K-VA-T Breaks Up Dollar Section

Discussion
Oct 06, 2003
George Anderson

By George Anderson

Supermarket News reports K-VA-T Food Stores has abandoned a single stand-alone dollar merchandise section in its stores for four-foot sections inserted into aisles with category-related items.

The chain plans to rollout the concept to all 90 of its stores by the end of the year. According to SN, stores with the dollar merchandise sections distributed throughout the store performed 15 to 20 percent better than those with a stand-alone destination.

David Lowe, vice president, general merchandise/health and beauty care, K-VA-T said, “After we did the test and extended it to the stores we have it in, we determined that it was a competitive market advantage for us, and now we are rolling it out full bore. We think it is going to be great for our company.”

Moderator’s Comment: What “how to” advice would you give a retailer looking into selling dollar items or improving on an existing business?

David Lowe told SN, dollar section and category groupings included placing dollar toys in the cereal aisle, kitchen gadgets with canned goods and
dollar food storage products in the aisle with national and private-label brand items.
[George
Anderson – Moderator
]

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