Caldor renovates second unit, improves traffic flow

Discount Store News, Dec 8, 1997 by Richard Halverson

RICHARD HALVERSON

TIMONIUM, MD. - Less is more at the renovated Caldor store here, the second unit remodeled this fall to the company's new prototype: One less level - but more selling floor space, thanks to increased size of the surviving top floor; Narrower racetrack - but more net space for customer traffic because the prototype eliminates all aisle stackouts and displays; Free entrance merry-go-rounds are gone - but a 'Kids Castle' in consumer electronics surrounds kids with merchandise they might get their parents to buy, such as videos and Crayola products; No risers on apparel fixtures, no divider walls, no mannequins - but better sight lines throughout the store; Shorter aisle runs from the racetrack to rear and side walls - but more ease of shopping for customers; Less inventory and fewer skus - but greater productivity from merchandise in stock; Eight fewer apparel private labels - but better quality fabrics and fashion-forwardness for the 12 labels that Caldor kept.

The Timonium unit, measuring 116,400 sq. ft., is the second store Caldor has converted to its new prototype, following the remodeling of its 96,000-sq.-ft. Peekskill, N.Y., store in August.

For its 1998 business plan, Caldor included outlays to remodel 10 more of its 157 units to the prototype, ceo Warren Feldberg told DSN. Feldberg said he expects that the creditors committee will readily approve next year's capital budget, the size of which hasn't been publicly disclosed.

After two years of operating under Chapter 11, Caldor still expects to emerge this coming spring, Feldberg said.

Caldor has yet to report its third quarter results, but Feldberg said the company improved in October on its September results of an $11.4 million net loss, including $1.4 million in reorganization expenses, on sales of $207.4 million.

The first prototype in Peekskill is exceeding plans and has done 'spectacularly well,' Feldberg said. The Timonium store, opened in 1983, was a candidate for prototype improvement because it was underperforming, Feldberg said.

Neither of the two remodeled units had food service and neither does now, but 60 other units do offer food service, Feldberg said. Caldor was franchising food service from Nathan's Famous hot dogs and Sbarro pasta and pizza but dropped them in favor of the in-house operation of Care Courts. The company now is re-evaluating food service and has reached no decision about whether or not food service belongs in its prototype stores, Feldberg said.

In technological advances, the Timonium store operates the new check encoder that Caldor just began rolling out to all stores. The encoder speeds checkout because it avoids the necessity of examining a customer's driver's license for identification, said Earl O'Brien, store manager.

Timonium also has the new NCR POS registers that Caldor is roiling out. And store managers wear wireless headsets for communication on the selling floor.

On grand reopening day, Caldor created customer excitement by offering a truckload of Cottonelle toilet paper at a blowout price of $1.95 for a 12-pack, down from the everyday price of $3.59. It sold through 4,000 packs by the end of the day, and Caldor delivered another truckload for the next day, O'Brien said.

At the reopening, Feldberg wore a Caldor-red sweater, reflecting the casual dress code he has established at headquarters in Norwalk, Conn. People feel more comfortable without a coat and tie and work better when they're more comfortable, he said.

The Timonium store carries the same merchandise mix as all other stores. The mix includes an increased selection of H&BC products and an increase in consumable snacks, crackers and juices to six gondolas.

Caldor also is testing dry cereals, but it has not added milk, Feldberg said.

The chain also is testing pet food in the household cleaners and chemicals department.

The most dramatic make-over is in apparel, which accounts for about one-third of the floor selling space and provides about one-third of sales revenue. The prototype eliminates fixture risers, divider walls and mannequins to provide better site lines, said Mark Minsky, senior vp, gmm for soft lines.

The prototype uses only four fixtures from the racetrack to side and rear walls, down from six to eight, Minsky said. That makes it easier for customers to shop the apparel department and allows more effective display use of side and rear walls.

All apparel fixtures are now on wheels, making it easier to relay departments and avoiding carpet damage. Vignette displays on walls demonstrate how the merchandise can be mixed and matched.

All department signage is color coded: pink for women's and infants' apparel; violet for girls'; and blue for H&BC.

Caldor has dropped eight of 20 apparel private labels but is focusing on the 12 remaining by specifying better quality fabrics and changing style and color more frequently to keep up with fashion trends. Private label accounts for 61% of apparel sales, and private label prices remain basically the same since Caldor began its push for better quality.