GDMC OFFERING FREE BENCHMARKING SERVICE

CHRISTINA VEIDERS

PALM DESERT, Calif. -- Members of the Colorado Springs, Colo.-based General Merchandise Distributors Council now can measure their stores' performance in the marketplace against nonfood category standards.

This first-of-its-kind benchmarking service, available free only to GMDC members, was previewed here during a special presentation at the GM Marketing Conference, May 21 to 26. The secured service allows retailers to measure the effectiveness of their nonfood merchandising programs. "There's a lot of sales statistics out there, but no one has ever come back with benchmarks that are based upon a large enough sample of stores to compare performance," said Ted File, senior vice president of Information Resources Inc., Chicago.

IRI was hired by the GMDC to put together statistics, used in the benchmarking service, that are available on GMDC's Web site (www.GMDC.Org). According to Mike Winterbottom, GMDC's director of technology, the Internet site uses state-of-the-art technology to deliver content in a user-friendly manner.

IRI compiled the standards from audits of 650 grocery stores and a mailing requesting margin data from GMDC members and the Top 100 retail chains in the country.

The project was begun almost two years ago. Roy White, vice president for education, would only say the GMDC's investment in the service is significant. "I believe we've broken new ground with our members," said White. "This is a landmark service."

Presently, the benchmarks consist of three areas: total category sales across all three channels of trade; per-store department performance, for both general merchandise and health and beauty care; and per-store category performance. By the end of the year there will be benchmarks for 50 nonfood categories. Category sales statistics will be updated quarterly, and other statistics on an annual basis.

Other services will eventually include Industry Macro Statistics for eight regions of the country, a Trade Promotion Alert that will measure the effectiveness of promotions on category sales, and The Pulse of Nonfoods, trend reports.

Retailers can compare their performance on a number of metrics including weekly sales statistics, category profit, merchandising and shelving space. Also, private label is benchmarked for the various categories analyzed. The analysis gives statistics for three store formats: conventional, all stores without pharmacy; small combo, stores with a pharmacy and under $20 million in all commodity volume; and large combo, stores with a pharmacy and at least $20 million ACV.

The service is interactive. Retailers can input their own store performance and produce a number of diagnostic reports that can pinpoint their strengths and weaknesses.

Said Charley Yahn, vice president of general merchandise at Associated Wholesalers, York, Pa., "When we used to do a category review our vendors gave us their data. Now we have an independent source to make our decisions."