James Tenser

CPGmatters: Supervalu Boosts Brands by Re-engineering Center Store

August 10, 2010

FROM RETAILWIRE:
When it came to the crucial but outmoded center of their stores, Supervalu executives realized that shoppers were drowning in merchandising messages, price promotions and other communications. What do you think of Supervalu's attempts to de-clutter messaging around the center store?      [more...]

If indeed the retail store may be regarded as a communications environment for brand messages (as I frequently maintain in this forum), then the Supervalu decision carries several important implications for shopper marketers.

One, we may postulate that there is an optimal level for in-store messaging that balances several factors, including: media revenue to the retailer; ability to stimulate profitable category sales; beneficial impact to the store banner reputation; and shopper experience and perception. Zero messages would self-evidently be too few, but there would be a diminishing-to-negative return on incorporating too many. Optimizing the in-store communications environment and defining messaging rules should thus be a systematic pursuit for the retailer.

Two, from this story I infer that Valassis has evidently won the contract to be Supervalu's lead in-store communications adviser. This seems to leave its arch competitor News America In-Store out of the aisles. To me it makes sense for a large retailer to retain counsel in this area, since in-store access to shoppers is a significant asset that should be managed for optimal benefit.

Retailers have not generally been highly proficient at defining and managing their in-store messaging decisions. Accepting too many messages creates a sloppy shopping experience that may cause diminished returns and damage core equities. Pure "clean store" policies are not a realistic answer. A set of parameters like these, if combined with a master communications strategy, holds promise.