Bulking up?

Store Equipment & Design, July, 2000 by Marilyn D. Cavicchia

Some say there's been a recent resurgence in bulk foods departments, while others continue to operate scaled-down departments. What's really going on?

No matter who you ask, everyone says there's something big going on in bulk foods. One manufacturer says retailers are getting back into bulk in a big way; another says they have turned from traditional oats and groats to jellybeans and jawbreakers. One retailer operates three stores in which bulk represents about 80 percent of the product selection, while another is cautiously stepping back into bulk, with a limited product line.

What follows is a glimpse at what exactly may be happening in the bulk foods department, according to some knowledgeable--and opinionated--experts.

SHIFTING TOWARD CANDY

"Fifteen years ago, [bulk] seemed to be the thing that was coming on, and we tried it and weren't very successful with it," says Torrey Taralli, director of produce at Victory Supermarkets, Leominster, Mass. The reason wasn't the cleaning and stocking problems that trouble some stores; instead, it was an issue of space, and ditching slower movers to save space was not an option. "The variety is sort of what sells it. It makes the display look like something," he says. "If you mount smaller fixtures, it just doesn't do it."

To support a sufficiently large bulk foods department, Taralli says, a store should be between 60,000 and 65,000 square feet. Two of Victory's newer stores are of the appropriate size and are also sited in high-income areas, where bulk tends to do well. That, and the fact that some other supermarkets in Victory's trading area were venturing back into bulk, prompted the retailer to reinstate the department, but on a limited basis.

While Victory's two bulk departments sell a lot of trail mixes and nuts, Taralli says, "We're not really into the rices and grains and stuff like that--and not candies at all."

The two stores with bulk-out that Victory owns devote 16 feet of wall space to bulk, on three tiers, making the overall space allotted 48 feet. As for the future, Taralli says he's not chomping at the bit to add bulk the company's other 18 stores. Provided it's successful at the two new stores, it may be put in future new stores that have the right amount of overall space.

Mike Saunders, president of Ladco Display, London, Ontario, also sees many retailers moving away from grains, flours and such. "A lot of bulk items that were carried in the past, most of the stores have eliminated them and concentrated on candy," he says. Retailers found there just weren't enough dollars per square foot in traditional bulk foods, Saunders says, and "the U.S. market has a very sweet tooth."

Saunders' business revolves around bulk candy departments, which he glorifies with kinetic sculptures and animated features, such as a miniature roller coaster with seated characters that can be changed depending on the season.

The departments Saunders has worked on for supermarkets typically have about 35 to 40 feet of wall space, a 12-foot island and endcaps that give the "mass display" effect. Ladco often takes photos of the area that will be the candy department, inputs images of the fixtures that have been chosen and then lets the client see the result before the fixtures are built and put in place. This works out much better, Saunders says, than one common approach: Calling a local fabricator, whose merchandising expertise may be limited.

A BULK EXPLOSION

Bulk is "really exploding right now," says Eric Rivkin, chairman and owner of NewLeaf Designs, Chanhassen, Minn., with earthy-crunchy bulk products being added to increasingly popular natural foods departments and with newer systems solving the cleanliness problems that caused many retailers to get out, of bulk soon after they first tried it. The resurgence in bulk began three to five years ago, he says. "Cleanliness sells bulk" is a well-known adage, Rivkin says; another favorite of his is "Nobody wants to serve up food on a dirty plate."

That's essentially what retailers were doing about 15 years ago, when bulk first became trendy. Large spills were so common, they were taken for granted. The bins had unsanitary square corners, which trapped old food, bugs and bacteria. Instead of drawing sales, Rivkin says, dirty bulk departments were "actually repelling them."

NewLeaf came up with several good solutions to these problems, Rivkin says, including: bug-tight, unbreakable bins with rounded corners; scoop bins with handles so they can easily be pulled out and the stock rotated quickly, and with lids that slide rather than hinged lids, which can allow wayward food to drop back in; gravity-feed bins that have a strong closure and a special bag grip, both of which prevent spills; and a UV block that prevents fluorescent lighting from damaging flavor, nutrients and color. For retailers who want to put some bulk here and there throughout the store, NewLeaf offers two different gondola-mount options one for standard shelving and one for Metro-style.