The pessimists are taking a look at the state of the national economy and focusing on the problems.
But there are a lot of optimists in the food retailing industry. These people understand that the economic downturn will probably dampen overall consumer spending, but they find ways to play the environment to their strengths.
One of the optimists is the chairman and chief executive officer of the Food Marketing Institute, Tim Hammonds, who discusses the FMI's upcoming Chicago convention in a story on Page 42.
Tim foresees consumers tightening their belts by switching some of their food dollars from restaurants into home meal preparation, a move that has obvious pluses for food retailers. Tim also raises another opportunity by noting that dollar-conscious consumers are attracted to concepts such as price-impact supermarket formats and supermarket-run gas stations that are competitively priced.
This year's FMI Convention, which runs from May 6 to 8, is tailor-made for the optimists who believe in the industry's capacity to build sales and market share. Most of the 30 workshops at the convention are focused on growth-oriented themes: "Secret Tools to Start Your Neighborhood Marketing Revolution," "21 Creative Strategies to Improve Employee and Customer Loyalty," "New Solution Selling Mini-Series."
FMI is also bringing a new feature to the event this year called "Category Close-Ups." Attendees will be able to view updates on a range of product categories and trends -- such as specialty foods, organics and private labels.
There's no doubt that retailers are already recognizing the need to refocus on growth after years of talking about consolidation and technology. Albertson's, for example, is putting renewed emphasis on neighborhood marketing, pharmacy and improved customer service. Kroger is making further gains in private label and also recording increases in pharmacy, general merchandise, natural foods and fuel centers. Safeway is moving forward with its breakaway sales strategies while Supervalu and Fleming are among operators embracing price-impact formats.
In this issue you'll find other examples of operators finding new ways to grow their businesses. A story on Page 7 explains how Costco is reaching out more to its base by launching a B-to-B on-line shopping site. And on Page 4 is a story about Publix joining the list of retailers operating fuel centers.
Ideas such as these will represent bonus dollars for some companies and survival for others. Survival? Is that too harsh?
FMI doesn't think so. Its final session in Chicago on May 8 will be an encore presentation of its "Supermarket Industry Speaks" report with a twist: It will evoke the hit CBS television show "Survivor" to drive home the point about the need to adapt to rapid changes. It will come complete with audience participation, immunity and prizes for winners.
You'll find even more ideas for successful competition in the May 7 issue of SN, in which each section of the magazine will highlight operators who are reaching for growth in new ways.
