P&C PLANS TO EXPAND NONFOOD IN NEW UNITS

JOEL ELSON

SYRACUSE, N.Y. -- In conjunction with its expansion in its primary market area, P&C Food Markets plans to enlarge its nonfood presence in new and expanded stores here over the next 12 to 18 months.

"The new stores will offer expanded product lines in the areas of soft goods in children's and adult apparel, health and beauty care, new pharmacy departments, in-store banking services and dry cleaning," said John Dixon, president and chief executive officer.

The new format, implemented in stores 65,000 to 70,000 square feet, will enable the retailer to offer everyday general merchandise sections in assortments not previously carried as regular departments chainwide. Previously, such merchandise was sold only as in-and-out promotions, said Sue Hosey, vice president of consumer affairs at the 61-store P&C chain, which is a division of Penn Traffic Co., also based here.

Two new stores are slated to get a pharmacy, said Hosey. The chain also will introduce pharmacy sections "at stores wherever we are not restricted by lease requirements or where we think such business is warranted. In those larger stores where we have the room and it is warranted, we'll devote space to a pharmacy. Those stores will automatically get larger HBC space."

The larger stores will contain in-line departments of plasticware, cookware and gadgets. The in-line soft goods section will include kitchen domestics, and licensed college and sport team apparel such as sweatshirts, and winter hats.

Merchandising of cosmetics is still in the planning stages, according to Hosey. However, she said the retailer is considering a boutique concept for cosmetics. "Cosmetics will be merchandised in a larger amount of display space. However, at this time, it will probably be part of the overall health and beauty care." As P&C intensifies its nonfood lines, it is finding increased competition for general merchandise and health and beauty care coming from Wal-Mart, Sam's Wholesale and BJ's wholesale club. In some areas, it competes with the national drug chain retailer, CVS.

P&C will use the larger formats as a testing ground for any new items that could be introduced at smaller 32,000- to 50,000-square-foot stores. Said Hosey, "We'll take pieces of what's working in the nonfood areas at the larger stores into smaller stores where it fits, and then we'll determine if we want to do more of it. But you can only squeeze so much in stores under 65,000 square feet."

General merchandise will continue to be merchandised mostly as in-and-out promotional displays, or in small 4- to 8-foot in-line sections at P&C's smaller stores.