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WDS in the News
Sampling Specialty
Supermarket News
October 01, 2007
Conventional retailers are introducing unique items to shoppers through sampling events, forcing club stores to step up their game
Club stores have built a reputation for introducing have-to-have items to shoppers who never even dreamed they existed. Although it’s been merchandising novel items for nearly a quarter-century, Costco Wholesale Corp. has no problem keeping things fresh, said its president and chief executive officer, Jim Sinegal. Over the years, Costco’s seasoned buyers have become adept at sourcing unique products and bridging gaps with conventional shoppers.
“Clearly, our reputation has not been made on selling 12 ounces of bologna,” noted Sinegal. “Customers expect to find more esoteric items with us.”
Sinegal sees Costco's sampling program as a way to differentiate itself.
“Demoing products is not the heart of what we do, yet it's something that, if discontinued, would disappoint our members,” said Sinegal. “We make a very unique chocolate cake in our bakery, and when we demo it, we see sales go through the roof.”
Among the other items recently introduced to shoppers' palates are an imported Mexican olive oil and Belgian chocolates.
“These are items the customer isn't used to seeing, so sampling gives them an indication of the taste and quality,” Sinegal said.
[Jon] Hauptman [with retail consulting company Willard Bishop] recalled making a purchase as the result of a sampling made at Costco last year. He was invited to try a sip of a concentrated pomegranate juice…
“She was a very good saleswoman, and after I tasted it, she told me about the product,” he noted. “I ended up buying [an $18 bottle of juice], but I never would have if I had just passed it on the shelf.”
Hauptman notes that it is often difficult for a niche brand to break into a supermarket product mix, but warehouse clubs often bring in such items for a demonstration to test the waters before they begin to carry it.
Costco recently used that strategy to introduce dried blueberries to its product mix.
“It started off as a very small item, and we demoed it, and all of a sudden it took off as one of the biggest items in our dried fruit department,” said Sinegal, who would not disclose the brand name. “We find many instances where products take off like that. Sometimes they last a long time, and sometimes they become good for six months or a year and start to fade as something new comes in.”
Club stores have built a reputation for introducing have-to-have items to shoppers who never even dreamed they existed. Although it’s been merchandising novel items for nearly a quarter-century, Costco Wholesale Corp. has no problem keeping things fresh, said its president and chief executive officer, Jim Sinegal. Over the years, Costco’s seasoned buyers have become adept at sourcing unique products and bridging gaps with conventional shoppers.
“Clearly, our reputation has not been made on selling 12 ounces of bologna,” noted Sinegal. “Customers expect to find more esoteric items with us.”
Sinegal sees Costco's sampling program as a way to differentiate itself.
“Demoing products is not the heart of what we do, yet it's something that, if discontinued, would disappoint our members,” said Sinegal. “We make a very unique chocolate cake in our bakery, and when we demo it, we see sales go through the roof.”
Among the other items recently introduced to shoppers' palates are an imported Mexican olive oil and Belgian chocolates.
“These are items the customer isn't used to seeing, so sampling gives them an indication of the taste and quality,” Sinegal said.
[Jon] Hauptman [with retail consulting company Willard Bishop] recalled making a purchase as the result of a sampling made at Costco last year. He was invited to try a sip of a concentrated pomegranate juice…
“She was a very good saleswoman, and after I tasted it, she told me about the product,” he noted. “I ended up buying [an $18 bottle of juice], but I never would have if I had just passed it on the shelf.”
Hauptman notes that it is often difficult for a niche brand to break into a supermarket product mix, but warehouse clubs often bring in such items for a demonstration to test the waters before they begin to carry it.
Costco recently used that strategy to introduce dried blueberries to its product mix.
“It started off as a very small item, and we demoed it, and all of a sudden it took off as one of the biggest items in our dried fruit department,” said Sinegal, who would not disclose the brand name. “We find many instances where products take off like that. Sometimes they last a long time, and sometimes they become good for six months or a year and start to fade as something new comes in.”
“Our products deliver on taste and WDS is able to put that right into the Costco members’ hands. That’s the front line of our ability to introduce our product to the consumer and it has proven very successful for us.”