CHICAGO -- Supermarkets need to get plugged into the modern day culture of retailing, said Jay Spaulding, principal and chief executive officer of the Exclusively HBA Trade Show, which opens here March 22 for a three-day run.
Spaulding made this remark in reference to an industry that he sees as constantly pitting one class of trade against another in terms of which class has the biggest market share in health and beauty care, or which class of trade is growing the fastest in this category.
"This may have been OK to do years ago when there were lines of distinction between trade classes," said Spaulding, but today "mergers and acquisitions have eradicated those lines of distinction. In today's world, there are only retailers."
Spaulding predicts that performance distinctions between trade classes will become much less important in the coming years. He sees the industry turning its attention instead to the performance of specific companies.
"My point is that in each trade class there are specific companies that make the difference. There are leaders. There are supermarkets doing an outstanding job merchandising, promoting and selling health and beauty care. Others simply are not," he said. Meijer Inc., Grand Rapids, Mich., and Giant Food, Landover, Md., were two food chains Spaulding mentioned as exceptional retailers.
He also pointed to the fact that other players, particularly supercenters, have entered the food business to further change the makeup of the marketplace. Therefore, the emphasis that supermarkets have placed on food for decades may need to change in light of this new competition.
"Supermarkets have to become true retailers and achieve a balance in their operation regardless of the amount of space allocated to their core business," said Spaulding.
The Exclusively HBA Show was designed to pull together various retail cultures to one trade show solely for health and beauty care products.
"The show was not formed to focus on a specific segment of the industry from a trade class standpoint, but to allow everyone to be together at the same time, and to be in touch with what's happening in industry," explained Spaulding.
Despite some attendance setbacks last year, mainly due to moving show dates to the first half of the year, Spaulding believes that the basic premise of the event is correct and viable.
Spaulding listed the benefits of the show to supermarket buyers: exposure to a diverse cross section of competition, the opportunity to meet new HBC suppliers and the ability to do business in an efficient time frame.
Advance registration for this year's show indicates that of the 600 to 700 buyers expected to attend the show, representation is broken down as follows: 23%, drug retail-wholesale; 20%, other (military, membership warehouse clubs, department stores, catalog companies, co-op groups); 18%, specialty and service merchandisers; 15%, discount stores; 13%, U.S. and overseas buying groups, and 11%, food.
