GMA INTERNET MARKETING AND PROMOTIONS SEMINAR

NEW YORK -- Traditional supermarket retailers like Bashas' Markets, Chandler, Ariz., are finding that having a bricks-and-mortar presence can ehnance the ability to sell groceries via the Internet.

ponsored by the Grocery Manufacturers of America, Washington, focused on how all members of the food and consumer-products industry could use the Web as an effective marketing tool.

The retailer, who offers home shopping over the Internet as well as phone and fax in the Phoenix and Tucson markets, added that its tangible presence has led to sizable orders from home shoppers.

Bashas' on-line orders average 60% larger than its in-store orders, Gardner told the audience.

He added the high basket size is attributed to the fact "people know who Bashas' is." Since 1998, Bashas' basket size for the Internet order and delivery program has risen 22%, according to Gardner.

"We steal market share from our competition. We love that," he added.

Bashas' offers its stores' 35,000 stockkeeping units, including private label and perishables, to home-shopping customers at the same in-store price. Bashas' charges $9.95 for the home-delivery service, which is available within a 90-minute delivery window the same day, seven days a week.

Gardner added the charge for home delivery used to be $5, noting that the increase in the delivery charge hasn't created any customer resistance.

"Bashas' has never been a low-price leader," he said, noting that the company has a history of service with the community that dates back to 1932 and boasts strong customer loyalty.

Gardner said on-line customer can take advantage of loyalty programs and coupons. Gardner pointed out that Bashas' started offering on-line ordering as early as 1996 in conjunction with a third party But when the third party ceased to exist in 1998, the retailer took matters into its own hands.