Deciding What’s Broken and Fixing It
By George Anderson
David Orgel, editor-in-chief of Supermarket News, writes that grocers and manufacturers agree that there is something broken in the Center Store. What they do not agree on, however, is what is broken.
Retailers, for example, are more likely to see a lack of space as a problem than suppliers. Manufacturers are much more likely to believe that slotting fees reduce innovation and inhibit upside performance.
Disagreements between trading partners over strategy and tactics exist elsewhere. Mr. Orgel writes that while “retailers and manufacturers both favor cross merchandising as a chief weapon, retailers cite advertising and in-store signage as primary tools while manufacturers give more weight to sampling and cooking demonstrations.”
Moderator’s Comment: What is broken in the Center Store of supermarkets and how can it be fixed?
The first problem that needs fixing, as Mr. Orgel correctly points out in his editorial, is getting both retailers and manufacturers on the same page. Once
that is accomplished, then the parties can begin working together to address the other challenges they face. –
George Anderson – Moderator