Commitment to push IMRA to higher plane; Ettore and Verdisco: let's go to work - Joe Ettore and Bob Verdisco of the International Mass Retailing Association - includes a speech by IMRA President Bob Vendisco

Discount Store News, June 3, 1996

While both short- and long-term growth for the mass market segment of retailing will be more robust than overall retail chain growth, said IMRA chairman Joe Ettore, discounters and value retailers need to take a fresh look at their industry in order to survive. They must swing into niche marketing and address the fundamental changes in consumer attitudes toward shopping.

"All the growth in the retail industry today is in the mass channel," said Ettore, addressing the May 11 opening general session of the 1996 IMRA Convention. While he characterized 1995 as tough, with negative impact coming from a sluggish economy and even from the $500 billion bite of the legalized gambling industry, Ettore was generally positive about the state of the industry.

Ettore, president and ceo of Ames Department Stores, ticked off some indications for the continued expansion of the mass retail channel. He noted that mass retailers outsell the department store tier by nearly two to one and have already made inroads into the supermarket and pharmacy industries.

On the downside, Ettore acknowledged that the discount retail industry is in for "more of the same," meaning an economy growing slowly for at least the next 24 months. Single-digit sales increases are likely to be the rule through the year 2000. Over the long term, he said, major demographic trends are not likely to alter the current course. Furthermore, consumers, behavior will be determined by their financial and attitudinal status.

"Are consumers feeling overdrawn and maxed out?" he asked. "Are they less secure about their jobs?" The answer is tending toward yes on both points.

However, the consumer demand for retailers to deliver maximum value will only be increased by these trends--to the reward of those retailers most adept at cutting out cost, improving service and delivering better products. Marketing must change from product-driven concepts to more consumer-driven tactics and strategies that allow greater niche marketing.

Mass merchants can react quickly to capitalize on the changing shopping habits of all age groups. He referred to the shunning of malls by teens as another opportunity for mass merchandisers.

Consumers today are more apt to see shopping as a job or a chore than as fun or enjoyable. Ettore urged IMRA members to transform their marketing approaches and store environments from supporting the old paradigm to the new. "Today," he pointed out, "rather than spend time to save money, customers will spend money to save time."

Ettore called upon the assembled retailers and suppliers to find a common ground, "above all, in the commitment to deliver outstanding value to customers." And he urged fuller support for IMRA. Hiring and training, customer service, logistics and distribution are just a few of the issues where the trade association has distinguished itself in service to its members and associate members.

"I encourage you to actively participate when IMRA calls," said Ettore, adding that members should tell more success stories to the news media. "Let's work together to ensure a level of recognition equal to the importance of our industry to America."

Also speaking at the convention's opening was Bob Verdisco, IMRA's president. He said the association, together with the industry, are at a crossroads. He asked, "Do you want a solid steady course or a big leap to a new level?"

Commitment is the answer, Verdisco implored.

He noted that IMRA has provided a benchmark of excellence with services such as the annual logistics conference and is already moving ahead with like events to cover pharmacy/ OTC drugs as well as food merchandising. The likelihood of IMRA members deriving the optimum benefit from such forums, and from legislative clout on such issues as tort reform, is directly proportional to the level of commitment by members, Verdisco emphasized.

"You are today's power players," he asserted, stating that other retail tiers are forced to play catchup ball. "We represent the future."

In accordance with that forward-looking philosophy, Verdisco unveiled the IMRA home page on the World Wide Web (address http://www.imra.org), which carries up-to-date information on conferences, research, government relations and IMRA staff contacts. The "Tuesday Hot Facts" section is updated weekly with the most timely data available on substantive issues. Verdisco encouraged all in attendance to visit the IMRA information services area and access the home page during the convention.

"The challenges of tomorrow are waiting for us, no matter what we decide. Let's decide to control the destiny of our industry."

Summing up, Verdisco asserted, "You have changed the marketplace and the thinking of consumers."

RELATED ARTICLE: 1996 Annual State of the Association

IMRA president Bob Verdisco impresses on his constituents that the association is at a crossroads--between being steady clad solid, and being an organization of great retail might. His remarks:

I want to focus not only on where we stand right now, but also, more urgently, where we,re going in the future, and how we'll get there.