Supervalu is taking a hyperlocal approach to promotion its supermarkets' assortment of national products by giving store directors more control over marketing campaigns and display space in stores. In a call with financial analysts, Supervalu executives discussed how store directors now control half of the store display space in their stores — helping them cater to their neighborhoods — and are sharing best practices with each other through social networking sites.

 

"Our customers are beginning to respond favorably to the more relevant merchandising and assortment that they're seeing in our stores," says Craig Herkert, CEO of Supervalu. "We've introduced new consumer promotions to drive them into our stores and experience our enhanced offering."

 

 

In the call, Herkert cited its Albertsons store in Cheyenne, Wyoming as an example of how hyperlocal efforts helped increase sales. During the last two weeks of July, the town hosts Fronteir Days, one of the largest rodeos in the country that attracts about 70,000 visitors annually. "[The store] responded and worked closely with a major national vendor to create promotional displays the maximized its rodeo sponsorship and helped drive sales," says Herkert.

 

Store director Bob Simpson had associates dress in cowboy hats and shirts and converted the store's parking lot into a petting zoo, making the store a tourist draw. Simpson strategically placed pallets of water in the front lobby, and worked with the vendor to display certain items.

 

"For the entire event, the store posted a healthy increase in ID sales even off of last year's double-digit comp," says Herkert. "Even more impressive […] was the 58% increase in cherry sales that created displays and placement drove. This example illustrates how hyperlocal retailing coincides with national products to both engage customers and meet their local needs."

 

 

Supervalu store directors are sharing best practices from their hyperlocal efforts through social media networks. According to Herkert, by sharing ideas, store directors can drive change throughout multiple markets. One example of using social networking to share best practices is the company's college store network, which is connected through an internal social media platform. The communication between store directors at the college stores "creates good camaraderie and a healthy sense of competition," says Herkert.