HARRAH'S CARNAVAL CORNER GAMBLING ON GROCERY ENTERTAINMENT

BARBARA McDONALD

LAS VEGAS -- Carnaval Corner, a unique grocery store located inside Harrah's Las Vegas casino here, celebrated Independence Day with outdoor beer demonstrations, food tastings and a cigar-rolling event.

"We do a lot of promotions on the weekend with beer and wine vendors,"said Katherine Gonzalez, executive retail manager at Harrah's.

The store has two entrances: one on the street or "strip," and one that opens on the Casino's central court, called Carnaval Court. Customers step down into the store on the courtyard side, which is the front of the store.

Alcoholic beverages are prominently merchandised up front. The courtyard is used for store promotions, which often include live entertainment as well as sampling.

For July 4th, Carnaval Corner set up beer and food shacks in the courtyard and treated customers to a Hawaiian Cocomo band. The tempo changed as the sun went down, and the courtyard was taken over by a swing band. Customers could buy martinis and cigars -- rolled for $5 each by the Pheasant Cigar company. Carnaval Corner sold $2,500 worth of beer during the beer demonstration, hosted by Budweiser.

Carnaval Corner has also done a number of wine tastings in the courtyard, accompanied by cheese and crackers that were also cross merchandised inside the store, explained Gonzalez.

The grocery store opened in June of last year and is doing very well, according to the retail manager.

"It has become the marketplace for the strip, since there are no grocery stores here. We sell film, bags of ice, and even souvenirs, but we mostly sell food and beverages."

Paul Lechlieter, designer of the store, told SN that in keeping with the casino's theme, Carnival Corner celebrates food. Lechleiter's idea was to re-invent the convenience store, he said, as an upscale outlet that would become 'the Dean and DeLuca of Las Vegas."

Sampling is offered daily, and a "Happy Hour" runs from 5 p.m., where customers are served beverages and snacks. Carnival Corner sells fresh and prepared foods as well as grocery items. Imported vinegars sell well, as do cigars and bags of chips, with special salsa from one of Harrah's five restaurants. Hotline phones in the store make it easy for consumers who like what they sample from the restaurants to call for more.

"You assemble a picnic, or a party, any way you want, with perishables or nonperishables," said Lechleiter. Going back to the hotel room to consume the food is popular. Customers can also fill a basket and ship it to friends or relatives anywhere in the United States.

Overall, Carnival Corner carries between 3,000 and 3,500 stock-keeping units. The store focuses on those products that you can pick up and take with you, or "things you can just open up and eat," said Gonzalez.

Layout and fixturing of the 4,000 square foot store was kept simple, with metro shelving in the grocery section and wood counters in the kitchen food-service area. Lechleiter created the space on a human scale, he said, with no neon, and little glitz and glamour. The store is user-friendly and focuses on the product.

"It's a place where you can come and take a break. You don't have to wait on line, like at a buffet; you don't have to eat a full meal, if all you really want is an apple," said Lechleiter.