Harveys Test Concept Takes Over

Southeastern Grocers last week held grand openings at 73 stores after renovations that converted all 55 Harveys Supermarkets plus 11 Bi-Lo locations and seven Winn-Dixie stores to the new Harveys format that the retailer has been testing since May.The updated stores boast an expanded meat section stocking new smoked meats and large-size SKUs meant to appeal to value-focused shoppers. Refreshed produce departments use framed signs to plug locally farmed products. The health and beauty departments also were expanded to make room for the addition of about 250 SKUs in a bid to increase share of wallet by eliminating the need for shoppers to make trips to specialty stores.Harveys also is attempting to lure shoppers away from dollar stores with a new "$1 Zone" comprising rolling carts, endcaps and in-line displays marked with violators and shelf talkers that stocks some 600 SKUs from brands including Conagra Brands' Chef Boyardee, Kellogg Co.'s Frosted Flakes, General Mills' Cheerios, private label Southern Home and TreeHouse Foods' Mueller's. A "Pick 5" program lets shoppers pay $19.95 for any five SKUs from a list of about 75 eligible fresh, prepared and frozen food items. The bulk-purchase incentive on average delivers 25% off the regular price.The new stores also employ a pair of pricing strategies the retailer previously implemented at Bi-Lo and Winn-Dixie. "Great Low Price" tags identify 2,200 permanently discounted SKUs, mirroring the "New Regular Prices" program Southeastern Grocers rolled out in October 2015. Ceiling signs and violators employ "Low and Staying Low" messaging, similar to the "Prices Down and Staying Down" tagline used at Bi-Lo and Winn-Dixie, to indicate some of the 800 SKUs boasting price cuts for at least six months. Run-of-press ads in newspapers including The Charlotte Observer, features in Harveys' Nov. 16 circular, home page carousel ads and Facebook updates plug the grand openings and new pricing programs."Customers shopping at our new Harveys Supermarket will now find thousands of great low prices and significant savings that make a meaningful difference for families on a budget,” Southeastern Grocers chief executive officer Ian McLeod said in a media release.Southeastern Grocers debuted the new concept in May at a former Winn-Dixie location in Jacksonville, FL, and continued the pilot in July at a Charlotte, NC, store. Not all of the tested tactics were implemented. The test stores had an in-store cafe serving fried fish and wings, and extended the focus on local products to the grocery department.Ahead of the openings, Harveys joined American Express' Plenti coalition loyalty program and began phasing out its Hometown Rewards loyalty card. Existing cardholders received an email on Sept. 20 informing them that they were automatically transferred to the new "Rewards + Plenti" program and given 200 bonus Plenti points, which can be used to for discounts at partners including Rite Aid, Macy's, Mobil and Exxon. Shoppers could register for the card in stores starting on Oct. 19. Harveys stopped awarding Fuelperks to shoppers using the old card after Oct. 10, though they can continue to use their existing cards to receive loyalty-based discounts and redeem previously earned Fuelperks.A full-page feature in the retailer's Nov. 2 circular encouraged shoppers to get their Rewards + Plenti cards by offering double points through Nov. 15. A home page carousel ad and Facebook updates also promoted the change.

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