RETAILERS SEEK EDGE OVER RIVALS

CAROL ANGRISANI

WILTON, Conn. -- Retailers and manufacturers are increasingly using "aisle reinvention" to drive store traffic and influence buying behavior, according to Cannondale Associates' 2005 PoweRanking report.

Aisle reinvention means creating new experiences for shoppers. Examples are Wal-Mart merchandising the Swiffer sweeper and other floor-cleaning products together on header boards, creating a presentation similar to that of traditional vacuums; and Campbell Soup's IQ Shelf Maximizer, a gravity-fed soup shelving system, said Ken Harris, managing director for Cannondale.

Aisle reinvention comes at a time when retailers are collaborating with manufacturers more than ever, stated the report, which has been published yearly since 1997.

Competition from other retailers has fostered the partnering spirit, as collaboration provides retailers with differentiated products, packaging and store formats. Retailers also can tap into suppliers' brand knowledge, Harris said.

The survey, based on 350 manufacturer, retailer and wholesaler respondents, identifies manufacturers and retailers who have put a high priority on collaborating. Wal-Mart Stores headed the Top 10 list again, although its composite score slipped 6.1 points between 2004 and 2005. Cannondale attributed this to legal, labor and other issues that have plagued the retailer this year.

"I don't believe people think Wal-Mart has lost strength. But it's in the process of repositioning itself from 'always the lowest price' to one in which 'always the lowest price' is part of other messaging," Harris said.

Wal-Mart was followed by Target, Kroger, H.E. Butt, Publix, Costco, Wegmans, Walgreens, Safeway and Meijer.

The Top 10 manufacturers were Procter & Gamble, Kraft, General Mills, Pepsi-Cola, Unilever, Nestle, Clorox, ConAgra, Coca-Cola and Kellogg.

Meanwhile, nonfood manufacturers have become more important to retailers as a result of product innovation by companies like P&G, Clorox and Unilever.