Turning Corner Markets into Superstores

BY VINCE FERRESE
Mithun Partners

If it hasn't already appeared in your neighborhood, expect a grocery superstore to arrive soon, with aisles and aisles of everything a customer needs all under one roof.

The trend in one-stop shopping has grocers offering everything from espresso stands and pizza counters to best sellers at the check-out line. The latest wave of built-in full-service delis accompanied by patio-style seating areas are attracting not only considerable lunch crowds, but families catching a quick, healthy supper as well. Seating areas and patios are in growing demand and welcome both customers and passers-by.

Supermarket design trends are moving outward and upward, with prototype design sizes increasing to between 50,000 and 60,000 square feet. Open, airy, fun and attractive designs and the increasing use of glass exteriors and foyers are promoting the image of "an outing at the grocery store" rather than a chore or an errand.

Upcoming store designs include nearly everything: pharmacies; delis; patios and seating areas; espresso stands; self-serve gourmet coffee dispensers; "parlor style" pizza counters; bakeries; combined card and floral departments; ATMs; video rentals; fresh seafood counters; international sections; parcel and fax centers -- even juice bars.

Upscale neighborhood markets are adding a touch of class with visiting chefs and wine specialists offering their expertise in product selection, as well as demonstration classes. This trend of new concept stores offering a full-service approach has customers frequenting the aisles in search of rare finds and great values.

Knowing the neighborhood sets a store's service agenda. A store that complements its surroundings serves as a friendly gathering place. The success of international sections and ethnic food courts is based on in-store and neighborhood marketing.

Determining what consumers want ahead of time allows you to appropriately design kitchen, prep and food court areas, increasing the opportunity to fill a specialized niche. One grocer has over 32 leased departments serving customers the authentic tastes of their homeland.

Current store plans are designed to move more merchandise. Fast moving items are located at the back of the aisles so consumers are introduced to other items which encourages impulse buying. Many grocers advertise specials in other locations of the store. One grocer advertises organic produce by detailing the aisles with colorful posters featuring pictures of the local growers with their harvest. In fact you will probably notice an enhanced interior atmosphere with more natural daylight, splashy graphics and photos, all adding to an inviting atmosphere.

Produce departments are competing with the surge of "all natural" and "fresh everything" markets springing up around the country. Consumers are looking for fresh produce, advocating locally and organically grown items, and they are willing to pay for it (sometimes as much as 20-35 percent more for organic).

This growing demand has forced grocers to re-think this department. The Farmer's Market atmosphere, from playful hand-painted signage on wooden posts to festive streamers draping the aisles, strengthens the effort to offer fresher produce and encourages shoppers to linger over freshly picked fruits and vegetables as they would at a farmer's stand.

One technique being used to achieve this atmosphere is replacing produce-area refrigeration with ice beds. One grocer has ice-makers constantly running above the selling floor. Another leased the store's produce department to a dedicated management company. The arrangement accounts for 16 percent of store sales.

Others have simply expanded the department to include a wider array of specialty and organic produce. According to Progressive Grocer magazine, organic produce sales rose 10 percent between 1993 and 1994. The flare for the organic increased sales in other arenas as well -- organic food sales generated $172 million in 1994, up 23 percent from 1993.

That was two years ago; today major grocery stores nationwide are revamping their selections to include specialized organic departments offering everything from rice milk to loose, self-service grains and complete lines of vitamins, herbs and supplements.

Savvy grocers are expanding every area possible. One supermarketer boasted a 40 percent increase in greeting card sales after expanding the section and cross-merchandising.

With pet food sales generating nearly $20 billion in 1994, many stores are offering more of a pet center, rather than limited variety. Plan to see CD racks lining the perimeters of Larry's Markets soon. And don't be surprised when your favorite grocer hits the Internet. Ordering via computer with same or next day delivery is on the horizon.

Finding ways to make greater use of limited space is motivating retailers to consider unusual measures, such as underground parking at the Marketplace at Queen Anne, and leasing space in mall-style strip centers. However, as land values continue to climb and density increases, expect to see more unconventional use of sites like the Larry's Market in Queen Anne. Perhaps we will soon see grocers taking part in even more unusual mixed-use development plans, which may include housing for the elderly or students.

Retailers are adapting quickly to the ever-changing needs of the market place. Environment, service, selection and value will remain key factors in customer satisfaction and repeat business.

All this reinforces the notion that consumers are looking for more than just kitchen basics and toiletries at the neighborhood market. Successful grocery stores turned superstores are offering consumers a one-stop full-service shopping experience to keep them coming back, and stay ahead of their competition.

Vince Ferrese is an architect with Mithun Partners, a Seattle architecture, planning and interior design firm, which is currently designing several grocery and drug stores.

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