IN THE TRENCHES: 'Handcuff philosophy' stunts produce sales
IN THE TRENCHES: 'Handcuff philosophy' stunts produce sales
In the early days of boxing, fighters were often viciously beaten by their opponents. Some were so battered that they could hardly get back on their feet for the following round. When managers realized their fighters were being pulverized and could not continue, they would throw an article into the ring such as a sponge or towel to signify defeat. This practice eventually coined the aphorism "throw in the towel." Today, the phrase is still used and means to "give up" or to "surrender."
During the past several weeks, I have seen conspicuous signals throughout many supermarkets that their sales have been somewhat sluggish due to a weakened economy. For this reason, a considerable number of operators have pulled back on aggressive selling and replaced it with conservative merchandising presentations. I have seen this especially in produce departments, which are scaling back display space, removing fixtures, discontinuing specific items and reducing stock.
There is an uneasy feeling in the air that many retailers are "throwing in the towel" on aggressive selling. It is evident when you see some produce departments using their precious space for such items as bagged peanuts, candy, packaged dried salad toppings and wild birdseed instead of wholesome fresh fruits and vegetables. It makes no sense for retailers to eliminate aggressive merchandising practices designed to increase their business.
Recently, I walked through entire supermarket floor areas, department by department and aisle by aisle, observing everything through the eyes of an ordinary shopper. I saw the center-store grocery shelves that are usually kept full and neat. Of course, this is easy to do considering hard goods don't shrivel and shrink like fresh products. So grocery departments are normally the same in every supermarket: long aisles of boxes, packages and cans from top to bottom on full gondola fixtures.
It's a different story in the fresh departments. Produce, meat, deli, bakery, seafood, dairy and floral can easily turn off customers if the product displays are flat, skimpy and understocked. It sends a message that the product is stale.
In several stores, I noted this particular scenario in the way of fewer in-store baked goods; open spaces in the deli case; single layers of packaged meat items; sparsely stocked seafood departments with two or three lobsters fighting for their lives in a tank; single facings of several dairy items; vacant areas in floral shops with tables full of plastic accessories; and produce departments that have completely gone from exciting and aggressive to bleak and dismal.
In one major supermarket chainstore I visited, I asked the produce manager what happened to all the nice dynamic displays that once smacked me in the face upon entering his department. He stuck out his arms with wrists tightly locked together and said to me in confidence, "Do you see these hands? I have handcuffs on them. We've been instructed not to have any big displays with a lot of product for the time being because of the economy. If I do, my boss will be furious with me when he visits our store. So, I do what I'm told."
This is not only sad, it's the wrong strategy to take, especially at a time when the holiday season is approaching. When companies begin feeling a pinch in sales, many of them feel it's normal to make emergency cutbacks up and down the line, drive motivation out the door and stop selling.
A produce manager at another sizable chain told me that she was instructed not to create any big displays. She didn't agree with it, but was following orders under pressure from headquarters. Her low spirits were evident in a lack of motivation. Here was another handcuffed produce manager.
Do you see what's happening here? Have some retailers gone utterly insane? I had a bad feeling that the struggling economy would not only force companies to make those necessary cost reductions, but that it would seep into the sensitive areas of the merchandising bloodstream at the same time. Those who encourage this have simply lost sight of the needs of their customers and will feel the pain of survival pressures.
Thank goodness I haven't seen this in all stores. There are smart operators that show a consistent enthusiasm toward selling via large, captivating displays. These are the companies that don't practice the "handcuff philosophy." They allow their produce managers to operate their departments with a multitude of displays that entice shoppers. These are the companies that will benefit from increased sales at the expense of those that pull back.
In the United States, we have the best farmers who grow the finest produce in the world. People still need to eat in order to stay healthy. Go after the business with exciting and aggressive produce displays that will augment your sales and profit.
And remember, don't "throw in the towel" like so many of your competitors are willing to do during tough times.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power- produce.com.)
During the past several weeks, I have seen conspicuous signals throughout many supermarkets that their sales have been somewhat sluggish due to a weakened economy. For this reason, a considerable number of operators have pulled back on aggressive selling and replaced it with conservative merchandising presentations. I have seen this especially in produce departments, which are scaling back display space, removing fixtures, discontinuing specific items and reducing stock.
There is an uneasy feeling in the air that many retailers are "throwing in the towel" on aggressive selling. It is evident when you see some produce departments using their precious space for such items as bagged peanuts, candy, packaged dried salad toppings and wild birdseed instead of wholesome fresh fruits and vegetables. It makes no sense for retailers to eliminate aggressive merchandising practices designed to increase their business.
Recently, I walked through entire supermarket floor areas, department by department and aisle by aisle, observing everything through the eyes of an ordinary shopper. I saw the center-store grocery shelves that are usually kept full and neat. Of course, this is easy to do considering hard goods don't shrivel and shrink like fresh products. So grocery departments are normally the same in every supermarket: long aisles of boxes, packages and cans from top to bottom on full gondola fixtures.
It's a different story in the fresh departments. Produce, meat, deli, bakery, seafood, dairy and floral can easily turn off customers if the product displays are flat, skimpy and understocked. It sends a message that the product is stale.
In several stores, I noted this particular scenario in the way of fewer in-store baked goods; open spaces in the deli case; single layers of packaged meat items; sparsely stocked seafood departments with two or three lobsters fighting for their lives in a tank; single facings of several dairy items; vacant areas in floral shops with tables full of plastic accessories; and produce departments that have completely gone from exciting and aggressive to bleak and dismal.
In one major supermarket chainstore I visited, I asked the produce manager what happened to all the nice dynamic displays that once smacked me in the face upon entering his department. He stuck out his arms with wrists tightly locked together and said to me in confidence, "Do you see these hands? I have handcuffs on them. We've been instructed not to have any big displays with a lot of product for the time being because of the economy. If I do, my boss will be furious with me when he visits our store. So, I do what I'm told."
This is not only sad, it's the wrong strategy to take, especially at a time when the holiday season is approaching. When companies begin feeling a pinch in sales, many of them feel it's normal to make emergency cutbacks up and down the line, drive motivation out the door and stop selling.
A produce manager at another sizable chain told me that she was instructed not to create any big displays. She didn't agree with it, but was following orders under pressure from headquarters. Her low spirits were evident in a lack of motivation. Here was another handcuffed produce manager.
Do you see what's happening here? Have some retailers gone utterly insane? I had a bad feeling that the struggling economy would not only force companies to make those necessary cost reductions, but that it would seep into the sensitive areas of the merchandising bloodstream at the same time. Those who encourage this have simply lost sight of the needs of their customers and will feel the pain of survival pressures.
Thank goodness I haven't seen this in all stores. There are smart operators that show a consistent enthusiasm toward selling via large, captivating displays. These are the companies that don't practice the "handcuff philosophy." They allow their produce managers to operate their departments with a multitude of displays that entice shoppers. These are the companies that will benefit from increased sales at the expense of those that pull back.
In the United States, we have the best farmers who grow the finest produce in the world. People still need to eat in order to stay healthy. Go after the business with exciting and aggressive produce displays that will augment your sales and profit.
And remember, don't "throw in the towel" like so many of your competitors are willing to do during tough times.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power- produce.com.)
