PET-SHOP CONCEPT UNLEASHES SALES FOR PRICE CHOPPER UNIT

JOEL ELSON

INDEPENDENCE, Mo. -- Based on the early success of a pet-shop concept developed at a McKeever Enterprises Price Chopper here, Associated Wholesale Grocers, Kansas City, Kan., the retailer's pet care supplier, may roll it out to some of the more than 800 retailers it services.

The 400-linear-foot prototype section, with 750 pet stockkeeping units, has significantly increased customer traffic and shelf turns since it opened in September at the 88,000-square-foot Price Chopper, according to Keith McEnaney, nonfood coordinator.

Sales of pet accessories have soared by 25% to 30%, he said.

"This highlights the department and puts it in the customer focus to keep these sales in the store," said Dick Swain, president of Valu Merchandisers, Associated Wholesale's nonfood arm. To alert shoppers to the section, weekly ads highlight a few pet-supply items and pet foods.

McKeever plans pet shops for its four other Price Choppers, which now offer 8 to 12 feet of pet merchandise, by the end of 1998, said Alan Johnson, retail coordinator.

Associated Wholesalers, according to Swain, plans pet- shop sections for two stores under construction, which will open this spring.

The pet shop is located at the store's center in a 56-foot-long grocery aisle, with accessories merchandised on a series of gondolas and freestanding fixtures. Pet supplies, representing about 20% of pet care offerings overall, are displayed on 20-foot- and 16-foot-long island fixtures down the middle of the aisle. Additional pet accessories are positioned on two 7-foot-high gondolas on either side of the aisle.

The left gondola contains 8 feet each of dog toys, collars and leashes, large cages and pet carriers. The two center fixtures feature 8 feet each of rawhide products; small-animal, bird and aquatic supplies; and bedding materials.

On the right gondola are cat toys and additional selections of cages and pet taxis. Pet shop brands include Hartz Choo Choo gourmet dog treats; Wardley aquatic supplies; and Nature's Gold items for birds, ferrets and reptiles.

Split island fixtures provide the opportunity to feature high- impulse items on four endcaps. Bulk chew bones are displayed in barrels on one; dog and cat toys on another; pet chemicals, brochures and magazines on a third; and stainless-steel feeding bowls on the fourth.

In addition to a wide variety of basic accessories, the pet shop mix contains such specialty items as Christmas bowls, stockings filled with chew bones and Christmas-tree pet ornaments.

"The endcaps are also used to promote seasonal and novelty items such as the filled Christmas dog stockings and tree ornaments, and antlers that can be strapped onto your pet, all in the $3 to $5 range," said Johnson.

Retail prices range from as low as 69 cents for a fish net to $60 for a pet carrier. Some of the heftiest volume gains have been in chew bones, bird supplies and feeding products.

Growing competition from large pet stores as well as growing pet ownership prompted McKeever to launch the pet-shop concept. "About half of today's households have a pet," said Johnson.

Developing the larger pet-shop format was also done "to stop a sales erosion of the category and get our business back from the category killers," noted Swain.

McKeever kicked off the pet shop with a four-page ad showing pictures of the section, with a representative list of items and prices in the expanded mix. The pet shop regularly features three to 15 in-store temporary price reductions at between 31.5% and 36% margins, compared with everyday grosses of between 35% and 40%, said Johnson.

McKeever receives two deliveries of pet supplies weekly from Valu Merchandisers, plus another shipment of the items manufacturers cross dock at the wholesaler's warehouse.