OPERATIONS

FMI report: Shoppers continue to tighten their belts

BY CSA STAFF

New York City — Rising fuel costs, higher commodity prices and increasing international market demand for food are pushing food inflation higher and higher, according to the Food Marketing Institute’s U.S. Grocery Shopper Trends report released Tuesday.

As a result of the economic pressures, the number of trips shoppers make to buy groceries plunged to 1.69 trips per week, its lowest level in the history of Trends. People shopping for groceries only once a week rose from 29% to 34% and those shopping once every other week increased eight points to 20%.

In other findings:

  • Regardless of whether a shopper is making a stock-up trip to the store or a quick trip, 46% of shoppers pay for groceries with a debit card, followed by 30% who use credit. Only 15% of transactions are paid by cash and even fewer by check.
  • Shoppers spend an average of $97.30 per week on groceries in 2011, more than three-quarters of it at their primary store.
  • The majority of shoppers drive less than five miles to their primary store, but 60% do not shop for groceries at the store closest or most convenient to their home. Two thirds of respondents (67%) say the No. 1 reason they bypass the closest store was to seek lower prices. Another important factor in selecting a primary store was great selection and variety cited by 23% of shoppers.
  • Nine in 10 shoppers visit a full-service supermarket at least once a month. Nearly 60% visit a supercenter once a month, followed by warehouse club stores (27%).
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REAL ESTATE

Nordstrom Rack on Long Island to relocate

BY CSA STAFF

Seattle — Nordstrom announced plans to relocate its Nordstrom Rack at The Mall at The Source to the Gallery at Westbury Plaza. The new store will be located approximately a quarter of a mile from the existing location and is expected to open in fall 2012.

The Long Island Nordstrom Rack was the first Rack store to open in New York in 1997. By relocating, Nordstrom Rack will be able to open a new 36,000-sq-ft. store in a new development that is closer to the Nordstrom full-line store at Roosevelt Field. Nordstrom operates three Rack stores and two full-line stores in the State of New York.

Gallery at Westbury Plaza is a new 330,000-sq.-ft., open-air shopping center located off Old Country Road. The new Nordstrom Rack will be located on the second level of the center. Galley at Westbury Plaza is owned and operated by Equity One.

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INVENTORY

Weis Markets selects Retalix to reduce out-of-stocks

BY CSA STAFF

Dallas — Weis Markets has selected Retalix’s Demand-Driven Replenishment solution to optimize its overall in-stock position and reduce excess inventory and out-of-stocks in its stores.

“We wanted a system that could provide demand-based forecasting and replenishment and assist us in optimizing our inventory. Retalix’s Demand-Driven Replenishment solution was the ideal fit," said Bob Mawyer, VP of information technology at Weis Markets, Sunbury, Pa., which operates 164 stores.

In addition, Mawyer said, Weiss expects the solution to help it drive sales and improve its customer experience by reducing out-of-stocks, while making it operations more efficient and reducing overall costs.

The Demand-Driven Replenishment system is a demand forecasting and store replenishment system based on Microsoft technologies. It is comprised of four modules: Demand Forecasting, Inventory Management, Order Optimization and Analytics. It contains proprietary algorithms to interpret demand and optimize replenishment orders.

Weis Markets plans to roll out the Demand-Driven Replenishment system this year, and it will also be integrated with the other Retalix systems already used by the grocer.

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