New concepts

Even wholesalers that outsource their design services are encouraging their retail members to update stores more often, either with remodels or simpler tweaks that break the monotony of everyday grocery shopping. Among those companies, Laurel Grocery and Associated Grocers of New England are experimenting with new formats that may become the future models for more stores.

Associated Grocers of New England, based in Manchester, N.H., is on the verge of rolling out a new corporate retail format based on what it has learned about the marketing area's changing demographics. Called Harvest Market, the fresh-heavy concept features more natural lighting along with curved casings and displays. If it's successful, the design may be rolled out to some of its member stores, says Michael Bourgoine, president and c.e.o. of AG New England.

"We're starting to see strong interest from our retailers in remodeling and expanding. We're doing it ourselves with the corporate stores. One of our major goals is to design the corporate stores in a way that the independents can model after," notes Bourgoine. The company is also looking into adding pharmacies, as well as foodservice operations, in its stores.

London, Ky.-based Laurel Grocery, which offers store development services but not design, has helped some of its independent customers build dual grocery/convenience-store concepts. One of the newest is the Monrovia IGA in Monrovia, Ind. "It has a deli, bakery, and fresh meat and produce. We worked with a design firm and an equipment company to put together the specs," says Robert Kirch, e.v.p. of operations at Laurel Grocery.

"The design changes a little depending on the area and the retailer," he adds.

As for the cost factor, Bourgoine says AG New England works with the National Cooperative Bank and other local banks to help retailers get financing for remodels. "But it is a major obstacle. It's always been hard to justify the cost, but today retailers are realizing they have to put money back into differentiating their stores even more from the competition, and one way they can do that is through an attractive remodel."