Supermarkets are taking an aggressive approach in managing the book and magazine categories -- adding more footage and shippers and, in some cases, creating customized reading centers.
"By expanding what you offer, you can and do increase sales," said Allen Booth, assistant director of general merchandise and health and beauty care at Jitney Jungle Stores of America, a 108-store chain based in Jackson, Miss.
Last year supermarkets captured 41% of the $3.9 billion market in magazine sales, according to a recent survey by the Council for Periodical Distribution Associates, New York. Convenience stores ranked second, with a 15% share.
One of the reasons for the supermarket dominance of the category may be that chains are working to make their periodical sections a main destination point.
Over the last year, Ingles Markets, Black Mountain, N.C., a 182-store chain, premiered expanded book and magazine sections in its 25 new stores, according to Tony Federico, vice president of nonfood. The new departments have 36 feet devoted to magazines, 8 feet to hardcover books, 16 feet to paperbacks, 12 feet to children's books, 4 feet to comics and 8 feet to discount books. Most of Ingles' other departments have 20 feet devoted to magazines, 8 feet to paperbacks, 4 feet to children's and 4 feet to comics, Federico said.
One of the reasons for the expansion is that the chain is getting more promotional and advertising support from publishers, Federico said. "Publishers are finally realizing the grocery is a great avenue for retail sales," Federico said. "This has enabled us to be in line with big book players and still make a 30% gross."
A recent John Grisham novel, for example, sold at a suggested retail of $26.95, but was promoted at Ingles at an everyday low price of $19.99, according to Federico.
"We made 30% on it, and sold a ton of copies," Federico said.
Ingles also is redesigning the configuration of its in-line book and magazine sections at its smaller stores so that more space can be devoted to hardcover books. Under plans, comic books will be eliminated and magazines will be reduced by 4 to 8 feet.
"Comics are fine in a big store, but on a return-per-square-foot standpoint, I can do better with hardcovers," Federico said. He stressed, though, that the hardcover segment requires a lot of attention, especially in choosing which titles to promote.
Jitney Jungle also has expanded its periodical sections in several stores that have the space, according to Booth. He did not know exactly by how much the departments increased, but said it's enough so that the chain can offer several titles on one subject. "We want to be able to offer a wide enough variety of products to our customers," he said. "If someone is interested in golf and we have only one title on the shelf, they'll buy one title. But if you have three titles, there's a likelihood that they'll buy all three." Other chains share these views. Over the last two years, Houchens Industries, an 84-store chain based in Bowling Green, Ky., has expanded its book and magazine sections in several stores.
The retailer also has worked to create a distinct periodical department by placing its logo and special lighting on headers above book and magazine aisles, according to Dale Green, buyer of general merchandise and HBC.
Green said the embellished departments have "helped sales," though he could not say by how much.
As Houchens upgrades its stores, it plans to expand its magazine and book selection by adding different amounts of softside books and comics.
Pay Less Supermarkets, Anderson, Ind., has 25% margins in magazine sales and 30% margins in pocketbooks and children's publications, according to Dick Sizemore, nonfood merchandiser.
The retailer plans to open expanded book and magazine sections in two new stores slated to open in Anderson and Lafayette, Ind., by the end of the year, Sizemore said. Both locations will have a 44-foot main section, which will include about 28 feet of magazines and 12 feet of pocketbooks. About 8 feet of children's publications will be displayed near children's nonfood merchandise. As for other Pay Less stores, there are currently no plans to expand due to space limitations, Sizemore said.
"We've expanded as far as we can expand," Sizemore said. Most stores devote between 28 and 32 feet to books and magazines.
Rather than increasing footage, Pay Less has enhanced sections in other ways. It occasionally puts out shippers for popular seasonal magazine selections, such as TV Guide, Spiegel catalogs and wedding publications.
For supermarkets that don't have extra space to spare, there are other ways to bolster in-line sections. For instance, Book Margins, a supplier base in Ivyland, Pa., said many of its supermarket accounts are strenghtening their freestanding discount book promotions by using the company's popular 2-for-$1 and 3-for-$1 book dump displays located near the main section.
"Our 3-for-$1 promotion is so successful that it usually sells out prior to ads running," said Bob Feeley, national sales manager at Book Margins.
Seaway Food Town, a 66-store chain based in Maumee, Ohio, uses shippers to augment its main selections, said Bill West, director of nonfood. The displays feature key magazines and paperbacks from top-selling authors, such as Stephen King and Danielle Steele.
"We feel we've been aggressive in books," West said. "We've always felt it's important. Our growth has been good."
Seaway has 24- to 36-foot in-line book and magazine sections, depending on the size of the store. Its bigger stores have an additional 24 feet of paperbacks, West said. To increase impulse and incremental sales, Seaway also cross-merchandises in some locations, such as 4 feet of cookbooks in the baking section and 4 feet of children's selections in children's areas.
It has a bargain book table that is continually restocked with a variety of books at several different price points. The table is placed near the front end of the book aisle.
One area that's been receiving greater attention at supermarkets is children's books. Western Publishing, Racine, Wis., recently formed a special sales force to expand children's book sales in the food industry. Food stores currently account for less than 10% of the children's book business, according to Robert Lutz, national sales manager. But that could change if supermarkets give the category greater attention, Lutz said.
Lutz said many chains are focusing more on the children's segment, adding 8 to 24 feet to in-line departments.
"Many retailers are recognizing that this is a high-profit business, and are starting to expand," he said. A large Western chain that did not want to be identified has implemented Western Publishing's Storyland concept, an expanded children's section that includes story, color and activity books. In a new children's program, Golden Books recently joined with Essence, a lifestyle magazine for black women, to create a mass-market African-American publishing program for preschoolers and young readers. Over the last year, Carr Gottstein Foods, Anchorage, Alaska, has added about 4 feet to its children's sections. The retailer merchandises children's selections in the toy department and also directly within the main periodical section, according to Gary Schloss, vice president of grocery and general merchandise.
Carr also has expanded about six of its book and magazine departments from 12 feet to 48 feet as part of store remodeling projects, Schloss said.
One store has 40 feet of paperbacks 36 feet of magazines and 12 feet of hardbacks. An additional 8 feet of children's selections are located in the toy or cereal departments.
