GROCERY TIE WRAPS UP NONFOOD SALES AT CARR GOTTSTEIN

JOEL ELSON

ANCHORAGE, Alaska -- Cross merchandising nonfood on grocery endcaps and at produce has added incremental and impulse general merchandise sales for Carr Gottstein Foods, based here.

Gary Schloss, vice president of general merchandise, reported that the general merchandise tie-in program was initiated on a regular weekly basis last December.

"The tie-in items move from good to excellent, and selling an extra $10 to $20 off each endcap is kind of like finding money. We're merchandising general merchandise off those ends where we weren't selling anything from there before," said Schloss.

In launching the program, the retailer has been able to avoid the battles that sometimes take place between departments over proprietary space.

Key to the program is close cooperation between the general merchandise and grocery store managers, said Schloss. "They work together to carry this off. You need the cooperation from both to execute the program on a weekly basis."

The executive prepares a new weekly merchandising plan for stores, picking general merchandise that ties in the closest to the grocery displays for that particular week.

During one week for example, Rubbermaid quart Chuggable plastic bottles priced at $2.85 were cross promoted on bottled spring water endcaps; colanders tagged at $9.99 were intertwined with a spaghetti and spaghetti sauce display; and plastic bowls marked at $1.19 and $1.39, and food storage containers were worked into a Frosted Flakes cereal endcap promotion.

Other tie-ins have bagel holders arranged on a bagel display; an end of Scott towels with small barbecue grills retailed at $4.49; and outdoor-living products starting at $4.99 for a disposable grill to $189 for a Sunbeam grill positioned at the start of the seasonal aisle. That display also included a package of lava rock replacements for $5.99, coolers, barbecue tools and gloves.

"Each week there is some type of general merchandise tie-in on as many endcaps as possible, including Pyrex displayed on the same end with cake mixes," said Schloss. The endcap displays stay up for a week, he added.

The chain has experienced similar turns by placing potato peelers with potatoes, garlic presses by fresh garlic, and banana tree holders near bananas.

All general-merchandise tie-ins are taken from in-stock items. They are also sold from their regular shelf position. Although some general merchandise featured on endcaps is at slightly lower retails, most items carry everyday pricing, Schloss said.

Stores in the chain that support the program have generated better sales on the selected general-merchandise products. "The stores that really have participated and done a great job have seen some tremendous sales increases of the cross-merchandised items," added Schloss.

While endcapping heightens visibility for general merchandise, Schloss stressed that the grocery mix first draws traffic there. "Grocery is the core business. But as customers enter the store they'll also see an end of cereal with canisters tied-in there for storing the cereal," he said.

Schloss said some cross-merchandised endcap general merchandise has sold out and been replenished. In every store, the displays get daily attention by the general merchandise manager or the assistant. "You can't build the display and walk away from it. Items sold down need restocking," he added.