The Sage Project
Business Consulting: Sustainable Business Practices
Executive Summary
Overview:
The goal of this project is to improve the operations and provide profitable, healthy choices at a National City convenience store called Big B’s. In order to do this, we assessed Big B’s processes and performance through numerous site visits and interviews with the owner, Eddie. We reported the general status of the store through specific operational and design criteria and determined there were many opportunities for improvement.
In order to make proper recommendations to Big B’s, we evaluated the performance of Sunset Liquor, a nearby previous corner store conversion project. Through our observations and interview with the owner, Roy, we determined the most and least successful recommended changes. Perhaps the most relevant conclusion reached is the reduction of highly perishable raw produce while emphasizing pre-packaged ready-to-consume healthy alternatives.
Through research we found industry best practices that emphasize the importance of promoting and displaying healthy foods from local farms, following the Sell Healthy Guide to stock stores, and learning from previous store conversions. Most importantly, the industry best practices highlight the need for projects to be simple and easy, introduced in a series of small steps, and provided with support and feedback in order to be successful.
Given the current store conditions, competitor strategies, and industry best practices, we have developed numerous recommendations to improve the performance of the store. While all areas of the marketing mix are addressed in this report, we have focused our efforts on the store layout and design.
These recommendations are segmented based on the physical area of focus, and include the store’s exterior, interior, layout, front lot, and back lot. Major recommendations for the store exterior are as follows: new paint, simple and clear store signage, and new awnings. Major recommendations for the store interior are as follows: increased assortment of healthy fresh produce with decreased SKU depth, increased offering of healthy prepackaged food, increased ethnic food offerings, and reduced SKUs per category other than produce. Major recommendations for the store layout are as follows: 4 uniform aisles of in store shelving, additional shelving units properly stocked in the walk in refrigerator, removal of end cap shelving units, moving all household products to southeast wall, replacing current tall deli counter with low level unit, and the addition of two standing refrigerators in the northwest corner to hold perishables. Major recommendations for the front lot are as follows: repaving, addition of bike racks, addition of produce stands on either side of the front door, and the addition of picnic tables for customer seating. Major recommendations for the back lot are as follows: cleaning of grounds, replace fence and sod, addition of storage shed for dry goods, addition of picnic tables for customer seating, and landscaping.
Through the implementation of these recommended changes, Big B’s will be able to provide the local community with nutritious food while increasing profits.
Client Summary
Target Market:
Big B’s Market is currently targeting the members of the local community including Hispanic consumers, ages 21 to 35 with low income and moderate purchasing power, and school kids, ages 5 to 11 with low purchasing power. Routine local customers include young adults stopping by for liquor sales, workers nearby picking up a quick snack or lunch, and children walking home from school visiting the candy aisle.
Approach to Satisfying Needs:
Eddy’s approach to satisfying customer needs to create a “one stop shop” to satisfy all the needs of the local community. He has an extensive variety of product offerings for a store his size, although carrying many of these items is proving to be inefficient. He also encourages impulse buying, and carries many alcoholic beverages and snack items.
Store Location:
Big B’s is located at 1540 Coolidge Ave National City, CA 91950. It sits in a Hispanic neighborhood near the center of National City, San Diego and is accessible by three San Diego freeways. This popular location has a large industrial business area and many car dealerships. The store is close to a school and benefits from foot traffic it provides. The store sits on the main street of the future downtown area of National City, currently under construction.
Merchandise:
Big B’s merchandising strategy is a wide breadth and shallow depth of products. Products are ordered by the owner as needed, excluding some alcohol lines managed by merchandising representatives. As a result, inventory fluctuates by season. Impulse purchases are encouraged through product placement near registers and in highly visible areas.
Pricing:
Big B’s pricing model remains consistent with other convenience stores by utilizing a standard markup and even percentage margin on all products. He keeps costs low by ordering new stock as needed and providing a good variety of his bestselling products.
Advertising and Promotion:
Other than a few signs on the property, the store relies on word of mouth as a primary source of advertising. Promotions include sales and weekend food trucks. The acceptance of EBT allows the store to cater to the low income community.
Customer Service:
Eddie has established loyal relationships within the local community. Although the previous owner had numerous issues with graffiti, Eddie has not experienced any due to his strong relationships. Although Eddie is providing great customer service for his consumer base, it could be expounded upon with improvements in the deli, store layout, and product offering.
Store Interior:
Big B’s is a small store with a cramped interior. Refrigerators along two perimeter walls display a large selection of alcoholic and nonalcoholic beverages, while aisles occupy the middle of the store. Food items such as snacks, candy, and chips are on most aisles and end caps. Common household items occupy the other aisle shelf space. The store infrastructure is old but functional, and the ambiance is consistent with the surrounding area and exterior of the building. The interior of the store has white tile flooring and fluorescent lighting, as well as a deli. The current produce section is a small, poorly stocked stand. Popular items are placed at the back of the store to encourage customers to walk past additional SKUs. At the front of the store, customers are surrounded by impulse purchase items.
Store Exterior:
The older building is painted light brown with occasional imperfections. The exterior, even with a recent paint job, shows wear and tear. Some areas have worn paint and other areas have dark stains. Two banners hanging outside on the street facing wall identify the building as “Big B Market & Deli” and advertise the CA Lottery. Posters display product offerings and EBT acceptance. Using multiple banners with varying design create an atmosphere of low income and poor service. An overhang, door, and metal screen create the store entrance.
Store Front Lot:
The front lot of Big B’s is currently scheduled to be repaved by the City and extends out to the street intersection. Once repaved, the front lot will consist of a small parking lot with a renovated, open space that will welcome people to approach the store. Currently, an ice machine and a water refill machine sit against the building in front of the store. In between the front lot and the back lot sits a cement structure containing the garbage dumpster.
Store Back Lot:
The back lot of Big B’s is in disrepair. The entire lot has uneven ground with patchy grass and a small cement pile where a shed used to be. Old wood scraps, trash, and small dying plants sit randomly throughout the lawn. An old, dilapidated fence separates the lot from the sidewalk. This back lot poses a lot of opportunity for the store can take advantage of with a small amount of work. Many of the problems in the lot can be taken care of with minimum cost.
Intangibles:
Big B’s does not currently have an online or social media presence for promotion and advertisements. It may be a competitive advantage once the conversion project is completed. As of now, having this presence would not dramatically improve business in any way.
Successful Implementation: Sunset Liquor
Target Market:
The target market for Sunset Liquor consists of the nearby residents and day workers. Sunset Liquor caters primarily to the blue collar Hispanic demographic, because the majority of the nearby residents and workers in the area fall within this category.
Approach to Satisfying Needs:
Sunset Liquor recognizes that the majority of its profits come directly from alcohol sales, therefore 50% of the floor space is devoted to liquor. There is a particular focus on craft beers in the liquor section. Although they maintained healthy options for a short period of time following their city conversion, margins were too low and they replaced the produce with an ATM. The other 50% of floor space is filled with snacks and nonalcoholic drinks, as well as some miscellaneous supplies.
Store Location:
Sunset Liquor is located at 985 Broadway, Chula Vista, a main street conducive to constant traffic flow. The store is near I-5 and can also be accessed via I-805. The store is in a predominantly Hispanic neighborhood near both residences and businesses, in the end cap of a strip center. The store is relatively close to Tijuana, downtown, freeways, and the manager’s home. Competition on Broadway Avenue is fierce due to the other nearby liquor stores, gas stations, 7-Eleven, and Wal-Mart. According to store manager Roy, Wal-Mart is his primary competitor due to their low prices and broad product selection.
Merchandise:
Sunset liquor devotes 50% of its floor space to liquor sales. Upon walking into the store, one’s eyes are immediately drawn to the liquor pyramid to the left. The pyramid is both aesthetically appealing and an efficient floor space conservation method. Nearby the liquor pyramid are wooden shelves stocked with craft beers, primarily from local breweries. Approximately 70% of sales are from liquor. Food sales account for the second highest profit generator for Sunset Liquor, followed closely by non-alcoholic drinks.
Sunset Liquor’s primary merchandising strategy is to place commonly purchased products at eye level. Another interesting strategy used is the bundling of different alcoholic beverages with their relevant chasers or mixers and offering a bundle price, such as Jack Daniels whiskey bundled with a two liter bottle of Coca-Cola for $19.99.
Pricing:
Sunset Liquor’s pricing is based on a standard percentage markup across the board. Roy is aware that his store cannot compete against Wal-Mart on price therefore he believes that relationship selling is crucial to sustaining his business. He is on a first name basis with many of his customers and likes them to feel like a part of the family. Furthermore, he offers a deeper and broader alcohol selection than Wal-Mart and other nearby competitors.
Advertising and Promotion:
Sunset Liquor employs a wide range of marketing strategies including social media, signs outside the store, word of mouth, and item bundling. Sunset Liquor has active Instagram, Facebook, and Flikr accounts. Roy is considering a Twitter account in the near future as well. The newest promotional technique, which has just recently been approved by the city, is liquor tasting in the store. Roy plans to bring in representatives from different alcohol suppliers to set up in his store and hand out free samples each week.
Over time, they have experienced promotion failures as well. Sunset Liquor has had limited success with flyers, raffles, and a super bowl promotion.
Customer Service:
Customer service at Sunset Liquor primarily consists of building relationships with the “regulars”. In order to differentiate itself from Wal-Mart, Roy learns the first names of his customers and interacts with them in a friendly way. Additionally, he will occasionally throw in freebies such as a bag of ice in order to make his customers feel valued and unique. Sunset Liquor also accepts EBT and offers a check cashing service.
Store Interior:
Sunset Liquor has an efficient layout that makes the most of its floor space and wall space. Upon entering the store, one is immediately facing the ATM. To the left is the liquor selection and to the right is the food selection, primarily non-perishables. The cash register is to the left of the entrance, parallel to the door. Against the back wall are coolers stocked with non-alcoholic drink options. The coolers around the store are labeled with numbers above them allowing Roy to easily point a customer to the item they are looking for. Low shelves give Roy easy visibility of his whole store and allow customers to easily locate the items they need.
Store Exterior:
Sunset Liquor is in a strip center and they have a large sign to make their location clear. Roy is in the process of ordering a banner to advertise his alcohol tastings which he will hang on the front of the store as well. As the neighborhood has a relatively high crime rate, all removable store assets are kept inside to prevent theft.
Industry Best Practices
Advertising and Promotion:
Some stores place a chef outside the store preparing healthy meals with products from in the store and handing out samples. Recipes of the food prepared can be placed by the chef and in appropriate places in the store. On other days, employees can offer a sample of produce or snacks outside the store. (“Healthy Corner Store Initiative.”) In addition, the store could offer the community nutrition lessons (Sandoval).
It would be useful to utilize local colleges and schools to create and paint signs for the stores new, healthy items. To draw attention to new items, creatively display the fresh produce at the entrance of the store, and keep healthy items at eye level. In order to encourage customers to buy produce sourced from local farms, label all produce and highlight the items from nearby producers (“Healthy Corner Store Initiative.”). Free nutritional cards should be used to provide easy to understand information to help customers make good decisions (“Get Healthy Philly.”).
Getting Started:
When deciding the assortment of food, it is important to ensure the food is affordable (“Healthy Corner Store Initiative.”). The Cilantro and Lime Initiative stores found that their bestselling produce were oranges, lettuce, tomatoes, avocados, and cilantro (“Cilantro to Stores”). Owners should also follow the Sell Healthy Guide to help with healthy product selection, pricing and display, promotion and marketing, and equipment and refrigeration. The guide is offered in Spanish and English. (“Get Healthy Philly.”)
Lessons Learned:
There have been numerous lessons learned from previous store conversions. First, relationships need to be built with the owners. This will help ensure the owner and customer needs are understood and being met. Secondly, the store should start with small changes. This will help the store gradually adjust to the demands of selling perishables. Third, activities should be phased into action, allowing time for the owner to adjust to a more demanding inventory and to gain the knowledge and skills needed to sell perishables. Fourth, city officials should make it easy for the owner to get started with a simple, user-friendly plan to implement the changes. Fifth, support must be provided to train the owner and ensure the changes are profitable and sustainable. Lastly, owners should collaborate with others. It is important to reach out to local organizations to raise awareness. (Winkler)
Successful and Sustainable Implementation:
There are many factors that help lead to successful and sustainable implementation for the store conversions. In order to be successful, the stores infrastructure needs to be modified to properly store and display the produce. Relationships with local farmers need to be made in order to have local produce delivered. Storeowners believe that offering a wide selection of produce to customers is important. Various promotional events have been shown to help generate the interest and support of the community. The cohesive implementation of all these characteristics lead to far more successful conversions. (“Cilantro to Stores”)
Recommendations
Overview:
After a careful analysis of the current retail environment at Big B’s and local competitors, as well as best practices of successful corner store conversions, we have prepared detailed recommendations for the improvement of the store. Each category is explained in detail below. The majority of our recommendations are immediately actionable, while a select number of long term recommendation with high return on investment have also been included.
Competition:
We have identified Big B’s direct competitors as nearby convenience stores and fast food restaurants. Indirect competitors include Walmart and other superstores in the area. While it is not advisable to take a staunch competitive position against these nearby direct competitors, Big B’s should focus on ways in which to differentiate themselves from the competition.
The current competitive strengths of location, convenience, and relationship selling can be complemented by various efforts to increase fresh and healthy product offerings, develop a safe environment with a community feel, and offering a variety of extracurricular activities on the property by partnering with local community outreach programs and nonprofit organizations.
Retail Strategy:
We recommend immediately assigning available floor space to specific categories of products. This will allow better organization, navigation, and evaluation of items in the store. Our recommended floor space allotment is as follows: 40% beer, wine, and liquor; 30% convenience items; 20% prepared foods; 10% fresh foods.
Additionally, the store should seek to develop a holistic experience for customers, offering a variety of activities on the property. Events such as art nights, farmer’s markets, or food specials will attract new customers and serve as a promotional tool.
The current competitive strengths of location, convenience, and relationship selling can be complemented by various efforts to increase fresh and healthy product offerings, develop a safe environment with a community feel, and offering a variety of extracurricular activities on the property by partnering with local community outreach programs and nonprofit organizations.
Target Audience:
We have identified three target market segments which we believe the store should focus on. The first, locals, are 21 to 35 years old, live nearby, have a lower purchase power, and are primarily Hispanic. The second group, workers, are 30 to 50 years old, work in the surrounding businesses, have a higher purchase power, and are primarily male. The last group, school children, are 5 to 11 years old, attend the local elementary school, and have the lowest purchase power.
By focusing on these three segments and tailoring offerings to their needs and wants, the store will be able to increase revenue and inventory turnover.
Merchandising:
The store will benefit from changing its product breadth, eliminating items with low turnover and adding healthier items. Decreasing the depth of the product offering by stocking less units per SKU will also result in higher turnover and lower inventory carrying costs. (“Cilantro to Stores”)
Positioning:
Throughout all aspects of the conversion, the store should seek to convey an image that is safe, friendly, healthy, clean, organized, and family oriented. Proper execution of recommendations in each category will accomplish this goal.
Location:
In order to capitalize on the store’s future downtown National City location, continued involvement with the city and the neighborhood is crucial. Events and activities will strengthen this relationship.
Pricing:
The store should continue to price based on a standard markup in accordance with close competitors. Profitability will be increased primarily through increased turnover.
Promotions:
As the store currently has limited promotional activity, there is great room for improvement in this category. Chalk board signs placed outside the store can be used to promote weekly specials. The city council will also be advertising on the radio after the conversion. The store also has the opportunity to use partner advertising with local organizations by offering fundraising events or host space for community events in exchange for advertising space. This will promote the store’s image as a community living room, and drive in new customers.
Technology:
Any technology updates will be long term and costly renovations. We highly recommend the purchase of a Point-of-Sale (POS) System. Although expensive, these systems provide tremendous insight on inventory management, sales analytics, and sales projects. Using data from actual purchases made in the store to project orders will drastically increase profitability.
Human Resources:
The store may also benefit from hiring one or two employees. We recommend hiring Spanish speakers to address the needs of the community. Hiring only part time employees will also reduce costs while allowing the owner to focus on renovation projects.
Online Presence:
Although not an immediate concern, a store Facebook and Instagram account will allow better customer relationship management and event scheduling and promotion, if properly managed.
Store Design and Layout:
The area with the most room for improvement is store design and layout. Broken up into five sections, all recommendation in this area seek to develop a unified and welcoming image for the store, as well as avoid a low income ambiance.
Store Exterior:
We suggest renaming the store “Community Market of National City.” This name conveys the family oriented image of the store, and relates to the area’s community pride. It also eliminates the issue of confusion with Big Ben’s, a nearby competitor.
We recommend repainting the store a neutral taupe color with bright green accents. This color scheme conveys a natural and healthy image, and distinguishes the store from other corner stores. Canvas awnings on the west facing exterior wall will cover the existing outcrop over the door in a same green as the building trim. Replacing the door with a more upscale model will complete the look.
A sign on the south and west facing rooftop of a cutout of the store name in the accent green will draw attention to the store and provide a clean and modern image. This is further aided by removing all advertising banners from the building, and replacing them with a painted sign on the south facing wall with clean and simple bullet notes of the store offerings, such as “Fresh produce; Hand crafted sandwiches; Snacks and drinks; Beer, wine and liquor; Accepts EBT.” On the left side of the west facing wall, a community message board will add interest and activity. A cork board with decorative trim invites community members to seek out local activities and events, many of which will be held at the store (Sandoval).
Store Interior:
There are also many updates that could improve the interior of the store. While replacing the flooring with stained concrete would be a great long term goal, cleaning the floor regularly will improve the atmosphere of the store immediately. Additionally, the store would benefit from replacing the current harsh lighting with soft glow or natural fluorescent bulbs.
The store will benefit from stocking fresh and healthy food in a wider variety with a smaller inventory per item to reduce spoilage. There is also an opportunity to offer healthy prepackaged foods, such as prepared sandwiches, fruit and yogurt parfaits, prepared salads, and granola bars. Increased ethnic food offering will also drive sales. Throughout the interior, reducing the number of SKUs per category and clearly defining sections within the shelves will invite customers to walk through the store.
Store Layout:
There are three layout sections: the main floor, the refrigerators, and the deli. The main floor of the store has the potential for many updates. The stores current layout of four center aisles is ideal, but would be improved with the use of uniform shelving units and removing the bulky end caps. To maximize the profitability of the limited shelf space without cluttering the store, all products should be evaluated based on inventory turnover and profit per square foot to appropriately allot shelf space. Reserving the wall space behind the register for liquor and tobacco products, as well as moving all household products to the wall space above and to the right of the coffee maker will also improve the store layout. The store should make increased use of overhead wall space for low turnover items, such as dried chilies and electronics. In each section novelty items should be stocked at eye level, while routine purchases should be stocked on the lowest shelves, to increase impulse purchases.
The refrigerators along the walls of the store are utilized very effectively. The largest area for improvement lies in the walk in fridge. It is currently inefficient and improperly arranged. Large quantities of beverages that can be stored in the walk in are now taking up floor space in the store, impeding customer traffic flow and decreasing sales. To improve this situation, purchase additional shelving units for the walk in fridge. Items should be properly stocked in the walk in directly behind the shelf on which they will be presented to customers. This will reduce the large amount of wasted space inside the fridge and increase floor space in the store.
The last area of the store layout to be modified is the deli. The deli should be promoted as a feature area, with all produce stocked at the deli counter. Although a heavy investment, selling the current tall deli counter and replacing with a lower counter will increase visibility and make the space much more inviting for customers. In the area opened up by moving the household products to the front of the store, two standing refrigerators will hold perishables such as cottage cheese or sour cream.
Store Back Lot:
The back lot, although currently overlooked, has a tremendous effect on the image of the store. The ice cream truck should be moved, the fence needs to be replaced, and all trash and overgrowth should be addressed immediately. A storage shed in the North West corner will allow for additional storage of dry goods inventory. A community chalkboard on the East fence will mark the yard as a community space (Sandoval). Three additional picnic tables, placed on the existing concrete slab and covered with a shade structure, provide an area for organizations to host events. Container garden landscaping will make the space warm and inviting, while minimizing cost and upkeep. The entire space should be thought of as a community garden area, and events should be encouraged.
Conclusion
Summary:
While numerous, these recommended changes are attainable. There are a variety of short term and long term suggestions, and many are low to no cost. Proper execution of the above items will differentiate the store as an inviting community market, with an easy to navigate interior, and appealing exterior. Increased inventory turnover and a variety of community events will drive store traffic and profitability, positioning the store for enduring success in downtown National City.
Proposed Layout:
Immediate Recommendations:
-
Competition
-
Differentiation strategy
-
Develop a safe environment with a community feel
-
Offer a variety of extracurricular activities on the property by partnering with local community outreach programs and nonprofit organizations
-
Retail Strategy
-
Assign available floor space to specific categories of products
-
Beer, Wine, and Liquor – 40%
-
Convenience items – 30%
-
Prepared foods – 20%
-
Fresh food – 10%
-
Target Audience
-
Focus on three target market segments
-
Locals
-
21-35 years old
-
Lower purchase power
-
Hispanic
-
Workers
-
30-50 years old
-
Higher purchase power
-
Predominantly male
-
School children
-
5-11 years old
-
Lower purchase power
-
Positioning
-
Convey an image that is:
-
Safe
-
Friendly
-
Healthy
-
Clean
-
Organized
-
Family oriented
-
Location Strategy
-
Capitalize on:
-
Future downtown National City
-
City involvement
-
Merchandising Strategy
-
Changing breadth
-
Eliminate items with low turnover
-
Add healthy items
-
Decreasing depth
-
Stock less units per SKU
-
Higher turnover
-
Lower inventory carrying costs
-
Pricing Strategy
-
Pricing based on standard markup
-
Profitability altered purely by turnover rate
-
Promotions Strategy
-
Chalkboard/sandwich board specials outside
-
Partner advertising with local organizations
-
City council advertising on the radio
-
Store Design and Layout
-
Overview
-
Develop a unified welcoming image
-
Avoid low income ambiance
-
Change name to “Community Market of National City”
-
Front Lot
-
Repave lot
-
Bike racks
-
Consult local art organizations for donation
-
Include aesthetic features such as flower baskets
-
Produce stands on either side of the front door
-
Non-refrigerated items
-
Able to be wheeled inside the store at night
-
Picnic tables
-
Place on corner of front lot
-
Include aesthetic features such as inset flower baskets
-
Back Lot
-
Clean all trash and overgrowth
-
Replace fence
-
Exterior
-
Repaint
-
Taupe with green accents
-
Store signage
-
Cutout of store name
-
On south and west rooftop
-
South exterior wall advertising
-
Painted sign
-
Bullet notes of offering
-
Fresh produce
-
Hand-crafted sandwiches
-
Snacks and drinks
-
Beer, wine, and liquor
-
Accepts EBT
-
Community message board
-
Cork board with decorative trim
-
Left front wall of building
-
Canvas awnings
-
West facing exterior wall
-
To cover existing door awning
-
Matching green trim color
-
Replace door
-
Interior
-
Clean floor regularly
-
Stock healthy fresh food in a wider variety with a smaller inventory per item
-
Offer healthy prepackaged food
-
Prepared sandwiches
-
Fruit and yogurt parfaits
-
Prepared salads
-
Granola bars
-
Increase ethnic food offerings
-
Clearly defined product categories to invite customers to walk through the store
-
Reduce SKUs per category
-
Replace current lighting with soft glow/natural light florescent bulbs
-
Layout
-
4 uniform aisles of shelving
-
Purchase additional shelving units for the walk in fridge
-
Properly stock items in the walk in fridge to reduce large amount of wasted space inside the fridge and increase floor space in the store
-
Remove bulky end cap shelving units
-
Promote deli as feature area
-
Reserve wall space behind register for alcohol and tobacco products
-
Move all household products to wall space above and to the right of the coffee maker
-
Evaluate SKUs and appropriately a lot space based in inventory turnover and profit per square foot
-
Stock all produce at the deli counter
-
Increased use of overhead wall space for low turnover items, such as dried chilies or electronics
-
Stock novelty items at eye level
-
Stock routine purchases at low level
Competition
-
Differentiation strategy
-
Develop a safe environment with a community feel
-
Offer a variety of extracurricular activities on the property by partnering with local community outreach programs and nonprofit organizations
-
Retail Strategy
-
Assign available floor space to specific categories of products
-
Beer, Wine, and Liquor – 40%
-
Convenience items – 30%
-
Prepared foods – 20%
-
Fresh food – 10%
-
Target Audience
-
Focus on three target market segments
-
Locals
-
21-35 years old
-
Lower purchase power
-
Hispanic
-
Workers
-
30-50 years old
-
Higher purchase power
-
Predominantly male
-
School children
-
5-11 years old
-
Lower purchase power
-
Positioning
-
Convey an image that is:
-
Safe
-
Friendly
-
Healthy
-
Clean
-
Organized
-
Family oriented
-
Location Strategy
-
Capitalize on:
-
Future downtown National City
-
City involvement
-
Merchandising Strategy
-
Changing breadth
-
Eliminate items with low turnover
-
Add healthy items
-
-
Decreasing depth
-
Stock less units per SKU
-
Higher turnover
-
Lower inventory carrying costs
-
Pricing Strategy
-
Pricing based on standard markup
-
Profitability altered purely by turnover rate
Promotions Strategy
-
Chalkboard/sandwich board specials outside
-
Partner advertising with local organizations
-
City council advertising on the radio
Store Design and Layout
-
Overview
-
Develop a unified welcoming image
-
Avoid low income ambiance
-
Change name to “Community Market of National City”
-
-
Front Lot
-
Repave lot
-
Bike racks
-
Consult local art organizations for donation
-
Include aesthetic features such as flower baskets
-
Produce stands on either side of the front door
-
Non-refrigerated items
-
Able to be wheeled inside the store at night
-
Picnic tables
-
Place on corner of front lot
-
Include aesthetic features such as inset flower baskets
-
-
Back Lot
-
Clean all trash and overgrowth
-
Replace fence
-
-
Exterior
-
Repaint
-
Taupe with green accents
-
Store signage
-
Cutout of store name
-
On south and west rooftop
-
South exterior wall advertising
-
Painted sign
-
Bullet notes of offering
-
Fresh produce
-
Hand-crafted sandwiches
-
Snacks and drinks
-
Beer, wine, and liquor
-
Accepts EBT
-
-
Community message board
-
Cork board with decorative trim
-
Left front wall of building
-
Canvas awnings
-
West facing exterior wall
-
To cover existing door awning
-
Matching green trim color
-
Replace door
-
Interior
-
Clean floor regularly
-
Stock healthy fresh food in a wider variety with a smaller inventory per item
-
Offer healthy prepackaged food
-
Prepared sandwiches
-
Fruit and yogurt parfaits
-
Prepared salads
-
Granola bars
-
-
Increase ethnic food offerings
-
Clearly defined product categories to invite customers to walk through the store
-
Reduce SKUs per category
-
Replace current lighting with soft glow/natural light florescent bulbs
-
Layout
-
4 uniform aisles of shelving
-
Purchase additional shelving units for the walk in fridge
-
Properly stock items in the walk in fridge to reduce large amount of wasted space inside the fridge and increase floor space in the store
-
Remove bulky end cap shelving units
-
Promote deli as feature area
-
-
Reserve wall space behind register for alcohol and tobacco products
-
Move all household products to wall space above and to the right of the coffee maker
-
Evaluate SKUs and appropriately a lot space based in inventory turnover and profit per square foot
-
Stock all produce at the deli counter
-
Increased use of overhead wall space for low turnover items, such as dried chilies or electronics
-
Stock novelty items at eye level
-
Stock routine purchases at low level
-
Long Term Recommendations:
Long Term Recommendations:
-
Retailer
-
Develop a holistic experience by offering a variety of extracurricular activities on the property
-
Upgraded deli offering both prepared foods and produce
-
Technology
-
Purchase a POS system with inventory management
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Better inventory management
-
Sales analytics
-
Sales projections
-
Human Resources
-
Hire Spanish speaking employees
-
Only hire part time to avoid additional costs
-
Promotions Strategy
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Offer fundraising for local organizations
-
Host community events
-
Online Presence
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Facebook
-
Instagram
-
Store Design and Layout
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Back Lot
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Storage shed for dry goods
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Community chalk board
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Picnic tables
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Placed on existing concrete slab
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Landscaping
-
Container garden
-
Shade structure over concrete slab
-
Interior
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Replace floor with stained concrete
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Layout
-
Sell current tall deli counter, replace with low counter
-
Add two standing refrigerators to hold perishables
Retailer
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Develop a holistic experience by offering a variety of extracurricular activities on the property
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Upgraded deli offering both prepared foods and produce
Technology
-
Purchase a POS system with inventory management
-
Better inventory management
-
Sales analytics
-
Sales projections
-
Human Resources
-
Hire Spanish speaking employees
-
Only hire part time to avoid additional costs
Promotions Strategy
-
Offer fundraising for local organizations
-
Host community events
Online Presence
-
Facebook
-
Instagram
Store Design and Layout
-
Back Lot
-
Storage shed for dry goods
-
Community chalk board
-
Picnic tables
-
Placed on existing concrete slab
-
Landscaping
-
Container garden
-
Shade structure over concrete slab
-
-
Interior
-
Replace floor with stained concrete
-
-
Layout
-
Sell current tall deli counter, replace with low counter
-
Add two standing refrigerators to hold perishables
-