SPRINGFIELD, Mass. -- Big Y Foods here is using a bulk candy program to beef up its candy aisle sales.
The chain has instituted self-service bulk displays that feature 48 stockkeeping units of nonchocolate candy items in its Spencer, Mass., World Class format store, which opened in mid-November, and its Norwich, Conn., unit, which opened in early December.
Tom Yarrows, category manager for the 35-unit chain, said the bulk candy department has been well received.
"We determined that the department has had a beneficial effect on our candy sales in the store and we have seen an increase in total candy sales," he told SN.
"We decided to offer this department as a result of category management. Through category management we determined that candy should be in grocery, rather than in produce where it traditionally had been," he said, Bulk candy departments are profitable areas, he said.
"Bulk candy margins far exceed the national brands, and are in-line with private-label margins," Yarrows said.
Noting that Big Y operates 10 World Class stores, he added, "We do plan to expand the concept to all of our World Class markets."
Big Y designed the department in-house, and owns and maintains its fixtures.
"The hood of the display is an animated candy factory that is designed to draw attention to the department. It has lights in it that move, showing sugar and spice and kindness and sweetness going in and candy coming out," Yarrows explained.
The department contains 12 feet of bulk candy and is placed next to the 24 feet of traditional in-line candies, Yarrows said. The units merchandise bulk prewrapped hard candies and gummies. National-brand items and chocolates are not sold through the units.
"We don't have chocolates because they melt and are messier overall. We are currently offering four SKUs of seasonal products and we will see how well they do. The rest of the department remains constant," Yarrows said.
Customers help themselves to the candy, place it in bags and can weigh it at a scale provided in the department. The candy is weighed and priced at the checkout. For the convenience of shoppers and front-end employees, all candies are priced at $1.99 per pound.
Although the department is self-service, theft has not been a problem, Yarrows said.
"We do have a sample bin where a customer can purchase a piece for 5 cents and put the money in a box at the display. We feel that controls most of the shrink, although there always will be some."
Yarrows said Big Y expects to advertise the program once it is rolled out to more stores. Advertising is currently limited to in-store promotions.
"We need to run promotions on this department and will be doing so in the near future," he said.
Big Y will also continue to perfect the bulk department and tailor it to the needs of individual stores.
"The department is still fairly new and subject to tinkering. Even the little display piece that goes on the top has already changed in Generation 2," Yarrows said, referring to the display piece used in the second store.
