Retail Merchandiser Sept~Oct 2016 by Retail Merchandiser

September/October 2016 COVER STORY

| CONTENTS

4 NYCWFF PREVIEW

The ninth annual foodie festival in New York City benefits hunger-relief organizations.

6 TOY FAIR PREVIEW

The 114th annual Toy Fair in New York City will showcase the hottest new toys and games.

8 BLE PREVIEW

Network with the European licensing industry at Brand Licensing Europe.

10 BRAND POWER

Opportunity awaits brands that infuse emotional, social experiences into traditional retail.

12 BUILDING A MOBILE APP Industry insights into five reasons why merchants should consider building a mobile app.

Shopkins The Licensing Shop and Bulldog Licensing play it smart with Shopkins to ensure the collectible toy brand continues to be a sensation.

New & Notable

Hot products from Shopkins, DreamWorks, WWE and Food & Beverage.

23 SAN DIEGO COMIC CON

WRAP-UP Fans and creators come together for four days of fandom love.

SOLUTION PROVIDER DIRECTORY 48 Epicurean Group Epicurean Group serves healthy food through honest sourcing.

51 Solution Provider Directory

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REPORTS

Licensing 24 Sonic the Hedgehog 25th Anniversary

SEGA of America celebrates 25 years of Sonic the Hedgehog with new games, new merchandise and much more in 2016.

28 Halo / 343 Industries The Halo videogame franchise is adding licensed products and licensees and expanding its market to boys ages eight to 14 and into Mexico, Latin America, Europe, Australia and New Zealand.

Retail

32 Burns’ Family

Neighborhood Markets

Burns’ Family Neighborhood Markets opens three new locations this year to continue meeting its customers’ demands.

34 Strader’s Garden Center A diverse range of lawn and garden products have made Strader’s Garden Centers the go-to retailer in Columbus, Ohio.

37 CCM Hockey Montreal-based CCM Hockey is positioned as one of the largest hockey equipment manufacturers in the world.

40 Mar-Val Food Stores Mar-Val Food Stores stays innovative and offers its customers the highest-quality products to be the go-to grocery store in its communities.

42 LiptonMart

Convenience Stores

LiptonMart’s history with the communities it serves help differentiate it from its competitors. 2

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44 Knecht’s Auto Parts

46 Inteplast Group

For nearly 70 years, Knecht’s Auto Parts has believed in empowering its managers to make decisions, which encourages employee retention and benefits customers.

Inteplast Group manufactures innovative reusable bags and mailer bags through its Integrated Bagging System division to reduce retailers’ environmental footprint.

September/October 2016

NYCWFF

Celebrity chefs such as Giada de Laurentiis, Rachael Ray (right) and David Burtka (right) join the fun at NYCWFF.

Come Hungry The Food Network and Cooking Channel New York City Wine & Food Festival will benefit hunger-relief organizations when it takes over New York City this fall. The ninth annual Food Network and Cooking Channel New York City Wine & Food Festival presented by Coca-Cola (NYCWFF) will once again set out to help “Eat. Drink. End Hunger.” this Oct. 13 to 16. With nearly 100 events and more than 350 participating talent, the industry-wide celebration showcases what’s on trend and what’s next in the ever-growing epicurean landscape. 4

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Since its inception, NYCWFF has successfully raised more than $9.5 million to support the fight to end hunger by working with its charity partners, No Kid Hungry and Food Bank For

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New York City. Festival founder and director, Lee Schrager, who also serves as senior vice president, communications and corporate social responsibility at Southern Glazer’s Wine & Spirits, enlists both established and up-andcoming talent from all over the world to participate in his signature mix of events that range from hands-on classes, to panel discussions to expansive walkaround tastings held on Piers 92 and 94 in Midtown West.

NYCWFF

The Robert Irvine Show

This year, Coca-Cola joined the bill as the official presenting sponsor after partnering with the festival for eight years on various events. Additional sponsors will include past partners Delta Air Lines, New York Post, MasterCard and new to this year, Alfa Romeo, who has come on as the official automotive partner, and PEOPLE magazine. The Festival will have an expanded presence in Brooklyn with its signature event Chicken Coupe hosted by Whoopi Goldberg and Andrew Carmellini at the newly opened William Vale Hotels, and debut events like Best of Brooklyn presented by MUNCHIES hosted by Action Bronson and Game Day Eats hosted by Jaymee Sire in the borough. Also new this year, the Rooftop Chopped event at Pier 92 will allow lucky attendees to meet with show

producers and casting executives and audition live for the show. The 130,000foot Grand Tasting presented by Shoprite event is a culinary wonderland that will – for the first time – offer a ticket option for all-ages to attend the culinary demonstrations where the likes of Rachael Ray, Anne Burrell, David Burtka, Bobby Flay and more will take to the stage. Between NYCWFF and its sister SOBWEFF®, which takes place each February in Miami, Fla., more than $32 million has been raised to benefit the respective charities for each Festival. Beyond the funds raised, both festivals hope to draw attention to the vibrant dining cultures within each city, provide economic stimulus in Tickets and additional information are available at www.nycwff.org O

The CW Network, Tribune Studios and Irwin Entertainment announced September 12 as the premiere date for “The Robert Irvine Show.” The 60-minute daytime conflict resolution talker will air Monday through Friday, 2:00-3:00 p.m., on CW Network. Irvine, a versatile celebrity chef with more than a decade of television under his belt, has a strong following as a fitness guru and is a tireless advocate of our nation’s veterans, active duty military and military families. “The Robert Irvine Show” will showcase Irvine providing help to families with his signature “tough-love” approach to therapeutic work. Led by licensing agency, The Brand Liaison, licensing opportunities for the show will include cookware, food preparation, storage and other kitchen products, as well as healthy meals and snacks and fitness products. “Robert Irvine has a larger than life personality that comes shining through the screen,” stated Brand Liaison President Steven Heller. “His brand is so unique and expands well beyond the kitchen. He is an incredible motivational speaker and role model.” “Every phase of my career has had a service component. That is by design. I never wanted to just cook; I wanted to help as many people as I could. Specifically, helping people resolve personal conflict is the aspect of Restaurant: Impossible that sets it apart and makes it so popular,” Robert Irvine said. “My new talk show allows me to help people resolve conflict and move forward in their lives with renewed focus. I’m thrilled that Tribune, the CW, and Irwin Entertainment saw the value in a show like this. It’s going to make for a great show and allow me to do what I love most.”

September/October 2016

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TOY FAIR

Let the Games Begin The 114th annual Toy Fair will play host to nearly 30,000 industry professionals to network with others and check out the hottest new toys and games for the upcoming seasons.

Toy Fair may be a business marketplace, but it also offers a number of educational and networking sessions to it attendees.

This winter, nearly 30,000 play professionals from around the globe will flock to New York City to check out the hottest new toys and games, conduct business with the world’s top toy buyers and sellers and gain critical industry insights at the 114th annual North American International Toy Fair™, the largest toy and youth entertainment product marketplace in the Western Hemisphere. 6

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September/October 2016

Taking place Saturday, Feb. 18 to Tuesday, Feb. 21, 2017, Toy Fair will once again bring together global retail buyers, toymakers, toy inventors, licensors, entertainment executives and distributors under one roof for four jampacked days of deal-making, networking and educational programming. For more than 100 years, the show has been considered a “must-attend” event for play professionals vying for a stake in

TOY FAIR About the North American International Toy Fair www.toyfairny.com Toy Fair is an annual event that is owned and operated by the Toy Industry Association (TIA). The largest toy trade show in the Western Hemisphere, the show brings together 1,000 exhibiting manufacturers, distributors, importers and sales agents from over 100 countries to showcase hundreds of thousands of toy and entertainment products to 7,000+ unique retail outlets.

the $22 billion U.S. toy market. The show attracts buyers from more than 7,000 unique retail outlets eager to scope out innovative new products on display by more than 1,000 passionate and creative North American and global toy sellers.

New for 2017 Toy Fair 2017 will include an expansion of exhibit space to accommodate a growing number of first-time exhibitors interested in participating at the show. Located in Hall E of the Jacob Javits Convention Center, this expanded area will be fertile ground for spotting brand new product from new and creative toy companies. “Buyers from both mass and specialty retail outlets who visit Toy Fair will be among the first to see hundreds of thousands of diverse, highly creative product lines from both new and veteran toymakers – including unique toys and games, beloved retro brands, educational playthings and novelty items,” says Marian Bossard, senior vice president of global market events at the Toy Industry Association (TIA), the trade group that produces the show. “The Toy Fair playground exhibits an array of products for kids of all ages that are not seen at any other show in the world.” While Toy Fair will always be first and foremost a business marketplace, it has grown into a well-rounded educational and networking fair with seemingly

endless opportunities for building new contacts and learning about the future of play, youth trends, licensing, independent retailing, entrepreneurship, U.S. and global toy safety standards and laws and more. To date, several speakers have been confirmed for TIA’s Licensing Content Connection curriculum, an educational track at the show that takes a deep dive into the world of toy and game licensing. Speakers from the Licensing Industry Merchandisers’ Association, UBM Advanstar (producers of Licensing Expo and publishers of License! Global) and other experts will share tips and tricks for brand licensing, case studies and more. Additional educational tracks and speakers will be confirmed in the coming weeks; be sure to check ToyFairNY. com for full event details.

Before the Show Participants can begin their Toy Fair experience even before the show opens its doors with ShopToyFair365.com, the toy industry’s dynamic digital social marketplace. The platform allows buyers to peruse virtual showrooms, discover new products and place orders – often with no minimum requirement – from a wide range of vendors. “ShopToyFair365 is really about the three ‘C’s’ – community, connections and commerce. The face-to-face experience of Toy Fair can’t be replaced, but

About the Toy Industry Association (TIA)

www.toyassociation.org www.thegeniusofplay.org Founded in 1916, the Toy Industry Association™, Inc. (TIA) is the not-for-profit trade association representing all businesses involved in creating and delivering toys and youth entertainment products for kids of all ages. Over the past 100 years, TIA has led the health and growth of the toy industry, and today its 900+ members account for an estimated 90% of the annual $22 billion U.S. domestic toy market. The Association serves as the industry’s voice on the cognitive, social, emotional and creative benefits of play, and promotes play’s positive impact on childhood development to consumers and media. TIA has a long history of leadership in toy safety, having helped develop the first comprehensive toy safety standard more than 40 years ago, and remains committed to working with medical experts, government, consumers and industry on ongoing programs to ensure safe and fun play.

through this platform we’ve been able to leverage technology to extend some of the core value of the show year-round,” Bossard explains. Toy Fair will take place Feb. 18 to 21, 2017, at the Jacob K. Javits Convention Center in New York City. For up-to-the-minute information about registration, special events, educational opportunities, hotel bookings, shuttle schedules, exhibitor floor plans, and more, visit www.ToyFairNY.com. O

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BRAND LICENSING EUROPE

Make Connections

More than 7,200 visitors will network with the European licensing industry at Brand Licensing Europe, the biggest and most important licensing event this October. Brand Licensing Europe (BLE), the largest and most prestigious licensing event in Europe, is returning this October and is shaping up to be the biggest ever. With more than 2,500 properties on display from 300-plus exhibitors, BLE is the biggest meeting point for the licensing industry in Europe – bringing together more than 7,200 visitors from more than 60 countries to discover some of the biggest brands in the industry. The all-new matchmaking service, which saw amazing success at Licensing Expo, is launching at BLE this year and allows visitors and exhibitors to schedule 1-2-1 meetings pre-show. Engagement is very high for BLE with more than 2,000 meeting requests already sent by the beginning of September. Visitors can connect with exhibitors from all three zones of the show – Character & Entertainment, Brands & Lifestyle and Art, Design & Image. Exhibitors include Pokémon, Nickelodeon, PSG, Arsenal, 20th Century Fox, Activision, TF1, Cartoon Network, FIFA, IWM, Royal Airforce Museum and many more. Meetings are on a firstcome-first-served basis and exhibitors’ schedules are booking up so visitors are advised to use this system to book their meetings as soon as possible. The show features a great range of seminars available across the three days: from the basics of licensing to expert advice on securing the very best deals, 8

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The biggest names in the licensing industry are on display at BLE, including Cartoon Network, 20th Century Fox and Pokémon.

this will give visitors access to invaluable knowledge to help grow their product ranges and unlock new opportunities with the hottest brands. Visitors can find out about the European kids’ licensing industry’s trends over the coming six to 12 months, join a series of roundtables hosted by Licensing Industry Merchandiser’s Association (LIMA) and get insight into heritage licensing from Imperial War Museum, who will present the success of their toiletries range. This will be in addition to returning sessions, including LIMA’s Essentials of Licensing presentation, Top Ten Rules of Successful Licensing by IMG and latest industry trends from BLE’s knowledge partners. BLE 2016 will also see the launch of the Product Showcase that will feature a variety of products from the Brands & Lifestyle stands to show visitors the vast consumer product potential of the brands

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displayed. With the retail sales of licensed goods worth an estimated $251.7 billion in 2015, according to research by the LIMA and year-on-year retailer attendance at the show in constant growth, a focus on opportunities at retail is a key focus. This comes with the champagne launch of the Retail Licensing Club in the Retail Lounge. This new exclusive club for retailers who are involved in licensing offers year-round seminars and get-togethers to help them stay up-to-date with the latest trends and forecasts. BLE gives visitors access to the biggest range of brands showcased in Europe, from the most well-known names in the industry to unique properties that you wouldn’t find anywhere else. Brand Licensing Europe takes place from Oct. 11 to 13 at Olympia, London. For more information or to register for free, visit www.brandlicensing.eu. O

BRAND POWER

Come to Life Opportunity awaits brands that infuse emotional, social experiences into traditional retail. BY BRIAN KAVANAGH , SR. DIRECTOR, INSIGHTS DRIVEN PERFORMANCE & RETAIL EVOLUTION, THE HERSHEY COMPANY

Many brands make bold moves and take risks through innovative thinking to create a more dynamic, memorable experience for their customers.

In the ‘50s and ‘60s, children and families in many communities would venture down the street to a local general store or pharmacy, where they could purchase a cold, glass-bottled Coca-Cola or savor a hot-fudge sundae at a built-in ice cream parlor. Whether the topping of choice was caramel or chocolate did not matter; they created memorable experiences in a setting that ultimately established a strong emotional connection between consumers and the brands they enjoyed. 10

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Though the local soda jerk may be relegated to a novelty of the past, the value of memorable brand experiences has not changed, even in the wake of online retail’s rising influence. While we know consumers enjoy the ease of shopping online, research shows they continue to shop using online and in-store retailers. For brands willing to adapt, that means there are countless untapped opportunities to retain – even grow – a base of loyal customers at brick-and-mortar shops. Key among those opportunities is

BRAND POWER the transformation of the transactional shopping experience into one that is both social and experiential. The experience economy has demonstrated that people place a premium on unique experiences. Shoppers enjoy being surprised and delighted by something unexpected when they turn the corner into a shopping aisle. Those delightful surprises shake up the routine shopping experience and provide an opportunity for brands to connect with consumers. They even provide chances to place a brand or products top-ofmind before the consumer enters the shopping aisle.

Big Rewards There are already many examples of brands that have made bold moves to disrupt traditional experiences, and reaped big rewards. Take Starbucks®, for example. The brand established a new expectation for the coffeehouse experience. Today, customers sit and enjoy the ambience and social experience at Starbucks just as much as they enjoy the coffee, and the brand has tapped into that culture by diversifying its retail offerings to further that experience. Similarly, Crossfit® has disrupted the traditional gym experience, creating a communal environment that allows people to engage in friendly competition and build a new network of friends and contacts. Disruption and new thinking paid off for those brands. So, how can consumer brands leverage the same principles to create dynamic, memorable experiences? Chobani® was an early adopter of that method of thinking. Its SoHo Café opened in 2012 to great success, and this fall the brand will open its first café in Target’s® new Tribeca, N.Y., store. The concept brings experiential elements to the front of the store and creates a place where people can dwell and socialize with friends and other shoppers. At the same time, consumers sample products and influence upcom-

ing Chobani product innovation. All of that places Chobani at the top of shoppers’ minds by the time they reach the dairy aisle. Closer to home, The Hershey Company is tapping into the incredible experiential equity we’ve built in our Hershey’s Chocolate World Attraction stores around the globe, and applying those same principles to the confection category in the form of non-product innovation. Our goal? To create more social experiences and opportunities for the consumer to interact with our brands in-store. That approach has seen early successes in the form of iconic in-store displays that interrupted routine shopping patterns and invited consumers to engage with our brands. Much like at Hershey’s Chocolate World Attraction, we’ve found that retail shoppers stop and take selfies with their friends in front of our branded pods because they have such an emotional connection with our brands and our category. Those early successes have led us to examine even bigger ways to create more social, in-store experiences. The result is the development of a next-generation confection aisle that will soon be tested in market. By transforming the candy aisle, The Hershey Company seeks to “wow” customers while inviting them to explore the products they’ve come to know and love in a beautiful aisle experience. Moving forward, the biggest challenge for brands may be incorporating new technology into in-store experiences in a way that brings brands to life. Other challenges will be keeping up with shoppers’ expectations for great in-store experiences as the experience economy evolves. Still, it’s an exciting time for brands willing to overcome challenges in new and innovative ways. Brands that can tap it into the power of a positive, memorable retail experience have much to gain. O September/October 2016

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BUILDING A MOBILE APP

Apps Matter Industry insights into five reasons why merchants should consider building a mobile app. BY MELISSA Oâ&#x20AC;&#x2122;MALLEY, DIRECTOR OF GLOBAL CROSS-BORDER TRADE INITIATIVES AT PAYPAL

By 2020, there will be 26.3 billion networked devices and connections globally, up from 16.3 billion in 2015. As the popularity of mobile devices grows, it is important for merchants to keep up with current technologies and expand their reach to their customers. 12

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Apps are a great way for businesses to connect with customers, as they are an easy and fast way for customers to browse and shop online. Below are five reasons why you should consider building a mobile app for your global business:

BUILDING A MOBILE APP 1. Increases Visibility to Customers According to a study by Smart Insights, 89 percent of consumers digest media through mobile apps. Globally, people spend four hours per day on their mobile phones. Although a majority of media consumption occurs on social, gaming and entertainment apps, each time a consumer scrolls through their phone to access their apps, chances are, they are scrolling past yours, increasing visibility and the likelihood that they will engage with your app. As found in the KPCB 2016 Internet Trends Study, the average global mobile user has an average of 33 apps on their phone, with 12 apps used daily. Additionally, as featured in a recent study by Nielsen, the average smartphone user visits about 27 apps every month. Without an app, you are missing out on the opportunity to be noticed by your customers. Apps greatly increase a business’s visibility.

2. Creates a Faster Shopping Solution Efficiency is key when it comes to customer satisfaction when shopping on your mobile app. Did you know, according to ClickZ, that 12 percent of shoppers ditch their purchases when a checkout is too complicated or confusing? Simplifying your checkout process increases the chances of a shopper completing a purchase and makes your mobile app stand out in a competitive market. As noted in the PYMNTS 2016 Conversion Index, the average number of clicks a consumer makes during a desktop or mobile web checkout is 15, while the average number of clicks is 21. Additionally, the average time it takes to check out on a desktop with a top 30 merchant is 146 seconds, while the general average is 182. According to Data Charts, 51 percent of consumers prefer shopping on a mobile app because they can save personal login information, thereby simplifying checkout and saving time.

“Retail apps have the highest customer retention rate, as 70 percent of users will revist an e-commerce or retail app.” When a merchant utilizes their app to streamline the process, it can help them stand out from the crowd. One great way to expedite the checkout process is through PayPal’s One Touch™, which is an optional PayPal feature that allows users to complete purchases faster when checking out. More than half of the Internet Retailer 500 merchants use One Touch™, and since implementing the service, they have seen a 50 percent improvement on mobile checkout speed and service. When users opt in to One Touch™ and shop with their mobile phone, they can choose to stay logged in to PayPal for easier, faster checkout with all eligible merchants for up to six months or until they decide to turn it off. With this feature, consumers will be able to pay with just a few clicks, instead of the 15 clicks a consumer usually makes in a checkout process.

also are more likely to revisit an app. In addition to discounts and exclusive content, it is a best practice to think about what your customers want in a shopping experience. In a recent study, 45 percent of cross-border consumers picked safety as a key determinate of cross-border payment method preference. With security being a concern among customers, it is important to consider using a secure platform for mobile payments in order to foster customer loyalty.

4. Boosts Sales Creating a mobile app is a great way to boost sales. When Domino’s Pizza introduced a mobile app for ordering delivery or in-store pickup of their food, they saw a rise of 28 percent in half-year pre-tax profits in the UK. Today, mobile app purchases make up 52 percent of their online orders. Additionally, 35.4 percent of Black Friday sales last year were completed on mobile devices. That’s up from the 16 percent they were just a few years ago, according to IBM Benchmark. Mobile apps are becoming an increasingly popular and easy way for customers to shop. By having a mobile app for your store, you provide another channel for customers to shop on, thus boosting sales opportunities.

3. Builds Customer Loyalty

5. Capitalizes on Future Opportunities

An app is a great tool to use to build loyalty among customers and keep them coming back. As found in an App Boy 2016 study, today, e-commerce and retail apps have the highest customer retention rate, as 70 percent of users will revisit an e-commerce or retail app within the first week of use. When creating an app, considering what is important to your customers in order to keep them coming back to your app and loyal to your business is key. Users who are offered a discount by using an app are 30 percent more likely to use an app again, and 24 percent of users who are offered exclusive content

By 2018, it is predicted that there will be 2.56 billion mobile users worldwide. Fourteen percent of global merchants today have a specific mobile app, while the majority, 54 percent, only have a mobile-friendly site. With a specific app, your business is sure to stand out above the rest. Apps are a great way for global businesses to increase visibility, quickly assist customers, build customer loyalty, boost sales opportunities and keep up with the rapidly growing mobile landscape. So what are you waiting for, get on out there and create your very own mobile app! O

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September/October 2016

SHOPKINS

AGlobal

Sensation The Licensing Shop and Bulldog Licensing play it smart with Shopkins to ensure the collectible toy brand continues to be a sensation. BY JANICE HOPPE

hopkins fans’ excitement rises with each crinkle of the blind

bag until they have finally ripped it open to reveal a common, lim-

ited-edition or ultra-rare character. “The

fan base loves doing the unboxing ceremonies on YouTube and social media,” The Licensing Shop President Steve Fowler

says. “It’s kids talking to other kids through these sites, not suits creating a marketing

want to collect them all. “The two-packs are in blind packaging, so you don’t know what you are getting,” Fowler says. “Moose Toys has created characters that are common, limited edition and ultra-rare. When you open it up and get No. 149, you are shrieking in delight and the fans want to capture that moment on camera because they Dianne Bellchambers, don’t want to miss replaying that excitement.” head of licensing for As soon as Fowler saw Shopkins in Moose Moose Toys www.shopkinsworld.com Toys’ showroom three years ago, he says he Melbourne, Victoria, instantly got it. “It’s fun, quirky, magical and I Australia thought, ‘We can really do something with this.’ There’s so much cleverness about the brand and it’s cute, fun and colorful. Moose is a great company to work with because they are strategic, full of surprises and definitely push the creative boundaries.”

program. It’s truly organic growth.”

Developed by Australian-based Moose Toys, Shopkins are grocery store-themed collectible characters that children collect, share and trade. Each rubber character has its own unique name and face, turning everyday items into cute and colorful figurines. “It’s a brand that translates so well and is built around pocket money,” Fowler explains. “Fans can buy a two-pack for $2.99, so it’s not a huge commitment. Kids and their parents buy a lot of two packs because they want to complete their collection.” Shopkins launched Season 1 in summer 2014 and every six months since then has debuted a new season. Season 6 will hit stores in October along with the release of a first-ever DVD. A second DVD is scheduled for September 2017. Each season has at least 140 characters and fans September/October 2016

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COVER STORY Thoughtful Approach The Licensing Shop oversees licensees in the United States and Canada while Bulldog Licensing focuses on the U.K. Both licensing agents had worked with Moose Toys and found a way to rekindle that partnership with Shopkins because it was the collectible toy brand they both wanted to be part of. “Moose came to us and we saw amazing characterization, a market, repeat cause to action and media,” Bulldog Licensing Managing Director Rob Corney says. “Moose is a long way ahead of the competition. It’s not a bunch of plastic collectibles; this is a massive toy concept with characterization and social media following that sets itself apart from anything else out there.” Both boutique-style licensing agents have put communication with licensees among their top priorities. Corney founded Bulldog Licensing a decade ago because he saw the need for more direct communication that resulted in retailers making informed buying decisions, which is exactly the model he continues to deliver today. “We take a retail-first approach and the licensees benefit,” he adds. “We have close relationships with licensees and retailers. Moose

and our company share similar brand values when it comes to business, and it’s nice they have maintained that warmness you feel from a privately owned brand.” “When I first saw Shopkins, I told my wife and business partner, Nancy, that I found the property we have been looking for for 10 years,” Fowler remembers. “I had a gut instinct on it and I’ve turned down a lot of different brands, but fortunately never turned down the next big thing. We saw the potential and at the time there was less competition in the girls’ space – there was a window for it.” The Licensing Shop let Shopkins speak for itself among licensees. The brand established itself as a collectible toy that could support a long-term licensing program. “We didn’t pitch Shopkins at Licensing Expo in 2014 because the toys just launched and we didn’t want to explain what the brand is or sell an unproven license,” Fowler explains. “We really built the brand around the toys and in late fall 2014 we went out after our launch categories. We planned our rollout over a matter of years and because it is a toy-driven brand we started in the publishing category with books, magazines, board games and puzzles.”

Controlled Licensing

Making Memories

Moose Toys says it is in the business of making children happy. Its products are sold in more than 80 countries and the global organization prides itself on innovation, design and quality. “The award-winning company is known for developing, designing and distributing toy and lifestyle products around the globe for children of all ages and the young at heart,” the company says. Moose prides itself on taking its brands from product design and development to market. The company says that it enables it to create and launch innovative brands that reach its target audience in a fun and impactful way that gets results. Today, Moose is one of the top-five toy companies in the United States and in Australia.

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September/October 2016

The Licensing Shop and Bulldog Licensing experienced different responses from licensees when it came to licensing the brand. “It’s been a dream brand,” Corney says. “It hit the market and took off really quickly. Buying teams were very receptive and we communicated the strength of the property to the relevant ABG Accessories buyers in the ABG Accessories is proud to be a part of categories.” the Shopkins family. Together we have The Licensing created innovative designs, top selling Shop’s biggest product, and lasting impressions with our challenge in the consumers. Like Moose, ABG is also family owned and operated with a strong history beginning was spanning over 50 years in the industry. We getting buyers to offer a dynamic creative team, a customerbelieve a collectfocused sales team, and manufacturing ible toy brand that delivers quality goods on time. ABG would succeed. and Shopkins combined are a force to be reckoned, always ahead of trends and “Not everyone fashion forward. Congratulations on all of accepted us and your accomplishments! We look forward to we struggled our continued success and growth with you! in the apparel

COVER STORY category,” Fowler admits. “We chased the best-of-breed licensees, but a lot of people didn’t believe a collectible toy brand could translate and have longevity. Our success today really has proven it’s a lifestyle brand. We have been quite pleased with the results of the licensing program.” Today, The Licensing Shop has 75 licensees covering a wide range of products and next year plans to grow even more by reaching 80 different categories. Bulldog Licensing has 40 licensees, which Corney says is a very substantial program when you consider the size of the U.K. “The key thing is to not over-proliferate or take it into irrelevant categories. You need to consider: Does the licensed product help maintain your brand?” he asks. “Or does makes the consumer think you are trying to fleece them for every penny.” Girls ages six to eight years old are the brand’s target demographic, and both licensing agents have held firm on that when

it comes to adding licensees. “We could have been really greedy and blown this out very quickly to 200 licensees in the U.S. and Canada,” Fowler admits. “But there are a lot of categories we haven’t licensed out and are sticking to that demographic.” Of course, Shopkins has fans of all ages, but the licensing agents found this age range to be the most beneficial to its licensing program. “Six to eight year olds have a very different play pattern compared to a four-year-old,” Fowler explains. “They understand the collectible part, know what the number 148 means, understand the quirkiness of the character names and can appreciate the humor. And they know what limited edition and rare means. We know further down the track it will eventually age down and there will be a plan to help support that when it does transition.” Bulldog Licensing and The Licensing Shop are seeing tremendous growth with Shopkins. Bulldog has licensees launching at the end of this year and expects growth to continue as Shopkins is the No. 1 girls brand in the U.K., Corney says. “We expect significant growth for years to come,” he adds. “We have to make sure it’s going out to the right age consumer with the right designs. Most licensees are taking their products to market expecting it to be No. 1 because they have seen the evidence.” The Licensing Shop in 2017 will launch consumables and has partnered with major household name brands that Fowler could not share at this time. The company says the brand will get into live theater events and a number of new categories soon. “This year has been a big growth year, but 2017 will be our biggest growth year,” Fowler believes. “We did just win in June the 2016 LIMA Award for the top character toy brand, which is industry recognition that this is a global brand that has done well.”

“

Globally, children have related to it. Every kid loves a surprise and our price points work in all markets.

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September/October 2016

SHOPKINS

Retail Domination “Shopkins certainly has been a global success story,” Moose Toys Head of Licensing Dianne Bellchambers says. “The girls’ space was driven by fashion dolls or standard small dolls and Shopkins are totally different characters. Parents responded because they are affordable, cute and something their kids can collect.” Shopkins launched first in the United States, Canada,

Australia and the U.K., so the brand is more established in those countries, but Bellchambers says the company is seeing more growth in Southeast Asia, Brazil, Turkey, the Middle East and Russia. “Globally, children have related to it,” she adds. “Every kid loves a surprise and our price points work in all markets. We have gotten great results and it’s a format that works.” Since it’s inception, Moose Toys has produced more than 600 million Shopkins characters and it has become the fastest-growing girls’ brand, as well as the No. 1 toy in the United States last year. Its Shoppies dolls are outselling Barbie, Bellchambers notes. “We have been committed to the development of Shopkins and keeping the brand fresh and relevant,” she adds. “We haven’t been resting on our laurels. The fans expect new characters, so we High Point Design continue to invest to stay High Point Design, creators of the Fuzzy ahead of the game.” Babba®, and the one-stop destination for all For example, Shopkins your fashion and licensed character hosiery developed 2,000 limited needs. For over 40 years, HPD has been servicing hosiery buyers in all channels of edition Jessicake dolls distribution with quality products, creativity, exclusively for Cominnovation, and stellar execution. ic-Con International in

September/October 2016

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COVER STORY

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It’s all about the chase and which characters you have, and we wanted licensing to represent that.

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San Diego this year and it was sold out on the first day in four years. The dolls are selling for $400 on eBay and fans’ only chance of getting one. Shopkins is such a success story in part because of the licensing agreements. “Bulldog Licensing and The Licensing Shop knew it wasn’t an 18-month sensation and go-forbroke,” Bellchambers explains. “They were supportive in not going too wide. It’s all about the chase and which characters you have, and we wanted licensing to represent that. We didn’t want to be everywhere and in every category, but make it special and relevant to the toy line.”

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September/October 2016

In the U.S., Shopkins is the No. 1 girls’ license in apparel, bandages, bedding, swim goggles, party/celebrations, accessories and impulse. In the U.K., it’s magazines, stationery, cupcake sets and backpacks, and in Australia, apparel and trading cards

are most popular. Shopkins was named “2016 Licensed Character of the Year,” and Moose Toys forecasts global licensed sales this year to reach over $500 million.

Socially Engaging Shopkins is a brand built around the toys versus original content, Fowler says. “A lot of Shopkins success has to do with social media,” he adds. “The social media bloggers picked up on it and they speak about the brand to their massive number of followers. It’s truly organic growth. I think we have proven that you can build a successful brand without TV and movies, which doesn’t happen often.” “We didn’t have a TV series and this proves that you can create fabulous brands by doing it in a different approach,” Bellchambers adds. “We embraced digital and made sure the toy was the hero. Social media is an incredibly powerful tool and companies need to be smarter and savvy with how they use the information. Always listen to the customer or you won’t have long-term success.” Because Shopkins fans have taken to YouTube to record their unboxing ceremonies, The Licensing Shop has found it and other social media channels to be the best sources for customer feedback. “We have learned so much

from spending hours and hours reading Twitter, and watching Instagram and YouTube videos,” Fowler says. “Early on, fans were taking Barbie and Frozen’s Anna and Elsa dolls shopping to buy Shopkins. Do you think they were telling us they wanted a Shopkins doll?” A six-inch Shopkins doll was created as a result, which stands perfectly next to the shopping cart that comes with the play set. Although The Licensing Shop still conducts focus groups and surveys for consumer feedback, the company believes that for Shopkins, watching social media channels every day is the best insight into its demographic. “With Shopkins,

DJ Murphy DJ Murphy is an independent publisher based in Surrey, UK. With a highly creative team, we pride ourselves on producing market-leading children’s magazines in partnership with brand owners. Working closely with Moose, Bulldog and all of the licensees, has enabled us to really get to the core of the Shopkins™ brand and bring it to life in a magazine that delivers exactly what Shopkins fans want. September/October 2016

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COVER STORY you can’t look at what is the popular character by sales because there are common, ultra-rare and limited-edition characters, as well as blind packaging,” Fowler explains. “There is so much more information you can get on social media than by doing a sales analysis.” Fans use social media to get the latest information about the brand, including finding out when a new season has launched. “The new season is launching soon, but that doesn’t get published as to when it happens,” Fowler says. “A new series launches, the fans find out about it and blast it out on social media.” To date, Shopkins has more than 200,000 likes on Facebook; 11,000 followers on Twitter; 180,000 followers on Instagram; three million videos featuring the collectible toys on YouTube and the top-five fan videos on YouTube have been viewed more than a billion times. Moving forward, The Licensing Shop and Bulldog Licensing will continue to focus on delivering products its customers want and maintaining the global sensation that is Shopkins. “It’s a once-in-a-lifetime opportunity to work on a brand that carries you along to manage that process and that’s one we have here,” Corney says. “It’s amazing and a privilege to work on a brand like this.” O

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September/October 2016

What to Watch For

OCTOBER 2016 Season Six will launch along with a new app with toy integration, as well as the release of the first Shopkins DVD. 2017 Two new toy series launching, further apps and four new webisodes a month

SONIC THE HEDGEHOG 25TH ANNIVERSARY 24 | HALO/343 INDUSTRIES 28

Licensing Fangirls Rule Comic Con San Diego Comic Con brings fans and creators together for four days of celebration, including a fashion show and Wonder Woman’s 75th Anniversary. BY STEPHANIE CRETS San Diego Comic Con is one of the biggest events in the comics and entertainment industry in the world. This year’s convention, which was held July 21 to 24 at the San Diego Convention Center, was no exception. Attendance for Comic Con usually tops out at more than 130,000 attendees, and the convention has maxed out its event space, including even more satellite locations to incorporate more programming and accommodate more attendees. Comic Con brings thousands of comic creators, science fiction and fantasy authors, film and television directors, producers, actors and writers and creators from all aspects of popular arts together with their fans – some even wait in line overnight for a chance to see their favorite guest – for panels and signings. One of the most notable events at Comic Con was the third-annual Her Universe Fashion Show, the ultimate runway event for fangirl fashion. The event, hosted by Ashley Eckstein – Her Universe’s founder and voice actress for Ahsoka Tano in the animated series “Star Wars: Clone Wars” – and sponsored by Her Universe and Hot Topic, aims to

support aspiring designers by providing them with a real runway to showcase their one-of-a-kind designs to the world. Three winners were chosen: Hannah “Hanime” Kent for her “Mad Max: Fury Road” Furiosa-inspired design; Camille Falciola for her “Harry Potter” Marauder’s Map dress; and Jesse by Jesse Thaxton for her “The Neverending Story” Falkor design. Out of 27 designers, they were selected to design a collection with Her Universe that will be sold exclusively at Hot Topic. Another notable Comic Con event ruled by one of the most iconic female superheroes was Wonder Woman’s 75th Anniversary celebration. Warner Bros. Consumer Products brought a massive replica of Wonder Woman’s Invisible Jet

to kick off Comic Con’s preview night. Fans were able to climb inside the jet and pose for photos. At the celebration, artists Katherine Brannock, Celeste Byers and Christina Angelina also created original artwork to honor the superhero. In the Wonder Woman panel, current Wonder Woman artist Nicola Scott, DC Comics Co-Publisher Jim Lee, director of the upcoming “Wonder Woman” feature film Patty Jenkins and Wonder Woman herself from the newest incarnation, Gal Gadot, discussed Wonder Woman’s origins, the excitement bubbling for the upcoming Warner Bros.’ film and how Wonder Woman became the cultural icon she is today. For more information about Comic Con, visit www.comic-con.org. O

September/October 2016

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Licensing SEGA of America is celebrating Sonic the Hedgehog’s 25th anniversary in 2016.

SEGA OF AMERICA

Blaze of Glory Ivo Gerscovich, chief brand officer and SVP www.sega.com Los Angeles

Anoulay Tsai, licensing director 24

SEGA of America celebrates 25 years of Sonic the Hedgehog with new games, new merchandise and much more in 2016. BY ERIC SLACK

leading presence in gaming for more than 50 years, SEGA is synonymous with innovation. It was one of the first companies on the interactive scene, and Sonic the Hedgehog became the perfect mascot to symbolize SEGA’s efforts to break barriers when he debuted in 1991. Celebrating Sonic’s 25th anniversary in 2016, SEGA of America’s leaders are looking to continue to build on that pioneering spirit. “When Sonic first burst on to the scene in 1991,

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September/October 2016

he was the perfect mascot to symbolize SEGA’s breaking through the many existing boundaries of the era. Today, the Sonic Pillar team combines an experienced team from the world of entertainment alongside executives with a history of the Sonic brand from Japan,” says Ivo Gerscovich, chief brand officer and senior vice president of SEGA of America. “It is a powerful combination as we look to elevate Sonic into an entertainment icon across film, television, games, consumer products and other areas.”

SEGA of America Still on Top For a quarter-century, Sonic the Hedgehog’s games and brand have remained among the most relevant gaming properties even as the gaming world has changed dramatically. The character’s timeless design, speed, attitude and heroism make for a powerful combination that has inspired generations. At Sonic’s 25th anniversary event during Comic-Con in San Diego, SEGA announced several new exciting products including two new titles. Additionally, the company offered some exciting updates about its upcoming Nintendo 3DS

exclusive title, Sonic Boom: Fire & Ice, which is launching Sept. 27. “The two new titles we announced were big initiatives for the brand,” Gerscovich says. “It marked the first time in recent history that Sonic was going to be available on Microsoft, Sony and PC gaming systems alongside Nintendo. This broadening strategy will once again allow us to reach the widest possible audience of Sonic fans.” Sonic Mania, one of the titles announced, is a classic-inspired 2-D side-scrolling platform game, aimed at the brand’s many core retro-gaming fans, but accessible to gamers of all ages. It is a very unique collaboration between SEGA and a group of indie developers with a background in porting Sonic games to mobile. “The team is immensely talented, and they are all fans of the brand,” Gerscovich says. “The game mixes brand new zones and levels along side re-imagined ones from classic Sonic titles from games like Sonic The Hedgehog, Sonic the Hedgehog 2, Sonic CD and Sonic 3 & Knuckles. We were very humbled by the enormous reception to the title by our fans globally when it was announced and can’t wait to reveal more. Sonic Mania will be available in Spring 2017 for PlayStation 4, Xbox One and PC.” The second new Sonic title is currently in development and is launching will launch in the holiday 2017 season. Featuring modern and classic Sonic in a battle-ravaged world, the game is currently untitled. “While we aren’t revealing a lot of details at this time, we’re very excited about this next title within the Sonic universe,” Gerscovich says. “From the announcement, we saw the fan theories and enjoyment from the CGI trailer we debuted. The untitled game will be available on PlayStation 4, Xbox One, Nintendo’s new NX as well as PC. A lot of new information on these titles will be rolling out soon.”

Extending the Brand Over many years, the Sonic brand has found fertile ground in the licensing space. SEGA understands that a key to brand licensing viability is to develop numerous touch points for consumers to engage, which is why the company is taking a multi-platform approach to Sonic. In the console games, mobile apps, TV series, social media and an upcoming feature film, Sonic is proving himself to be a credible property in the highly competitive entertainment space. “With that, we’re able to pave the way to building a sustainable, long-legged entertainment property that licensees 26

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September/October 2016

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SEGA of America

I know how critical it is to ensure that we develop a solid relationship based on trust and honesty.

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see real value in,” says Anoulay Tsai, SEGA of America licensing director. “Our most successful categories have been in toys, plush and graphic tees. We’ll be placing quite a bit of focus on fleshing out our collectibles and novelty business as well as creating more products for the female fans.” SEGA can be selective when choosing its licensee partners, seeking those who truly get the brand and anticipate what the Sonic fan will want. By looking for innovative partners that have a love for Sonic, SEGA believes its licensing partnerships will create products that are coveted by the die-hard fan. Some of the current Sonic product initiatives include Kidrobot Sonic in Spin Dash medium figures, Han Cholo limited edition Sonic jewelry, Just Toys Sonic two-inch backpack clips, and Sonic x Sanrio limited edition eight-inch plush figures. “With the newly implemented team structure, we’re spending a lot more time with our partners to ensure that we’re providing input and brand information to set them up for sell-in and sell-through success,” Tsai says. Moving ahead, SEGA will strive to help retailers by understanding their business and showing them how Sonic will help them to achieve their sales goals. Additionally, the company will take information from merchants and incorporate their feedback into its licensing plans as it implements a tiered

SEGA of America is looking to elevate Sonic into an entertainment icon across film, television, games, consumer products and other areas.

retail strategy that will help gain more placement and visibility in stores and online. “I spent the last 12 years of my career in retail and I know how critical it is to ensure that we develop a solid relationship based on trust and honesty,” Tsai says. “It’s not just about touting the strength of the brand. As the licensor, the onus is on us to guarantee the success of the brand. These strategies will be tailored to the retailers and will align with their respective initiatives so the plans are conducive to their business.” Through a blend of art and science, SEGA of America is committed to ensuring that the Sonic brand remains engaged with consumers. Part of this is done by leveraging and analyzing the metrics across its many social channels, and its Facebook, Twitter and YouTube platforms are all extremely successful at reaching and interacting with fans. “It takes a unique approach to stand out, get heard and be noticed,” Gerscovich says. “We need to be driven by a passion for the brand and the best creative strategies flow from that. Everything we do is about surprising and delighting fans. All of us here at SEGA are working extra hard to grow the brand by keeping one foot in Sonic’s past while keeping the other foot planted in the future. By continuing to focus on what we believe is the future of the brand - games, consumer products, film and television - we can continue to focus our energy on making entertaining content on all platforms. This is our how we believe the brand will continue to strengthen over time.” O September/October 2016

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Licensing

HALO/343 INDUSTRIES

For the Boys

The Halo sci-fi franchise is adding licensees and expanding its market to boys ages eight to 14 and into Mexico, Latin America, Europe, Australia and New Zealand. BY RUSS GAGER John Friend, director of consumer products www.halowaypoint.com Redmond, Wash.

elebrating its 15th anniversary, the Halo franchise is an award-winning collection of properties with more than $5 billion in worldwide sales to date that has transcended video games and grown into a global entertainment phenomenon. In 2004, the Halo Franchise pursued a dedicated licensing program with the release of Halo 2. Since then, more than $1.5 billion in Halo consumer products have been sold worldwide. The list of licensed products includes action figures, apparel, accessories, construction toys, novels, comics, video and music. “We‘ve got a pretty broad licensing program,” Director of Consumer Products John Friend emphasizes. “We’re involved in everything from toys and collectibles through all categories of soft goods, some home goods and then including films, DVD publishing and digital sellthrough of original programming, such as Halo 4: Forward Unto Dawn on Netflix.” Character-related products include Bluetooth

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September/October 2016

speakers in the shape of the iconic Master Chief from AC Worldwide, an energy sword and BoomCo blasters from Mattel based on the franchise’s iconic weapons, and character costumes from Disguise. “We ship approximately 500 SKUs a year from over 65 licensees, so we definitely hit on most of the categories out there,” adds James Monosmith, sales and marketing manager for Halo Consumer Products. “Twelve months ago, we had maybe 45 licensed partners.”

Longevity Leader Over the past 15 years, the Halo franchise has paddled itself into the entertainment mainstream in a number of ways. “We’re super-proud of the fact that Halo has been one of the leaders in the video game space, competing and proving through our longevity and our sales that we’re a broad entertainment franchise,” Friend stresses. Another sign of Halo’s success as a cultural phenomenon is that it is becoming a multigenerational

The Halo franchise offers approximately 500 different types of products from more than 65 licensees.

brand. “Dads who played the game as teens are sharing toys and stories with their kids to share their excitement about it,” Friend explains. “Dads are helping to share what the brand is with their sons or brothers, and

that has helped expand the demand for consumer products,” Commercial and Licensing Manager Chelsea Faso notes.

Broadening the Market Halo’s primary audience has been men 18 to 34 years old because of its M video game rating for mature audiences. “Halo 5: Guardians, which launched last October, was our first T-rated FPS title,” Friend says. “We’re expanding pretty significantly into boys’ categories.” One way that 343 Industries is measuring the success of Halo among younger boys is with sales of costumes for the main character named the Master Chief. In 2015, licensee Disguise offered Master Chief costumes in boys’ sizes smaller than the 12 and 14 it manufactured in the past, all the way down to sizes six and seven. “We’ve been doing extremely well at retail,” Faso reports. “Last year, the boys’ costumes sold out at Walmart September/October 2016

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Halo/343 Industries

We’re hitting critical mass in the number of partners and our franchising strength.

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and Spirit Halloween stores, and this year, they’ve tripled their order based on how well they did last year. “We know younger audiences love those characters. We want to make sure we are making some products for that audience, as well.” Many Halo products are sold at mass-market stores, Amazon.com, and specialty stores like GameStop and Hot Topic. “In-store is by far the dominant source of purchase,” Friend insists. “We’ve got good growth in online. It gives us an opportunity to reach out. We have a lot of people who are interested in the Halo franchise who are digitally savvy, so giving them the opportunity to understand or buy products online is super-valuable and growing quickly. But we do phenomenally well in traditional retail, and we continue to be super-committed to supporting that.”

Critical Mass To celebrate Halo’s 15th anniversary, 343 Industries will license specific products tied to the event and will be releasing Halo Wars 2 on Windows 10 PC and Xbox One next February. “We’re hitting critical mass in the number of partners and our franchising strength in a number of key markets around the world,” Friend stresses. “We’re having great success in Mexico and growing success in Australia. We always had a big history in the United Kingdom and in a number of European markets.” Friend expects products tied in with the release of Halo 30

Halo does well in traditional retail in-store purchases, but the brand continues to grow online.

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September/October 2016

Wars 2 to be available in more than 100 key markets around the world by spring 2017. New licensees include Bensons Trading Co. with show bag novelty items in Australia and New Zealand; Danilo Promotions with calendars, greeting cards and gift wraps in Europe; H2W Sunstaches with Halo-themed sunglasses in the United States and Canada; Jada Toys with Halo die-cast statues two, four and six inches tall; and Wicked Replicas with lamps, signs and masks in Australia and New Zealand. The 15th anniversary also is being shared by players. “We’re really celebrating our community, so it’s much more of a community-led story, sharing the best memories from 15 years of Halo,” Friend says. The licensing group at 343 Industries is working hard to develop the international appeal of Halo. “Getting international licensing agencies on board has allowed us to grow,” Monosmith remarks. “Traditionally Halo has been a very U.S.-centric brand.” But now with the emphasis on consumers in Latin America, Australia and Europe, Halo is growing ever larger “We’ve been able to grow really fast in those markets,” Monosmith concludes. O

Retail

“If we feel we can make a difference in a community we will open a new location. That’s our motto: ‘We make a difference.’” – Patrick Burns

September/October 2016

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Retail Each Burns’ Family Neighborhood Market caters to the needs of the neighborhood in which it is located.

BURNS’ FAMILY NEIGHBORHOOD MARKETS

Making a Difference

Burns’ Family Neighborhood Markets opens three new locations this year to continue meeting its customers’ demands. BY JANICE HOPPE

P Patrick Burns, president and CEO www.thefreshgrocer.com ww.shoprite.com Drexel Hill, Pa.

atrick Burns, president and CEO of Burns’ Family Neighborhood Markets, has had a lifelong passion for the supermarket industry. His dedication shows as his markets are welcomed with open arms by their communities. The company prides itself on this acceptance, which is achieved through steady growth. “There’s no goal that I have to open one, two or three stores per year,” Burns says. “It has to make sense, fit our culture, the community and our company.” Burns and his late partner, Michael Rinnier, developed The Fresh Grocer brand in 1996. In 2013, Burns became the 50th member of Wakefern Food, one of the largest U.S. retailer-owned coopera-

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September/October 2016

tives. “I joined Wakefern as their 50th member and brought The Fresh Grocer brand to the cooperative,” he says. “The Fresh Grocer is owned by Wakefern and now any one of the members can open one.” The Fresh Grocer chain specializes in providing high-quality perishables in urban and suburban markets. “We are known for our perishables and prepared food business,” Burns says. “When we first started The Fresh Grocer brand in 1996, we had the flair of an open kitchen, prepared foods, chefs, and have been doing that now for 20 years. We have the theater of prepared foods and chefs, fresh deli meats and real meat cutters in the meat department. People come to us for their perishables.”

The ShopRite brand was founded in 1951 and has some of the highest volume stores in the supermarket industry today, serving seven million customers per week. The brand says it has built a reputation for being the low-price leader while offering unprecedented variety and customer service.

Fulfilling Needs Each of the Burns’ Family Neighborhood Markets caters to the neighborhood in which they are located. But there are a couple signature items The Fresh Grocer is known for, such as fresh pizza from the brick oven and the one-pound hoagie. The markets also offer items popular in the community, such as Chinese food, sushi, organic salads and craft beer. “We were the first store in Pennsylvania to have a liquor license and we are now going after craft beer,” Burns says. “Our six-pack of individual craft beers is popular and we are just about to get into the wine business.” Understanding what its customers want comes down to just paying attention, Burns says. “We listen, listen and listen,” he adds. “You have to constantly be listening to customers, talking to associates who are on the floor and asking them what people are looking for. Today, so many people want to talk instead of just listen.” One of the things the Burns’ Family Neighborhood Markets learned from its customers more than a decade ago was how challenging it could be to get a ride home from the market. “In some of our locations we offer people a ride home. In the city it’s tough to get back home because they don’t have the financial resources to do so,” Burns explains. “We offer free van ride homes to people in the inner city and have done so for a decade. We want to provide them a safe environment.”

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Burns’ Family Neighborhood Markets

We listen, listen and listen. You have to constantly be listening to customers, talking to associates on the floor.

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ital menus and signage. The company has implemented a new online ordering platform in the last few years, which shoppers find very useful. “Online shopping has been huge,” Burns says. “It’s a terrific program, easy to navigate and customers can choose whether they want delivery or pick-up.” Moving forward, Burns’ Family Neighborhood Markets will continue to be the best it can be. “We want to grow and be a proud member of Wakefern to better compete in this market,” Burns says. “If we feel we can make a difference in a community we will open a new location. That’s our motto: ‘We make a difference.’” O

Coming to Market Burns’ Family Neighborhood Markets operates seven grocery stores throughout the greater Philadelphia area. The company in August opened a new ShopRite location in Brookhaven, Pa., and plans to open two new Fresh Grocer locations in Pennsylvania, one at the end of September in Upper Darby Township and the other in November in Philadelphia’s Grays Ferry neighborhood. The new 60,000-square-foot stores use LED lighting and a control system from Cold Technology that is based on customer traffic. “For example, if we have four checkout lanes open versus 20, the lighting in the store adjusts so we save on energy and electricity,” Burns explains. “There’s no need to have the store so bright. In one of our locations, we have saved 17 percent by controlling lighting during the ebb and flow of peak times.” Burns’ Family Neighborhood Markets is also installing a number of touch screen kiosks, more self-checkouts, digSeptember/October 2016

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Retail

STRADER’S GARDEN CENTERS

Seeding Growth

A diverse range of lawn and garden products – and its own growing operation – have made Strader’s Garden Centers the go-to retailer in Columbus, Ohio. BY TIM O’CONNOR

lfred Barnett worked part-time for Columbus, Ohio’s Strader’s Garden Centers in the mid-1960s when we joined the military. He didn’t return to Ohio until 1968, but left enough of an Alfred Barnett, impression from his time with the general manager company that owner Jack Strader www.straders.net called him up to ask Barnett to Columbus, Ohio come back to work full time. In the 48 years since, Barnett, now the general manager, has seen Strader’s grow from a company with two small garden centers to a major player in the Columbus garden market. The business now operates two wholesale centers and six large stores whose 300-vehicle parking lots are still not large enough to handle the massive numbers of weekend customers. Jack and Ruth Strader founded their namesake garden center business in 1956. Strader’s remains a family business even after 60 years. Each of the couple’s four children have been a part of the company as it has grown throughout central Ohio – a sign of its longevity and roots in the community.

Owners Jack and Ruth Strader are opening a third wholesale and greenhouse facility this fall to boost their company’s perennial plant growing.

Diverse Products Strader’s began as a seller of home garden products, primarily shrubbery and flowers. Today, the company’s physical expansion is mirrored only by the breadth of the items it carries. Strader’s offers a full lineup of landscaping and gardening supplies, lawn care products, mulches, fountains, pond suppliers, trees, flowers, vegetables, lawnmowers and grills. “We’re much more diversified than the average garden center,” Barnett says. “When somebody comes into the store, most of the time we’ve got the product they need.” Strader’s is able to offer such a wide range of products in part because it operates its own wholesale division and grows its own plants. Two wholesale centers are located in Grove City and Powell, Ohio, where Strader’s cultivates annual flowers, vegetables, garden mums and poinsettias for Christmas. 34

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The company grows nearly 85 percent of the plants it sells through its wholesale division. “We want to do more of our own growing because of the control we have over the product,” Barnett explains. He says that ensuring that quality is a matter of regular maintenance, proper fertilization, knowledge about watering patterns, recognizing which plants are prone to disease, controlling insects and using the least-volatile materials to protect the plant. “We have excellent growers that monitor everything that goes on there and make sure the crop growing out there is the best we can do,” he adds.

Marking its 60th Controlling quality has always been a top priority for Strader’s, so it is fitting that the company is marking its 60th anniversary by constructing a third wholesale center that will allow it to grow even more of its own product. The third wholesale center is expected to open in Delaware, Ohio, by the end of September. It will feature a 9,000-square-foot main building and about four acres of covered greenhouses. Strader’s has already begun growing some plants in the completed greenhouses with the hopes of having product ready for the winter season. Unlike the other wholesale centers, the third location will be devoted to perennial plants, which Barnett says require low heat and are relatively easy to grow with little technology. Once opened, the third wholesale center is expected to boost Strader’s distribution operations. Most of the plants produced by Strader’s wholesale centers are sold at its own stores, but it also supplies other area garden centers. The company, however, is not implementing new logistics or distribution technologies at the facility, instead favoring to utilize existing systems it is familiar with.

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Strader’s Garden Centers

When somebody comes into the store, most of the time we’ve got the product they need.

lineup from flowers and shrubbery to encompass the entire yard. Gas grills were one product the company began to carry as part of a trial following a seasonal turnover. Now grills are one of its biggest sellers and Strader’s strives to stay relevant by offering the latest grilling products, such as the popular Big Green Egg. With the next seasonal change, Strader’s plans to begin offering pet supplies. Barnett says customer reactions will determine whether Strader’s keeps pet items around or expands it further in the future. “We just noticed the trend is going that way, people like their animals,” he adds.

Seasonal Shifts Home gardening is a seasonal business. The primary planting season in Columbus lasts from May to June. By July, Strader’s growing operation is already slowing down. When fall arrives, the company moves into mums. Christmas season is soon to follow as Strader’s unloads 10 containers of artificial trees and truckloads of real evergreens delivered from tree farms in North Carolina, which has twice the growing season of Michigan trees and results in a lusher Christmas tree with deeper greens, Barnett says. The company’s slogan is, “We change with the weather.” With every new season Strader’s becomes like an entirely new store. “It happens as quickly as we can make it happen,” Barnett says. Seasonal rotations are not only a reaction to shifting demand, but also an opportunity to introduce new products. That became even more important as Strader’s expanded its September/October 2016

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Strader’s Garden Centers

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We want to do more of our own growing because of the control we have over the product.

Longtime customers often seek out specific Strader’s employees to ask questions and find the right products for their lawns and gardens.

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Like its products, Strader’s employees are mostly seasonal. The company has around 125 full-time staff members between its six stores and two wholesale centers. That number jumps to as many as 300 when factoring in part-time summer workers, many of whom are college and high school students working over the break between school years. As a result, Barnett’s decades-long tenure with the company is an exception to the typical short-term employment for most workers. But those full-time workers who do have longtime experience are the people who make the biggest difference at the company. They are the ones who customers rely on for expert knowledge. Barnett says Strader’s approach is that if a customer comes in and wants something, it is not necessarily what they should have. Some people are prone to coming into the store, looking at a label and then buying the product without considering how it fits their garden’s situation. Then they get home and wonder why it doesn’t work. Strader’s experts can bridge that knowledge by helping customers find the right products for their applications, even going so far as to have customers come back with lawn samples or captured bugs to diagnose the issue. It’s a level of service that customers have come to rely on. Many regulars now come into their local Strader’s Garden Center and ask when a specific employee is working next because they trust that person to answer their questions. In addition to serving as the local resource for all things lawn and garden, Strader’s participates in community outreach efforts. In recent years, the company has supported Columbus-area organizations and programs such as community gardens, Habitat for Humanity, the London Correctional Institution and Marion Correctional Institution prisons and the Tolles Technical Center. Strader’s is focused on growing one step at a time and does not want to overexert itself with expansion. Barnett says the company would like to open more retail locations – likely in the region north of Columbus – but that it first needs to have more control over the products it sells. With the third wholesale and growing facility nearly ready to open, the company is on its way toward reaching that goal. O

Retail

CCM HOCKEY

Live and Breathe Hockey Montreal-based CCM is positioned as one of the largest hockey equipment manufacturers in the world. BY STEPHANIE CRETS

CM Hockey is a company and a brand completely dedicated to hockey. Not only is it one of the largest hockey equipment manufacturers in the world, but all the employees – no matter what their position in the company – live and breathe hockey every day. “Everyone plays or just enjoys being a fan of hockey,” President Philippe Dube says. “I started a bit too late in my life to be a good hockey player, but I play in a league in Montreal every Wednesday night. I’m not going to be pro anytime soon.” Up until five years ago, the company’s sales were dominated by the Reebok brand. But, according to Dube, it’s now almost 100 percent CCM. CCM was founded in 1899 and originally known as Canada Cycle & Motor Company. But the market for bicycles in Canada began to rapidly decline in 1905 thanks to market saturation and seasonal issues. At the same time, ice hockey was growing rapidly in popularity. CCM decided to dedicate its business to the sport, launching CCM Automobile Skate and dominating the hockey skate business for 30 years. Since the split from the Reebok brand, Dube has tripled CCM’s profits in three-and-a-half years. Now, the company is investing in a new enterprise resource planning (ERP) system to link all CCM businesses globally. Because everyone has different product codes, it won’t go live until January 2017 to ensure complete success. The new system will generate efficiency gains, consolidate procurements and allow for easier vendor management. “I’m looking forward to that because we have a dealer-first strategy that we implemented three years ago,” Dube explains. “How do we better serve our customers? How do we ensure their product is on time? We’re really focusing on those questions.”

Innovative Technology CCM researches, develops, tests and prototypes its products at its Montreal headquarters. Then, the company has the products manufactured in Asia,

With its dealer-first strategy, CCM Hockey always is looking at ways to better serve its customers.

and from there, they are distributed to retailers in North America and Europe. “The best thing we’ve done is transform the company by investing in R&D,” Dube says. “We were considering ourselves as a product company, but you need to invest in R&D to do that. This is what we’ve done and we did it in three years. “We’ve created a strong team in the various product categories,” he continues. “Our industry is a small industry but with very different products: proSeptember/October 2016

Philippe Dube, president www.ccmhockey.com Montreal

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CCM Hockey

tective gear, skates, hockey sticks – it’s all different. We have engineers that are very particular to those skills.” One of the main reasons CCM invested so heavily into research and development is to keep up with safety regu-

lations in the National Hockey League. That mainly comes down to players’ helmets and skates. “We have some technology that will help with safety,” Dube explains. CCM is also unlocking new technologies for hockey skates. It begins with a 3-D prototype, starting from the bottom of the foot and going around the ankle to the foot to fit the skate – as opposed to the former way of making skates, which was more closely related to shoe-making technology, Dube notes. “It becomes more challenging to use new technology,” he adds. “But we introduced this new skate into the marketplace later on July 22.” CCM may outsource its manufacturing, but the technology it uses is state-of-the-art to create the highest-quality and safest hockey equipment in the industry. “We are strongly involved in engineering, quality, design, traveling back and forth from here to Asia,” Dube says. “We build relationships, grow with them and in some cases invest in them so they can manufacture what we need in terms of quality and technology.”

Growing Momentum After 26 years in the sports equipment industry, Dube has noticed that many companies in the hockey industry in particular are consolidating. Therefore, CCM has fewer players to contend with, but also bigger players in the market. “We have to rely on our retailers for our business because there are so many doors,” Dube says. “Our competitors are investing in director-to-consumer, but it’s not very successful right now. We’re a small industry and, to do it yourself, it’s hard to have a profitable hockey-only store year-round. It’s easier to rely on retailers that don’t sell only hockey equipment.” 38

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CCM Skills Camp

CCM is reconnecting with younger consumers through a program called the CCM Skills Camp. Kids in Chicago, Winnipeg, Boston, Detroit, Toronto and several other cities can work with a team of elite coaches, play hockey and meet some of the best players in the NHL. The camp features on-ice training, panels on nutrition and fitness and agility training so kids can develop the skills needed to excel in this physically demanding sport and become the best hockey players they can be. Coaches will advise players on the best ways to improve their performance and all players will have the chance to put their talents into practice during a session of non-competitive scrimmage. At the CCM Skills Camp, participants will have the opportunity to try out the latest CCM hockey gear. The players will get to skate with the all-new CCM Super Tacks skates, CCM Ribcor skates and CCM Jetspeed skates. Also available for the players to try out on the ice are the CCM Super Tacks stick, CCM Ribcor Reckoner sticks and CCM RBZ Revolution. “It’s very much appreciated by the kids and really helping CCM become more relevant in the industry,” President Dube says.

In the United States and Europe, countless independent retailers sell CCM’s hockey equipment, while it works with a buying group in Canada that owns about 60 percent of the market. “In all industries I’ve been in before, there were so many players to compete, but now it’s more of a two-horse race,” Dube says. “We have gained marketshare and crushed the competition,” he continues. “It’s not a huge growing market – about 2 percent growth annually. So it’s like starting a world championship every year to try to capture more marketshare than the other guy. But we have the momentum right now; we only have one way to go if we do it right.” O September/October 2016

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Retail born and grew over the years to four stores and 180 employees. Under the leadership of the family’s second generation, the company expanded, adding five more stores under three different banners and more than doubling its workforce. Today, Mar-Val Food Stores operates a chain of eight grocery stores and one convenience store in Clements, Escalon, Georgetown, Groveland, Prather, Valley Springs, Nice, Pleasanton and Colfax, Calif. “Many changes over the years were made to allow us to arrive at the point we are today,” the company says. “We are truly excited about our company and its growth. We are dedicated to delivering a variety of services to the community in the manner that reflects its way of life.”

Something for Everyone

Local sourcing is a high priority at Mar-Val Food Stores because of its high values.

MAR-VAL FOOD STORES

Mar-Val-Us

Mar-Val Food Stores stays innovative and offers the highest-quality products. BY JANICE HOPPE Steven Rodacker, president www.marvalfoodstores.com www.genesfinefoods.org Lodi, Calif.

ar-Val Food Stores isn’t considered the local grocery store for nine small towns of California’s Central Valley because of proximity, but because of the connection it has developed with its customers that make them proud to call the store their own. “The Mar-Val Food Stores staff takes pride in bringing you the best in product selection, competitive pricing and customer satisfaction,” the company says. “We work hard to earn the privilege of being your ‘super market.’” The Lodi, Calif.-based company was named after Mardee and Val Kidd, who in 1952 decided to open a small food store. Mar-Val Food Stores was

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September/October 2016

Mar-Val Food Stores says it is important for the company to take a full-service approach and offer everything to everyone. “We need to be very price-competitive, have quality products and offer them good service,” President Steven Rodacker says. “We are still competing against Safeway and Walmart that is 30 minutes from our porch. People still drive to those bigger towns for other services, so we have to be very competitive and quality-driven.” Local sourcing is a high priority at Mar-Val Food Stores because it strives to bring its customers only the best. The company partners with Fresno County, Calif.-based Harris Ranch Beef Family of Companies to supply all of its USDA Choice Angus beef. Local produce is also featured as often as possible, Rodacker says. “Our kind of approach is in the towns we’re in, the communities we’re in, we want to give customers a good value and quality product, and have a clean, well-serviced environment,” he adds. “If we do our job on the inside, they will be our customers, and that’s kind of a belief that we have.” Mar-Val Food Stores recently built a smokehouse in its Valley Springs location, which Rodacker says is unique; he’s unaware of any other grocery store in the company’s area with one. The company will create a whole new product line using the smoker. “We’ve hired a gentleman who has 12 to 14 years of experience running a smokehouse and our meat director is also very experienced,” he says. “We are currently in the process of smoking all of our own sausages, jerky, bacon and ham. We’re really excited about it; it’s a change that can bring more business and variety to our company.” The smokehouse will add to Mar-Val’s meat vari-

Mar-Val Food Stores

ety, which includes an extensive vacuum-sealed marinated meat selection. “You can buy from our specialty sections, which include items such as chicken cordon bleu, bacon-wrapped scallops, stuffed bell peppers and much more that are ready to go, and you can take it home to cook,” Rodacker explains. “These are the different things we try to do.”

continue to help it and other independent grocers prosper. “The younger people keep staying because the populations aren’t decreasing in our towns,” Rodacker notes. “We aren’t growing too fast in these communities. We battle the fight [for business] every day like every industry out there.” O

Steady Growth Moving forward, Mar-Val Food Stores will continue to innovate new offerings in its stores while maintaining steady growth, which has most recently been through acquisitions. The company in 2011 acquired Clements Country Market, a 5,000-square-foot convenience store. It is being sold to Rodacker’s son, Casey, and Tyler Kidd, the son of Rodacker’s partner Mark Kidd. The plan moving forward is to enhance the convenience store by adding gasoline pumps. In 2012, Mar-Val Food Stores acquired Gene’s Fine Foods, a more upscale and specialty grocery store in Pleasanton, Calif. Gene’s 24,000-square-foot store offers certified Angus beef, dry-aged beef along with prime beef, a 24-foot seafood counter that is replenished six times a week and tastings of beer, wine, chocolate and cheese, as well as other delectables for its foodie customers. Mar-Val Food Stores’ most recent acquisition this past May is in the Clear Lake resort area of Nice, Calif. The store was owned and operated since 1997 by a friend of Rodacker’s in Mar-Val’s wholesale group, Unified Grocers. The Nice store was remerchandised at night so it could stay open seven days a week from 7 a.m. to 10 p.m. A new laminate wood floor was installed around the perimeter, as well as LED lighting and energy-efficient closed display cases. The company also remodeled the produce department in the Nice store. The company believes smart growth and innovation will September/October 2016

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Retail

LiptonMart operates 10 locations in western Massachusetts and southwestern Vermont that offer fuel and a variety of convenience items.

LIPTONMART

Family Ties

LiptonMart’s history with the communities it serves help differentiate it from its competitors. BY JIM HARRIS

T Mike Lipton, vice president www.liptonmart.com Pittsfield, Mass.

he Lipton family’s close connections to the communities it serves in western Massachusetts and southwestern Vermont have made its convenience stores and other businesses go-to destinations. “We’re a fourth-generation business with strong ties to the area,” says Mike Lipton, vice president of Pittsfield, Mass.-based LiptonMart, the family’s convenience store chain. “We also give a lot back to the community and people know us for that, which gives us an advantage over our big-box competitors.” Lipton Energy was founded in 1910 by Mike Lipton’s great-grandfather Samuel Lipton as an iron works and coal supply company. During the 1940s,

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September/October 2016

the company started distributing home heating oil, and purchased gas stations throughout the 1950s and 1960s. LiptonMart opened in the early 1980s when Lipton Energy began converting several of its gas stations into convenience stores. Today, LiptonMart operates 10 locations in Berkshire and Franklin counties, Mass., and Windham County, Vt. The stores offer Mobil and Shell gasoline as well as diesel fuel. The stores’ convenience items include beverages, snacks, lottery games and groceries. The Lipton family keeps a high profile in the communities it serves through not only its stores and home heating oil delivery business, but also its charitable work. The family and its businesses are involved in a number of activities including local schools and arts programs, Mike Lipton notes.

Open Doors LiptonMart’s long history is just one reason the company has remained successful for more than 30 years. Lipton says his employees’ dedication to customer service is also a major asset. “I’m surrounded by great people – we have amazing employees,” he notes. Lipton credits his staff ’s service level in part to his

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hands-on approach to managing LiptonMart stores. “I make it a point to get out to our stores frequently, and I make myself accessible to everyone,” he says. “Our employees know that if there’s an issue they can talk to me – my door is always open.” Store managers give input into pricing and stocking decisions, and frequently accompany Lipton to trade shows. “They know they have a say in how the stores are run, which I think goes a long way,” he adds. Managers and employees also frequently receive ongoing training on topics including theft prevention, cleanliness and alcohol and tobacco sales. Theft prevention is one area where the company regularly invests. LiptonMart stores have surveillance systems and other technology in place to prevent theft. “The technology we have in place makes theft more difficult, but it still happens,” Lipton says. “The industry average is two percent of your stock will just ‘walk out,’ but we’re at about half of that.” LiptonMart also keeps theft at bay through its back office software system, which track inventory. The system also alerts managers when an excessive number of voids or no sales are made on registers. The company recently invested in new touchscreen registers that are linked to the system. “The touchscreen system is very easy to use,” Lipton says. “Employee training on the registers, which used to take us days, now just takes hours.”

J. Polep Distribution Services J. Polep Distribution Services is New England’s leading Convenience Store Distributor with a growing portfolio of over 15,000 SKUs. We genuinely appreciate the opportunity to present our programs and value added services to Lipton Mart Convenience Stores. Congratulations to not only our valued partners but also our friends at Lipton. J. Polep is and always will be “Working For Your Convenience.”

We give a lot back to the community and people know us for that. ‘Outside the Box’ Technology is not the only area of improvement for LiptonMart stores. In recent years, multiple sites have had their locations improved as a part of the company’s effort to meet state and federal regulations concerning underground piping and tanks. A renovation project will begin in September at LiptonMart’s location in Lee, Mass. Although the project was initiated to remove single-wall steel underground tanks, the company is more than merely complying with regulations. “We’re going to completely gut the store and add new features outside including a diesel island and highspeed fueling lanes,” Lipton says. LiptonMart has added multiple locations within the past few years. The company hopes to continue to grow its reach both in number of stores as well as geographically, he adds. In addition to the 10 LiptonMart locations, the Lipton family owns and operates three Subway franchises and a Ryko soft touch carwash, as well as a Dunkin’ Donuts location. Mike Lipton says he will continue to seek additional business opportunities, and is supported in his effort by company president Sanford Lipton, his father. “We’re thinking outside of the box and trying to diversify anywhere we can,” Lipton says. “It’s nice not having all of our eggs in one basket.” O September/October 2016

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Retail

KNECHT’S AUTO PARTS

In The Driver’s Seat Knecht’s Auto Parts believes in empowering its managers to make decisions, which encourages employee retention and benefits customers. BY JIM HARRIS

Knecht’s Auto Parts fosters repeat customers by designing its stores so it is easy for customers to shop.

K Kevin Sabbato, president www.knechts.com Springfield, Ore.

necht’s Auto Parts has been a household name for car enthusiasts and motorists throughout Oregon for nearly 70 years. “We’d had a path beaten to our stores for decades,” says Kevin Sabbato, president of the Springfield, Ore.-based retailer. “We’re the neighborhood auto parts store that’s been there for decades; for our customers, we’re the place they remember because they went there with their dad. That familiarity is a big positive.” Founded in 1947, the company today operates 21 locations in Oregon. Knecht Auto Parts’ longevity has not only earned it loyalty from its customers, but also many of its employees. “We are still family owned and operated, and that carries some weight,” Sabbato says. “Several of our management-level employees have been here a long time – we have someone on our counter who’s been here for 37 years, and 5 who’s been here for 15-20 years.”

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September/October 2016

Sabbato represents the third generation of family ownership in the company, as he is the son-in-law of Wally Knecht, the son of company founder Nate Knecht. He credits the company’s retention of longtime employees to its family based culture. “We’re just super-straight with people and treat them fairly,” he says. “We expect a lot out of them, and reciprocate their loyalty – when something comes up, we take care of our staff with time off or other support.”

Fostering Loyalty Employee loyalty has been fostered by part by the autonomy given by the company to its managers. “We give our managers a ton of rope when it comes to the decisions they can make at the counter without having to call the corporate office to get an okay,” Sabbato says. “Our store managers are ‘macro managed’ – managers are treated equal to upper management.”

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Knecht’s Auto Parts

We’re constantly trying to improve our offering to make sure we have the most current inventory.

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The independence given to managers benefits customers, as managers have the ability to override corporate policies regarding returns and can also make decisions regarding pricing. Knecht’s offers a price match guarantee policy that offers discounts on items that can be found at a competitor for a lower price; managers are empowered to offer these discounts at their discretion. “We put all of our decisions in the hands of the store and its employees,” he adds. “Sometimes our stores do things that may not make sense because it’s easy for the employees or store manager and is in a customer’s favor. At times we will take back an ‘alleged defective’ when there is clearly nothing wrong with the part.” In addition to the price match guarantee policy, the company offers the same level of discount to individual customers as it does to mechanics and auto shops. “We are pioneer when it comes to discounting,” Sabbato says. “Back when we had only one store, the employees of the logging industry traded with us, and we would discount items to them as if they were the company they worked for. Commercial account discounts were passed on to their employees.” The company also fosters repeat customers by laying out its stores in a similar manner, making it easier for customers to find items even if they’re visiting a different location. Knecht’s Auto Parts merchandises its parts in tiered, three-dimensional displays as opposed to using peg hooks. “We’ve put a lot of thought into how easy it is for our customers to shop,” Sabbato says.

model of cars registered in its market. The company is also mining data based on parts that are being ordered from local mechanics. The company is enhancing its marketing efforts including using targeted digital advertising. “If you’re a target customer in our market, we can put an ad in front of you that will hopefully get you in our stores,” he adds. O

Making Improvements Knecht’s Auto Parts stores continue to find ways to foster customer loyalty. This is critical to the company, as it has seen a significant amount of competition in many of the markets it operates in, even in towns with populations as low as 5,000 people. “We’re constantly trying to improve our product offering to make sure we have the most current product inventory,” Sabbato says. Knecht’s Auto Parts is using data from R.L. Polk and Company to stock parts based on the make and September/October 2016

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Retail

INTEPLAST GROUP

Sustainability in a Bag

Inteplast Group manufactures innovative reusable bags and mailer bags through its Integrated Bagging System division to reduce retailers’ environmental footprints. BY STEPHANIE CRETS

I Tony Meyers, vice president and general manager for grocery and retail www.inteplast.com Livingston, N.J.

nteplast Group is a completely integrated company that strives to offer products with quality, people and resources in mind. Inteplast’s three divisions produce items that are vital to a host of industries. Its earliest established division, Integrated Bagging System (IBS), produces plastic bags, can liners, foodservice bags, gloves and supplies, retail and grocery bags and janitorial and industrial supplies. The AmTopp division makes stretch films and biaxially oriented polypropylene (BOPP), plus plastic concentrates and compounds. Lastly, its World-Pak division manufactures corrugated plastic sheets, PVC boards and cross-laminated film and bags. Founded in 1991, the company is the largest manufacturer of integrated plastics in North America. Many of Inteplast’s goods are manufactured from raw material to finished product on a 575-acre site in Lolita, Texas – the biggest plastics plant in the state. “We do it from the ground up to the finished product,” says Tony Meyers, vice president and general manager for the company’s grocery and retail unit. “And each business unit focuses on a market segment so we can penetrate the market deeper.” Inteplast – now celebrating its 25th-year anniversary – is actively growing. The company has made 22 acquisitions throughout its history, including a sizeable trashcan liner producer. Acquisitions solidify Inteplast’s position in the market and increase its reach as well. Inteplast’s diverse product lines are a competitive advantage that help lower costs for its customers. A

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September/October 2016

Inteplast’s reusable wave top bag production supports increased sustainable bag usage in North America.

retailer might need garment bags, trashcan liners, vinyl gloves and several other plastic-related products, but instead of getting each item from a different company, that retailer can get everything from Inteplast. “Using one vendor and one delivery – that drives costs down,” Meyer says. “It improves cash flow and reduces the inventory they have to carry because we become their warehouse as well. We try to improve the supply chain. The more products you bundle, the less you keep on the floor and the more it comes in through one channel and improves the cost of the supply chain and cash flow.”

Inteplast Group

Inteplast mailer bags are a convenient option for shipping and in some cases can be reused.

New Trends As a manufacturer of plastic products, including different kinds of bags, Inteplast is always aware of the regulations and bag bans in cities across the United States. But it overcomes these challenges and restrictions by producing reusable plastic bags. Meyers says plastic is recyclable and that it’s a great opportunity for Inteplast to use to its advantage. “We don’t encourage cloth or vinyl bags because of cross-contamination when people don’t wash those bags,” he explains. “If you happen to get blood from your chicken or steak [in the fibers of ] the bag, it can lead to health hazards.” Inteplast has two types of reusable plastic bags on the market: the t-shirt bag and wave top bag. The t-shirt or pull bag is used in supermarkets, big-box retailers like Walmart and for carryout, and it meets California standards. The wave top bag is the most popular because it’s shaped like a wave at the top with a handle in the middle. Retailers can print graphics on the front and back of wave top bags because these bags have a wider surface area than a typical t-shirt bag. “We have the ability to produce those bags in many plants throughout the country,” Meyers says. “We’re ready for the transition to reusable bags in multiple areas, which will only complement our expansive product lines.”

Despite the transition to reusable bags, Meyers doesn’t see the end of the single-use bag for now. But it will continue to be a hot-button topic in today’s evolving market. For example, another trend Inteplast is capitalizing on is mailer bags. Shipping products in cardboard boxes is costly in both freight and postage, along with increasing a retailer’s carbon footprint. But many online retailers are turning to mailer bags because most products sold online can be put in a plastic mailer bag that has its own seal. That saves the time, money and extra packaging efforts such as tape that the traditional cardboard box requires. “Mailer bags are in their infancy of taking off because you just put whatever you want in the bag and mail it out,” Meyers adds. Inteplast produces billions of bags a year to serve many industries while it keeps pace with economic and environmental trends. The company takes risks with new innovations but with its wide market reach, Inteplast usually comes out ahead of the curve. “We aim to maintain our integrity within the industry,” Meyers says. “We won’t provide a customer with less than they’ve asked for. And we have the culture and the mindset that you should never produce anything you can’t be proud of.” O September/October 2016

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Solution Providers EPICUREAN GROUP

Mary Clark Bartlett, CEO and founder www.epicurean-group.com Los Altos, Calif.

Celebrating Good Food Epicurean Group serves healthy food through honest sourcing by partnering with local farms and ranches and focusing on sustainable practices. BY JANICE HOPPE When Epicurean Group opened its doors more than a decade ago as a foodservice management company, it broke new ground for the industry by using local farms and ranches as suppliers and focusing on sustainable practices. The company continues to embrace the same core values it was founded on, which are exactly what today’s health and environmentally conscious consumers are demanding. “I absolutely love fresh and local food,” CEO and founder Mary Clark Bartlett says. “I was born and raised in Brooklyn and my father’s family had been farmers since the early 1900s. I grew up around great food; we had our own gardens and

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went to the farmers’ markets in New York. I’m glad to see consumers are embracing the kinds of foods I grew up with.” Clark Bartlett’s passion for fresh, locally grown food led her to create Epicurean Group in 2003, and today she operates a large contract foodservice business with her values serving as the foundation of the company. She’s finding that the company’s competitors are trying to copy its practices.

Pioneering Healthy Practices Potential customers were at first skeptical that Epicurean Group could compete with big companies by using menus of seasonal, healthy, locally sourced food. “We were pioneers. We went into school and college campuses and took soda machines out and put in spa waters. We used real potatoes and roasted them with the skins on,” Clark Bartlett says. “It’s only recently that Michelle Obama

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EPICUREAN GROUP started talking about making healthy choices, and movies and books came out about how unhealthy the sugar, salt and fat in processed, supersized food is for us. We proved that we could deliver healthy food at the same price as huge global companies that serve industrial food.” How do they do it? Clark Bartlett says there are three ways: • Serving Seasonally Food costs are low when supplies are high. And that happens when farms and gardens are at their peak. • Buying Locally Sourcing locally eliminates the transportation costs of shipping processed foods from warehouses and factories. • Supporting Community Many competitors require their chefs to buy their food from a subsidiary company, often at higher prices. Epicurean Group buys food directly from producers in the local commu-

nity at fair prices – for the grower and the company. As an industry leader, Epicurean Group remains dedicated to environmentally and socially responsible management practices. The company is passionate about healthy, fresh food and delivering an incomparable dining experience, whether it’s a corporate café or a university dining hall. “It’s exciting and not always easy,” Clark Bartlett says. “If it was easy everyone would be doing it and they’re not. We have fun with it and our chefs are very passionate about it. We really put our hearts into what we do.” To keep the culinary team up-to-date on the latest trends and education, Clark Bartlett hosts an annual companywide meeting where she also highlights Epicurean Group’s accomplishments, goals, values and how they align with its clients. She invites world-renowned

chefs and thought leaders to speak. “The teaching aspect is so important,” she adds. “It’s critical that people in our company understand our values and why we are doing this. We want people to be aware of all the issues around food.” Epicurean Group wants to help feed the world better food, and its more than 450 employees work passionately for the cause because they have the freedom to be creative. “I think that in the culinary world, when they have the freedom to do that – to create – that’s what makes it satisfying,” Clark Bartlett says. “Our chefs are proud of what they do, their food looks phenomenal and they have a unique camaraderie because they are all very passionate about healthy, delicious food. Each of our cafés operates independently. The chef and manager collaborate with their client to create seasonal menu items that their customers are hungry for.”

September/October 2016

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SOLUTION PROVIDER EPICUREAN GROUP Building Culinary Leaders Getting into the kitchen, collaborating, learning from each other and cooking together has built strong camaraderie among Epicurean Group’s chefs. “There is quite a bit of collaboration each summer, as our chefs get ready for back to school,” Clark Bartlett notes. “They team up, help each other, text pictures over the weekend and all work together. They’re excited about what they are doing.” Epicurean Group hosts a number of professional development sessions throughout the year for its chefs. “Bang the Pot” is a quarterly group training where chefs come together to share ideas and learn new techniques. The company also started a new training program, “Building Culinary Leaders,” to expand its chefs’ and sous chefs’ skills in accounting, purchasing, management and public speaking and “round out the whole person.” “This is exciting for us because the more they understand, the more successful they will be,” Clark Bartlett says.

Fresh, Honest, and Local Epicurean Group’s fresh, honest, local philosophy will help it change one environment at a time and educate the community, Clark Bartlett believes. “Americans are so used to eating every fruit and vegetable all year long that we’ve forgotten what’s seasonal,” she says. “When you cook according to Mother Nature’s schedule and prepare food in season, it tastes better and is more nutritional.” To cook and serve what’s in season, Epicurean Group visits local farms to talk about their products before choosing them as a supplier. “We are lucky to be in the ‘food mecca.’ The best food and wine in the country can be found right here in California,” Clark Bartlett says. “It’s so important to support our local farmers, and to eat like our grandparents and great-grandparents ate.” In the fall, Epicurean Group will launch a new program, in conjunction with Fair Trade Campaigns, to promote Fair Trade products and values. The 50

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Epicurean Group strives to deliver high-quality food at reasonable prices by sourcing seasonal goods and supporting local communities.

Learning from and Contributing to Slow Food

Slow Food is a grassroots organization that’s fighting to preserve local food cultures and traditions, counteract the rise of fast life and combat people’s dwindling interest in the food they eat. Founded by Carlo Petrini in Italy in 1989, Slow Food has evolved into a movement that now involves millions of people in more than 150 countries who are working to ensure everyone has access to “good, clean and fair food.” Slow Food hosted in September the biennial Terra Madre Salone del Gusto conference in Italy. Clark Bartlett was first invited two years ago and again this year to be a delegate. “The conference was inspirational and provided a fascinating look at how the rest of the world eats,” she remembers. “One thing we took away from it two years ago was the ancient grains that are used around the world. We developed an ‘Ancient Grains’ program for our cafés with these recipes to give our customers the option of enjoying a complete protein that’s not meat.”

company will continue to stay true to its value of supporting local farms and artisan producers, even as it expands into new markets beyond its northern California home. One of its newest clients is in the middle of Oklahoma. “We work with local suppliers who know our specs and understand our values to source and deliver to the Oklahoma location,” Clark Bartlett adds. And, she believes, as organic, local and seasonal products become more mainstream, demand will grow and products will become more affordable. “There is a demand for good food and we are answering it,” she adds.

Understanding Food The company will continue to focus on education and to share their knowl-

September/October 2016

edge. Epicurean Group’s ultimate goal is to educate Americans about freshly prepared, seasonal food and help them understand what they are really eating when they eat processed food. “They can spend more on food now or on healthcare later,” Clark Bartlett explains. “When food is delicious, there’s nothing more satisfying. We need to teach people how to eat – to enjoy the pleasures of seasonal local food and food traditions, to celebrate over food and to eat something that’s good for you.” From skepticism to imitation, Epicurean Group’s business has grown and prospered. “We’re happy to have been leaders in sustainable foodservice and to have inspired so many followers,” Clark Bartlett says. O

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