Richard J. George, Ph.D.

Former Ukrop's Ban Fundraising Outside of Stores

February 23, 2010

FROM RETAILWIRE:
Back in 2004 when Target, a national chain, decided it would not allow the Salvation Army and other groups to fundraise outside its stores. Fast-forwarding to today: Ahold's Martin's Food Markets has a similar policy to Target's. Will Martin's ban on soliciting for charities outside its stores help or hurt it as it takes over the former Ukrop's locations?      [more...]

I believe the issue of fundraising outside of stores needs to be considered within the retailer's overall strategy and particularly within its community strategy. Ukrop's was heralded as the epitome of community involvement--Sunday closings, no alcohol sales, etc. While the banner may now say Martin's Food Markets, the community of shoppers are still Ukrop's customers.

One could question the wisdom of rolling the 25 Ukrop's stores under the Martin's Food Markets banner (subject for another BrainTrust discussion). However, there should be little discussion relative to the merits of changing policies that made Ukrop's the dominant player in its market.

Unfortunately, these types of discussions have little positive benefit to the offending marketer. Martin's Food Markets are now on the defensive and facing a potential PR nightmare--for what purpose? To merely extend Ahold's policies to each acquired banner without consideration of the impact on the target market makes little marketing let any PR sense.

Acquisitions like this work best when the acquiring firm combines its operational efficiencies with the marketing effectiveness of the acquired organization.