Supervalu is trying out customized Save-A-Lot stores that cater to local customer demographics. CEO Sam Duncan said that Supervalu is testing “format and operating modifications” geared towards that appeal to different cultural groups.
“These stores have been merchandised to better accommodate the unique backgrounds, food preferences and shopping needs of many other customers in the markets we serve, which results in a more relevant in-store experience,” Duncan said in a call with analysts last week.
A Save-A-Lot spokesperson declined to elaborate further on the new program — including where the pilot stores are located or specifics on how these stores are catering to different ethnicities.
What the Minneapolis-based company did share in the call last week was that the program concentrates on exact cultures instead of trying to appeal to larger cultural groups.
“And when it comes to merchandising ethnicities, you got to be specific. When you just say Hispanic, you just can't say one Hispanic set. There is Caribbean Hispanics. There is Hispanics from Mexico. There is different nuances of all the different ethnicities out there,” said Duncan.
The meat-cutting program rolled out to corporate Save-A-Lot stores also allows Supervalu to cater its meat department offerings to the tastes of the surrounding area, according to Duncan.
The majority of licensee Save-A-Lot stores already had meat-cutting programs prior to the rollout of this initiative, but they are now participating in the new corporate price investment and marketing aspects.
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