KASH N' KARRY TESTING NEW NONFOOD MERCHANDISING MIX

CHRISTINE BLANK

CLERMONT, Fla. (FNS) -- Kash n' Karry executives are testing a new product merchandising mix for greater nonfood exposure near the pharmacy at a new unit here.

The merchandising scheme consists of a magazine rack, about 30 feet long, placed directly next to the Medicine Shoppe pharmacy counter along the wall. Adjoining the magazine rack is an extensive 32-foot school-supplies section. Both face out to five perpendicular aisles of health and beauty care products, and are allotted significant floor space to allow customers to browse.

"The department has a drug-store feel with all the general merchandise and magazines," said Mike Byars, chief operating officer of the 140-store chain.

"A lot of people in a drug store are waiting on a prescription. They would see magazines more there than browsing [in an aisle]," he continued. "This will give them a place to wait and something to look at." In most Kash n' Karry units, school supplies and magazines are located in a general merchandise aisle.

Success in positioning a magazine rack near the pharmacy in a test scheme at another store was a foundation for this move, according to Byars. That set-up garnered both an increase in sales and "a lot of positive comments," he said.

In addition to the change in nonfood merchandising at the new unit, the pharmacy was placed at floor level instead of the higher units in some supermarkets. The design is intended to encourage customer interaction with the pharmacist, according to Byars. And a room with chairs adjoining the pharmacy allows for private consultations.

In terms of HBC, Kash n' Karry has found more success by moving those aisles from the back of the store to in front of its pharmacies. "It just made more sense, [based on] the way customers shop," Byars said.

"The big thing we're pushing for is 'store within a store,"' Byars said about the pharmacy section. Examples of that can be seen throughout the 49,000-sq.-ft. store, which debuted last month. For example, all snacks and sodas are merchandised together. In addition, a greeting card/party goods section, called "Celebration Street" was lengthened (compared to most Kash n' Karry stores) to 62 feet of cards and several more feet of gifts and gift wrap was added.