SAG HARBOR, N.Y. -- An independent retailer in this upscale resort town has discovered that it pays to play up its fresh meals, even if it means investing in costly renovations. Mike Schiavoni, president of Schiavoni's IGA, is still fine-tuning the atmosphere of the 8,000-square-foot store, after spending $250,000 on equipment and renovating the interior in 1996. As a result, sales are up in each updated department. Stark, white lights were replaced with warm bulbs, accentuating fresh-meal ...

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