Playing the Digital Game

Supermarkets should go medium-tech. That's right. Even as high-tech products such as computers, cellular telephones, and pagers proliferate across a multitude of retail arenas, supermarket nonfood retailers must evaluate the situation and come up with a strategy that works best for them. The view from this angle is that food stores can gain some incremental sales by stressing targeted, lower-ticket technology items.

Consumers are not thinking about PalmPilots and 56k modems when they go shopping for their groceries. Price points are simply too high and the sophistication of the devices and systems too complex to sell next to Budweiser and Colgate toothpaste.

Yet retailers do have a chance to get their feet wet in some parts of high-tech. As presented in the article on page 95 in this issue, computer software, particularly items priced under $20 and aimed directly at either children under the age of 8 or homeowners, can pay dividends to supermarket retailers.

But like video, this category must be handled in a very delicate fashion. Supermarkets need to merchandise computer games so consumers see the overall benefit of these products for themselves and their families. That can be accomplished by offering these products in spinners and end-cap displays that do not take up much room, but emphasize the cover art of the particular item and its benefits for children or adults.



Out in the Open

The most important facet of selling computer games and the like is making sure consumers know the products are available in the store. Hiding these items in a gondola between stationery and feminine hygiene will simply result in low turns and no profits. On the other hand, placing a spinner near the front end will catch the eye of virtually every consumer in the store and not cannibalize space devoted to other categories.

Right now, more than 53 percent of American households own a computer and, according to a number of independent surveys, using computers for games and educational activities rank second and third to Internet connections as the main use of the product. That means consumers are buying computer games.

Supermarket retailers must respond in the best way possible by stocking games that are good quality, come from good sources, and that are priced so that food shoppers will not think twice when buying a product. There is no reason why supermarkets can't be in the computer-game game.