NEW YORK — From paper towels at Toys "R” Us to bagged lettuce at Target, several large retailers are taking a page from Walmart — the king of one-stop shopping.
The world’s largest retailer, whose annual meeting is set Friday in Fayetteville, Ark., about 25 miles from its headquarters in Bentonville, Ark., continues to rapidly gain new shoppers with its focus on the basics.
So its rivals are stretching beyond their longtime boundaries to keep cash-strapped consumers coming in the door.
Target, known for cheap chic clothing and home accessories, hopes boosting its grocery offerings will help it grow. And it’s relaunching an in-store line of home and personal-care products such as sunscreen as "up & up.”
Toys "R” Us Inc., which has long carried baby formula and diapers, is rolling out a new section in 260 of its almost 600 stores with more consumables, such as paper towels, hand soap and detergent.
Family Dollar Stores Inc. has been rapidly expanding its once-limited food assortment and adding brands such as Jif peanut butter from J.M. Smucker Co. and Triscuits from Kraft Inc.’s Nabisco brand as it is striving to pull in more shoppers. The store also added 200 food products in May, company spokesman Josh Braverman said.
Ken Perkins, president of RetailMetrics, noted there was a good reason consumables weren’t seen as a growth engine before: Profit margins are much thinner in food than apparel or home furnishings.
"It’s boring, and there’s not much glamour,” Perkins said.
"But Walmart has set the gold standard and the path to follow in recessionary times.”
Merchants are realizing that if shoppers are going to keep spending less, stores need them to come in more frequently. And offering a greater range of necessities will help.
by the associated press
No comments:
Post a Comment