FMI: COMMUNITY RELATIONS REQUESTS GROWING

ELLIOT ZWIEBACH

WASHINGTON, D.C. -- Supermarkets typically spend a median of $25,000 a year to support community relations projects, according to a survey by Food Marketing Institute here.

The amount differs by store size, the survey noted, with single-store operators spending approximately $9,000 a year; companies with 2-10 stores allocating $20,000 annually; companies with 11-49 stores spending $100,000 a year, and companies of 50 stores or more spending $800,000 annually.

According to the survey, 69% of respondents said they have enhanced their community relations efforts in the last five years by increasing both the number of projects they support and the budgets allocated for those efforts; 24% said their budgets and activities have remained the same, and 7% said they have decreased funding and community involvement.

The report, entitled "Community Relations Activities and the Supermarket Industry," surveyed 221 companies. In citing numerical amounts other than percentages, the report said it used medians, representing the exact midpoint between the highest and lowest figures for any one measure.

Nearly 90% of the respondents said the biggest challenge they face in the community relations area is too many requests. "Regardless of the number of requests they receive, most retailers believe the volume of requests is growing," the report indicated.

Asked how many requests they accept, one-store operators said they accept 45 projects out of 100 requested each year -- "a high rate of responsiveness [that] reflects the close involvement many single-store companies have with their communities," the report noted; operators of 2-10 stores said they get involved in 50 projects a year out of 138 requests, despite citing a lack of adequate funds; the owners of 11-49 stores accept 68 projects a year out of 300 requests, and operators of 50 or more stores accept 290 projects of the 2,000 they are offered, despite a lack of adequate funding as cited by nearly half of respondents.

As the number of requests has accelerated, retailers have begun developing more defined strategies to meet community and corporate needs, the report said, including the following:

Developing strategic plans to focus on specific issues, using written guidelines to help the companies and community groups understand clearly what the organization can and cannot do.

Allocating budgets to store managers as well as corporate executives, to divide decision-making responsibilities among personnel at headquarters and store level.

Requiring that proposals be put into writing, to help determine whether a program meets the company's guidelines and to ensure that all requests receive equal attention.

Encouraging volunteerism among associates, to broaden the supermarket's presence in the community and build employee skills and leadership abilities.

Asked why they support community events, respondents cited a desire to give something back to the community; the competitive edge that may result from participation; the ability to improve the industry's image as a career opportunity and expose people to future employment opportunities, and the chance to build company morale.

According to the report, supermarkets recognize the increasing importance of community relations as a competitive strategy, "[because] good community relations can set one retailer apart from others."

Asked to name the kind of community activities they support, 82% of respondents named food banks; 77% cited partnerships with local community groups; 76% listed special events, and 72% named schools and youth group activities.

The report said 84% of respondents indicated they usually contribute money to various causes; 71% said they donate in-kind services; 68% said they help publicize programs, and 51% said they develop their own initiatives or encourage employee participation in community events.