The Branding of ‘Bodega’

The Wall Street Journal: “Bodegas are hot. Yes, the humble corner stores, with their grouchy cats and reams of toilet paper, are fast replacing the taxi and the bagel as a symbol of New York authenticity, lending urban credibility to any endeavor. There’s Bodega, the clothing line, and Bodega, an art gallery on the Lower East Side. Not to mention the Bodega, a wine bar in Bushwick, and Bodega Pale Ale, a craft beer only distributed in New York. Bodega 88, a sports bar, opened in August on the Upper West Side, in a former bodega.”

“Bodega Magazine, ‘your literary corner store,’ is an online monthly … Managing editor Cat Richardson says each issue provides a quick, accessible hit of contemporary fiction, poetry and creative nonfiction, with a few surprises thrown in. ‘It has everything you need, like toilet paper, and then something unexpected,’ she says … Mark Littman, founder of Bodega Studios, a video-production agency with offices in Chelsea and San Francisco, says the outfit’s name is a nod to its New York roots and personalized service.”

Bodega Pizza “co-founder Jose Morales, who grew up in the neighborhood working in his father’s bodega, remembers corner stores where everyone gathered to drink and play the Dominican lottery … The facade of his pizzeria … is a yellow metal awning featuring a traditional bodega’s red lettering and flashing bulbs. The front windows are stacked with green tins of Keebler Export Sodas Crackers, pillar candles and faded Brillo boxes. Mr. Morales … says he’ll soon offer groceries along with the pizza. ‘You can eat a nice pie, have a beer and go home with some soap, cereal and toilet paper,’ he says.”

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Wing on Wo & The ‘Wow’ Project

The New York Times: “Wing on Wo’s humble red-painted storefront at 26 Mott Street is said to be the oldest continuously run business in Chinatown. It opened on Mott as a general store in the 1890s … The family that established Wing on Wo more than a century ago still runs things … although the shop’s appearance doesn’t suggest any important heritage. Its shelves are dusty, its pace is sleepy and foot traffic is slow.”

“Wing on Wo’s salvation appeared in Mei Lum, 26, the second-youngest of the family’s five grandchildren … She is now reinventing the shop, molding it into a community space that operates against the backdrop of Chinatown’s history … she envisions a forum for panels on issues like neighborhood politics, exhibitions for local artists and a coffee shop. Ms. Lum held an event recently at the store on the neighborhood’s gentrification, and a planned panel will include influential businesswomen from Chinatown. She calls her concept the W.O.W. Project.”

“Ms. Lum’s new vision for Wing on Wo, ironically, resembles the store’s original incarnation over 100 years ago … General stores like Wing on Wo were crucial hubs in this early village-like stretch. They sold tastes of home like dried fish, herbs and tofu, but they also operated as social clubs, representing Chinese villages and counties, and provided mail and money-wiring services.”

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Foodies & The Single Cow

The Wall Street Journal: “Retailers including Whole Foods Market Inc., FreshDirect, and Amazon.com Inc. are building farm-to-store meat operations that sate some consumers’ desires to trace their burger or bacon all the way back to an individual animal … Other retailers, like Honest Beef Co., are supplying cuts directly to consumers, cutting out the meatpacking middlemen and grocery chains in a foodie twist on traditional mail-order businesses like Omaha Steaks International Inc.”

“Setting up a single-cow supply chain is costly and complex … Customers must be willing to pay princely sums for these cuts. In addition to its minimum order size, Honest Beef charges around $8.50 a pound for dry-age ground beef. Elsewhere, ground beef prices in August averaged $4.25 a pound nationwide … most burgers are made from a combination of lean and fatty scraps left over after higher-value cuts like the T-bone are carved up. That means a 1-pound package of store-bought ground beef could contain meat from hundreds of animals.”

“When officials at online grocer FreshDirect began traveling to Pennsylvania and upstate New York to pitch farmers on ‘disrupting the grocery supply chain,’ the idea was met with skepticism … Today, the skeptics are falling away. Demand for a cut of a cow offered in its ‘hyper, hyper local’ beef, which the Long Island City, N.Y., company can identify down to the group of steers it bought from a particular farm, has been strong since it made its debut last year.”

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Walmart’s Online Pickup Plan

The Washington Post: “Walmart is America’s largest grocer, and its aggressive expansion of pickup services has turned its parking lots into a laboratory for the future of online grocery shopping — one of the trickiest puzzles in all of retail … With the pickup model, Walmart is testing whether its best weapon in this digital fight is its most old-school — and hardest to replicate — asset: a network of more than 4,600 stores.”

“It is counting on a different idea of convenience, one that caters to time-starved suburbanites who spend hours each day in their cars. Maybe for them swinging into a parking lot for a few minutes makes more sense than waiting around the house for a delivery … While Walmart does not disclose sales figures for online grocery pickup, it has taken the program from five markets to more than 80 nationally in the past year.”

“Walmart will have hurdles to clear as it aims to build the free service into a bigger business: For one, shoppers have often been reticent to buy groceries online because they are worried about the quality of the fresh meat and produce … Yet, if the pickup format keeps gaining customer affection, Walmart could be especially well-suited to ride the wave. About 90 percent of Americans live within 10 miles of a Walmart store.”

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Walmart & The Nexus of Hi-Tech and Hi-Touch

Walmart CIO Karenann Terrell: “We’ve observed that online customers have a very, very high level of satisfaction—above 90%—while for those shopping in the store, it isn’t nearly at that high level. We wanted to dig underneath and find out why. The convenience of online ordering, coupled with the special treatment online customers get when they come in person to pick up their orders, leads to a more satisfying experience.”

“We’ve hired dedicated personal shoppers to pick these online grocery orders for customers. They see these customers regularly and know their preferences and begin to know them personally. That has been a huge learning for us in how we will manage stores. One associate wrote a Happy Mother’s Day card to a single mom who visits every week and has a son with Down syndrome.”

“I’m so fascinated with the Internet of Things. It could make a huge difference operationally and with the improvement of the experience for customers … It’s real-time data about goods on the shelf at the time that the customer shops. On-shelf availability means what the customer wants is fully available to them. They don’t say, ‘I wanted Crest Pro Health toothpaste but they were out.’ The Internet of Things is going to rock the world of operational effectiveness.”

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Grass-Fed Beef: Not a ‘Luxury’ Anymore

The Wall Street Journal: “Grass-fed beef, once a niche luxury, is now sold at ballgames, convention centers and nearly every Wal-Mart in the U.S. Beef labeled as grass-fed connotes much more than cattle that were raised in a pasture, say grocers and restaurateurs. Many consumers perceive grass-fed beef as a healthier, higher-quality alternative to conventional beef and are willing to pay more for it, no matter that labeling—and flavor—can be inconsistent.”

“Not every retailer is onboard. Costco Wholesale Corp., the country’s second largest retailer after Wal-Mart, doesn’t sell grass-fed beef, though it sells organic ground beef in every U.S. store. The definition of grass-fed beef is still too ambiguous, the taste too inconsistent and Costco consumers gravitate most to an ‘organic’ label for now, says Jeff Lyons, Costco’s senior vice president of fresh foods.”

“Theo Weening, Whole Foods’ global meat coordinator, expects demand for grass-fed beef to grow well beyond human appetites. ‘When a customer likes grass-fed beef and they have a dog, they want the dog to have grass-fed beef, too,’ he says.”

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Rural Retail Joins Digital Age

The Wall Street Journal: “E-commerce hasn’t just reached rural America, it is transforming it by giving small-town residents an opportunity to buy staples online at a cheaper price than the local supermarket. It also provides remote areas with big-city conveniences and the latest products. Contemporary fashion, such as Victoria Secret bathing suits or Tory Burch ballet flats—items that can’t be found at Dollar General—are easily shipped.”

“According to Kantar Retail, about 73% of rural consumers—defined as those who drive at least 10 miles for everyday shopping—are now buying online versus 68% two years ago. Last year, 30% were members of Amazon Prime, up from 22% in 2014 … A Wal-Mart built in 1982 in Altus, Okla. … brought residents choice, convenience and low prices. Now, online shopping is creating another retail revolution here that doesn’t require a half-hour drive to Wal-Mart or roughly 2½-hour drive to Oklahoma City … ”

“E-commerce has provided new opportunities for area residents to earn money. In Willow, Okla., Anneliese Rogers, a mother of three, raised $1,500 in one sitting by selling items from her closet on Facebook. Nearby, Kassandra Bruton mails up to 100 packages a week from her clothing store Trailer Trash … E-commerce has changed life for Flowers Unlimited, the last remaining Mangum, Okla. florist and gift shop on the town’s square. While it has lost much of its bridal and baby registry business to online retailers, it has one big advantage: There is still a need for last-minute gifts, says owner Darla Heatly. ‘They can’t do e-commerce if they don’t plan ahead,’ she adds.”

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Joy Makers: How Driscoll’s Brands Its Berries

The New York Times: “Its strawberries have been bred for a uniform shape … while Driscoll’s raspberries are pinker and shinier, made to meet desires expressed by consumers … Driscoll’s is betting that once consumers know why its berries are distinctive they will demand them by name … Driscoll’s plans to build awareness methodically, by starting with digital outreach. The company’s website, which largely offered recipes, has been changed to explain more about Driscoll’s berries and what makes them different.”

“The public will get an introduction to the people Driscoll’s calls its Joy Makers — agronomists, breeders, sensory analysts, plant pathologists and entomologists who will explain how the company creates its berries. The company’s YouTube channel will feature stories told by consumers about why berries make them happy. Facebook, Twitter and Instagram will be used to send traffic to the website and YouTube.”

“Labels on the company’s berries have been changed, too, to ‘speak’ more to consumers, using a scriptlike font for the Driscoll’s name with the dot over the ‘i’ colored to match the berries inside the box … Since margins on produce are razor-thin, most companies elect to spend the few dollars they have for marketing to woo buyers for supermarket chains rather than consumers.”

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Clarence Saunders & The ‘Piggly Wiggly’ Revolution

Jerry Cianciolo: ” … Self-service was a game-changer when Clarence Saunders opened the first Piggly Wiggly in Memphis, Tenn., 100 years ago this month … The 35-year-old Saunders set out to ‘ the demon of high prices’ … He reasoned that shoppers would gladly hand-select their own merchandise, and pay upfront, in exchange for lower prices and faster shopping. Coin-operated cafeterias had demonstrated as much with self-service sandwiches and desserts.”

“King Piggly Wiggly … stocked 1,000 products, four times the variety of a typical market. Customers entered through a turnstile and, basket in hand, followed a path through the aisles. Goods were neatly arranged with clearly marked prices, something heretofore unseen. There were even scales for shoppers to weigh sugar and other staples. The grand opening was a spectacle, featuring a beauty contest … Each woman entering the store received a flower and every child a balloon. A brass band played.”

“By 1923 … more than 1,200 Piggly Wiggly stores across dozens of states were doing $100 million annually (about $1.4 billion in today’s dollars). The company hit 2,600 stores by 1932 … Saunders didn’t integrate circuits or sequence the human genome. An observer once noted that coming up with a self-service grocery was ‘as simple as looking out the window or scratching your ear.’ Still, it was Saunders who gambled on the unconventional approach, doggedly spread self-service across the nation and shaped the grocery industry we know today.”

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Shoparazzi & The Kmart Shopping Experience

The Wall Street Journal: “Kmart … recently overhauled one of its stores in a Chicago suburb. The Des Plaines, Ill., outlet introduced a modest grocery section with meat and fresh produce … Lowered aisle heights allow customers to see new department signs from across the store, and the layout was made to look more spacious by widening the aisles. On a recent Saturday, a filled the store to take advantage of giveaways and to admire a face-lift that includes new paint, brighter lights, less clutter and the wider aisles.”

Dan Macaluso, a shopper, comments: “It’s amazing what cleaning the floors and turning the lights on can do … It suddenly looks like they want to be in business.” Kmart CMO Kelly Cook explains: “We’re starting here … In the next couple of weeks we’re really going to drill down to understand every single aspect.”

The branch is testing a free personal shopping program called Shoparazzi. Through it, customers can place an online order for pickup—even asking for items Kmart doesn’t stock but which a personal shopper could acquire … Tricia Perrotti, a Kmart spokeswoman, said the Des Plaines renovation is part of a plan to better align marketing and the store experience.”

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