A SCIENCE OF SHELF SPACE AT THE STORE

Top shelf, bottom shelf, middle shelf...What's the "Magic Shelf" to consumers?

It lies in "space management" or "category management."

Both terms, which refer to the retail industry's efforts to increase store efficiency in delivering products shoppers want, are hot topics in the supermarket industry.

Large supermarket chains have made a science of determining what to put on their shelves and where to put it for best sales.

"Space Maps" or "Master Plans" for shelving products are commonplace.

"The main goals of these maps or plans are to have the right products in the right place," said Dennis Marchi, manager of the Schnucks Store in Cape Girardeau.

Marchi who recently addressed the Tri-State Advertising and Marketing Professionals, discussed Schnucks Market and the grocery business in general, including:

-- Product shelving, and methods to decide what shoppers will see.

-- Perishables in the supermarket.

-- What products can be found in supermarkets.

-- What shoppers want.

-- Customer preparations to shop.

-- Who does the shopping?

With more than 35,000 items available, representing more than 20,000 different brands, space and category management has become a new skill for supermarkets.

Matching supply and demand

Information from store scanners, census data and other sources help stores do a better job of matching supply to demand, said Marchi. Schnucks category managers in St. Louis have come up with space maps of every inch of shelf space in every store.

"These space maps tell stock clerks just how much of each product to stock and where to place it on the shelf," said Marchi, who adds that best selling spaces are the middle shelves.

People will look, and buy, items at eye level, "but you may lose them on lower shelf or top-shelf items," said Marchi.

Supermarkets receive the lion's share of grocery sales.

Convenience stores and other grocery stores account for 75 percent of the total grocery stores in the United States, but supermarkets account for more than 77 percent of sales volumes.

The average size of supermarkets' selling space is about 28,100 square feet, but they range in size up to 120,000 square feet. The Schnucks store in Cape Girardeau has total space of 55,000 square feet.

A lot of emphasis is on perishables in the supermarket. This includes deli items and produce. These items might not be on a shopper's grocery list.

"It takes a full year to become a good produce clerk," said Marchi. "You have to go through the four growing seasons."

Marchi says supermarket pricing is as important as the cleanliness of the store.

What shoppers want

In a recent ranking of "What Shoppers Want," cleanliness topped the list. Low prices was No. 2.

"We stress cleanliness and customer service," said Marchi. "Pleasant checkout clerks was number five on that (what customers want) list."

Youngsters are a vital link to grocery retailing.

The youth bracket -- ages 4 through 12 -- has a significant impact on the economy, not in how they spend money, but in how they influence their parents when it comes to making purchasing decisions.

Children younger than 12 spent or impacted spending of $500 billion in 1997, and lot of those dollars went to the grocery business. The senior market is also big for supermarkets, with purchases of food and health items.

One writer for the Progressive Grocer Annual Report, put it this way: "In the world of generational marketing, it's age that counts, And, make no mistake about it -- everyone counts, from age 4 to 104."

More than 63 percent of grocery shoppers will prepare a list prior to entering the supermarket. Another 30 percent will occassionaly prepare a list, leaving only 7 percent who never prepare a list.

More tha half of the grocery shoppers always read newspaper ads before going to the store. Another 28 percent occassionaly scan the newspaper ads.

Almost 60 percent of shoppers always check coupons. Another 33 percent occasionally check the coupons.

Coupons are big in the supermarket business. Marchi said, "More than 249 billion coupons a year are issued. That's a lot of savings, even with only 0.0004 percent of them being redeemed.

Supermarkets have numerous promotions for products. Some of the promotions feature special signage.

"Signs sell products," said Marchi. "Sales increases of up to 100 percent, or more, have been noted on items with special signage."

New organizational name

The Advertising and Marketing Professionals of Southeast Missouri is out...Tri-State Advertising and Marketing Professionals is in.

The organization voted to change its name during a recent meeting. The group includes members from Southeast Missouri, Southern Illinois and western Kentucky.

Diane O. Sides in university relations at Southeast Missouri State University is president of the 44-member Tri-State Advertising and Marketing Professionals. Other officers are Ken Lipps, Missouri Veteran's Home, vice president; Tracy Glenn, City of Cape Girardeau, secretary; and Keith Whitworth, marketing department, Southeast Missouri Hospital, treasurer.

A marketing class from Southeast Missouri State University attended the recent meeting of the Tri-State Advertising and Marketing Professionals to hear Marchi's remarks on the grocery business.

The 'Round Table'

Schnucks Markets is growing. The St. Louis supermarket chain has 94 stores and has expanded by about 10 stores a year.

Scott Schnuck is president, and Craig Schnuck is chief executive officer of the family chain.

"Six Schnucks are involved in the business," Marchi said. "Each of the Schnucks know every manager in the group."

When the Schnucks meet to take care of business, they sit around a "round table," said Marchi. There's no head-position.