A&P GIVES BICYCLES A SPIN AND TESTS COMPUTER SOFTWARE

JOEL ELSON

MONTVALE, N.J. -- A&P here is peddling into summer, selling bicycles in its Philadelphia-area stores. The chain also is testing interactive computer software kiosks at 102 stores in five divisions.

The 4-foot kiosks, supplied by Major Connections, Dallas, began going into Philadelphia, Baltimore, New York and Atlanta stores, as well as a number of Waldbaum's stores, last month.

"If the software is successful, it will remain in place and be rolled out to other areas," said A&P vice president for marketing and corporate affairs Andy Carrano.

The display contains 30 different CD-ROM titles, priced from $14.97 to $59.97, covering a broad range of interests for adults and children. Titles include "Cosmopolitan Virtual Makeover" for $39.97, "Jeopardy" for $14.97 and "Student Writing & Research" for $59.97.

Selections will be changed periodically, said an industry source familiar with the program. Margins on software sales are said to range between 30% and 40%.

Located between the cereal and soap-and-detergent aisles, the titles are arranged on the kiosk in wire pockets. Customers can preview the software before buying it by accessing a touch pad.

This marks the second time the 70-store Philadelphia Super Fresh Markets division has tried computer software, which went into 22 larger stores in late May. About two years ago the division merchandised computer software at three units. However, it killed the program due to poor sales.

"The products were from manufacturers with excess stock, and stores buried them in-line in an aisle and they didn't do well there," said a trade source.

Meanwhile, A&P's Super Fresh kicked off its first bicycle program in a "Bicycle Blowout" sale.

The in-and-out promotion began the week before the Memorial Day holiday. Super Fresh promoted five different models made by Brunswick Bicycles under its Flexible Flyer and Roadmaster brands. Product is being displayed in lobbies and open selling areas. The Flexible Flyer models include a 10-inch tricycle for $19.99 and 16-inch girls' and boys' bikes for $49.99. Roadmaster models include 20-inch girls' and boys' bikes for $49.99 and 26-inch women's and men's 18-speeds for $99.99.

"Bicycles widen the general-merchandise mix and develop incremental nonfood sales by keeping this business from going to the mass merchandisers. If we sell a bike, obviously it doesn't take away from any other sales that we have in the store," said Carrano.

To remain competitive with mass merchandisers, Super Fresh worked on thin margins of about 10%, the source explained. He added that although the lower-end bikes were reasonably priced, the retailer was "almost trading dollars" on the competitively priced $99.99 models.

A&P views bicycles primarily as a seasonal in-and-out promotion. "If it's successful, I'm sure we'll come back with it," Carrano said. Sales to date were described as "fair" by a store source.

Store-level orders ranged from 40 to 80 bicycles, which came partially assembled and boxed. Backup inventory was stored in the Super Fresh Florence, N.J., warehouse.

Other A&P divisions are monitoring the bicycle program with the idea of bringing it to their stores, said Tyler Scott, vice president of sales and marketing at SAI Consulting, Cincinnati, which developed the bicycle program for the retailer.