The incoming CEO of US supermarket group Shaw’s says that tailoring stores to the areas they serve is vital to their success.
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“We don’t want to be one-size-fits-all,” said Gannon, who became Shaw’s president and chief operating officer in May. “We want to do a better job than anyone in the marketplace, by tailoring the products and the overall store to the customer needs. We think we’ve gotten pretty good at that over the past three to four years. In fact, very good.”
Shaw’s, which his owned by UK supermarket operator J Sainsbury, expects to revamp and expand more than 90% of its stores in New England. The move will costs US$1.5m to US$8m per store. In addition, the West Bridgewater, Mass.-based group will open 30 new or replacement stores over the next three years, at a cost of US$12-14m per store.
Gannon is confident that Shaw’s locations, selection and price will give it the edge over local competitors, which include Ahold subsidiary Stop % Shop, Target and the world’s largest retailer, Wal-Mart.
Not everyone agrees, however, with Burt Flickinger III, managing director of Reach Marketing, a retail and marketing consulting agency in Westport, Connecticut, commenting: “Ahold is expanding on one side and Wal-Mart on the other. So for Shaw’s to be a major player in the Northeast, they must achieve more scale through a significant strategic acquisition.”
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