OCR Text |
Show a Superstores Bridge the Gap Between Increased Sales and Sagging Profits by Mary McMillan Gaber Review Staff Writer You may have noticed supermarkets are getting In fact, grocery bigger. chains of all sizes have begun operating super- stores, with at least 40,000 square feet, that sell television sets and crock pots as well as green peppers and onions. Although it has established no superstores in Utah, Albertson's has been building the 40,000 square-foo- t combination grocery drugelectrical appliance stores in other states. According to Robert Bolinder, vice chairman, Albertsons has been operating the stores for seven years in the southern states, but during the last three years has built ten in California, Idaho, Colorado and New Mexico. "We dont sell big ticket items, Bolinder said, explaining the store sells small, portable televisions, cameras and other items under $100. He said cashiers accept Master Charge and other major bank cards to help the customer feel the large purchase is convenient. Competitively Priced People would buy a television at Albertson's, rather than a department store or specialty shop, because its convenient, he said, and were priced competitively. He could not estimate how many purchases of the more expensive items are a result of impulse buying, and how many are planned, but said the products are mer chandised to encourage pulse buying. im- In an article published in the March 7 Business Week Magazine, authors shed light on the recenty trend in grocery store merchandising, explaining that while sales volume has been steadily growing, profits Unhave been sagging. predictable profit margins reflect declining population growth, historically bertson's saying, "we need the right site. While a typical grocery store draws from about a unfamiliar, Alhas been hiring people with non-foo- d ex- Bolinder said. He estimated Albertsons is one of the three largest grocery chains in Utah, and said they expect to build one of the combination stores here within the next two or three years. He explained the delay. radius, one of these large stores draws from about an eight-mil- e radius. He added the trend toward pertise, two-mil- e operating superstores is "very definite and many Utah grocery store companies have already begun the practice. consumers and competition from ants, they wrote. mounting restaur- ssSSS Cromar started with Grand Central in 1957 as an operations supervisor, and advanced to area buying director in 1975 prior to his present promotion. Grand Central, also announced that its board of directors declared a regular quarterly cash dividend of 7.5 cents per share, payable April 15, to stockholders of record March 25. 1977. Restaurants, fast food chains and other eating places have taken an increasingly large bite of the Ameri- can consumers food dollar over the past ten years, the article continued, eroding the share for grocery stores. According to Business Week the food service industrys (eating places, restaurants) share of the food dollar has grown from 38 percent ten years ago to 42 percent today, and it is expected to reach 50 percent by 1980. The trend poses a challenge to grocery stores, forcing them to modify their product mix, their credit systems and their merchandising habits. The usual and the unusual As highly qualified specialists in Industrial and institutional security and safety fence systems, Mountain States Fence Company has extensive experience not only .in designing and installing traditional fence systems, but also in the field of ultrasophisticated electrically and electronically operated systems requiring the utmost of control under the most sensitive conditions. For imaginative and esthetically pleasing solutions to your security and safety problems, call us today. Free estimates and "Realock or equivalent" specifications for all types of plans. Were Fencing Experts Mountain States Fence Company 3737 South 500 West City. Utah 84115 j Salt Lake PHONE (801) 261-42- 24 's Profitable Delicatessens To help Albertsons compete with restaurants, Bolinder said many stores have been operating delica- tessens. These little eating places are making a profit, and help us compete with the fast food business, he said. They have been working out very well. And to help management sell appliances with which grocery stores are e btrt now offers its rural setting two additional days each week. . r- - 'V..-'- Enjoy French cuisine Tuesday through Saturday Brunch on Sunday and a dinner Sunday evenings Basque tyle 942-175- 1 Appointment harder-to-pleas- e Aeeuatfeat barrier aereM jpMtt lorf segmenting I office space without tbeaxpeaasf arirreversibilit & Si boildiiw partition. k AvgOanie in n wide spectrwa of hles& trims, attractive fabric patterns, thew vaWWH screen ta variety ! confi joined and easily maneuvered tiens (see belowl for attrarthreaound-prei- il prill Phone GC Makes for reservations. ! . .VJ, , -- .$3 ? |