Leedmark revamps merchandising; changes include checkout, dept. expansions

Discount Store News, April 5, 1993 by Jill Lettich

GLEN BURNIE, Md. -- Leedmark, the "hybrid market" here, unveiled massive changes in its merchandising, including a realignment of 50% of its hard lines area.

The merchandising changes come on the heels of numerous layoffs and management realignments that have resulted in a postponement of a second Leedmark unit originally slated for 1994. Neither Tom Strzelczyk, president of G.B. Glenmark, Ltd., Co., the operating company for Leedmark nor Ed Segal, a spokes-person for New Eldis Corp., which owns Leedmark, would comment on a possible date for a second store opening or if indeed it would open in the Washington-Baltimore area as originally announced.

Strzelczyk noted that the recent merchandising changes were part of an "evolution and a tweaking of presentation." He added, however, that he was "confident about the concept and the operation. It makes you wonder why it took so long for someone to come up with it."

The primary changes in the store that sells both food and general merchandise include: * The addition of a 6,500-sq.-ft. garden center, with both indoor and outdoor selling areas. The company has installed an outside checkout station for easier shopping. The indoor portion includes two toll-free phones with instant access to the offices of garden supply vendors Ortho and Scotts to answer consumer questions. * An expansion of its pet supply area to about 160 ft. The area originally only included a run of about 20 ft., Strzelczyk said. The space will house more than 1,000 items including pet carrying baskets Smaller pet toys and accessories will still have a limited presentation in foods. * A larger selection of party supply products, including character licensed goods. * The relocation of the stationery and office supply are. It was moved closer to the H&BC area, which Strzelczyk said made more sense in terms of the flow of traffic. * An expansion of the toy area, which was increased by about 80 ft. In addition, toys were moved closer to the front of the store. The toy are is now adjacent to juvenile furniture and supplies.

According to Strzelczyk, nothing was down sized to accommodate the additions, which were mostly done through better merchandising and display and the addition to the store of the garden area.

There are three information stations with a touch screen computer. It can direct consumers to a particular department or a specific item.

In addition, it carries an option to print out a recipe. Recipes are changed every few weeks. Along with the ingredients and cooking directions, the recipe includes wine suggestions and breaks down the nutritional value of the dish.

These amenities have added to Leedmark's view of itself as a "hybrid market." That may come into question, however, as wholesale clubs and supercenters become growing retail concepts.

According to Segal, the differences between Leedmark and wholesale clubs include "no concrete floors, a greater variety of goods and no membership fee."

As more supercenters claim these very same characteristics, Segal pointed to additional differences at Leedmark. For instance, he noted that while many supercenters divide food and non-food down the middle, Leedmark wraps the food area around the general merchandise. While in the main isle in apparel, for example, a large "meat" sign is visible at the end of the long aisle and presumably encourages consumers to cross-shop.

"Every retailer is our competitor by virtue of all that we sell. We all try to learn from each other. Leedmark wants to deliver quality, variety, selection and price to our customers," said Strzelczyk.

One of the more unusual things about Leedmark is its structure. While New Eldis Corp. built Leedmark, G.B. Glenmark serves as the operating company. For future stores, according to Segal, an operating company may have a stake in no more than two Leedmark stores.

In February, the company announced it had laid off about 30 people to "streamline operations." In addition, Richard Schroeder was named chairman of New Eldis Corp., replacing Didier Leconte, who started the New Eldis Corp.

Late last year, Thomas Lenkevich, who had been president of G.B. Glenmark, resigned and Strzelczyk was named to the post.

By adding the garden center and the claim that it carries more than 85,000 items, Leedmark has changed its promotional tag line from "Sony to Baloney" to "Grapes to Garden," still banking on the breadth of merchandise it carries.