VONS PLANNING EXPANSION 0F DRY-CLEANING PROGRAM

JOEL ELSON

ARCADIA, Calif. -- In a bid to enhance one-stop shopping, Vons Cos., based here, plans to expand its dry-cleaning departments at 15 additional stores this year.

A dry-cleaning section now operating in 34 Vons stores in a shared-revenue arrangement "is a great convenience that brings customers back," said a store-level source, who asked to remain anonymous. Company officials declined comment.

Vons' 80,000-square-foot store in Laguna Niguel, Calif., for example, has found that dry cleaning appeals to professional 25- to 35-year-old two-income households seeking one-stop shopping and less drive time.

The customer base in that store "likes shopping to be quick, simple and convenient, with everything, including child care, in one spot. Their time is worth everything. And so when they walk in to have their shirts done, then [in a sense] we own them," stressed the Vons source.

The average dry-cleaning transaction per trip at Vons amounts to around $13, according to sources. They noted the chain pinpoints its dry-cleaning departments according to store demographics, aiming for areas with a high concentration of two-income, professional families.

At the Vons unit in Henderson, Nev., dry cleaning churns out $7,000 in weekly sales, according to an industry observer. The other dry-cleaning sections in the chain generate from $1,500 to $4,000 in weekly volume, added the observer.

Dry cleaning can be another reason for shoppers to patronize one store instead of another, said retailers.

"Anything that promotes one-stop shopping and attracts customers like dry cleaning is helpful to a grocery store," said a store manager at one of the three Randalls Markets in Houston with dry cleaning. The chain plans another five dry-cleaning departments this year.

He said it took about a year for one Randalls store to grow its dry-cleaning volume weekly from about $300 to around $3,000.

Other chains offering dry cleaning are: Pittsburgh-based Giant Eagle, the Dallas Kroger Marketing Area Dallas and Lucky Stores, both the Southern and Northern California Divisions based in Buena Park and San Leandro, Calif., respectively.

A Lucky official confirmed placement of dry-cleaning sections began in 1994, and that they are now in two northern California and 12 southern California stores. The other chains could not be reached for comment.

"Bringing laundry to a grocery store is something I wouldn't have envisioned happening five years ago. But taking away one of those pieces now like child care would upset customers," said the Vons source.

Vons operates its dry-cleaning departments seven days a week until 9 or 10 p.m. The extended hours "definitely attract the time-compressed shopper," added the Vons source.

Vons dry-cleaning sections, first installed in 1994, are positioned at the service center to spread labor cost and staffing duties among the one-hour photo, fax, copy machines, package shipping and money orders handled there.

"This is a more cost-efficient approach to a dry-cleaning service in a supermarket. A leased department operated by an outside dry cleaner would otherwise bear the entire staffing cost of the department," explained the Vons source.

In Vons case about one-third, or 55 hours of the service center's 170 hours of weekly labor are devoted to dry cleaning, added the source.

Vons dry cleaning is serviced by Dress For Success Cleaners, Anaheim, Calif., on a shared-revenue basis. According to DFS president and chief executive officer, Greg Buckingham, DFS pays the supermarket chain a percentage of sales based partly on the capital infusion for equipment by DFS, or by the retailer during the program startup.

The dry-cleaning profit margin is based on whether the retailer or vendor provides the fixtures and equipment.

DFS arranges for a local centralized dry-cleaning plant that cleans the garments, and trains store personnel in staffing the 100-square-foot department, a computer system and clothes-storage conveyor.

This spring Vons planned to promote dry cleaning with mailed coupons worth 20% off regular pricing. The chain also wants to target those people it considers will be ideal dry-cleaning customers.

"Vons will use frequent-shopper club card data to identify customers that have purchased nylon hosiery and cosmetics. These are items working women seem to use a lot. These are also shoppers that need frequent dry-cleaning services," said the trade observer.