AG REMERCHANDISES FORMER LARRY'S MARKET FLAGSHIP

MINA WILLIAMS

REDMOND, Wash. (FNS) - The former Larry's Markets flagship unit here has been remerchandised with a broader selection of value-priced offerings while retaining its core focus on perishables, officials from Associated Grocers, Seattle, told SN.

AG, through its Supermarket Management Corp. subsidiary, acquired the store earlier this year after the well-respected local retailer liquidated through bankruptcy.

The wholesaler's first order of business, in preparation for the reopening earlier this month, was to remerchandise the main grocery lines to present a value orientation. Prices were lowered on 10,000 items and the item count was bolstered to 30,000 products. The promotional tag line "Outstanding Products, Outstanding Prices" was created, and has been used on radio spots, in the unit's circular, in on-store signage, and on banners and shelf tags.

Throughout the reopening phase, AG is maintaining store selection and quality along with emphasizing value, spokesman Bob Hutchins said. "We are reverting to the original assortment that Larry's Market was known for and made it special."

The Larry's flagship unit, located near Microsoft's main campus, originally opened in 1999 with a fresh-centric floor plan. The store emphasized service in the deli, bakery, prepared food and cafe areas along with service meat and seafood departments. A large produce department at the entry of the store punctuated the fresh appeal, and wine and gift departments further enhanced the market's appeal.

AG does not have any plans to shift that focus, Hutchins said. Rather, he said, the company intends to woo customers back to the store by focusing on value and freshness.

Realizing that a food-savvy staff was necessary to make this strategy a reality on the sales floor, AG gleaned store-level employees from the entire Larry's chain to maintain the consistent high level of service and assistance that originally attracted customers to the banner.

"Store employees emphasize our excellent service," Hutchins said.

Of the other Larry's units, three will remain supermarkets operated by three Associated Grocers members, including Metropolitan Markets, which will run the urban Queen Anne store. Two other units, in Bellevue and Kirkland, Wash., will become outlets for a retail sporting goods chain.

"Being a retailer is not new for AG," Hutchins explained. "AG has owned stores in the past. But we don't want to be in the retail business. We want to support our retailers. Having the Redmond store is an opportunity for AG to show off programs we offer to all our retailers. It will also act as a model for projects and programs."

Throughout the initial months AG has operated the unit, consumer emails have urged that hallmarked items Larry's had introduced to the marketplace - signature cuts of meat and specific prepared food items, in particular - remain in the mix.

"We intend to keep an emphasis on the quality meats, fresh produce and wonderful deli plus the cafe with its fantastic lunch selections," Hutchins said. So far, the customer response to AG's moves has been gratifying, he said. "We are earning customers back one at a time."

Over recent years, the Larry's Markets chain struggled to retain its niche while value-oriented operators, including Wal-Mart Stores, and natural food operators, such as Whole Food Market, entered the marketplace effectively, shaving the top and bottom off Larry's customer base.