文章基本信息

标题：Bigger is not better
作者：Rector, Rick
期刊名称：Gourmet News
印刷版ISSN：1052-4630
出版年度：2005
卷号：Apr 2005
出版社：United Publications, Inc.

Bigger is not better

Rector, Rick

Federated Department Stores recent agreement to buy May Department Stores for $11 billion has implications for Gourmet News readers. Federated is already the nation's largest department store company, according to the The New York Times, with over 1,000 stores and more than $30 billion in sales. However, it's not the size, it's what the size brings that's troubling.

The consolidated company will look to cut costs and increase profitability. Like Wal-Mart, their increased buying power will permit them to ratchet down prices on suppliers, resulting in retail prices that are difficult to match for a stand-alone gourmet retailer. And some suppliers may leave the business because of an unwillingness or inability to supply the big chains if it means lowering margins.

For the specialty retailer, this means increased price competition from the department stores in an arena where the playing field won't be level. There are opportunities here, however. Gourmet products retailers have their own advantages.

First, a specialized gourmet foods and hard goods retailer can offer variety the larger department store specialty food departments can't. Depth of selection, particularly in products not offered by the department store, will allow you to not only to compete with variety, but to offer higher margin products as well.

Second, (and we've said this before) compete on knowledge and service.

Hire people who are passionate about your products and encourage them to let their passion show. Train them in product knowledge and have them share that knowledge with every customer. Conduct classes, do tastings, sample and demonstrate products.

Your customers will pay for the added value of a variety of products and a friendly, knowledgeable staff. And as word spreads, you'll attract new customers who want the selection and service your business provides.

Rick Rector

Publisher

rrector@gourmetnews.com