RETAILERS AUTHORING BOOK SECTION RESETS

JOEL ELSON

Grocery chains are responding to the influence book superstores such as Barnes & Noble and Borders are having with the American public in the periodical category.

More chains, such as Riser Foods, Bedford Heights, Ohio, are moving into a boutique reading center concept. They are enlarging and refixturing departments with upscale recessed lighted shelving, oak bookshelves and railings, library-style furnishings and distinctive colors to foster greater browsing.

In addition, the 40% to 50% margins books and magazines generate is also prompting grocery stores to move the category to better traffic positions.

Riser opened four new book shop formats earlier this year. Here is how some chain retailers are responding to competition in the books and magazine field.

Copps Corp., Stevens Point, Wis., is drawing increased shopper interest with expanded 144-foot reading centers at four stores.

Plans call for another large department next year, when Copps will begin to promote the department with ads.

"First we must build our product mix and get more stores on a full department program. Some stores have a nice selection and variety, while others are just very basic," said Wayne Gresl, director of nonfood.

Copps has arranged its reading rack fixtures in a configuration with short-run gondolas. "We've placed reading centers -- which carry better profit than many items -- in other areas, in the center of the store for better browsing,"said Gresl.

According to the wholesaler, the use of canopy lighting depends on the overall decor package. "How lighting fits the decor package and locks together around the store is an important consideration," added Gresl.

At Copps, reading departments range from 20 to 144 feet, with the larger sections offering hardcovers, kid's activity books and a large selection of other titles.

"We certainly would like to adopt the larger format to other stores as space becomes available; and hopefully, as we get into category management that space will become available," said Gresl.

In an effort to make books and magazines stand out, Carr Gottstein Foods, Anchorage, Alaska, is putting in new metal racks with brighter red and blue background colors.

"This gives the section a more striking presentation for customers and gives the department more of a 1990's look," said Gary Schloss, vice president, general merchandise.

During the past three months, Carr also expanded magazines and paperbacks sections at three stores to 16-, 48- and 72-foot departments. The larger sets added 8% to 10% more variety.

"We saw new opportunities to increase sales in existing space where we could," he added.

Schloss said the large discount book chains cater to hardcover and "how-to" book buyers. "A supermarket reading center satisfies a magazine and paperback customer who likes the convenience of picking up the latest publication while food shopping."

Schloss said his firm has worked closely with its news wholesaler for some time. "We've had a good rapport and the consolidation [among wholesalers] has made our relationship that much stronger."

Category sales have been raised to a higher level at Clemens Markets, Kulpsville, Pa., with a new 24-foot prototype department featuring lighted, tiered mainline magazine fixtures. The racks display single pockets to show off the full front cover of paperbacks.

"We're enlarging most stores by adding four to eight feet of space. The use of illuminated racking makes the section jump out," said Larry Schimpf, director of nonfood.

Clemens revamped reading sections at six stores this year in anticipation of implementing the program at the chain's eight remaining stores next year.

In spite of expansion in Clemens' trading area by Borders and Barnes & Noble, Schimpf doesn't consider them formidable competitors. "They serve primarily customers looking for specific book titles where I'm getting the reader looking for the current best sellers."

Clemens is repositioning the sections to a more visible area at the front, in the middle or at an alcove, depending on store space and configurations.

Schimpf said the departmental remerchandising was a joint effort between the retailer and its book and magazine wholesaler. "It was just time to remake the department, and I don't know that we ever did a total refixturing."

Rosauers Supermarkets, Spokane, Wash., stimulated livelier interest in its paperbacks by promoting the category with $1 coupons, which run in a general chain-wide coupon booklet every six to eight weeks. The $1 coupon can be applied to the purchase of any single book priced above $3.98, and at other times it can be used toward any three books purchased. It has generated quite a few $20 rings, said Norm Carpenter, director of general merchandise.

The book coupons were sponsored either by publishers or the chain's news distributor.

Carpenter said, however, during one of the promotions, sponsored by a few publishers in support of their titles, control was lost at the checkouts when cashiers took off for any paperback purchased.

"After that we started promoting $1 coupons good toward any book of choice," said Carpenter.

To focus greater shopper attention at books and magazines, B&R Stores, Lincoln, Neb., is remerchandising its mainline periodicals rack with one to two more shelf tiers so that magazines and paperback books are displayed with the full covers showing.

"This is kind of a joint venture with our news distributor that's getting really positive customer feedback with about a 10% to 12% sales increase,"said Barb Zugmier, director of nonfood.

She said this was a defensive move designed to protect periodicals sales from Barnes & Noble and other large book stores that continue to expand.

"As those book chains come along and try and take our sales away, we must position the products so that people can see them," she said.

After adding the extra tiers in June, B&R customers now see full covers.

"This provides a better view of magazine and paperback graphics," said Zugmier, adding that computer publications have racked up quite a few more turns. "Customers can see references to specific articles inside highlighted on the covers," she added. B&R installed the new mainline fixture based on a recommendation by its news distributor. New canopy lighting sets off the reading racks, while the section at some stores was moved to the front for improved visibility.

Half of B&R's stores have adopted this merchandising approach for periodicals. There are plans to complete other units in January.