16 Merchandising and Marketing Ideas
7. Going all-in on groceries
Acquisitions yield more than tangible assets; they also bring along great ideas. Building off lessons learned from its fall 2014 purchase of Nice N Easy Grocery Shoppes, San Antonio-based CST Brands Inc. is expanding its grocery platform to 50 stores in the central Texas, San Antonio and Houston markets. The expansion includes more than 300 new products including bakery items, produce, fresh meats and easy-to-prepare meals.
While the new grocery strategy leverages what CST has learned from Nice N Easy—where food sales make up approximately one-third of total inside sales—it also builds on an existing CST directive.
“You’ve heard us talking about our ‘milk, bread and eggs’ strategy, where we’re trying to capture the express-lane supermarket customer,” said Hal Adams, senior vice president and chief marketing officer, in the company’s second-quarter 2015 earnings call. “As grocery stores get larger, we fit well into that fast fill-in grocery customer’s needs.”
Five new-to-industry (NTI) prototype stores opening by the end of the year in San Antonio will have the Corner Store Market program and, going forward, all NTI stores will be built with the space to support an expanded food program.