Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, May 12, 1993 TAG: 9305120114
SECTION: BUSINESS PAGE: B6 EDITION: METRO
SOURCE: Associated Press
DATELINE: CHICAGO LENGTH: Medium
Consumers can now find find banks, 8video rental outlets and even dry cleaners in food stores.
"Everybody's talking about one-stop shopping," said Robert Kahn, publisher of Retailing Today and president of a California-based industry research group.
"The theory is: People only have so much time, and if you're going to go to the supermarket anyway, you might as well be able to get as much done as possible there," Kahn said Monday.
So merchandisers of specialty goods and services are pitching their products to supermarket operators at the Food Marketing Institute show, the supermarket industry's annual convention this week.
Discount retailers such as Kmart and Wal-Mart have been moving into the food business in recent years, eroding grocers' market share. Warehouse clubs also are biting into supermarket business.
Supermarkets have responded by expanding - floor sizes of many new food stores have grown from 15,000 square feet to about 60,000 as the retailers accommodate new video departments, pharmacies, flower shops and, in the case of a Salt Lake City chain, dry cleaners, Kahn said.
Bank branches can be particularly beneficial for supermarkets. Shoppers have money literally at hand - they can cash a check right in the store and spend it immediately.
A survey of 1,000 consumers commissioned by National Commerce Bank found that supermarkets with in-store banks get customers to come more often and spend more money than stores without banks.
Banks, meanwhile, welcome the idea of opening full-service branches in supermarkets because of low overhead, fewer staff needs and a good rate of return. It might cost $200,000 to open a branch in a supermarket, against more than $1 million in a stand-alone setting.
Supermarket operators at this week's show were clearly looking for new departments and services to increase business.
"Part of our special services is because of competitive pressures, but most of the things we offer are based upon the principle of one-stop shopping and providing as many things as possible to attract more customers," said Rich Simpson, spokesman for the Dominick's Finer Foods chain, which operates mostly in the Chicago area.
But supermarkets are mindful that consumers are more price-conscious than ever. Kahn said the ultimate winners in the battle for market share will be consumers, because they shop wherever they feel they get the best deal.
by CNB