NORTHLAKE, Ill. -- Dominick's Finer Foods here has completed a chainwide stick-goods reset, upgrading the section in a bid for higher profits.
During the last few weeks, three teams from Libman Co., Arcola, Ill., have been removing the racks of Dominick's former primary stick-goods supplier -- Springfield, Ohio-based O-Cedar -- and installing their own, said Andrew Libman, special projects manager at Libman Co.
Dominick's retail price points for Libman Co. products are generally 5% higher than those for the O-Cedar line, said Libman.
Libman noted retailers' gross margins on his company's products are usually higher than the category's average of 45% to 60%. He said Dominick's margins in this case will remain the same but its "penny profit" will be greater.
Gary Stepina, category manager at Dominick's, was unavailable for comment. Officials at O-Cedar were also unavailable.
The average stick-goods set in Dominick's stores is 12 linear feet, according to Libman, with some running as big as 16 feet. The new racks include 80 to 100 stockkeeping units, with retail prices ranging from $1.79 to $6.99 for small wares, $6.99 to $14.99 for larger stick goods.
About 20% of the new set, Libman said, is devoted to lower-priced products from Suburbanite Industries, Holliston, Mass. Suburbanite replaces Roll-O-Matic, Chicago, as Dominick's secondary stick-goods supplier.