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, as ethnic shoppers will pay a premium for the luxury of satisfying a craving for “food from home” and also since 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.