RICHFOOD: RETURN TO NONFOOD ON TARGET

JOEL ELSON

MECHANICSVILLE, Va. -- Richfood here reports being on target in its move back into the nonfood business by June.

The wholesaler, which services about 880 supermarket accounts, has been meeting with major health and beauty care manufacturers to formulate product classifications, firm up lines and stockkeeping units, and create planograms for store HBC departments.

Richfood has been out of the nonfood business for the past four years because of a noncompetitive agreement it signed with McKesson Drug, San Francisco, when the wholesaler sold its Garner Wholesale nonfood subsidiary in Greenville, N.C., to McKesson. The noncompetitive clause ends in May.

Bob King, Richfood's director of purchasing, said the company would concentrate first on developing the HBC side of the business. He is working closely with vendors that together represent around 75% of HBC volume at Richfood's retailer accounts.

He added that manufacturers have been involved in "surveying retailers to assess their HBC departments and product classifications, and are working up suggested planograms. We'll match these against our retailers' current schematics and refine this all down to one final planogram."

King said retailers are anxiously awaiting the start up of the new HBC warehouse-sponsored program, and are being kept up to date on its progress.

During the four-year period Richfood was out of the nonfood business, it did handle limited general merchandise in light bulbs, stick goods, closet storage items, aluminum foil bakeware, motor oils, windshield washer fluid, and feminine hygiene, which is supplied as a grocery item.