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LEADERS STRESS THE FRESHNESS MESSAGE

ANAHEIM, Calif. -- The importance of delivering the freshness and value message to consumers cannot be underestimated, supermarket leaders and a restaurant chain official said during a panel discussion at the Fresh Summit International Convention & Exposition.Moderated by Ed McLaughlin of Cornell University, Ithaca, N.Y., the group included Perry Odak, president and chief executive officer, Wild Oats

ANAHEIM, Calif. -- The importance of delivering the freshness and value message to consumers cannot be underestimated, supermarket leaders and a restaurant chain official said during a panel discussion at the Fresh Summit International Convention & Exposition.

Moderated by Ed McLaughlin of Cornell University, Ithaca, N.Y., the group included Perry Odak, president and chief executive officer, Wild Oats Markets, Boulder, Colo.; Robert Tobin, former chief executive officer of Ahold, USA, now retired; and Peggy Cherng, vice chair and chief executive officer of Panda Restaurant Group, Rosemead, Calif.

Supermarket produce departments play a crucial role in today's competitive retailing environment. Both Odak and Tobin said they see produce departments continuing to expand their footprint.

"When we designed the Super Stop & Shop, we built it around produce. I can't see that [produce] wouldn't continue to prevail."

Odak agreed. "In most of our stores, it's right in the center, in some, 40% of the store," he said. "It sets the tone."

In the face of consolidation, the need to differentiate has gained importance, but cost factors can limit innovation, the speakers said. That's one reason they underscored the importance of convincing the consumer of the value of the product or service used as a standout.

Odak said retailers must have more than two differentiating attributes -- which typically are price and convenience -- because once Wal-Mart Stores moves in, price is automatically eliminated.

Tobin, too, emphasized the need to do something others aren't doing and then make sure customers know about it.

"Look at the knowledge and experience of produce managers. Some of them are lifers. They know how things can be merchandised, and they can emphasize freshness," he said.

Panda Restaurants, with 670 units, emphasizes freshness and nutritious ingredients, Cherng said. "We target families, and we do that with the best quality and fresh, nutritious ingredients," she said. "We market ourselves that way. I think our No. 1 strategy is understanding our customers and then everything else is done toward them, down to execution in the stores."

Cherng, speaking about forging strong alliances with vendors, said she's open to testing new products -- in one or two stores at a time. Then, if it works, she expands the test to more stores.

"I think when a new product is created, it energizes us and energizes consumers."

Tobin and Odak, the retailers, agreed, saying it's worth testing new items and taking risks in the campaign for new customers.

"I can't see a store saying, 'We don't have room for that,"' Tobin said.

TAGS: Walmart