Carroll Media Services as”In Store Intelligence Agency” reports for the In-Store Marketing Institute (September 2007)
In 2006, Delhaize America’s Food Lion division undertook a market-wide renovation of 60 stores in the Washington, D.C. metro area, which, for the chain, ranges from Fredericksburg, VA, to Laurel, MD.
The result, which officially concluded in March 2007, were 40 stores now operating under the chain’s three-year-old Bloom format, 14 reformatted in the two-year-old Bottom Dollar concept, and six maintaining the Food Lion name. (The company has about 13 other Food Lion stores in the region.)
The company spent more than one year conducting a market analysis of regional shoppers to determine which of the three formats would work best in each location. “These planned store remodels and the introduction of Bloom and Bottom Dollar are indicative of Food Lion’s intense focus on serving the diverse range of customers in the Washington region,” chief operating officer Cathy Green said in a 2006 media release announcing the market renewal.
According to an analysis conducted by Catenate Inc. for The Washington Post, Bloom stores tend to be situated in neighborhoods “populated by wealthy dual-income young families with busy, prosperous lifestyles,” while Bottom Dollar stores are “often found in neighborhoods of ‘aspiring young families’ who have less discretionary income and may rent their homes.”
According to Delhaize, Bloom provides a hassle-free, novel shopping experience and features unique technologies, a variety of quality products and a commitment to superior customer service. Features include Table Top Circle, which is located at the front of the store
Executives working on the chain’s development (which included two years of research before the initial 2004 launch) determined that vendor-supplied displays and signs conflicted with the mission of creating a simple, hassle-free shopping environment, a stance they have taken publicly on several occasions. (For more information, see “The Future in Bloom” in Related Articles.)
That policy puts the format in stark contrast with sister Food Lion, where vendor-supplied P-O-P materials can often be found in abundance. In practice, however, this theory appears to be somewhat less rigid than was reported. (See Image Gallery.)
At the other end of the format spectrum is Bottom Dollar Food, which the company says “seeks to redefine the discount grocery model by offering customers both national brands and private label products, in addition to fresh produce and quality meats, at low prices in an upbeat shopping environment. More items are prepackaged and customers bag their own groceries. Stores also use alternative display and stocking techniques that are more efficient and cost effective, such as cut cases on shelves, pallets and dump bins.
“Bottom Dollar Food stores have bright orange and lime green decor, and store employees wear uniforms in the same colors. The bright, cheerful stores also have humorous signs posted that read, ‘Food prices that kick bottom’ and ‘Watch your step … you might trip on the low prices.'”
Remodeled Food Lion stores, according to the company, feature greatly enhanced fresh departments, including produce, meats, deli and bakery; improved checkout and customer service areas; new signage, graphics and decor; and enhanced lighting.” The remodels also “allow most stores to offer a greater selection of products, including more natural and organic foods, international items and expanded beer and wine offerings.”
In-store intelligence agency Carroll Media Services, Atlanta, visited the three formats in August 2007, and company president Glenn Carroll provided the following field report on each. To view images from the store checks, click on the gallery links at the top of this page. For more information about Food Lion and Delhaize America, see Related Articles.
Food Lion
Food Lion stores stress Extra Low prices in a clean, convenient presentation. During our recent store check, merchandising displays were in abundance, with prices being predominantly featured in large fonts.
Although the many brand-supplied displays and endcaps give the store an “On Sale” look and feel, the store experience is clearly not all about budget. The bakery and produce departments are neatly arranged with tract lighting, wood-paneled carts, and attractive flooring to offer a pleasant, comfortable shopping experience. The message on ceiling banners hanging throughout the store is dead-on by stating, “Quality, Variety, and Selection.”
Bloom
The Bloom store we checked provides a broad range of fresh produce and take-home meal products in an environment that is rich and inviting. Wood floors are present throughout many departments and the signage — whether it’s in the aisle or above coolers — is presented in rich, but decoratively simple, formats. One clever technique used to enrich the shopping experience are the “Breeze” kiosks, where you can check a price, find an item, look up a recipe, or retrieve your shopping list. (See Image at right.)
Bottom Dollar Food
Bottom Dollar lives up to its name by offering deep discounts in a “warehouse meets grocery store” setting. You can certainly tell you’re in a grocery-operated chain, with some aisles reminiscent of a Food Lion. Other categories, however, are merchandised in open boxes with sale placards the size of real-estate yard signs. There is some contrast found in other areas — the produce department, for instance, is neatly arranged — but you never lose sight of signage that reminds you, “Our Quality is at the Top … Our Prices at the Bottom.”
Food Lion currently consists of approximately 1,200 Food Lion stores, 53 Bloom stores and 28 Bottom Dollar Food stores. The ongoing market renewal initiative is expected to encompass 450 stores by the end of 2007.
Published: September 2007
Source: In-Store Marketing Institute
