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How to save the center of the store

August 15, 2012 by Jeff Weidauer — Vice President, Marketing & Strategy, Vestcom International, Inc.

The New York Times recently ran a piece exploring the shift in traffic from center store to perimeter in a typical supermarket. While the article was interesting, it's about 25 years late. Shopper migration from the center to the perimeter began back in the mid-1980s when full-service delis and bakeries began showing up in the local supermarket.

That change in store design was only the beginning. At the same time they were adding new departments filled with fresh products, and moving the produce up front (traditionally produce was stuck in a back corner) and stores began selling advertising in the center.

Actually, what supermarkets did was begin leasing out space on the shelf-edge to companies that would sell space to CPG manufacturers. ActMedia was one of the first, selling space and hanging signs in-store to promote specific products. The retailer got a revenue share, and everyone was happy—mostly. The problem was that every store began to look like every other store. It's tough enough to differentiate when every can looks the same across competitor stores; now the promotional signage looked the same as well.

Unable to provide a meaningful difference in the center, food retailers put more and more focus into the perimeter, creating inviting spaces with high ceilings, track lighting and upscale fixtures. The center store languished with metal shelving and sharp edges. Sales moved from the center outward, and many of the so-called staple items were available at convenience stores and just about anywhere else. Add to this the labor cuts necessitated by the price activity taking place in a futile effort to drive activity to the center, and the stage was set.

Fast forward a generation. Packaged foods are increasingly seen as both unhealthful and old fashioned. Cans are out, pouches are in, but the center store is still can city (are you listening CPGs?). Processed food is the enemy, especially for the Millennial generation, and the Boomers are looking for healthier options as they move into their later years. Healthier generally means fresh as opposed to processed and packaged, because consumers don't trust packaged food. The majority of activity in a typical supermarket now takes place in the perimeter, with a giant dead spot in the center where shoppers only venture if absolutely necessary.

According to the Times article, retailers are responding by building and remodeling stores with a greater emphasis on the fresh perimeter. That addresses the trend outward, but doesn't address the problem in the center: how to get more shoppers down those aisles?

The author of the article defines the center-store as "those long, soldier-straight rows of shelves." This as opposed to the "wide, meandering path that guides shoppers" through the produce and other sections. Hmmm...maybe we need to rethink the center store layout, and its long, evenly spaced rows? And it's about time CPGs starting thinking outside the can for more appealing—and more sustainable—alternatives.

In addition, as retailers put more emphasis on the fresh areas, they will need to add something they aren't used to adding—labor. Fresh departments are much more labor intensive than the center, and require more knowledge about the product. Picking a can of peas off the shelf is much different from selecting a cantaloupe that's ready for dinner tonight. This is where the plan for most food retailers will fall apart; they won't want to pay for the skilled labor that fresh departments require, so all that added space won't mean anything if shoppers go to the local farmer's market instead.

It's time for food retailers to review and rethink their business models. It's time for manufacturers to get serious about center store and rebuilding credibility. It's time to put more focus on providing what the shopper wants. This is beyond store design or "low prices," it's about providing expertise in food, its selection and preparation. It's time for food retailers to reclaim their role as the best place to buy food.

About Jeff Weidauer

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