RALEY'S SETS WINE MANAGEMENT PLAN

RICHARD TURCSIK

WEST SACRAMENTO, Calif. -- Raley's Supermarkets here is in the process of instituting a category management plan for its wine department that was designed by the Los Angeles distributor of E&J Gallo Winery.

Bob Jennings, buyer-merchandising manager of the beverage department at Raley's, told SN he expects a "minor" reduction in stockkeeping units as a result of the implementation of the category management plan, but overall he expects to see an increase in department sales once the plan is up and running by August.

"We expect it to boost sales in the department and to get a better profit mix and to streamline our total department," he said, adding that he hopes to introduce new products and eliminate duplication through the program.

"The wine department is the only category in the entire store where so much duplication is involved. For example, in canned peaches there are not 10 types, maybe only three or four. But in the wine category we have 100 chardonnays. There comes a time when you really have to take a step back and really analyze the total category and see what is working and what is not," he said.

"We're looking at each and every item and determining whether it is beneficial or not to carry it. We're just trying to improve the overall category," he said, adding that Raley's stocks roughly 550 wine SKUs.

"We'll also be bringing in new items, while deleting some others. The department will remain the same [size] and we will not be changing the floor space," he said.

Jennings said Gallo approached Raley's about instituting the category management program. Although the program is being run by a vintner, he does not expect it to favor its brands at the expense of the competition.

"We're working very well with Gallo and find they have excellent resources," he said. "Gallo wants to improve our total category and if we improve our category they are going to increase along with everyone else."