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Grocery Stores Go Upscale

Posted on: Tuesday, 23 August 2005, 18:00 CDT

Aug. 23--Grocery stores in the future might feature computer-equipped shopping carts and Sub-Zero freezers to keep microwave dinners cold.

For now, many markets are remodeling to what Vons calls a "lifestyle store," with more consumer-friendly services such as ready-to-go food and dry cleaning, as well as upgraded features like hardwood floors and architectural details.

Vons on Arneill Road in Camarillo has been renovated with recessed lighting, which is not as harsh as standard lighting, wooden produce bins and matching wood floors. The only thing that might remind shoppers they are in the wine aisle instead of a swank wine shop is a faint beep occasionally emitted from the checkout stands.

Remodeling like that at Vons happens in part because other stores are going upscale. Also, traditional grocery stores have to distinguish themselves from retailers that rely on drawing customers with cheap prices, like 99 Cents Only, Wal-Mart and Costco, said Robert Vosburgh, group editor for Supermarket News.

"They are trying to dress themselves up a bit," he said of grocery stores.

Barbara Campos of Camarillo is a regular shopper at Vons. She likes the renovations, especially the organic food selection and deli section.

"They are trying to compete with Trader Joe's and are doing a good job," she said as she loaded her grocery bags into her car.

Grocery stores also are responding to customer demands, said John Paul Orr, executive vice president of sales and marketing for National In-Store, a retail marketing consulting firm.

Orr said customers base shopping experiences on how the store made them feel instead of grading the quality of the store.

Still, shoppers' attitudes fluctuate. Orr said a consumer's internal dialogue goes something like this: "Some days, I feel good about myself by being a smart shopper. Then certain days I'm feeling better about myself about shopping at this gourmet shop." Besides a store's physical aesthetics, the products sold are becoming more diverse in what experts call "channel blurring," a term used to describe stores that have gone from selling a narrow type of inventory to a wider range of products. At the Camarillo Vons, for example, a shopper can purchase patio furniture.

"Ready-to-go meals" like soups and sushi are part of Vons' newest additions, Vons spokesman Daymond Rice said.

"Dinner doesn't happen at the dinner table," he said. "A lot of times, it's in the minivan." Customers, particularly working parents, will pay more for services like this if they believe in the quality of the food, Orr said.

Moms still feel like they can be good providers even though they aren't "staying at home making biscuits from scratch," he said.

Wal-Mart, the king of discount shopping, also is looking to make stores more upscale with new product lines to attract a wider range of customers.

"Even Wal-Mart is making a concerted effort," Orr said. "You know for certain this is a trend when Wal-Mart starts." In the future, grocery stores will update freezer technology and include kiosks in the store.

Information provided at these kiosks fall under the category of what Orr calls "just in time information." Instead of advertising a product when people are trying to relax or eat dinner, they would rather hear about food products when they are buying them, Orr said.

Product samples and commercials played on a checkout television screen or between songs on a radio network all have become a means of advertising in upscale supermarkets.

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To see more of the Ventura County Star, or to subscribe to the newspaper, go to http://www.venturacountystar.com.

Copyright (c) 2005, Ventura County Star, Calif.

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Source: Ventura County Star

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