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WILD OATS IMPLEMENTS CATEGORY MANAGEMENT PROGRAM

BOULDER, Colo. -- Wild Oats Markets here has let loose its category captains, and according to Jim Lee, president of Wild Oats, the chain expects to expand the captains program to include up to 25 categories in the next 18 months.As reported by SN in October 1998, Wild Oats is the first natural-food chain to adopt the mainstream supermarket practice of appointing captains. The five categories and

BOULDER, Colo. -- Wild Oats Markets here has let loose its category captains, and according to Jim Lee, president of Wild Oats, the chain expects to expand the captains program to include up to 25 categories in the next 18 months.

As reported by SN in October 1998, Wild Oats is the first natural-food chain to adopt the mainstream supermarket practice of appointing captains. The five categories and their captains are nondairy (oat, rice and soy), by Hain Group/Westbrae; shelf-stable juices, by Smucker Quality Beverages; cereal, by Health Valley; hair care, by Jayson Natural Cosmetics and Shaman Beauty Products; and aloe vera, by Lily of the Desert.

"We've just finished graduation with the five category captains, and right now we're in the process of developing the schematics for the [first] five categories," said Lee.

According to Lee, the new schematics will discontinue the nonmovers, expand fast-moving items, create a strong presence for private label and create space for new items.

The company will begin by resetting one store in each region, for a total of 10 stores, with the first five categories scheduled to be replanogrammed in all stores by the third quarter of this year. Lee says that 20 more categories will be assigned captains within the next 18 months.

Five more categories to be added by the year 2000 are dairy, with three subcategories: fluid, yogurt and another undetermined subsegment; frozen foods, excluding desserts; nonfoods, like paper products, laundry products, feminine hygiene and household products; skin care; and homeopathic products.

Category captains assigned so far are Horizon Organics for fluid dairy, Cascadian Farm for frozens, Seventh Generation for nonfoods, Zia Cosmetics for skin care and Standard Homeopathy for homeopathics. Captains are currently making their presentations, and Lee expects to begin implementation of this next batch of categories by the end of the year.

To become a captain, a manufacturer must pay a $15,000 fee for expenses. In return, the captains receive some advantages, including access to scanner data. "One advantage is a closer working relationship with Wild Oats. The category captain will also have the edge in a tie," said Lee.