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Good news for toys: Grocery Store Sales Are Up

December 14, 2008

I have long been an evangelist for selling toys in supermarkets. Consumers visit the grocery store two to three times a week so it’s a great place to expand revenues and build brand equity.

 

It was for this reason that my eyes caught an article in the December 13, 2008 New York Times entitled “Store Brands Lift Grocers in Troubled Times.” The article points out that “[a]s the economy plunges into a deep recession, grocery stores are one of the few sectors doing well. That is because cash-short consumers are eating out less and stocking up at the supermarket.”

 

So, if you are looking to expand your business in 2009 and beyond, this is a great time to plunge into the supermarket channel of trade.  Here are a few of the top chains with their store counts:

 

Kroger             3,660 stores

Supervalu         2,200 stores

Safeway           1,740 stores    

Food Lion        1,300 stores

Publix                  950 stores

 

My suggestion:  Go to the grocery store.

Posted by Richard Gottlieb on December 14, 2008 | Comments (8)

December 17, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
KvaleGames commented:

...(even if only creating a small "green" section). Current market research show children are signficantly influencing their parents in sustainable choices (see "Kids and Tweens in the U.S." study from Packaged Facts, a NY-based market research company). Forty percent of kids 6 to 11 want to purchase recycled paper products, and they state evidence of children encouraging their parents to buy green products. I recognize the blog and comments are primarily speaking of traditional toy products. I think we all recognize that many of the grocery selections for toys are indeed based upon price. It's my assumption that many shoppers don't go in planning to pay $25 on top of their grocery bill, but less than $10 would make it an easier add to the cart.


December 17, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
KvaleGames commented:

This news may be unpopular to specialty game shops. There are also emerging consumer categories that are getting higher attention in certain markets. For example, our eco-friendly board games are receiving immediation promotion from various regions of the Whole Foods Market stores. While this is a marriage of a seeming small niche, WFM is the 10th largest grocery chain in the US. Our small company's challenge is finding the toy and game shops that recognize the consumer demand for sustainable choices, make selections that follow authentic conservation production choices, and then have the ability to promote this segment of principle-shoppers (even if only creating a small "


December 17, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
jerryc123 commented:

I am a new reader of Mr Gottlieb's column, so I am not sure who he is addressing when he tells the reader to sell to the grocery store. The thrust of the New York Times article he quotes is about the success of store brand private labeling, so I also am guessing Mr Gottlieb is preaching to the choir, that is, mass market toy manufacturers, and more specifically, mass market manufacturers with the ability to do custom packaging. As an single-unit independent toy seller, I am not going to lose much sleep over whether or not Kroker or Safeway convince Mattel to put Hot wheel cars into custom store branded packaging. And I believe it is the un-savvy small manufacturer that makes the mistake of trying to sell into the cost-cutting mass channel, when their proper place is in the specialty market where their product will receive the proper attention and customized hand-selling it needs and deserves.


December 17, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
Specialtoy commented:

So, what does that do for us specialty toy stores who actually market the toys so the "big" guys can come in and get the items at a smaller price just to fill their shelves for the holidays and then go to the "markdown". I guess it is all about the almighty dollar still.


December 16, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
Mark Salzwedel commented:

I can see the point about discounts and shelf space, but perhaps the idea has merit if approached correctly. I have been watching how Barnes & Noble manages their game inventory, for example, and it might be applicable to grocery stores, many of whom also have toy/holiday aisles just in November and December. The overstock gets marked down after the holidays to move it, of course, but it still has value to the store, because it drives traffic in.


December 15, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
Dave_in_PA commented:

it all sounds great until you think abotu slotting.


December 15, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
Dave_in_PA commented:

it all sounds great until you think abotu slotting.


December 14, 2008
In response to: Good news for toys: Grocery Store Sales Are Up
Toyman commented:

By definition then, the implication is that toy stores should be selling milk and other food items because kids have to eat? When it comes to discounting, supermarkets/grocery stores are even worse then big box stores. They need to maximize shelf space and push products often slashing margins and profit.

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