C-Town: Food Store of the Future?

Learn how C-Town profitably meets the needs of diverse shopper segments.

C-Town Supermarkets are part of Krasdale Foods, a grocery wholesaler that supplies over 7,000 Krasdale-branded, private-label, regional, ethnic and specialty food items to food retailers. Its stores are primarily located in the New York metro area.

As a regular Hispanic shopper in their Ditmas Park, Brooklyn location, I’m constantly delighted with their ability to meet my cravings for Colombian and pan-Latin items at the same time that they also fulfill my desire to eat organic.

C-Town tailors its stores individually to its surrounding community. My store caters to both lower middle-income Caribbean and Mexican shoppers and higher income homeowners. The assortment, pricing and merchandising strategies that C-Town uses to profitably meet the needs of multiple shopper segments are as follows: (click here to see store images)

  • Merchandise ethnic items next to mainstream items, following buyers’ habit to shop by section (produce, dairy, etc.) and not by culture (Hispanic, Chinese, etc.).
  • Merchandise ethnic produce more prominently than mainstream produce, locating both of them at the store’s entrance.
  • Price ethnic produce at a premium, because an ethnic shopper will pay a small premium for the luxury of satisfying a craving for “food from home”  and also because they are lower volume, niche items.
  • Merchandise “family size” items more prominently, for example: meats, poultry, fish and deli items as well as staples such as coffee.
  • Most brands sold are in the “good” end of the “good-better-best” assortment spectrum, to match shoppers’ income level.  Brands in the “best” category are priced at a premium, as they are most likely to appeal to higher income shoppers.
  • Selectively carry key items for very niche targets, such as Jamaican organic juices and Colombian arepas, or organic products for higher income shoppers.
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Posted in Best Practices, Merchandising

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