FMI-The Food Industry Association is extending its total store collaboration concept in grocery to include a new general merchandise (GM) and health and beauty care (HBC) initiative.
Plans call for FMI to build a community of professionals — ranging from grocery retailers to suppliers — in the GM and HBC arenas to promote industry dialogue and drive “best-in-class capabilities,” the food industry trade group said yesterday. To that end, FMI aims to organize an advisory group, identify priority areas, explore and exchange opportunities for best demonstrated practices and gauge the economics that support investments in those nonfood categories.
“Total store collaboration is a core strategic pillar of FMI and serves as a way to describe our approach to fostering partnerships among trading partners, including retailers, wholesalers, manufacturers and brokers in the retail food industry,” FMI President and CEO Leslie G. Sarasin said in a statement. “Our investment in general merchandise & health and beauty care is consistent with the fulfillment of this vision.”
Mark Baum, chief collaboration officer and senior vice president of industry relations at FMI, will oversee the new GM/HBC initiative.
In addition, FMI has tapped consumer goods and retail industry veteran Tom Duffy (left), former vice president of member development at Global Market Development Center/Retail Tomorrow, to lead the new GM and HBC portfolio. GMDC, a global retail and wholesale trade group for nonfood products, dissolved operations at the end of 2021.
“As a senior adviser to FMI on this initiative, I will support and provide grocery retailers with knowledge and insights that drive new ideas, products and solutions to grow their business across the GM & HBC,” Duffy commented. “In turn, FMI will enhance trading partner collaboration to address challenges, opportunity gaps and innovations designed to drive profitable growth in GM and HBC categories and to better serve consumers.”
GM/HBC sales accounted for approximately 10% of all grocery sales, or $49.1 billion, in the latest 52-week period, FMI reported, citing data from CPG market researcher IRI. At that size, the GM/HBC market presents food retailers and manufacturers an opportunity to optimize the store environment and boost consumer satisfaction, FMI said.
“Since the FMI brand represents everything in the food, beverage and consumer goods retail basket, and embraces all categories in the marketplace,” Baum explained, “FMI is poised to further its stock in what’s sold at grocery.”