Progressive Grocer Independent

JUN 2016

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June 2016 | Defining the Independent Market | 37 bartender serving the food, or custom- ers can bring food in from the prepared foods department. Customers also can buy a bottle of wine in the store and drink it in the bar, where the bartender will open it without charge, O'Neill says. Te wine selection between the bar and the store difers slightly, and the bar does charge more per glass than what a bottle would cost in the store. "But if you look at it compared to a restaurant or a bar outside of our own, it's a way better value," O'Neill contends. Te bar continually promotes its food-and-drink pairings and specials to draw in customers. Most of the marketing is done through the brewers Caputo's partners with to hold special events in its stores. Currently, the Bar Angelo concept is in two stores, with plans to add it to two — or possibly three — more during remodels. "A lot of things are fads, and you have to hit it when the irons are hot," O'Neill says. "But for us, [the Bar Angelo concept] is a success, and we're going to expand on it and customize it a little bit more." For other retailers that might want to expand into this type of concept, however, O'Neill has a few words of caution. "If you don't do good food in the store, you really shouldn't do the bar concept," he says. "If you're doing good food, then maybe yes, you look at the bar concept." Nonfood Expansion For Tyler Myers, growth came with ofering consumers a nonfood reason to shop his stores. Two of his 30,000-square-foot supermarkets house 8,000-square-foot Ace Hard- ware locations. (Other hardware companies also ofer a similar concept of bringing their brands into super- markets.) Te hardware store-within- a-store concept acts almost as a second anchor tenant in the shopping center, Myers says. Although he cautions that retail- ers need to look at the competitive landscape, if the area can support a hardware store, then Myers thinks "it's a natural ft for it to be next to the grocery store. It gets better when you have the two of them together, because you can share a lot of the economies of scale that way," he adds. For example, the combined stores have only one phone bill, one utilities bill, one heat bill, etc. "It really drives a lot of the proftability, and some of the expenses out of what would be a traditional hardware store," he says. And Myers would know about the benefts of stand-alone versus a store- within-in a store. In addition to the two Ace Hardware locations within his stores, he also operates two stand-

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