globe, and other limited-time deals that will lure them and their gift budgets away from competitors before Black Friday’s shopping frenzy even begins.

Retailers are also starting early because it's a short shopping season with only 26 days between Thanksgiving to Christmas. Hanukkah also starts early this year—the day before Thanksgiving—meaning retailers need to get a head start to attract Hanukkah shoppers.

How to fight back: Independent retailers shouldn’t try to compete on Thanksgiving Day, says Jan Kniffen, a New York City-based retail analyst. But they can hold their own extended-hour shopping events for customers on other days between Thanksgiving and Christmas. “I think extended hours work for independents, just not on Thanksgiving and Black Friday,” Kniffen says. "The major retailers really steal the show that day."

Given that shoppers are being drawn to stores earlier this year, hosting events earlier in the shopping season—such as late November or early December—may be better than holding off until mid- or late-December. Cocktail parties, book readings and other holiday-themed events can entice shoppers into the stores.

Another effective strategy: playing up the holiday spirit. Many big retailers don’t decorate as much for the holidays as they used to, Corlett says. Independent stores can deck themselves out for the holidays and become a holiday destination. "What independents have going for them around the holidays is that people like to go to the stores to get the holiday spirit,” Corlett says. “There’s nothing like a mall to squash that spirit.”

Major Retailer Strategy #2: Price-slashing. The big box stores have already started rolling out early sales and discounts to entice shoppers, a strategy that will likely continue or even ramp up as Christmas approaches. A holiday shopping survey by Accenture found that 62 percent of shoppers say they'd need a 30 percent discount in order to be convinced to buy something this holiday season. Even retailers like Nordstrom, Macy's, REI and Bloomingdale's that have traditionally been reluctant to drop prices and offer sales around the holidays are already promoting huge discounts of 40 percent off or more.

How to fight back: Most independent retailers can’t afford to slash their prices or match large retailers’ discounts—nor should they try, experts say. Instead, smaller businesses should focus on providing customers with extra perks that draw shoppers into their stores and make it worth spending a little extra.

Corlett suggests that smaller retailers try to do a better job of helping their customers figure out what gifts to buy. “Be a shopping buddy—don’t just be a store,” Corlett advises. That might include setting up a display with the top five hottest gift items for the season, she suggests. “Make it the top five fashion items, the top five things for women or the top five things for babies. Just make sure you have enough of it in stock.”

Stores should also think about bundling items that could be bought together as a gift. For instance, a store that sells bathrobes might put bubble bath, candles or mugs with chamomile tea nearby to suggest as complementary purchases. A store could then offer a discount to shoppers who buy several items as a bundled gift. “Companion products increase the value of the gifts," Corlett says, "and increase the value of the transactions.”

Major Retailer Strategy #3: Online shopping and “showrooming.” Online holiday shopping is predicted to grow 15.1 percent in 2013, according to eMarketer, and many major retailers have bolstered their online presence and are offering free shipping and quick delivery to make online shopping even easier, more rewarding and compete with the convenience of shopping on sites like Amazon.com. For example, Nordstrom is offering free delivery on all orders, while Macy's has focusedon improving its inventory management and getting products to shoppers faster.

One disturbing trend for smaller brick-and-mortar retailers is the habit of “showrooming”—the idea that shoppers will visit their stores to browse and check out products but then actually make their purchases on Amazon or some other retailers’ website where they can find the product at a lower price.

How to fight back: Independent retailers should make sure that a portion of their gift items are unique products that can't easily be purchased for less online. If a business can’t offer a unique selection of gifts because, say, they sell cameras or refrigerators, they should offer a better level of service that online retailers can. For instance, a smaller retailer might be able to provide fast delivery times, offering to deliver the product to a customer's home the following evening and set it up for them.

Loyalty reward programs can also be an effective way for independent retailers to win. Giving loyal customers exclusive discounts, free gifts and special treatment, such as their own shopping events, can help prevent them from shopping online. As Kniffen says, “If you’re an independent, making people feel special is the best weapon you’ve got."

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Metro, Dunnhumby Deliver Personalized Shopping Experience

Electronic coupons, left, and a library of more than 4,500 recipes, right, are part of the Metro “digital ecosystem.”

MONTREAL — Metro’s partnership with Dunnhumby is helping the Canadian supermarket retailer provide an easier and more personalized shopping experience for its customers, according to the chain’s chief marketing officer.

In an interview with SN, Marc Giroux, vice president, chief marketing and communications officer for Metro, said working with Dunnhumby — the British loyalty marketing firm that also operates in the U.S. through a joint venture with Kroger Co. — has helped Metro develop an integrated platform that seamlessly blends its loyalty program with its website and mobile apps. Metro’s joint venture with Dunnhumby gives it an exclusive partnership for Ontario and Quebec.
Metro relaunched its loyalty program in 2010 with the metro&moi (metro&me in Ontario) program, and has since woven the loyalty program into what it calls its “digital ecosystem” offering coupons, recipes and other functionality.
“It has been very well-received by the consumer because we focused on what they were expecting in a loyalty program from a grocer,” Giroux said. “We delivered on what customers wanted, which is a simple program … that rewards you with dollar savings on your grocery bill.”
Read more: Metro Sales Down Amid Canadian Competition
As Kroger did with its “Customer 1st” strategy that seeks to place shopper needs at the core of its decision-making, Giroux said Metro also approached its loyalty revamp with the customer’s needs foremost in mind.
“I came from 20 years of work in technology before grocery, and sometimes we were so focused on the technology that it was all about the technology and not about the consumer,” he said. “At Metro, we began this journey armed with a really customer-centric strategy.”
Giroux said Metro analyzed the “pain points” that customers encountered when planning their grocery-shopping trips, and then sought to find solutions that would help solve those problems through technology, and save customers both time and money.

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As an example, he cited the shopping-list functionality of the digital system, which more closely mimics the way shoppers create lists in the offline world. Rather than sorting through various brands and sizes and flavors of yogurt, for example, shoppers using the Metro system can simply select “yogurt,” then see if there is a special deal being offered based on their past purchases of this product.
Working with Dunnhumby facilitates that level of personalization, he explained. All of the coupons and loyalty-program bonus offers are visible to the shopper via icons on the shopper’s screen throughout the digital ecosystem.
The digital system is also organized around the layout of the store, allowing shoppers to plan their actual trip through the store department by department.
Since launching the mobile app, it has become the most downloaded food-and-beverage app in Canada, and the number of downloads have been five times what the company anticipated, Giroux said. In addition, web traffic has increased 60% since the launch, he said. While all areas of the site have seen increased traffic, the shopping-list functionality and online coupon areas of the site have seen a disproportionate increase. Previously, the online sales flier had accounted for 50% of all website visits. (In Canada, about 65% of shoppers read the flier before going to the grocery store — a key factor in Metro’s planning of the digital ecosystem, Giroux explained.)
Read more: Metro to Launch Nutrition Rating Program
The system also includes more than 4,500 online recipes, which can be used to create the shopping list.
In Canada’s highly competitive food-retailing market, where Wal-Mart Stores and Target Corp. have in recent years joined a thriving discount-grocery segment, Giroux said the aim of the digital ecosystem was not necessarily to attract customers away from those competitors, but instead to provide its own shoppers with a better experience.
“The focus was, how do we improve the lives of our loyal shoppers and the people who love shopping at Metro, and how do we increase the perception of the great value we deliver by making sure that all of our promotional programs and loyalty bonus points become visible through that experience of planning to shop in our stores,” he said.


Read More: http://supermarketnews.com/technology/metro-dunnhumby-deliver-personalized-shopping-experience#ixzz2kcudRyfb

Nielsen Finds Loyalty Programs Resonate with Shoppers

Nearly 60% of global respondents said that loyalty programs were available where they shopped, and of those, 84% said they were more likely to visit those retailers, according to a new study by Nielsen.

“Retailers can reverse the impact of falling basket values and lower trip frequencies by better connecting with the unique needs of their shoppers,” Julie Currie, SVP global loyalty, Nielsen stated. “While the concept of loyalty is nothing new, we are seeing a significant surge in retailers — and particularly those in developing economies — investing in loyalty programs that give them valuable insight into how to better meet customer needs,” she said. “Savvy retailers are mining the data and looking for new and innovative ways to achieve the benefits most important to their customers.”

Nielsen found that, on average, more respondents claimed to be not loyal than completely loyal to brands, service providers and retailers. Most respondents said they were mostly loyal, or unlikely to switch brands or providers without significant incentives. Nielsen information shows that nearly one-quarter (24%) of global respondents claimed complete loyalty to mobile phone brands, mobile service providers and financial institutions, the highest percentages reported globally across the 16 categories measured. Global respondents reported the lowest levels of loyalty to food and beverage categories measured and online retailers. Approximately 40% of global consumers surveyed said they were not loyal and likely to switch brands in the alcoholic beverages (43%), snacks (39%), carbonated beverages (38%) and cereal (37%) categories. As many as 39% of global respondents said they were not loyal to online retailers.

“There is a strong link between the way consumers describe their loyalty habits and the way they subsequently buy — so even comparatively small shifts in what consumers say can manifest in big changes in what they do,” Currie saud. “While there is some consistency around the world in loyalty sentiment within categories and across retailers and service providers, there are also notable differences — especially for consumable products and in the online retailing space, where the likelihood to switch is greater," she said.

“In markets where loyalty programs are long established, customers tend to be savvy about copy-cat promotional offerings that don’t offer unique advantages,” Currie noted. “Particularly in developed loyalty markets, retailers and manufacturers need to work together to offer exclusive awards that cut through the clutter. New and innovative concepts, especially in the online space, that connect with how consumers want to shop are proving to be most effective.”

According to Nielsen’s survey, 75% of global respondents said that discounted or free products was the most valuable loyalty program benefit. As many as 41% of global respondents said getting a better price would encourage them to switch brands, service providers or retailers, followed by better quality (26%), a better service agreement (15%), better selection (10%) and better features (8%).

Enhanced customer service and free shipping incentives were important to 44% and 42% of global respondents, respectively.

Good customer service was important to more than half of respondents in Latin America (59%) and Asia-Pacific (53%). Exclusive deals (41%) and special shopping hours (36%) mattered most among loyalty program participants in Asia-Pacific. Free shipping incentives were important for 46% of North Americans.

North Americans surveyed reported higher levels of loyalty for financial service providers (29%) and carbonated beverages (23%), compared to other regions.

The Nielsen Global Survey of Loyalty Sentiment polled more than 29,000 Internet respondents in 58 countries to evaluate consumer views on loyalty levels across 16 categories including fast-moving consumer goods, technology products and retail establishments.

Authored by: November 13, 2013 | By Michael Johnsen

Originally posted on RetailingToday and can be viewed at: 

http://www.retailingtoday.com/article/nielsen-finds-loyalty-programs-resonate-shoppers

Millennials and the new value of shopper marketing

The Coca-Cola Company sponsors this blog post and leverages proprietary insights to create world-class shopper marketing activities designed to help retailers convert more shoppers into buyers.  Visit www.cokesolutions.com to learn more.

Digital media has changed the way and the speed in which people shop. Marketers must now provide consumers with a full buying experience both online and in-store, adding a new dimension to their jobs. In particular, understanding the purchasing habits of millennials, who were raised with online shopping as a part of daily life, can be a challenge since many younger consumers have different expectations and approaches to buying.

“They are omni-channel shoppers,” said Daren Sorenson, Director of Retail and Shopper Insights for the Coca-Cola Company’s North America Group. “Millennials enjoy shopping much more than previous generations and take joy out of simply browsing.”

In spite of the huge increase in choice brought by digital retail, the economic downturn has affected how millennials spend and what they buy. Value remains a major consideration for Millennials when deciding where to shop, according to Sorenson. They want an engaging in-store experience and diversified options, but also want retailers to keep them informed in an interesting and personal manner.

As more people share information, comments and reviews online, brands are more exposed than before the advent of the Internet. Companies need to engage with consumers, particularly those who are younger, across channels and in a way that resonates with them. But implementing a sound strategy can be tricky, particularly with so many different platforms that can share a brand’s information.

“Millennials are the most highly educated and social generation in history,” Sorenson said. “They are clever and know what they want. As a brand, you need to be authentic and transparent when communicating with this younger generation.”

Sorenson notes that one brand that got it right is the Dollar Shave Club,  a Web-based e-commerce site for men founded in 2011 (Whose site is worth a trip to for the "Our Blades are F***ing Great" video alone - http://www.dollarshaveclub.com) Definitely worth . In 2012, the company announced itself to the world in a non-traditional manner via a funny, well-targeted YouTube video. In this clip, Dollar Shave Club showed that they do not take itself too seriously, and is a brand that firmly understands the highly visual, digital-based world. The clip has since gone viral, approaching 12 million views.

“Dollar Shave Club has gained an impressive following by telling a brand story that is authentic, entertaining and very shareable,” Sorenson said. While not every brand is in a position to mimic the Dollar Shave Club, their success is a lesson in what can be achieved when millennials become brand advocates.

For brands, having a sound omni-channel marketing strategy is key to connecting with millennials. As “digital natives”, millennials are fully comfortable operating on multiple screens and on multiple devices like laptops, smartphones or tablets. They enjoy interacting with new people and ideas via different social channels and will listen to companies that speak their language.

However, it’s not just about social media and flashy videos. The value of in-store experiences should be considered when thinking about marketing and branding. Millennials may spend a lot of time online but they have not fallen out of love with the bricks-and-mortar stores.

“As shoppers, they are less prepared than their predecessors and more reliant on in-store cues. Retailers that offer engaging store environments, and well-merchandised solutions, are the ones winning with Millennials,” Sorenson said.

Gone are the days of broadcast marketing: brands need to engage with consumers directly on an emotional level and establish a relationship.

“Digital allows for a two-way conversation between brands and consumers,” Sorenson said. “And when you understand consumers as people, you can create content that is share-worthy and engaging, rather than simply informative.”

The Coca-Cola Company speaks directly to millenials and many others via a new interactive magazine format website called Journey.

By Megan Conniff on November 12th, 2013 for Smartblogs.com 
Original posting can be located here: http://smartblogs.com/leadership/2013/11/12/millennials-and-the-new-value-of-shopper-marketing/

Kroger to spend $150 million on Texas expansion

Dive Brief:

• Kroger’s will spend $150 million during the next two years on a large-scale expansion of its presence in the Dallas-Fort Worth area.
• The company plans to add five new Marketplace stores and to increase the size of three existing Kroger Signature stores.
• Other stores in the area are slated for remodeling.

Dive Insight:

Kroger’s Texas expansion comes as the company nears the completion of its acquisition of Harris Teeter, and as Chief Executive Officer David Dillon prepares to retire at the end of the year. The Texas investments may indicate that the succession team, including incoming CEO Rodney McMullen plan to double-down on existing markets, rather than invest in further acquisitions …at least for now.

Recommended Reading:

Supermarket News: Kroger Announces Investment in Dallas
Produce News: Kroger's $150 million capital investment in Dallas-Fort Worth

View original article on Fooddive.com here: 

http://www.fooddive.com/news/kroger-to-spend-150-million-on-texas-expansion/192837/

4 Kroger predictions: Will it actually take over the world?

The folks at Kroger headquarters in Cincinnati are probably feeling pretty good about themselves these days. And with good reason.

• Kroger is the biggest supermarket company in the country, and the second-biggest food retailer in the nation (trailing only Wal-Mart).
• The company is a cash-flow machine—with $96.8 billion in revenue in 2012.
• Kroger's identical-store sales are rising, indicating the company is taking away market share from competitors.
• Shares in Kroger have soared 65% this year, giving the company "the best looking stock chart so far in 2013," according to Schaeffer's Investment Research.

And now, the company has announced that it plans to spend $150 million to bolster its operations in the Dallas-Fort Worth area. The company is clearly on a roll.

Kroger sits atop the supermarket world for a number of reasons. Chief among those is the company's chief executive officer, David Dillon. But Dillon is set to retire at the end of this year. His successor will be W. Rodney McMullen, the company's president and COO.

The upcoming succession begs a question: What's next for Kroger?

Here are four possible scenarios we see for the retailer:

1. It builds.
Kroger has been expanding aggres in recent years. We see no reason why that won't continue under the McMullen regime. The company has the resources to add stores. Dillon recently suggested the company would take just such an approach. And that sentiment was echoed by Mike Ellis, the senior vice president of retail, who will become president and COO when McMullen moves up. 

And as if to hammer home the point, Kroger announced in early November that it would spend $150 million to add stores in the Dallas-Fort Worth area.

2. It buys.
Kroger is set to complete its all-cash, $2.5 billion acquisition of the Harris Teeter chain in early 2014. When the deal is done, the combined companies will operate 2,631 supermarkets. By all accounts, the purchase of Harris Teeter was applauded on Wall Street. And although Kroger is financing the deal with debt, there's been plenty of speculation that Kroger would return to the M&A market quickly in the McMullen era.

That's certainly possible, but not very likely.

Kroger's senior executives, including McMullen, recently told reporters the company was interested in entering new markets, but was picky about what it would buy. In addition, McMullen suggested Kroger needed some time to digest Harris Teeter's practices, particularly in fresh, which he said were better than those of Kroger.

All that suggests, at least to us, that Kroger will not make a play for the Dominick's stores now on sale in Chicago.

A few years down the road, however, we fully expect to see Kroger be in the running to buy the Jewel stores from Cerberus Capital Management when that private-equity firm decides to flip.

3. It gets bought.
We wouldn't want to say it's impossible that anyone would buy Kroger, but it sure is close to impossible.

When Kroger bought Harris Teeter it paid 7.9 times earnings before interest, taxes, depreciation and amortization (EBITDA.) Kroger's EBITDA number for fiscal year 2012 was $4.55 billion. For someone to buy Kroger at that same 7.9 multiple would cost $35.55 billion. When Whole Foods bought Wild Oats it paid a multiple of 15 times EBITDA. If Kroger fetched a multiple like that the deal would reach $68.25 billion -- or roughly three times the biggest food deal of the year, Berkshire Hathaway's $23 billion buy of Heinz.

There just ain't a lot of folks out there with the money to pull off deals like that.

4. It goes online.
In a recent conversation with industry analysts, Dillon suggested he wasn't worried about the threat posed by online competitors offering home delivery of groceries. We think that's nuts. Dillon's comments about how people like the old-world way of shopping reminds us of every newspaper executive we ever knew who insisted there was something so wonderful about paper that customers wouldn't be lost to the Web.

This seems to be one area where McMullen is likely to take the company in a different direction than in the Dillon era. McMullen said he was interested in learning what Harris Teeter can teach the company about online ordering for pick-up, rather than for delivery.

Thus the most likely scenario for Kroger's near future appears to be a series of tweaks. We'll look for expansion in existing markets, a new Harris-Teeter style approach to the marketing of fresh products, and the arrival of call-to-pick-up services. But other than those small changes, the new Kroger is likely to look a lot like the old Kroger.

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"Candy Crush Saga" Game Expands Into Actual Candy Line

The most popular candy-themed online game has some real-life sweets to match.

According to Candy industry, King, announced the arrival of the first-ever Candy Crush Candies, which Debuted at Dylan's Candy Bar and other major retailers in the U.S. on Nov. 1.

"We're really excited to launch Candy Crush Candies and offer another way for fans of the game to be able to get a taste of the fun," Tommy Palm, Games Guru at King said in a press release. "We've been so delighted to see how much people love to play the game and crush those candies. Our games give players moments of bite-sized brilliance, and we hope these Candies will too."

King is the world leader in cross-platform, bite-sized games, with more than 1 billion gameplays per day globally. 

Healthy Food Brands, which has a history of making candy related to mobile games, and in recent years, launched confections and gummies related to Angry Birds and Fruit Ninjas, is manufacturing the product. All of the confections will have a retail price of $1.99.

"We are thrilled to be the first to introduce the much anticipated Candy Crush Candy range to our customers at Dylan's Candy Bar this Fall," said Dylan Lauren, CEO and Founder of Dylan's Candy Bar. "As Dylan's Candy Bar continues to expand as a leading lifestyle brand, we are always looking to provide our customers with the most innovative and creative products. Candy Crush Candy is an exciting new addition for our customers and fans of Candy Crush."

Kroger could grow by building stores, not just buying them

Kroger Co. will look at growing by building its own stores just as much as buying them, CEO David Dillon told a group of investors and analysts on Wednesday at the company’s investor conference.

“We look at M&A (mergers and acquisitions) as one of the vehicles we can use to go into new markets and one of the vehicles that can add fill-in,” Dillon said. “There’s not a preference. Sometimes you have a choice and sometimes you don’t. We pick a strategy based on the fact of the situation.”

Mike Ellis, Kroger’s (NYSE: KR) senior vice president of retail divisions, added that Kroger CFO Mike Schlotman has told company executives that as long as the financial performance of new stores can meet Kroger’s targets, it doesn’t matter which route it takes to expand. Ellis will become president and COO on Jan. 1,when Rodney McMullen takes over for the retiring Dillon as CEO.

Dillon also talked about Kroger’s hesitance to make too big of a push into home delivery, a stance Kroger executives have talked about in the past. Amazon.com has said it will start offering home delivery of groceries on the West Coast, but Kroger has been dubious that fresh goods can easily be delivered in a practical manner and that many customers want home delivery.

“We do expect some change in that environment,” Dillon said of home delivery. “The issues ultimately come down to what does the customer want and how can it be provided? Nothing has changed, except the customer’s interest might be changing.”

Dillon also said Amazon is different because its stock is judged on revenue and not on the cash flow it produces, as Kroger is.

McMullen added that Kroger has spent plenty of time and effort studying home-delivery models in Europe.

“There are markets out there that are more mature than the U.S. that you can learn from,” McMullen said.

Dillon told a story about sitting in a vendor-sponsored meeting 20 to 25 years ago that was also attended by Lee Scott, who later became Walmart Stores’ CEO. Faith Popcorn, a futurist, said at that meeting that groceries would shift to almost all home delivery within five to 10 years. That obviously didn’t happen.

“I wouldn’t be too quick to assume that the leap to home delivery ends up replacing everything,” Dillon said. “I think a large percentage of customers still like to get out and have that interaction with friends and neighbors as they walk through the store.”

Schlotman said Kroger is still on track to wrap up its acquisition of Harris Teeter Supermarkets Inc. (NYSE: HTSI) by its target of the end of its fiscal year on Feb. 1. He’ll lead the integration effort.

“A lot of work has already happened,” he said, adding much can’t take place until theFederal Trade Commission approves the deal.

Kroger is working on a list of items and prioritizing them, much as it did with the Fred Meyer acquisition in 1998. It developed an A list and a B list and focused on the A-list items first. When those were done, the B-list items moved up.

“That way you don’t get distracted from the most important things by good ideas that are secondary,” he said.

Kroger also reconfirmed its earnings guidance for the year. It still expects to generate same-store sales growth of 3 percent to 3.5 percent and earnings per share of $2.73 to $2.80.

It updated its labor situation in a Securities and Exchange Commission filing along with the presentation. It will negotiate a deal with the United Commercial and Food Workers union for Cincinnati employees later this year and has reached a tentative agreement with that union in Seattle, it said. It also plans to address its underfunded pension plan.

Written By:

Steve Watkins

Staff Reporter-Cincinnati Business Courier

Email  | Twitter  | Google+  | LinkedIn

Restaurant Chains Recognize Value In Private Label: Big Name Brands Soon Expanding to Retail

Providing one more indication of how challenging the restaurant business is now, several chains this week announced plans to offer signature menu items at retail.

McDonald’s and Kraft announced a partnership that will test retail sales of McCafé coffee next year in whole-bean, ground and K-cup varieties. The announcement comes almost exactly one year after McDonald’s began selling bagged McCafé coffee at its Canada stores. There, a 340-gram (approximately 12 ounces) bag is sold for CAD $6.99 (about US $6.70). The companies did not say what U.S. pricing will be.

In a statement, McDonald’s said, “”We are building on the momentum of our McCafé beverages in our restaurants by expanding these options…to grocery stores and other retail locations.” Several other chains sell their branded coffee in and outside their stores, including Dunkin’ Donuts, Tim Hortons, Krispy Kreme and Panera Bread.

Casual-dining chain Red Robin Gourmet Burgers today said it will sell Red Robin Seasoned Steak Fries in supermarket frozen-food sections. The company says the frozen fries offer “the same great taste as the Bottomless Steak Fries served in Red Robin restaurants.” The 22-oz. packages will have a suggested retail price of $3.19.

Finally, Arby’s announced it is packaging its Signature Sauces available in bottles for a limited time at local stores. These include its Horsey Sauce and its Arby’s Sauce.

Earlier this year, the Whataburger chain began selling its spicy ketchup, regular ketchup and mustard along with Whatafries  french fries through HEB supermarkets. And chains aren’t alone in going retail: Blanc Burgers + Bottles in Kansas City, Mo., sells its bottled ketchup and aïoli at retail.

Cerberus is Said to be Eyeing Safeway for Purchase

PLEASANTON, Calif. — Safeway has engaged Goldman Sachs to explore a potential private equity takeover of all or part of the company, according to a Reuters report.
The report said Cerberus Capital Management — the firm that recently acquired Albertsons, Jewel, Shaw’s/Star Market and Acme from Supervalu— is among the firms that are “exploring a deal.”

The report came just as Safeway received clearance from Canadian authorities for the sale of its 212-store division in that country to Empire Co., the parent company of Stellarton, Nova Scotia-based Sobeys, and after it announced plans to exit the Chicago market through the sale of its 72 Dominick’s stores there.

Neither Safeway nor Cerberus could be reached for comment.

“We would not dismiss the media reports given potential upside from [Safeway]/Cerberus synergies,” said Karen Short, a New York-based analyst with Deutsche Bank, in a research note.
She said a $56 per share offer “would be very reasonable.” Safeway closed at $32.90 on Tuesday.
Earlier this year, private investment firm Jana Capital acquired a 6.2% stake in Safeway, urging it to sell several divisions and prompting Safeway to adopt a poison pill to thwart an unwanted takeover effort.
Read more: Activist Investor Pushes for More Asset Sales at Safeway


Read More: http://supermarketnews.com/retail-amp-financial/cerberus-said-eyeing-safeway#ixzz2iYM64v1U



Wakefern, AWG Top Co-Op List (+ other Top Retailers & Wholesaler Lists for this Year)

WASHINGTON — Wakefern Food Corp. and Associated Wholesale Grocers took the No. 4 and No. 6 spots on this year’s list of the largest cooperatives in the U.S., according to an annual compilation released Tuesday by National Cooperative Bank.

The NCB Co-Op 100 listed agriculture cooperatives CHS Inc. and Land O’Lakes as the two largest cooperatives in the country, with revenues in their most recent fiscal years of $40.6 billion and $14.1 billion, respectively. Altogether the NCB Co-Op 100 achieved revenues of $226.4 billion, a 5% increase over the preceding year. 

“The NCB Co-op 100 is a great reminder of the substantial impact and important role cooperative businesses play in our national economy across every sector,” said Charles E. Snyder, president and chief executive officer of NCB, in a statement. “As we continue to see improvements in the market, there is an increase in the formation of new cooperatives in urban, suburban and rural setting — offering competitive goods and services to meet the needs of these communities.”

Following Keasbey, N.J.-based Wakefern, with 2012 revenues of $11 billion, and Kansas City, Kan.-based AWG, with revenues of $7.85 billion, the list of top retail grocery co-ops includes:

• Unified Grocers, Commerce, Calif. (No. 11 overall);

• Associated Wholesalers Inc., Robesonia, Pa. (No. 18);

• Associated Food Stores, Salt Lake City (No. 21);

• Central Grocers Cooperative, Franklin Park, Ill. (No. 22);

• Affiliated Foods Midwest, Norfolk, Neb. (No. 33);

• Affiliated Foods Inc., Amarillo, Texas (No. 36);

• URM Stores, Spokane, Wash. (No. 59);

• Piggly Wiggly Alabama, Bessemer, Ala. (No. 83);

• Associated Grocers Inc., Baton Rouge, La. (No. 92).

Here is a few more other top CPG/Retailer/Wholesaler Lists for you to have a look at:

Latest News Top 75 Retailers & Wholesalers Top 50 Small Chains & Independents Top 25 Global Retailers Power 50

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