RetailOfYearAd_2016_Feb_3.75x9.75_GNPCO.pdf 1 1/14/16 10:33 AM
Now, that’s omething to cluck about!
prepared foods sections. The retailer operates a full-service pharmacy in
“We think the whole strategy comes down to a few things,” notes Phil
Lombardo, the company’s chief marketing and merchandising officer,
who joined the retailer in 2002. “It has always been built on creating an
environment that stresses extraordinary food, passionate expertise and
exceptional service. Then, in 2010, we surveyed about 5,000 of our shoppers and asked them what one thing we could change to make the shopping experience better for them. About 70 percent said they wanted lower
prices from us.
“We listened to them. We developed an entirely different pricing strat-
egy that made us much more competitive on pricing with other retailers.
We significantly closed the gap on pricing.”
Lombardo says that Lunds & Byerlys reduced prices on nearly 4,000
items and became much more active on the promotional front as well.
The company now has a BOGO special four times a year, a 12 Days of
Savings around the Christmas holiday period and daily deals every week
featuring discounted prices on such products as rotisserie chickens,
flowers, bath tissue, sushi and brownies.
“It has all been very positive for us,” he notes. “The value perception
of our stores has gone up and the quality and service perceptions have
Lund, who started with the company in 1985 and became president in
1991, is quick to agree that more competitive pricing did not come at the
expense of great service. “We are crystal clear on our positioning in this
market,” he says. “Our price/value equation has dramatically improved,
but consumers are never going to notice any difference in the way we go
to market in regards to service and expertise. We will stay true to that
2016 Independent Retailer of the Year
HigH-quality Private label
A big part of the plan is the company’s unique private label program.
Unlike many other retailers that look at private label as simply a way to
get more money from national brand equivalents, Lunds & Byerlys sees
their program as a way to totally differentiate themselves from the competition. That is done through a private label program—under the Lunds
& Byerlys name—that stresses high-quality products and competes with
the premium national brands in any given category.
Started a little more than 10 years ago, Lombardo says the retailer
already offers about 3,700 SKUs of its namesake private label brand as well
as 800 SKUs of its tier two private label items that are designed to compete
as traditional private label items, giving consumers another option. The
result is a 20 percent market share for private label in Lunds & Byerlys
stores, with about 80 percent of that coming from the premium items.
Maker of these premium
natural chicken brands:
“Our goal with our premium private label products is to offer differentiated products with fresh, high-quality ingredients,” Lombardo adds.
“Many of our products are developed by our four [research and develop-ment] chefs, who create products for our deli, bakery, center store and
meat and seafood departments. It all comes to life at store level through
our team’s incredible level of merchandising and desire to communicate