Caldor renovates second unit, improves traffic flow

Discount Store News, Dec 8, 1997 by Richard Halverson

But back in June, Caldor cut the prices on brand name apparel such as Hanes and Fruit of the Loom by 5% to 10%, Minsky said.

Although the racetrack aisle is narrowed to 10 ft. from 15 ft., the complete absence of aisle displays, even for seasonal, gives customers more net room for maneuvering, Minsky said.

Icons further identify the departments - such as a monkey wrench for automotives - and each gondola now carries a supermarket style number and signs that name the categories displayed on them.

In another move that makes shopping easier, the new prototype does away with the barriers that formed a corral around consumer electronics. It's too soon to tell whether the lessened security will result in higher shrinkage, said Elliott Kerbis, senior vp, gram, hard lines.

Built on a slope, the store operates exclusively on the uphill level of what once was a two-level store. The landlord took back the lower level and intends to lease it for a supermarket, Feldberg said.

From the downhill parking lot, customers take either an escalator or an elevator to the selling floor. Caldor still operates about 18 two-level stores but doesn't necessarily intend to eliminate them since some are good performers, Feldberg said.

In the past year, Caldor has been cutting skus and inventories. It reduced sku count 20% to 50,000 and slashed inventories by $100 million.

In its prototype, Caldor is returning to its upscale roots, carrying better quality merchandise that its customers are demanding and making the store easier to shop, Feldberg said.

'We're meeting customers where they are,' he said.

Another change to make shopping easier was to relocate toys next to juvenile furniture and childrens' apparel so the departments flow into each other, Feldberg said.

Caldor also has improved the quality and quantity of RTA furniture and now displays it set up on the selling floor so customers can sit down at a dining room table, for example, and try out the seats.

Similarly, the prototype displays sporting goods exercise equipment on the floor so customers can try it out.

The new prototype also devotes more space to shoes, bath and body, consumable snacks and juices and intimate apparel and sleepwear.

Intimate apparel now gets racetrack aisle exposure and gets three aisles of goods, up from one.

In hard lines, Caldor has reduced assortments, aiming at the casual user rather than the serious DIY user. It has eliminated many secondary and tertiary brands. For example, its hardware department carries only a smattering of gallon paint - only in white - and power tool offerings are intended for casual use rather than for major remodeling projects.

To match its prototype upgrades, Caldor has made improvements in its circulars, said Sue Strunk, senior vp for media marketing. Over the past year, Caldor has reduced the number of items advertised on each page and eliminated mid-week circulars and one-day sales and brought down everyday prices.

In addition to reducing advertising expenses and improving in-stock positions, Caldor also hopes new pricing customers no longer wait for a sale to shop at Caldor. The goal now is to build a base of revenues for everyday necessities rather than just sale items.