Kraft Foods: The center of the store is still important

 In International
As many packaged foods companies chase consumers to the perimeter of the supermarket, Kraft Foods Group refuses to ignore the declining center of the store.

“What you need to understand today about the center of the store is that it is tremendously important to the grocery retailer today,” said Deanie Elsner, executive vice-president and chief marketing officer of the Northfield, Ill.-based company, during a Sept. 3 presentation at Barclays Back-to-School Consumer Conference in Boston. “Center of the store represents about 75{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of total grocery sales, and about 75{845d44a2f09c0018d802e19e78941a85dc2180e4ed7410cee0b34e8cb134ecea} of total profit. The perimeter would have to grow by more than 2.5 times to be the size and the scope of what center of the store is today for the retailer. So given the margins and the labor it would take to grow a perimeter, you can understand why the retailer is motivated to reinvent the center of the store.”

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Kraft divided the categories within the center of the store into three parts: those that are driving grocery trips, those that are lagging the rest of the market, and those that are losing.  Food Business News – Read more…

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