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Quirk's Marketing Research Review: Grocery stores evolve via high-tech makeovers

From Quirk's Marketing Research Review, November 2008

As shoppers across the U.S. scramble to save money, grocery store chains are losing market share to supercenters and warehouse clubs. But Stop & Shop, a Quincy, Mass., grocery store, and Maryland-based grocery chain Giant are fighting back by introducing a new logo, additional products, updated store décor and a handful of high-tech innovations designed to help shoppers feel they’re managing their grocery budgets better.

Consumers got their first look at the changes at the Giant store in Bethesda, Md., in August 2008, but the changes will roll out fully at both chains, owned by Dutch retailer Ahold, over the next year. Among the new introductions are expanded private-label offerings, an increased number of fresh prepared foods, including soups, new fresh-flavored rotisserie chickens and more hot and cold side dishes. The store will also offer shoppers a handheld scanner device they can use throughout the store that checks prices, keeps a running total and generates brand-related coupons for products as they shop. The company is also making a bigger investment in convenience: a Delivision kiosk allows shoppers to place deli orders when they enter the store, so they don’t have to wait as long in line.

As part of the updates, the company is also testing a family-friendly lane. In many stores, that simply means that the checkout lane is tabloid- and candy-free and offers healthy snacks such as yogurt, animal crackers and bottled water. The company describes the changes as “a further step in Ahold’s global strategy to create powerful local consumer brands,” adding that it shows the company is “committed to providing great food and meal solutions at low prices every day.”

Direct Link: Quirk's Marketing Research Review