A STUDY OF THE PHYSICAL ASPECTS
OF SUPER MARKET OPERATIONS

Thesis for Ike Degree of M. _A.
MICHIGAN STATE UNIVERSITY

Sylvester J. Puglia
1956

A STUDY OF THE PHYSICAL

ASPECTS OF SUPER MARKET OPERATIONS

by

Sylvester J. ~E‘uglia

AN ABSTRACT

Submitted to the College of Business and Public Service of Michigan
State University of Agriculture and Applied Science in partial
fulfillment of the requirements for the degree of
MASTER OF ARTS

Department of General Business

Curriculum in Food Distribution

,—/-\
Approved {P [7”, /¥3fi~——w-prC-V

 

Sylvester J. Puglia

The writ er has prepared this thesis to stress the importance of
the day to day activities presently being performed in super markets. Com-
pany policies and operating procedures set forth in manuals and other forms
of literature will prove of little value unless the rules and instructions pre-
scribed therein are practiced and applied on a realistic basis. Students of
business and other persons interested in the food industry as a career should
have the details of super market operation presented to them as a means of
manifesting the importance of such activities to the over-all success of a food
chain. The flow of merchandise into the retail outlet, with its subsequent
care and handling, was the activity selected to point out this importance.
This flow of merchandise was traced through the study of super market (1)
ordering procedures, (2) methods of receiving, storing and price-marking,
(3) housekeeping, care and maintenance activities.

Actual observations in retail food stores and the experience of the
writer, coupled with information derived from personel contacts, information
requests, books, trade bulletins, periodicals, and company manuals, pro-
vided the bulk of information contained within this thesis.

Through the use of the above listing, it was found that methods of
operation pertaining to the areas studied varied from chain to chain, and
often within individual units of a particular chain. In some instances, the
methods used by the various food chains were similar.

Operating procedures and methods utilized to control the flow of

Sylvester J. Puglia

merchandise depend on store layout and location, degree of mechanization
within a store, volume of business, company policy, and the availability
and productivity of manpower employed.

There are many fascinating occupations within the organization of
a food chain. But regardless of what task is being performed, it is pri-
marily a support function designed to contribute to one main goal - the
successful operation of the retail store. The Operating efficiency of an organ-
ization is mirrored in the results attained at the retail level. Inefficiencies
and poor operating procedures eventually cause disruptions that adversely
affect the retail outlet. Therefore, the functions being performed at this
level should be known in order to integrate its needs and requirements
into all levels of the organization. Being aware of difficulties likely to be
encountered and the efforts taken to correct them will partially enable mem-
bers of the organization not in close proximity with the retail operation to
better understand the roles of the personnel on the "firing line" and conse-
quently their own role in relation to this activity.

The importance of training, planning, organizing and controlling the
function inherent in super market operation must be stressed to all con-
cerned.

This study is not an attempt to establish a set of hard and fast rules.
The subjects covered in this report were selected to create an awareness of

the operating standards presently in force and the efforts being directed toward

Sylvester J. Puglia

their improvement. Of particular importance is the fact that no one pro-
cedure is ideal in all situations since there are limitations or advantages
present in any operation. Studying the various methods and processes cur-
rently in force should provide an insight that may be valuable for future
undertakings in respect to establishing a particular method of retail oper-

ati on .

"The Food Distribution program at Michigan State University
is under the sponsorship of the National Association of Food
Chains"

A STUDY OF THE PHYSICAL

ASPECTS OF SUPER MARKET OPERATIONS

by

Sylvester j. Puglia

A THE SIS

Submitted to the College of Business and Public Service of
Michigan State University of Agriculture and
Applied Science in partial fulfillment
of the requirements for the
degree of

MASTER OF ARTS

Department of General Business
Curriculum in Food Distribution

1956

TM 5%.? 5 3.

ACKNOWLEDGEMENTS

The writer wishes to express his appreciation to Dr. E. A. Brand,
Director of the Food Distribution Curriculum at Michigan State University,
for his interest and guidance during the school year and in the preparation
of this study.

Grateful acknowledgement is extended to Mr. Lloyd W. Moseley,
Vice President In Charge of Personnel and to all other people of the Grand
Union Company who made the author's attendance at Michigan State Univer-
sity possible.

The writer is also grateful to Peggy Curry for her untiring efforts
in typing this report.

There are no words to express the gratitude the writer feels toward
his wife whose encouragement, hardwork and tireless energy were a constant

source of inspiration.

TABLE OF CONTENTS

CHAPTER PAGE
I. Introduction ........................ 1
I PurpoSe‘ of the Study ................. 1
Need for the Study .................. 2
Limitations of the Study ,,,,,,,,,,,,,,,, 3
II. Ordering .......................... 5
Grocery DEPartment ................. 8
Meat Department .................. 14
Produce Department ,,,,,,,,,,,,,,,, 16
Methods of Ordering ................. 19
III. Receiving, Storing, Marking ............. . . 26
Grocery Department ................ .. 27
Price Marking Groceries .............. 38
Meat Department ................... 45
Produce Department ................ 53
Dairy and Frozen Foods .............. 58
IV. Stocking .......................... 60
Grocery Department ................ 62
Space Allocation ................. A. 63

Night vs. Day Stocking ............... 65

CHAPTER PAGE

Rotation ....................... 68
Accessibility ..................... 69

Facing Merchandise ................. 69
Cleanliness ..................... 70

Dented Merchandise ................. 70
Arranging Stock ................... 70

Methods of Operation ................ 71

Meat Department ................... 73

Produce Department ................. 77

V. Housekeeping, Care and Maintenance .......... 80
Planning the Program ................ 82
Organizing the Program .............. 84
Controlling the Program ...... I ........ 86
Breakdown by Departments ............ 89

VI. Conclusion ....................... .. 100

BIBLIOGRAPHY ........................ 103

LIST OF FIGURES
FIGURE PAGE

Figure I ........................... . 73

CHAPTER I

INTRODUCTION

Purpose of the Study

The purpose of this study is to set forth important factual data con-
cerning the physical attributes relative to the efficient functioning of a
modern super market. Textbooks written covering the retailing functions of
marketing deal only briefly with the super market and the food industry as a
whole. Literature printed on this subject is primarily contained in periodicals
too numerous to accumulate. The actual day to day relationships and work
assignments vital to the operation of a super market must be explained in
detail if the problems continually arising are to be satisfactorily solved.

An additional purpose will be to manifest the need for training employees
in the subject matter contained herein. Thousands of dollars are invested
every day toward the building of new and greater super markets. The proper
utilization of its facilities, tools and processes is an important adjunct to this
investment.

Operating profits for all chains run approximately the same. Chains
approximate each others net profit figures but vary in methods of operation.
The inference is that no one type of operating procedure or device will have a

making or breaking influence on any one chain. Each organization formulates

its own policies and procedures to fit its personnel and clientele. New and
untried methods can, therefore, be used. It is also the purpose of this thesis
to illustrate the various methods which can be employed.

New employees must be able to grasp the full significance of the oper-
ation of which they are a part. It is hoped that this thesis will, in some way,
enlighten the new employee to the importance of his particular task and the
effect it may have on the overall operation.

Students new to the field of food distribution, it is hoped, will be able
to refer to this paper to get an insight on the everyday functions of the "cogs"

that make up the gears of the efficiently run super market.
Need for the Study

It is felt by the writer that the material contained herein can be used
to train young men in the basic fundamentals of operating a super market.
Great stress is being placed on human relations, public relations, promotion
programs, etc. This is as it should be, but focusing attention on the funda-
mental principles of retailing with its daily problems is also very important.
The old adage "For want of a shoe, a horse was lost", etc., applies equally
well to the food industry.

If the new employee or student is provided with basic materials or an
operating manual as his first reading requirement he can readily become
acquainted with many of the processes involved. The information will increase

his awareness of his surroundings and stimulate interest in his particular field

of endeavor by pin-pointing the effect of a particular function to the overall
operation.

The physical aspects of super market activity are of vital concern to
the company. Trailers must be unloaded, shelves must be stocked and the
floors must be swept. These functions must be accomplished within certain
money limits. Labor rates are projected and must be met or even lowered
if a company is to realize a profit. In conjunction with these physical activi-
ties, a training procedure must be designed that will not hinder the operation
and still produce maximum productivity. It is important, therefore, that as
much knowledge as possible be digested in a short period of time. Training
employees must be an integral part of the physical activity. It is felt by the
writer that material covering the details of super market operation is essential
to its continued success. Employees with a broad knowledge of all or a parti-
cular part of an operation are better suited to carry out their duties. Also a

broad concept of his fellow workers duties will enable him to appreciate the

overall purpose of the retail outlet itself.
Limitations of the Study

Due to the broad nature of super market activity, will all its facets,
problems and situations, it would be impossible to cover every situation that
would arise or to cover every method used. Each individual retail outlet has
its own peculiarties. Some stores are limited in space, others have an abun-

dance of room. Many stores are mechanized, others are not. There is very

little standardization in so far as customers, locality, and preferences are
concerned. Therefore, no effort will be made to designate what type of lay-
out would be most effective or how much storage space should be allocated
according to volume and sales turnover.

Reference to such activities as mass displays and special promotions
will be mentioned only as it applies to the physical operation of the store.

Attempting to analyze the positioning of conveyors or locating them
more stragetically could be covered more thoroughly in store layout manuels,
etc. Locating departments, receiving doors, chutes, etc., is a matter of
company policy or physical limitations and advantages. It is hoped that this

I

thesis will help to clarify things as they are, not as they should or should not

be.

CHAPTER II
Ordering

One of the most challenging aspects of a super market operation is the
ordering of merchandise. It is a continuous endeavor that must be repeated
successfully week after week or day after day. It is not a simple routine
task that can be accomplished in a routine manner. Ordering merchandise is
a specialized function that involves intelligent planning and a great deal of

"horse sense.‘ It requires clear thinking, self-confidence and a thorough
knowledge of product movement. The success of a retail outlet hinges on
this important procedure.

The operation of a super market can be made difficult or comparatively
easy depending upon the manner in which merchandise is ordered. Items that
are bought regularly by the housewife make up the bulk of a super markets
trade. Ordering too much or too little is the big problem. If too much mer-
chandise is ordered, an overstock will naturally result. If insufficient amounts
are ordered, . out-of- stocks will begin to plague the store so involved. Both
situations are dangerous.

Overstocks of merchandise tie up capital that could be turned into

profits elsewhere. Huge inventories in the storage areas of retail outlets make

efficient movement difficult and the taking of periodic inventories by auditors
time—consuming. Some store managers rest comfortably on their huge stocks
of merchandise. They feel that this is a means of avoiding out-of- stock
conditions. From a narrow point of View this is no doubt true to a degree,
providing he has a stock of sufficient variety. Observing this situation from
the headquarters level, the picture is much less appealing. Managers who
order excessive stocks of merchandise to feel on the safe side should be
shown the folly of their thinking. They should take into consideration the fact
that they may be shorting another manager as well as increasing their own
costs, etc. Excessive ordering cannot be tolerated in the perishable depart-
ments. To do so would result in markdowns caused by spoilage. This, plus
the fact that controlled temperature storage facilities waild be strained, is a
curtailing factor in ordering too much for these departments.

Ordering insufficient quantities of merchandise is equally serious.
Out-of—stock is the eventual result and the additional sales that could have
been made are lost forever. Customers prefer to do all their shopping in one
store. They expect to fill their immediate needs in one shopping trip. If
they are unable to do so, they will eventually take their business elsewhere.
Out-of— stock should be controlled and kept at an acceptable minimum.

As mentioned previously, ordering cannot become routine. Routine
eventually results in indifference; and indifferent ordering procedures can

lose money so rapidly that all profits can be speedily wiped out.

A manager must be continually "on his toes". Demand is constantly
changing. Products increase in popularity, remain at a relatively stable level
of movement, or lose favor with the customer over a specific period of time.
Being aware of these situations is a vital necessity to the person doing the
ordering.

The performance of this important function can be delegated, but the
ultimate responsibility rests with the store manager and his department
heads. No one single factor is responsible for the success or failure of a
chain store; but the ordering function and its paramount importance to the
business absorbs a great deal of this responsibility.

Goods well ordered are half sold. Striking a happy medium that results
in a perfect ordering procedure is seldom attained. However, it is a goal
which must be continually kept in mind. The ordering of merchandise is
becoming more scientific and today is based more on facts than on hunches.
New methods are being tried. Preprinted order forms, business machines,
tabulating cards, special bulletins, modern communication systems, etc., are
all combining forces to make the task more efficient and less of a risk.
Ordering will undoubtedly remain somewhat of an art. Record keeping and
inventory control procedures have done much to stabilize the risk involved,
but with the changing demands of consumers and the new product introductions,
the problem of ordering will always remain a challenging one.

Effective merchandising starts with intelligent ordering. The know—

ledge that a successful merchandiser must absorb is tremendous, to say the

least. Condensing the factors affecting ordering in all departments into one
chapter is difficult due to the diversification of items handled. Special
situations pertaining to an individual department will be listed under that
department as this chapter progresses. Therefore, to avoid reiteration,
the factors listed for consideration under the grocery department are also
applicable to the perishable departments. Due to various basic similarities,
some duplication may be evident. Such duplication will be necessary for the

sake of clarity.

Grocery Department

The ordering of merchandise for the grocery department’is becoming
more complex, for it is in this department that many new products are con-
tinually being introduced. Full shelves and attractive displays are dependent
upon intelligent ordering procedures. Successfully planned ordering during
the four seasons of the year will insure against lost sales and profits. The
following factors should be given serious consideration.

1. Customer preference. The vast selection of merchandise cur-

 

rently being marketed through the channels of food distribution are designed
to fit the needs of all types of customers. Modern super markets are stocked
with every imaginable type of merchandise. However, many of the commodi-
ties stocked by the warehouse are not in demand in certain areas. It is the
responsibility of the store manager and his department heads to tailor their

merchandise to the needs of their customers. Chinese and Italian foods, for

example, are fast becoming staple items. Despite this fact, in many localities
these products are not in popular demand, therefore, valuable shelf space

can be wasted and many man hours of labor lost in trying to merchandise

them too aggressively.

In a relatively short period of time, the person responsible for making
up the store order can determine what products are popular and what items
are not. Past sales records, personal observation and conversations with
customers will clearly and quickly reveal customer preferences.

New products being introduced to the public should be given a fair
trial, and their movement studied carefully. If its turnover warrants future
commitments, it should be reordered on a realistic basis. Items losing
favor with the cusomers should be reordered only as they are needed and its
shelf space decreased if it is practical to do so. In light of the preceding
discussion, the first rule and consideration to follow is to order only what
can be sold. There is no point in allocating valuable space to merchandise
that will not sell. This does not preclude the fact that slow moving merchan-
dise should not be handled. On the contrary, many slow moving items appeal
to certain customers and they should be given serious consideration.

2. Product knowledge. It is hardly worth mentioning that product

 

knowledge is important, but in the light of new product developments, it be-
hooves a store manager to know what he is ordering. Powdered salad dressing,

for example, must be distinguished from the liquid or spread type. Such

10

items as these are often manufactured by the same company and distributed
through their regular channels. It is wise to know the size, weight and other
individual characteristics of these products in order to avoid embarrassment
by being overstocked or out-of- stock.

The alert store manager will keep abreast of these new developments
‘ through company bulletins and trade publications. When a new product is
released or a new size container is introduced to the public, the manager
must explore its possibilities in relation to sales, profit and turnover. Keep-
ing up to date on such matters not only enables the store manager to order
efficiently but also affords him the opportunity to show his customers that
he is interested in their patronage.

3. Variety. The greater the selection of merchandise available in

 

a super market, the greater the sales will be as a result. This is true not
only for the grocery department but also for every department in the store.
Chain stores are currently stocking from 3000 to 8000 items and it is expected
that this number will increase greatly in the near future. Due to limited

shelf space and overall sales area, it is impossible to provide customers with
every type of merchandise. However, a well balanced variety of merchandise
is essential. Here again the store manager should carefully study his opera-
tion to determine how wide a variety will meet his needs and still satisfy his
customers. Requests by customers for merchandise not handled by the unit

or chain should be given serious consideration.

ll

4. Stock on hand. A thorough check of all stock on hand must be

 

made before a store order is submitted to the warehouse. Personnel assigned
to the ordering function have the responsibility, not only to their own store,
but to the company as well, to order and store only the amount of merchan-
dise which can logically be sold during the next sales period. This can be
closely calculated on the basis of past and anticipated sales. Some store
managers order special merchandise in quantities larger than they can sell,
holding the merchandise until the sale is over, and then retailing it at the
regular price. In this way they hope to brighten their sales picture and
eventually their net profit. Needless to say, this is contrary to company
policy and every effort should be made to stop it.

5. Display needs. Displays are the self service salesmen of the

 

retail food store and they present a daily challenge to every store manager
in search of increased profits and volume.1

A store manager meets this challenge the instant he initiates the
special display order. Many food companies provide special sales bulletins
and special order forms to accomplish this merchandising function. Specific
information regarding "weekend specials" is provided through the sales pro-
motion departments of the various chains. In many cases the merchandise
classified as "special" is bought separately, advertised heavily and promoted

aggressively. Many departments of the overall organization coordinate their

 

l . Grand Union Operatiig Manual, Grand Union Company, East
Paterson, New Jersey, Section 12, Sheet 1.

 

12

efforts in this respect, therefore, it is the managers duty to order intelli-
gently and effectively.

Special displays,with their favorable price structure, are inviting
attractions that appeal weekly to the shopping public. One of the basic
reasons for special displays is to give the impression of mass effect. In
order to effectively exploit this merchandising technique, it is necessary to
use large quantities of the merchandise being advertised as "special" for
the week. This merchandising tool requires careful planning if overstocks
and out-of-stocks are to be prevented. Here, again, another responsibility is
added to the long list associated with the ordering procedure. Orders must
be calculated shrewdly and effectively.

Also included under this category are the contract items. 2 Care
should be exercised to see that these items are not overlooked during the
ordering function.

6. Seasonal and holiday specials. Most of the items to be ordered

 

during the four seasons of the year ard on holidays are set forth in bulletins
or special instructions sent from headquarters. Nevertheless, the manager
should appraise his customers and take these important times into considera-
tion. During the summer, for example, the separate departments should co-
ordinate their efforts and plan their orders together. An example of this is
as follows:

Summer Specials

 

__

2. Manufacturers have contracts with food chain companies stipulating
that they will pay a certain sum when their items are advertised and displayed in

conjunction with weekly advertising and special sales.

13

Non foods - order sufficient quantities of portable grills and

grill equipment.

Meat department - order frankfurters,have sufficient amounts
of hamburger, delicatessen items, etc.,
on hand at all times.

Grocery department - mustard, catsup, pickles, sauces, etc.

Produce department - tomatoes, lettuce, charcoal, etc.

The same coordination of effort can be applied to the individual holi-

days of the year.

7. Profitable merchandise. Profits of the nations chain super markets

 

and food stores dropped below one percent on the sales dollar in 1955.3 This
drop can be attribhted to many causes; 'some controllable and others uncon-
trollable.

One means of controlling profit and, thereby, maintaining a favorable
return on investment is to merchandise profitable items. Staple items are
not particularly difficult to sell. They have a rapid turnover but are likely to
return a small gross. There are many commodities warehoused by chain
food systems which provide a high margin. These include non-food items,
candy, frozen foods, household items, etc. Out~of—stock conditions should
be avoided at all costs where profitable merchandise is concerned. Private
label merchandise should be emphasized, and all merchandise classified as

profitable should be ordered on an optimistic but practical basis.

 

3. Super Market News , Fairchild Publications, volume 5, number 6,
February 6, 1956, New York.

 

14

Many food chains offer their managers assistance in ordering mer-
chandise which provides a higher than average profit by marking such mer-
chandise with an asterisk on the order form or by listing them in a separate
section of said form.

Emphasizing variety does not necessarily provide a balanced selection
of highly profitable merchandise. A conscious effort must be made to stock
and promote the sales of such items in balance with commodities which pro-
vide an "ordinary" profit.

8. Miscellaneous. Such activities as competitors openings and

 

closings, supplier strikes, dedications, opening of new parking lots, etc.,
provide additional situations that must be taken into consideration during the
normal ordering procedure. A retail outlet that looks ahead in these matters
and orders merchandise to meet these contingencies can do much to enhance

the profits and reputation of their particular company.

Meat Department

Taking into consideration the factors listed under the grocery depart-
ment as they apply to the meat department, it is still necessary to mention
additional factors pertinent to this department as a separate unit. Meat is
highly perishable and must be handled carefully in all respects. The success
or failure of this type operation hinges directly on a managers ability to order
intelligently. Accurate ordering of all items depends upon expert judgment of

the movement of each type of merchandise at each season of the year and at the

15

price at which the merchandise will sell. Intelligent ordering results in
fresher merchandise, better variety and a higher volume of sales.

An excellent check on how well ordering is being done is to compare
the amount of merchandise on hand at the end of the week with the weekly
meat volume. The meat inventory on Saturday night should not exceed 35 to
40 percent of the total weekly sales.4 This ending inventory should include
a well balanced variety of all items. Excessively low inventories may be
indicative of lost sales. But this is not always true; ‘ ' poor selection
usually results in fewer sales.

Additional factors to check when ordering meat items, exclusive of
the ones mentioned previously in this chapter, are:

l . Featured items. These items are noted for their customer ap-

 

peal and are designed to create volume and increase traffic. They are gov -
erned by market operations and the season of the year. A meat manager
should, therefore, order carefully and intelligently for he may be unable to
procure additional merchandise or effectively sell a high carry-over.

2. Estimated volume. Sales programs are designed for success. Esti-

 

mated volume for the week and the tentative retails should be carefully con-

5 idered.

3. Push items. Similar to profitable merchandise noted under groceries

 

are the push items of the meat department. These include offal items, delica-

tessen and poultry. It is also well to keep in mind the associated cuts that will

¥

4. Grand Union Meat Manual , Grand Union Company, East Paterson,
New Jersey, Section 6, p. 49.

 

16

have to be sold when a specific item is featured. 5 Feature items as men-
tioned previously are designed to increase traffic and volume; the additional
profits are made on the impulse sales that result.

4. Uniformity of order. To increase efficiency and boost gross

 

cutting margins, it is desirable to order straight sides of beef, veal and lamb.
Orders for smaller and extra cuts increase in price on a progressive basis.
Special orders should be held to a minimum, but should be utilized rather
than continue - in an out~of~ stock condition. They are costly to both the meat

packers and the company and are often a reflection of errors in ordering.
Produce Department

Ordering produce is very difficult, in that it is highly perishable.
Produce is invariably ordered on a daily basis, therefore, extreme care
should be exercised in this process.

Ordering merchandise from day to day is difficult if not performed by
an experienced operator who is well acquainted with his customers and their
shopping habits.

Produce managers, in ordering for their many promotions, take one
risk after another. Sudden changes in the weather can cause serious losses,
especially during the summer months. The price of an article can change from

the time the order is submitted to the time it is delivered. Merchandise

g

5. Example. When ribs of beef are on sale, chucks of beef from the
Same forequarter are considered the associated cuts.

l7

delivered is, in some cases, too ripe or not ripe enough. These and many
other factors make the ordering of produce difficult, to say the least. Factors
to consider, other than the ones mentioned under the previous departments ,
are:

l . Taking into account markdowns and spoilage. When the price of
an item has to be cut in order to move it, either too much was ordered or
not enough attention was devoted to its sale. Produce department personnel
should keep a daily record of markdowns and spoilages. Such knowledge will
enable them to order and promote their wares more effectively.

2. Weather. Completely outside the realm of human control and

 

often unpredictable, adverse weather conditions can seriously affect the sales
volume of the produce department. Rain may cut down store traffic and a
bright sunny day may result in a complete sell out of certain type of merchan—
dise (e.g. . watermelons).

Weather conditions will always be a problem. Not only frcm the re-
tail point of view but also from the growing and packing end of the business.
It is hoped by all concerned that the weather will remain in bounds and that
the forecastors know what they are talking about.

3. Price lists. Prices of each item must be continually checked and
the quantities ordered judged accordingly. Orders should be increased or
decreased depending upon the price trend at the moment.

4. Selling unit. In making out a produce order, it is best to visualize

the number of customers represented by a crate, a bushel or a carton. For

18

example, bulky vegetables (cauliflower) and large fruits (melons) may be
packed only twelve to a crate. This represents only twelve sales which re-
sults in a different connotation than the phrase "one crate", which may seem
adequate in respect to quantity.

5. Life of merchandise. As mentioned previously, the perishable

 

nature of produce entails careful study. The life of the merchandise must

be known under the various conditions likely to be encountered. This consider-
ation will result in less spoilage, fewehmarkdowns and less loss as a whole.
Hardy items, such as cabbage, oranges, onions and grapefruit, can be
ordered heavily. Highly perishable items, such as berries and mushrooms,

should be ordered to last only until the next delivery.

Many other factors could be listed and explained. The day of the week
is important and the similarity of various items affect each other. Display
needs for all departments is a topic that cannot be adequately covered in this
report. Valuable information can, and must, be exchanged between store
personnel and warehouse salesmen; both meat and produce. Keeping track of
the particular pay periods of the community is also vital. These characteris-
tics are important not only from the ordering standpoint but also from the
merchandising function as a whole.

One consideration worthy of mention is that if merchandise warrants

cutting the price to insure quick sales, it should be cut immediately. "_T_h_e_

first loss is the best loss. "

19

Ordering for increased sales remains the most important factor in
increased business. Carefully evaluating stock on hand is doubly important
in the perishable departments. In this respect storage space is more limited
and the risk of loss through spoilage is more prevalent. In many cases
spoiled or outdated perishable merchandise can be returned for credit, but
it is not a wise policy to depend on this generous provision. The biggest
losses in the perishable departments come from over ordering. ?Sales
go to pieces when department managers become frightened by these losses
and start to under order.

Mistakes will occur as long as human beings exist. Managers and de-
partment heads must, besides being shrewd operators, have confidence in
the face of adversity. Here, again, the challenging nature of the food business

must be met and overcome to the benefit of the company and the consuming

public as a whole.

Methods of Ordering

The methods of ordering merchandise vary considerably. Perishable
merchandise is usually ordered by telephone or by the use of an electric
ltransmitter. Many companies still order their merchandise, exclusive of
produce, by mail. In some instances new order forms accompany each load
as it leaves the warehouse. The time element is the most important factor to
Consider when handling perishable merchandise. In an effort to decrease the

time lag and increase efficiency, some companies have installed direct wire

20

teletypewriter service. Under this system each store has a teletypewriter
unit, as does the main office. The store manager or ordering clerk types the
order on the machine, which transmits it to the office. A serious handicap to
this system is, of course, the cost of installing and operating it. No doubt
as new economies are effected, these machines will undoubtedly be used to

a greater degree than evidenced at the present time.

As mentioned previously, produce is frequently ordered on a daily
basis. In the meat department, shipments are usually designated to arrive
on certain days, therefore, an ordering schedule is usually devised to facili-
tate the handling of large orders early in the week. Short orders are usually
handled by staff representatives. or field supervisors.

Grocery orders are placed in the warehouse according to company
policy and on a definite time schedule. Chain companies invariably use the
pre~printed forms, designed to show the past orders for periods ranging
from four to eight weeks. Some of the various methods of ordering are noted

below.

1 . Conventional. Using the pre-printed order forms, many companies

 

simply require that the store lists its needs by marking the the quantities
desired on the order form or in a specially perforated column that is torn off
and sent to the warehouse or central receiving point for tabulating. The order
is then assembled at the warehouse, out-of—stocks noted, and the load shipped

to the retail center. This method is commonly used in many of the food companies

21

today. The order forms may be supplied on a time basis, such as monthly,
quarterly, etc. Certain companies send a new order form with each ship-
ment of merchandise.

2. Two-order method. Due to the increased awareness of product

 

movement, many studies are being conducted to determine the best proce-
dures for overall operation. In the ordering process a method currently
being used by some retail outlets is the two order plan. Under this system,
merchandise is ordered on two separate forms and the merchandise is ship-
ped out of the warehouse on two separate days to enable efficient receiving
and stocking. The largest order involved under this process is made up of
the fast movers; items that have a large turnover and, therefore, necessitates
quantity. .The second order consists of slow and normal moving items.

This method of ordering lends itself to the pallet system of receiving
merchandise. Although its use is not widespread, it is worthy of note. It is
justified in that it is working effectively for the companies using it. This fact
is of prime importance to any operation. If it works efficiently; use it.

3. Shelf stock only method. Many food chains are following the

 

practice of not ordering slow moving merchandise until it can be placed on the
Shelf. The merchandise so designated is "faced" until it can be replenished
by a subsequent order. In a study made by a super market operator in Portland,

Maine, the following results were compiled. 5 Forty-four percent of the items

.\

 

5. "Shelf Stock Only Ordering Plan Cuts Cost", Progressive Grocer,
Angust, 1955, p. 59.

 

22

stocked - - - or 545 items out of 1237 ordered from the warehouse - - -
sold at a rate of less than a half case a week. As a result of this study, a
plan was devised not to order such items until they were needed on the shelf.
Strict adherence to the policy resulted in:

1. reduced grocery inventory

2. reduced grocery department labor costs

3. more efficient backroom operation.

It is clearly evident that the ordering function can affect the entire

operation of a retail outlet.

4. Modular ordering. A new method currently under experimentation

 

is the modular ordering method. As mentioned previously, orders are con-
tinually being scrutinized to determine what is moving, and what is not. It
has been estimated that 75 percent of the items stocked move less than a case
a week. Sales of fast moving items do not vary to a great degree. Fast
moving items, as well as items with a regular movement, are reordered
automatically. These automatic shipments are the result of studies made to
determine the movement of merchandise in each store. Under this system, an
"average" order is sent to the retail outlet. Sales are noted, checked and
tabulated. Another order is sent out without the manager filling out the forms.
Readjustments are made on a certain basis, usually quarterly. The possibility
Of overstock is greater than out-of- stocks due to the 75 percent movement

factor. If the system can be refined, it will release the manager from the time .

23

consuming task of ordering certain types :f merchandise. Such ordering will
eliminate routine and minimize the possibility of out-of— stocks. As the
retail outlets grow in size, this time factor is becoming more important.

5. Punch card and mark sensing systems. Also currently being
studied is the use of punch cards and mark sensing systems of store ordering.
It is a very new field and many details must be "ironed out". The possibility
of increased efficiency at all levels can be changed considerably by this
method of ordering.

Both systems, presently being tested by IBM and the Remington Rand
Company, use special tabulating cards as order forms. These cards are
used in lieu of order forms and can be processed immediately upon receipt
at headquarters. This eliminates transcribing the order from the order form
to the tabulating cards.

If the punch card system is used, the order is prepared by punching
the quantity desired beside the item being ordered. These cards are attached
to a master order form and are perforated for easy removal.

The mark Sensing system is what its name implies. The necessary in-
formation is entered on a tabulating card by "marking" a designated slot with
a soft pencil. The tabulating machines then record them by "sensing" electri-
cally the marks on the cards. The punch card system can also be marked in
this manner and the actual punching for tabulating purposes performed at
headquarter s .

These methods are being tried on an experimental basis with a view

toward improving and making them readily adaptable to the retail outlets.

24

Under the mark sensing system it is difficult and time consuming to erase

an error. Under the punch card system, once the card has been punched it

cannot be altered. Both systems call for a greater degree of accuracy than
previously evidenced under the more conventional types of ordering. Whether
these methods will become widespread is a matter of conjecture or opinion.
Anything can, and usually does, happen in the food business.

6. Direct ordering. Drop shipments, such as milk, bakery, crackers,

 

etc., are invariably ordered from local concerns on a direct basis. The
driver salesman enters the store and contacts the manager or departments as
to quantity, delivery dates, etc. A responsible employee should be assigned
the task of dealing with these individuals; preferably the assistant manager.

A careful check is necessary to assure accuracy in respect to the number of

items needed, removal of outdated merchandise and proper shelf allocation.

Regardless of the systems and methods used in any department, it is
quite evident that the ordering procedure is of paramount importance. Once
a new store is opened and its pattern established, much of its future success
will depend on efficient ordering procedures. Inefficient, haphazard ordering
cannot be tolerated. Every conceivable tool of business, ”including --onversa~
tion with a customer to detailed surveys by the industry, should be used to
make this function an effective one.

As the number of different items being merchandised increases, this
task will become more complex. Personnel charged with this responsibility

must execute their duty to the best of their ability.

25

Also of primary importance to the stores welfare and continued success
is the training of desirable substitutes to take over the ordering function if
an emergency arises. Such situations as accidents, vacations, transfers,
etc. , must not interrupt the flow of goods in a store.

Many of the succeeding points discussed in this thesis depend upon

effective, intelligent ordering.

CHAPTER III
Receiving, Storing and Price Marking

The food chain stores of today are faced with problems of an ever-
increasing magnitude as a result of the continued trend toward larger and
more complex store operations. In large volume retail outlets, tremendous
amounts of merchandise of many different types must be received, stored
and processed efficiently. Some merchandise (perishables) must be handled
under special conditions. All merchandise must be transported through an

6
increasingly large store area so that it may be displayed and sold. Many
food stores are handling more merchandise than was originally intended at
the time the store was opened. Often store area and backroom facilities
cannot be expanded, therefore, backroom area may actually be reduced in
order to provide the necessary increase in sales area. The problems of
getting the merchandise to the customer will be compounded, unless efficient
operating standards are in force. The importance of merchandise handling
procedures may thus be seen in its true perspective. The insidious nature of
the problem becomes apparent when we realize than these difficulties came

about as a result of gradual change.

 

6. These problems, in varying degrees, are equally present in small
store operations.

27

Retail units built ten years ago are still tremendous business esta-
blishments due to excellent location, population growth, increased indust-
rial activity, etc. Remodeling these units to conform to present standards
may involve huge amounts of capital. In some cases the cost may be pro-
hibitive, in others the actual physical property may not lend itself easily to
alteration. Today, many stores over five years old are being, or have been,
remodeled. Whatever the situation, it must be realized that labor saving
devices and new practices and methods must be utilized to the fullest degree
if maximum results are to be realized.

Few companies can afford not to be efficient, for there is probably
not a single procedure in any business, anywhere, that cannot be performed
more simply, more effectively and more economically. The method that will
result in maximum production and efficiency can only be determined by care-
ful analysis of present procedures, and a correction of those practices which
are inefficient. 7

Taking into account the above, the purpose of this chapter will be to
set forth methods of operation that will normally be found in different types

of situations, under varying types of store layouts.

Grocery Department

Due to the interrelationship of receiving, storing and price marking, it

is often difficult to distinguish just where one procedure ends and another

 

7. Duncan, Delbert J., and Charles F. Phillips, Retailing, Principles

 

and Methods , Richard D. Irwin, Inc., Chicago: 1947, p. 442.

28

begins. Many companies receive, mark and store their merchandise in one
continuous operation. Others separate each function. Still others combine
the stocking with price marking on the immediate selling floor. Due to the
diversification encountered in different operations, many of the procedures,
for the purpose of this thesis, will be grouped together as they would actually
occur in a super market. For the sake of thoroughness, certain elements
will be separated for clarification.

Before discussing the various phases of operation concerning receiving,
storing and price marking, it is necessary to point out that:

l . Systems for accomplishing this essential task may vary with each
individual company; and possibly with each individual unit within a company.

2. These processes may take place during the day or night.

3. Basic to any system of receiving merchandise is the proper check-
ing of the items against the invoice or bill of lading (some companies do not
think that this is too important).

4. It is assumed that improved methods and materials handling
devices, such as conveyors and other mechanical apparatus, are being in-
stalled or are already in operation.

No attempt will be made to list the various phases of receiving, storing
or marking in the order of their importance. Ease of operation may depend
on whether or not a chain store employs a night crew. The physical layout
of a receiving area may be the deciding factor as to what system will be

used. One system may be ideal for one unit and entirely unwieldy for another.

29

Many other factors will determine a retail distribution center's management
decision to use a particular system or abandon another. Methods not men-
tioned in this thesis are also used. However, for the purpose of this thesis,
the fimctions of this chapter will be designated as:

l. Pallet system

2. Central receiving and marking system

3. Continuous operation method

4. Conventional method

In the writers opinion, most systems currently in use will adhere

closely to one of the above mentioned methods or systems.
Pallet System

The effective use of materials handling equipment has revolutionized
the process of moving merchandise. Examples of this type of equipment are
the fork—lift trucks, clamp—type trucks, semi—live skids, dollies and dead
skids.

The successful use of this equipment atthe warehouse level has prompted
many companies to extend their use to the retail outlets. Although conventional
means of receiving merchandise are practiced by most companies, the in-
creasing use of pallets is becoming more common and popular in the larger
markets. Problems and difficulties not encountered at the warehouse or whole-
sale level are manifested at the retail level. Factors that limit the use (if

mechanical materials handling equipment at the retail level are:

30

1. the high unit cost of the equipment
2. existing units are not designed with loading platforms or truck

wells (it is impractical to standardize retail centers)

3. maintenance and upkeep of equipment and pallets at store level is
difficult

4. basement operations would require the use of an elevator

5. skilled operators are lacking at the retail outlets

6. limited aisle and storage space makes movement of material
handling equipment difficult.

The above listing pertains primarily to the heavier types of equipment
currently in use at most modern warehouses. The newer and larger markets
of the future, in many cases, will be designed to overcome these limitations.
Their utilization in the present markets will require many changes and alter-
ations. Any decisions concerning these changes will rest with the individual
companies involved. However, many of these difficulties are overcome by
the use of lighter and less expensive equipment. The most popular, and the

ones having the highest degree of utility are:

l. Semi-live skid and jack. This inexpensive equipment consists of

a load carrying platform with two rigid wheels at one end and two skid legs
at the other end. The skid jack is a lever type handle equipped with two

wheels mounted on an axle which fits into a coupling on the leg end of the

31

skid. When the handle is lowered approximately 30 degrees, the legs are
raised off the floor and the entire load is made mobile for transportation.8
2. Dead skids and platform low-lift truck. The dead skids are
made of wood or metal or a combination of both. A hand-lift truck, manually
propelled and incorporating a mechanical or hydraulic pressure system, is
used for lifting the skid load. This is accomplished by exerting downward

pressure or by pumping the handle up and down until the skid supports are

clear of the floor. A release lever regulates the release of the load.

In many cases, the jacks and low-lift trucks are supplied by the ware—

house. They simply send one along with the merchandise that is stacked on

the pallets in the trailer bed.

A desirable feature of these. skid systems is their high degree of
versatility. Skids lend themselves to the construction of racks, shelves,

boxes or other suitable accessories which facilitate handling operations.

Regardless of the type of equipment used, the unloading procedure is

quickly accomplished. The jack or lift truck is attached to the type of skid

used and pulled out of the trailer. Unloading time is held to a minimum and

the trailer is released quickly to return to the warehouse.

Checking the merchandise is accomplished according to cmventional

methods. The merchandise is counted, stored, and shipped to the selling

areas or price marking table according to the particular system currently

—_A

8. Sizes vary from 30 to 36 inches in width and from 48 to 60 inches
in length.

32

in use. If large amounts of certain commodities, such as fast movers,
make up the bulk of the'shipment, checking the merchandise is a simple
matter. However, if the load is made up of a regular order, the pallets must
be unloaded to check their contents. Methods of price marking and storing
the merchandise will be similar to those which will be discussed later in this

chapter.
Central Receiving and Marking System

As the name implies, this system of receiving and price marking is
performed in one central area. This area should be situated as strategically
as possible; close to the unloading doors and convenient to the conveyors
that transport the finished items to the storage or selling areas.

The amount of labor involved in this operation will naturally depend
upon the size of the load being received and the time alloted for its completion.

The central area can be situated on one side of the conveyor or it can
be divided into two sections using the conveyor as the dividing line between
the two. The latter arrangement is more efficient. In this manner
employees on each side of the conveyor can unload the merchandise with a
minimum of interference with each other.

As the truck driver or person assigned to unloading the trailer starts
the flow of merchandise into the store, 9 it is checked off and examined by

another employee for obvious signs of disfiguration or breakage. This is done

—-

9. Assuming that gravity fed or power conveyors are in use.

 

33

by sight only and in no way holds up the operation unless a broken case is
encountered. This checking procedure is usually assigned to a responsible
employee, preferably the assistant manager or the head stock clerk.

The merchandise being received, in theory, should be checked item
for item against the invoice. This is desirable and practical if the order being
received is relatively small. However, when the orders are large, it is
often customary of companies operating their own warehouses to simply re-
quire a piece count of the order. This can be accomplished by both the truck
driver and the receiving checker counting the load in units of 20 cases or
any other agreed upon number, and marking such designated units on the
invoice. Naturally both individuals must agree on the count at all times.

As the incoming merchandise is checked off at the receiving door, it
is shoved to the central area via conveyor, where it is removed from the
rollers and segregated according to commodity groupings. If possible, the
items should be arranged to adhere as closely as possible to the listings in
the price book. This will reduce the time required to find the appropriate
prices in the book when the price marking function is undertaken. For
example, all the canned fruit is stacked together, all the vegetables together,
etc.

After the unloading is completed and the count verified, two (or as

many as are needed) employees begin cutting off the case tops and price

marking the merchandise. Items having prior demand, such as those needed on the

34

selling floor immediately, are cut first, price marked and conveyed to the
selling area. 10 These items needed to replenish the shelves will include
all the fast moving items (enough of each commodity to fill its allocated
space) and many of the slow movers which are ordered only as they are
needed. After this is accomplished, the remainder of the order is cut,
marked and placed in storage.

The advantages and disadvantages evident in the various operations
included in this thesis will not be listed as such due to the possibility that
the objectives desired in one operation may conflict with another. However,
a list of the factors influencing this type of operation is as follows:

1 . Intelligent ordering is essential. Since all merchandise is pre-
marked, it is necessary that over stocks be held to a minimum to avoid
excessive re-marking in the event of a price change.

2. Tie-up time is held to a minimum. The receiving area is kept
Clear for local and other deliveries.

3. All merchandise is pre-marked and ready for instant use.

4. A minimum amount of time is expended in the unloading process.
The trailer is quickly released to return to the warehouse and the additional
employees that were needed for unloading can resume their normal assign-
ments or duties.

5. Spot checks of merchandise can be made because of the related

Commodity groupings in the central area.

x;

10. ,Merchandise needed on the shelves is listed prior to the unloading
Process, usually the day before at closing time.

35

6. If orders are received daily, the central area must be cleared on
the same day.

The prime reasons for the trend toward central marking is the uncom-
promising demand for accuracy. M’ith a central system, the ability to ob-
tain accuracy has increased immeasurably. Here a fast workman can become
faster as his skill develops; responsibility is pin-pointed and a direct step

toward specialization is realized.
Single Operation System

Under this system the entire process of receiving, storing and price
marking is completed in one operation. The order is checked in, price
marked and stored or sent to the selling area for subsequent stocking. This
system is highly effective if (1) night crews are used, (2) or if the trailer
is dropped at the back door of the store to be unloaded at the employees
convenience. It can also be effectively used during working hours if orders
are received on "slow" days and sufficient help can be spared from the other
necessary tasks.

This type of operation demands efficient personnel, well trained in
their duties if it is to operate effectively. One inexperienced person or an
ineffective worker can delay the process considerably. This system is per-
- formed by forming a so-called "human chain" .

One person unloads the trailer at a steady pace, suitable to the func—

tion of the "chain" operation. Another employee, supplied with the invoice

36

containing the retail price listings or a price book as the case may be, marks
the unit or multiple unit price on the case as it passes his station. This is
usually done with a grease pencil or a colored crayon. The next man in line
cuts the case tops or splits it in half according to the price marking policy

11
followed. Then the cans or units are price marked by another individual
who shoves them along the conveyor where they are stored or sent to the
selling area.

As mentioned before, an inefficient employee can delay the entire
operation since its completion is dependent upon the smooth flow of merchan-
dise from one employee to another. Factor listing is as follows:

1. Work must be allocated to minimize delay.

2. Sufficient trailers must be available if the drop method is used.

3. Local conditions must permit the dropping of trailers.

4. Broken or spoiled merchandise is detected during the process.

5. All functions are completed in one operation.

6. Merchandise needed first may be marked last.

Conventional Method

This system is similar to the previous methods in so far as receiving

and checking the merchandise is concerned. Price marking the merchandise

.‘k

11 . Details of price marking will be discussed later in this chapter.

37

can be performed either in the backroom (cellar) or at the shelf depending
on the individual policy desired.

After using either the commodity or piece-count method of checking
in the merchandise, it is sent directly to allocated slots in the storage area.
These slots or gondolas are usually arranged to conform with their counter-
parts in the selling area. Cases are sometimes price marked as they are
received with a grease pencil. In many cases they are not. Under this
system, the merchandise is marked as it is needed on the selling floor. This
can be performed at the "up" conveyor if it is a cellar operation or on the
conveyor after the merchandise is "pulled" in the backroom. An alternate
method is the use of a portable price marking stand. In this manner price

marking can be accomplished at the far ends of the conveyors or adjacent

to the stock bins or gondolas.

Factor listing is as follows:

1. Less time is expended in the actual receiving function.

2. Conveyors are kept clear for local or emergency deliveries.

3. Price changes will be limited to shelf stock only.

4. Double handling of merchandise may be involved - rotating the
Present stock, putting it in and out of bins, etc.

The methods discribed above have advantages and disadvantages based
on a company's particular set of circumstances. Many factors influence the
decision as to what method should be used. Small retail outlets may find

thI‘ee out of the four systems mentioned impractical due to a shortage of help

38

or space. Many stores cannot afford to palletize or are not physically

set up to do so. Other stores, situated in an area of intense competition,

may be plagued with excessive price changes which would make pre-marking
prohibitive. In the final analysis the decisions must be left to the companies
themselves.

The writer wishes to point out that innumerable factors influence these
important tasks and that these systems can be varied to fit a particular
operation. New methods of operation are being sought. To a successful
store manager there is always a better way; or at least there is room for
improvement. The entire industry is continaully seeking new ways of speeding

up and efficiently handling the tons of merchandise that are distributed week

after week in this dynamic economic venture.
Price Marking Groceries

Depending upon their size, food markets as mentioned previously
carry anywhere from 3000 to 8000 items of merchandise in stock. If the
Price of any article is not legible, the checker must ask the customer to
Wait while she does one of four things:

1. Refer to a price list or have the head checker check the price list.

2. Interrupt another checker to find out the price.

3. Get this information from someone in authority.

4. Ask the customer the price that was marked on the shelf. 12

—.

 

 

12. National Cash Register Company, Price Marking Brochure,
Dayton, Ohio.

39

Any of these actions consume time, delay service and cause confusion.
One reason customers stop shopping in certain stores is because they cannot
be checked out quickly.

Slow service is not the only cause of customer complaints. If the
price on the item is not clearly marked, the checker may decide to guess at
the amount she should charge. Whether she guesses too high or too low,
the company loses. If she guesses too high, the customer complains; if she
guesses too low a financial loss is incurred.

Many price marking methods are currently in use. Regardless of the
method used, it should be continually stressed that this is one of the most
important functions in the overall process.

The importance of accurate, neat and legible prices cannot be over-
emphasized. It is incorporated in all phases of the operation from the time
the customer reached for the item to the time she unloads her groceries at

home. Prices must be correct and legible at all times. The customer is

 

made aware of correct pricing procedures in four ways.

1 . She observes the price of the merchandise on the shelf.

2. She sees the price on each item of merchandise (Numbers 1 and
2 must agree if the customer is to remain satisfied at the onset of her shopping
tour).

3. She sees the price of the item as it is rung on the cash register.

4. Customers recheck their orders at home. She compares each item
marked with the corresponding figures on her itemized departmentalized

receipt.

40

If a discrepancy is evident at any tine during this cross-checking
procedure, it can only result in customer dissatisfaction.

Clean merchandise in conjunction with neat, legible price marking
contributes to:

1 . Faster cash register operation. The checker does not have to

 

hesitate to try and decipher a smudged marking or call the store manager
to inquire about the price of an item.

2. Full payment of merchandise. Customers complain if overcharged

 

and often remain silent if undercharged. Guesswork as mentioned previously
is eliminated if items are properly marked. Food companies want one price
- - - the correct one.

3. Satisfaction of customer. When items are marked properly the

 

customer realizes that she is getting her money' 8 worth. One sure way
of winning the goodwill and confidence of a customer in her dealings with a
Store is to provide the four way proof that all prices charged are correct.
Inefficient or illegible pricing procedures will eventually cast doubt
and suspicion upon a particular store. Volume, sales and profits will de-
crease accordingly. Customers will begin to shop elsewhere and the reput-
ation of the unit will suffer.
Price marking is a part of the productive system within a retail outlet.
In this phase alone the United States Department of Agriculture found that

PrOper methods could increase productivity from 67 percent to 87 percent .

41

13
the equivalent of almost one full time employee.

At the stores studied by the Department of Agriculture, it was found
that the price-marking operation alone took up 22 percent of the grocery
department man hours. 14 By improving techniques, this figure can be re-
duced. Waste of man hour productivity inevitably finds its way into the
stores profit, therefore, it is vital to all concerned that the proper procedures
in this respect he carried out to their fullest extent.

Determining the proper method of price marking will naturally depend
upon individual preferences, company policy and the interest generated toward
possible improvements. In this respect, habit is no excuse for inefficiency
and store managers should continually adjust their operation to their specific
needs.

To increase efficiency, two essential points are applicable to all

Price marking techniques:

1. Proper equipment and adequate space are essential if the task is to
be performed properly. Whether hand stamps or fixed price stamps are used
they should be kept in good condition and handled properly. If this is not
done, difficulties will naturally arise. Factors to remember in this respect

are:

a. cramped space results in inefficiency.

 

 

13. Complete report of study available from United States Department
Of Agriculture, ”Marketing Research Report No. 7", Washington, D. C.
K .

14. "Condensed Report of United States Department of Agriculture,
Marketing Research Report No. 7", Progressive Grocer, November, 1952, p.62.

 

42

b. continued use of defective equipment will result in improper
pricing procedures.

2. Price can be marked on either side of a can. Since a great many
of the grocery items are packed in cans, it is important to realize that time
can be wasted in ascertaining that all price marks are placed on the top of
the can.

Keeping in mind that there is no hard and fast rule applicable to any
system of price marking and that variations of any system do occur, the
following methods of price marking currently being used are:

I. flip board method

2. bottom layer method

3. half-case method.

Flip board method. The flip board table is a simple device used to
price mark the bottom layer of merchandise in a case.

Under this method the case top is removed and the top layer of mer-
Chandise is price marked. The case is then set on its side and the flip board
(a hinged board usually 24 inches by 20 inches attached to a table top or a
Similar price marking piece of furniture or equipment) is raised flush (45O
angle) with the top of the case which in this instance is now the side. The
employee holds the bottom of the case firmly with his hand and the flip board
is lowered to a horizontal position, thereby "flipping" the case with the
bOttom side being upright. The carton is then lifted from the merchandise
and the bottom layer is marked. The empty carton is replaced and the flipping

Process is reversed to put the merchandise back in the case.

43

Using the flip board table facilitates the moving of the
price marking function to any area of the backroom or cellar. If merchandise
is marked according to shelf requirements, it can be situated at the conveyor
system. If the store manager prefers to mark all the items in the store,
the flip board tables can easily be moved to the shelf position.

Simplifying the steps in chronological order, they are:

1. select case to be marked and place it on the table top.

2. Three sides of case top are cut in one motion, top of case is
raised and the fourth side cut.

3. stamp top layer.

4. case is flipped over and lifted from contents.

5. bottom layer is stamped and case replaced.

6. case is flipped back, ready for stocking.

Bottom layer method. Reaching the bottom layer without the use of

 

a flip board can be accomplished in the following manner:

1. cut top off the case as mentioned previously.

2. stamp top layer.

.3. remove two rows of the top layer and stamp exposed cans on the
bOttom.

4. move remaining merchandise on top layer over the bottom layer

that is already stamped. Continue process until all bottom units are price

marked.

44

5. return two rows originally removed from the case.

Half-case method. Another way of reaching the bottom layer is to

 

cut the case in half lengthwise. Cut three sides in one motion, turn the case
on its uncut side and expose both layers by letting the split halves fall out
ward. If desired, the last remaining side can be left uncut, the items price
marked and the halves put together again. This is desirable if the merchan-
dise is to be stored. If the merchandise is going to the selling area, the
case splitting can be completed by cutting the fourth side.

Although it is not specifically a price marking function as such, the
Cutting of cases will be mentioned at this point due to its close relation
t0 the pricing function. Great care should be exercised when cutting cases

Containing merchandise packed in paper containers. An employee with a

 

"heavy" hand can attack the problem too aggressively, thereby slicing the
Container within the case. Customers seldom select merchandise that is
Inlltilated in this manner. Repairing the damage with various types of tape
is unsightly and gives the merchandise an unattractive appearance. Merchan-
dise cut in this manner not only ruins the sale of the item but also loses the
Profit of the entire case.

One means of avoiding this error is to cut the case diagonally across
the top from one corner to the opposite corner in the shape of an "X". In
this manner if the blade of the case cutter pierces the inside of the case it
Will only cut through one layer of the box top which is usually sealed by an
0Verlapping of two layers. The safest method, naturally, is to "break" the

CaSe by hand.

45

Price marking should be considered a specialized function and treated
as such. Its importance as mentioned previously must be stressed at all
times. Personnel trained to perform this vital task should also be educated
to the fact that it is an integral part of the entire process. It should not be
assigned haphazardly. Central marking procedures tend to pin-point the
responsibility and should be encouraged if practical to do so.

Price marking at the shelf is very efficient but in many cases it is :i
impractical, because of the obvious disadvantage of getting in the way of

customers. However, if this method is used, its efficiency can be increased

 

by using or installing shelf extenders that slide out of sight when not in use.
These extenders can be used as marking tables or as display pieces attached

15
to the shelf.
Meat Department

One of the most important factors effecting the net profit of a food
Chain is the manner in which perishable products are merchandised. The
Perishable departments, meat, frozen foods, produce and dairy, account for

16 From the

approximately 45 percent of the sales of the average store.
vieWpoint of meat merchandisers, the meat department is the most important

department of the chain. Experience, physical prowess and creative thinking

~\———
15. Designed by the Department of Agriculture, "Market Research
Renort No. 7"

16. Chain Store Age, "Perishables - The Picture for '56", January,
1956, p. 73.

 

46

along merchandising lines, although desired in all departments, are espec-
ially important in this department.

Perishables offer a higher margin than dry groceries. This is true
because of the risk attached to their merchandising. This risk demands ef—
fective management. Without such effectiveness a net loss can be incurred
that will eventually have a serious effect upon the entire operation.

Needless to say, the meat department is a very important function
within the store organization. It can be the most important factor in deter-
mining whether or not a store makes a profit. Inadequate meat receiving,
inspecting and processing, can account for substantial losses on the part of
any market. The planning of meat department orders for increased sales is
even more important.

Complete manual handling of meat products is fast disappearing from
the scene in the modern operations of today. Overhead rails, equipped with
SWitching mechanisms and accurate scales are becoming as common as the
CUtting tools themselves.

The handling of meats must be accomplished quickly and efficiently.
due to its perishable nature. This is especially true during the summer
months.

When a meat order is delivered to a retail outlet, one man is usually
asSigned to the receiving process. He may be the head meat cutter, the ice
box man or the meat manager himself. Whoever is responsible should have

a sound knowledge of meat products. All merchandise should be carefully

47

inspected to determine if it is in saleable condition when received. When
the quality of meat is not acceptable to the meat manager, he will naturally
contact the shipper or warehouse, who in turn will have the merchandise
replaced and the inferior product returned. Each piece should be weighed
and the weights checked against the invoice. Meat received from private
concerns should be refused if quality or weight is not as specified on the
invoice.
Steps preliminary to the meat receiving function are:
l. arranging the cooler in such a way that the incoming merchandise
can be received in an orderly and efficient manner.
2. marking, dating or placing "old" stock so that it can be used first.
This stock is usually moved to the front of the cooler.
3. clean and rake the floor. This is the best time to perform this
function because the overhead rails are usually empty.
4. have the necessary tools, such as meat hooks and hook stabilizers,
r(Eadily available.
5. check temperature of cooler.
6. men designated to handle the meat should have clean hands and
Clean aprons.
As mentioned previously, meat must be handled quickly and efficiently.
Shrinkage and spoilage can cause lost profits and reduced sales. To avoid
Shrinkage and spoilage, the temperature and humidity should be regulated.

Temperature range varies according to company policy. Food authorities

48

advocate cooler temperatures ranging anywhere from 30 to 40 degrees, de-
pending upon local conditions. However, it is now agreed among major
operators that meats for self service selling should be stored and displayed
at a temperature between 28 and 30 degrees Fahrenheit. 17 Important reasons
were established by extensive tests to support this temperature range. They
are:

1 . longer storage and display

2. maintenance of bloom and color

3. firmer meat

4. more attractive packaging on display

5. elimination of mold

6. minimized bacteria growth

7. reduced shrinkage
8. increased tenderness of meat. 18

To avoid shrinkage, the humidity of the air in the cooler should be
kept between 75 and 85 percent- The higher the humidity, the less shrinkage;
bUt if the humidity is too high bacteria growth becomes rapid and slimy
meats will result. 19

Upon receipt, meat should:

~

 

 

17. Chain Store Age, What Temperature for Meat Storage", February,
1956, p. 98.

 

18. Ibid., p. 99.

19. Ibid., p. 99.

49

1. be handled carefully to avoid dropping and bruising

2. should be inspected properly for spoilage, cleanliness, etc.

3. should be weighed accurately and necessary adjustments made on
the invoices if necessary

4. put under refrigeration as soon as possible

5. keep an accurate record as the receiving process progresses.

Keeping accurate records is as important as the quality of the meat
itself. Improperly maintained records of receipts, weights, piece counts,
etc . , are a constant source of bad inventories, stock shortages and a lack
Of proof in establishing purchases.

At the receiving dock or door, the heavy sides of beef and other
carcasses are moved from the truck directly on the store rail to the weighing
station. After the meat is weighed, it is pushed on the rail into the cooler.
Many retail outlets are equipped with a rail that extends beyond the receiving
dock or door. In this manner delivery trucks equipped with overhead rails
are aligned with the store rail and the meat is simply pushed intothe store.

Merchandise received in crates and boxes is handled similarly to the
methods described in the grocery operation. The great difference in proce-
dui‘es is that extra care must be devoted to meat products.

Stgr_i_n_g_. As soon as the merchandise has been received, it should
be prepared for storage immediately. Carcasses should be stripped of their

outside wrappings and the bloody ends removed at once.

50

The buttons, skirts, outside flanks, etc. , should be removed from
beef carcasses and made into hamburger trimming as soon as possible to
avoid loss. Removal of buttons and bloody ends also applies to veal and
lamb .

The procedure of placing wholesale cuts in storage after they have
been "broken down" varies with different companies. An average storage
action concerning beef would be as follows:

1. loins are stored in the cooler on a floor rack, bones down.

2. top sirloin is hung on a hook with the skin to the wall.

3. round (boned or whole) is stored by hanging it by the "heel".

4. sets of ribs and chucks are laid on a rack in the same manner as

loins.

5. brisket and plates are hung on the wall, skin side. to the wall.

There is also a proper place in the cooler for the different types of

products handled.

l . processed items and smoked meats belong in the warmest part of
the cooler, usually near the outlets.

2. lamb, beef and poultry (usually iced) "holds up" best in the next

COOlest spot.

3. veal, pork, fish and offal items are best suited to the coldest part

of the cooler.

Marking. The weighing, wrapping and labeling of meat is time consuming

51

unles s the proper equipment is used. New equipment has been developed to
cut down expenses and increase profits in self-service operations.

To speed the "scaling" operation of the prepackaging of meats and
other perishable foods, the Hobart Manufacturing Company, Troy, Ohio, has
designed the new Hobart-Dayton Project-O-Scale.20 This scale is designed
especially for the prepackaging operation and is far superior to older type
models. The price selector setting is fast and easy. For extra convenience
it is controlled by knobs on either side of the ”head". The price at which the
scale is set appears in the money value reading panel when no weight is on
t1'le platter. The possibility of false readings has been completely eliminated
on this machine. Weight and money values appear side by side, always in
the same position. The index line is placed on the ground glass panel upon
Which the chart indications are projected, thereby completely eliminating
Parallax and assuring accurate reading from any height and any angle. In-
direct illumination of panels by projection is easy on operator's eyes and
eliminates eye strain or fatigue.

Another of the newer aids to the self service meat department is the
LEthel Printing machine which is now being marketed by the National Cash
Reg'ister Company, Dayton, Ohio.21. With this machine, it is unnecessary to
tie Up money and storage space in costly pre-printed label inventories. This

\

\

20. Successful Grocer, "Greater Profits with Self Service Meats".
September, 1953, p. 5.

21. lbi_d_., p. 6.

52

machine automatically prints and issues approximately 3, 000 labels per roll
of thermoplastic heat-sealing paper capable of being fixed to the outside of
a self service meat package.

Each label shows the: Store name, cut or type of meat, price per
pound, weight in pounds, ounces and fractions, total price, and the date
PaCkaged (in code). In order to show the cut of meat on the label, a small
name plate, known as the "Commodity Insert Key", is used. It is easily
slipped into a slot on the side of the machine in a matter of seconds. The
machine automatically locks when a key is changed, and the price per pound
dial must be reset before the machine will operate again.

A package counter is another feature. Each time a label is issued,

" 1 " is automatically added to the total. Thus it is possible to know the correct

number of packages processed during any period . . . hourly, daily, weekly,

etc

Newer models, being manufactured by the Toledo Scale Company,
Teledo, Ohio, combine the entire operation in one machine. Except for in-
SeI‘ting the commodity key, it automatically performs all the functions men-
tiOned above.

These and many more innovations in the field of combination price-
Weighing have made the task of the meat manager much easier. Yet even with
the se new efficiences, management cannot afford to relax for a moment. The
continual effort to sustain and improve the distribution channel of merchandise

through a store is as essential as ever. The successful manager simply

bx

 

 

53

incorporates these advances in technology into the operation and thus takes
full advantage of their utility. At the same time, he maintains a constant

vigil over his department activities in order to assure maximum results.
Produce Department

The produce department is another member of the perishables family.
Freshness and quality are the keynotes of successful produce merchandising.
Survey after survey indicates that these are the two factors most demanded
by the consumer.

Produce departments of different companies, in competition with each
other, handle basically the same perishable commodities - fresh fruits and
vegetables. Many markets within one geographical area often have the same
source of supply. The buyers of these companies very often buy at the same
time and receive their merchandise from the same carload. Assuming that
all factors are relatively stable in transporting the fresh fruits and vegetables
from the source of supply to the back door of the store, the problem of
maintaining quality must be greatest between the back door and the produce
stand.

The degree of decline in quality and its effect on produce sales is
mostly a matter of time, temperature, humidity and care in handling. The
produce department is unique in that it is involved in the sale of living organ-
isms, for fresh fruit and vegetables are living plants. The commodity may

have been separated from its roots but it is still a living, breathing plant. It

54

is constantly giving off moisture to the air, ripening, burning up its own food
supply and undergoing other life processes. In a relatively short time, with-
out proper air, temperature and moisture conditions, produce will die and
decay. This is not an attempt at dramatization; it is merely a desire to
impress upon the personnel concerned with this activity that urgency and
extreme care are vital to the success of this department. In order to main-
tain a high degree of quality and freshness and to protect the life of this
merchandise, the produce manager and his assistants must exercise extreme
caution in the receiving, storing and handling of fresh fruits and vegetables.

Receiving and storing. The proper receipt of produce deliveries is

 

the first step in maintaining the quality and freshness that should character-
ize a produce department. Prior to the time of delivery, the storage coolers
should be properly arranged to ensure adequate space for holding the fresh
delivery; Merchandise carried over from the previous day22 should be
arranged in such a manner that it is easily accessible for display during
the day. Marking the receiving date on the crate to help assure that mer-
chandise will move out in correct order should be a common practice. The
principle of "first in, first out" should be strictly enforced unless the mer-
chandise being received is farther advanced in the ripening process.
Merchandise in the storage cooler should be pulled to one side prior to
delivery. Arranging the cooler in this manner prevents excessive handling

and shifting of cases.

22. Most produce deliveries are schedule on a daily basis.

55

Many produce orders are delivered during the night or as early as
possible in the morning. At this time, especially during the summer months,
the heat of the day is at its lowest thus curtailing the ripening cycle.

If possible, a reliable produce department employee should inspect
all merchandise at the time of delivery. If deliveries are made during the
night, the inspection should be made as soon as possible after delivery. This
inspection is important for the following reasons:

1. the condition of the merchandise is noted; items showing any signs
of deterioration or advanced degrees of ripeness can be put on sale immed-
iately. Severe cases can be reported for adjustment. 3

2. a count of the containers compared against the invoice precludes
misunderstandings concerning overages and shortages.

3. the inspection will aid the produce manager in planning his daily
sales programs and display patterns. This is particularly important since
items in short supply are often "scratched" from the order sheet.

It is important to have adequate handling equipment available at the
time the shipment is received. If deliveries are made at night, the handling
equipment should be free of all merchandise and easily accessible at the
delivery entrance.

If the produce order is palletized it is important that adequate storage
Space and a lift truck is available. If the—conventional conveyor system is

used, the conveyor should be set up and ready for instaIt use.

56

As the produce which requires refrigeration is received, it should be
placed in the cooler as soon as possible unless it is to be processed immedi-
ately. Actual tests have shown that produce left outside the coolers for
about two or three hours, especially in hot weather, loses as much or more
of its "bloom" than inside the cooler in five or six days.23

It is advisable to have both a dry and wet cooler; however, factors
of this nature are beyond the control of store personnel.

Due to the bulky and sometimes delicate nature of the merchandise
handled, the following rules should be enforced.

1. When lifting crates, be sure that it is not too heavy for one man.

2. Do not drop, stack, or set the cases down roughly.

3. Stack all bulge packs on the flat side or end.

4. Do not stack produce crates so high that lower contents will be
crushed or bruised.

5. Merchandise should be stacked in such a manner to allow circula-
tion of air. This is especially true for burlap bags of potatoes and onions.

6. Keep in mind that every bruise and skin break may mean a price
markdown.

7. If advisable, the merchandise should be stacked according to its
relation on the produce rack.

8. Never stack wet produce on top of dry produce.

9. Bags should never be dragged or stored on a wet floor.

 

23. Pillar, Roy, A Guide to Better Handling and More Efficient
Merchandising of Fresh Fruits and Vegetables, New York: National League of
Wholesale Fresh Fruit and Vegetable Distributors, 1948, p. 96.

 

57

Receiving and storing produce is often performed in one operation.
Employees should be instructed as to what merchandise requires refrigera-
tion and what does not. A classification chart in respect to this matter could
be posted at a convenient location near the receiving door.

It is worthwhile to reiterate again and again that extreme care should
be exercised in receiving and handling produce. This fact cannot be over-
emphasized. It must be remembered that there is no substitute for freshness.
Rotation is a word familiar to all food distribution personnel. It should carry
an added connotation in the produce department. In addition , and especially
true of fresh vegetables, it is necessary to remember that produce requires:

1. air to breathe

2. moisture or high humidity to replace or decrease water loss24

3. low temperature to delay harmful life processes.

Temperature ranges for most makes of produce coolers are from 40 to 46
degrees. Display cases average 45 degrees.

Produce department employees should remember that they are handling
highly perishable merchandise where freshness and quality completely out-
weigh the factor of price in the housewives minds. It is also important to
note that a high percentage of fresh produce sales are impulse sales, therefore,
the movement of these items will be greatly increased if proper handling

techniques are used.

 

24. Fresh fruits and vegetables under normal field growing conditions
are approximately 90 percent water by weight.

58

Price marking. Many of the marking procedures used in other depart-

 

ments are also applicable to the produce department. Difference will be
evidenced on many fresh vegetables where they are butt-marked with an in-
delible pencil. Other items, such as pre-packed merchandise, requires that
the weight or quantity in addition to the price be shown. Many items cannot
be marked, therefore, attention is directed to price signs or shelf moldings.
Citrus fruit is marked with crayon in many operations. Other use gummed
labels and paper tags. Whatever the system used, care should be taken to
see that all prices agree. When produce is retrimmed or recon ditioned, the

old price should be completely obliterated.

Dairy and Frozen Foods

Although these food products are usually part of another department,
brief mention of their handling and care is necessary. In the dairy depart-
ment, rotation, cleanliness and carefulness are important aspects of the
receiving and storing process. Price marking is accomplished accOrding to
many of the grocery principles. Cheese and certain other selected items
are wrapped, scaled and coded. Dated merchandise in numerous quantities
are received in the dairy department. Proper attention and care must be ex-
ercised to adhere strictly to this dating and coding procedure.

Frozen foods are handled in much the same manner as discussed under
the different departments. Most frozen foods are strongly packaged and their

receipt is the same as dry groceries in principle, except for the urgent need

59

to get them under frigeration. A one hour exposure on a hot day can ruin
an entire order of frozen food.

Pricing of frozen merchandise is difficult, to say the least. Frost
quickly forms on exposed units, therefore, the items should be marked
quickly and accurately, preferably with the N.C. R. set which can be inked
quickly and with less motion.

The frozen food department is growing in importance within the modern
super market. This growth is actually out—stripping the facilities which many
stores have for handling frozen foods.

Frozen foods are actually more perishable than either meat or pro-
duce in that they deteriorate more quickly when exposed to heat. This is
especially true of ice cream products.

The important thing to be stressed in this department is the need for
speed and accuracy that will result in a minimum amount of exposure wheat.

The space alloted to these departments, in this chapter, is by no means
an indication of their importance. It is merely felt that discussing them in
detail would, in a great part, be a reiteration of what has been discussed

previously.

CHAPTE R IV

Stocking

The problem of low shelf stocks and out-of— stock conditions can
seriously affect the sales volume of a retail outlet. The need for complete
stocks of popular merchandise, the flow of new products and the necessity of
weeding out items that have lost favor with shoppers have combined forces
to make the maintenance of well-balanced, sales building stock of merchan-
dise, both on store shelves and in stock rooms, a continuing day-to-day
problem. Out-of— stock conditions continue to be one of the serious problems
facing the food industry today.

The importance of fully stocked shelves, and refrigerated cases can-
not be over emphasized. Having the right amount of merchandise on the
shelves, and in the various cases, at the right time is essential for maintaining
maximum sales. This objective, never easy to achieve, has become even
more difficult with the growing concentration of sales on weekends.

Too often merchandise is ordered, received, price marked and packed
out in an unplanned, haphazard fasion. When merchandise is ordered correctly,

price marked accurately and handled efficiently, the shelf stocks can be

61

maintained in better condition and higher sales will result. Furthermore
this can be done,not at a higher, but often at a lower percent of wage rate to
sales. There is always room for increased efficiency particularly in the
stocking function.

The favorable results that can be achieved through keeping grocery
shelves and refrigerated cases fully stocked throughout the week is clearly

evidenced by a series of tests conducted by the Progressive Grocer, a trade

 

publication for the food industry.

These tests, conducted during the summer months of 1953, have
proven that this particular function deserves the utmost attention from store
managers and other interested personnel.

The vital necessity of enlightening store personnel to this problem is

stressed through the use of the following quote:25

"In tests in seven leading markets it was found that
sales of 126 packaged grocery and frozen food items totaled
8404 units during a two week period in which normal shelf
stocking methods were used. But during a subsequent two
week period, when shelves were checked more regularly,
out of stocks were eliminated, and shelves were kept fully
stocked, or nearly fully stocked, from Monday through Sat-
urday, the sales of these 126 grocery items increased to
10,287, a gain of 1827 units or 22-4% above the preceeding
two week period. "

A 22.4 percent increase in sales by all normal standards is phenomenal.
Many chain stores incorporating the use of trading stamps, will in many cases,

hope to increase their sales by this amount.

 

25. Progressive Grocer, "Customers Buy 22% More When Shelves Are
Well Stocked", June, 1953, p. 40.

 

62

By way of explanation and attesting to the importance of fully stocked
shelves, the following quote, from the same source, is recorded.
"No more shelf space was given to any particular
product. No special displays were used, there were no

price reductions of any kind. Fully stocked shelves and
cases were solely responsible for these gains."26

Grocery Department

As stores grow bigger in size, the job of overall management becomes
more time consuming and more demanding. As a result of this and other
factors, many store managers lose contact with their departments and the
importance of fundamental merchandising is delegated to whoever is available
for the job. Naturally this is not true in all cases but its presence, usually
under busy conditions, cannot be denied.

Taking valuable time to train and indoctrinate employees in performing
this vital task will pay large dividends in terms of future sales and efficiency.
The reasons for full shelves and cases must be continually impressed upon
store employees. Five basic reasons, very worthy of mention in this training
process, are:

1. That out-of-stocks will be eliminated . . . nothing kills volume

like stock outs. Valuable shelf space is wasted and the inevitable
time lag between orders and restocking procedures increases the

possibility of additional lost sales.

 

26. Ibid., p. 40.

63

2. Well stocked shelves create the impression of a mass effect
that indicates action, life and sales. The old adage "mass
sells more” is, in fact, a truism.

3. Impulse sales are increased. Customers are depending
less and less upon pre-determined shopping lists. Stores
well stocked have the advantage when split-second sales
decisions are made.

4. Lower shelves are brought into focus. Depleted stocks on
lower shelves are often ignored because the customers
line of vision is often blocked by the upper shelves.

5. Creates an air of fast selling merchandise. Full stocks
suggest freshness, fast turnover and that the items must
be continually stocked as a result. Naturally starter gaps
are always desirable, for they give the customer the im-

pression that she isn't the first to buy.
Space Allocation

Many facets of store operation, such as ordering, shelf-stocking
methods and back room arrangement, have a direct effect on keeping shelves
fully stocked. But perhaps the most basic factor bearing on this problem is
how the available grocery shelf and gondola display space is allocated to the

various commodity grouPS.

64

Apportioning space in relation to product movement, varieties handled,
unit sizes and gross profit on sales is a problem that requires careful study
and consideration. Determining how much space should be allocated to a
certain commodity is difficult to say the least. Each market is an individual
unit and must be operated as such. Space alloted for each commodity during
a new store opening must be realistically appraised as soon as practicable
afterwards. ‘

Surveys and studies conducted on this subject are readily available
from the various trade publications. Although these studies cannot be accepted
as the final authority, they are nevertheless very valuable guides to shelf
allocation. For example, one basic problem encountered during these studies
was the matter of lost space brought about by different size packages of a
particular commodity. The logical conclusion drawn was the use of adjust-
able shelving. By applying the principles of adjustable shelving to the various
grocery commodity groups, dealers were able to fit the shelf to the merchan-
dise rather than trying to fit the merchandise to the shelf.27

Allocating space in conjunction with the type of shelving used is very
often a top level decision. However, it is the duty of all store level personnel
to study their particular store layout and forward recommendations for con-

structive changes to the proper authority. This can be done on a direct line

basis, or through the use of the company's suggestion system.

 

~27. Kline, G. E., "Planned Grocery Space Allocation", Progressive
Grocer. August, 1953, p. 41.

 

65
Night vs. Day Stocking

Methods of stocking shelves vary with different companies, but the
principal problems remain the same. Full displays are needed, shelf and
7 commodity prices must correspond, merchandise must be rotated and
shelves must be kept clean. Whether these duties are accomplished during
or after store hours is a matter of company policy, opinion, necessity or
experimentation. However, there is a definite tendency to employ off-hour
stocking as the sales volume rises above $20, 000 per week. The more
business a store does, the more likely it is that it will incorporate a night
stocking function.

The following list, taken from a study published by the Super Market

 

 

Institute, indicates this trend.28
Stocking After
Weekly Sales Volume Business Hours

$20, 000 to $30, 000 21%
$30, 000 to $40, 000 43%
$40, 000 to $60, 000 50%
over $60, 000 76%

All super markets 44%

There are many factors that must be taken into consideration when

determining what hours shelf stocking will take place. The size of the unit,

 

28. Facts About New Super Markets Opened in 1955, Super Market
Institute, Department of Research, Chicago, Illinois:—

 

66

its volume, space restriction, aisle space and the reliability and productivity
of the workers available must all be considered. Many small volume outlets
cannot afford the extra supervision, while frequently night stocking is a
necessity in a high volume store.

Night vs. day stocking is always a problem. In some localities the
labor unions prevent such practices. In others, city ordinances may preclude
such activity. However, these instances are more the exception than the
rule.

Those against the practice of night stocking raise the following ob-
jections:29

l . The use of a night crew reduces the number of people working in

the store during shopping hours.

2. Absence of clerks when needed during the day cuts into store

efficiency.

3. Lack of full-time crews during the day increases the possibility of

pilferage.

4. There is more temptation toward employee larceny at night.

5. Size of payroll is increased.

6. Lack of proper supervision increases inefficiency.

7. Light and fuel bills are increased.

 

 

29. Portions of this listing are taken from Super Market Merchandising,
September, 1955, p. 138.

 

67

Those in favor of night stocking cite the following advantagieszsiO
1. Better customer service through well stocked shelves.
2. Warehouse advantages, for it permits earlier transportation.
3. Faster and more efficient receiving and stocking because of no
local delivery interference.
4. Less customer interference.
5. Less time wasted in disposing of empty cartons, since clean up
duties can be concentrated in the final minutes of the operation.
6. Night staff offers partial security against fires and outside thefts.
Regardless of when the shelves are stocked, it is the responsibility
of the persons assigned to this stocking to:
1. Keep the merchandise flowing from the storage areas to the
shelves.
2. Check the stock constantly to insure adequate quantity and variety
of merchandise.
3. Maintain clean, attractive, and well arranged displays.
4. Ascertain that all price marking factors are in adjustment.
The methods used to place merchandise on the shelf are almost as
numerous as the number of operations available for study. Store managers
Should exercise adequate control over shelf stocking procedures. This is

particularly important because of the inexperience and high turnover among

mm

30. Portions of this listing are taken from Super Market Merchandising,
September, 1955, p. 142.

 

68

shelf stocking personnel, many of whom are of high school age and who work
only on a part time basis. Such factors as rotation, accessibility, facing
merchandise, etc., are often treated lightly by these individuals unless they
are properly trained. Part time stock clerks should be recruited from the
employed members of a community as much as possible. Responsible workers
who need additional cash to maintain their standard of living are the most
desirable. This is not meant to preclude hiring of teenage youths. If trained

properly, they can become useful members on the store team.
Rotation

To those familiar with the food industry, the word rotation needs no
explanation. To those unfamiliar with the word, it simply means placing the
older stocks of merchandise to the front of the shelves so that it will be
sold first. Following are some of the points which should be kept in mind
concerning the care and handling of merchandise in relation to rotation.

l. Perishable groceries (cereal, candy, bagged coffee, packaged
cheese, etc. ) should always be rotated by putting the new stock behind the
stock already on hand.

2. Creamery and bakery products should be rotated unerringly.

3. Semi-perishables (soap, cleansers, some canned goods, etc.)
should have the old stock moved to the front periodically. Usually this is
done in conjunction with the cleaning process.

4. All broken packages and "swells" should be removed from the shelves

immediately when noticed.

69

Accessibility

It is well to remember that "A woman's buying power is measured by
the length of her arm". Light weight items should be on the higher shelves
and heavier goods on the lower shelf. A woman hesitates to lift heavy items
from above waist level.31 Also in this respect, breakages will occur less

frequently if light weight articles are given top shelf positions.
Facing Merchandise

Facing merchandise is often necessary to improve the appearance
of the shelf or to give the space alloted for a particular item a full look. Slow
moving merchandise is often "faced" to give a full appearance, since re-
ordering such merchandise is not necessary on a daily or weekly basis, but
only when a full or half case will fit on the shelf. Labels should be facing the
customers and the items always neatly stacked.

Also, when low stocks cannot be replenished, which is bound to
happen even in the best run stores, it is well to "face" merchandise. This
is especially effective on lower shelves, where items are out of sight after
the first few rows are sold.

"Facing" merchandise as a regular day to day practice, however, is
not recommended. In this respect it is a waste of time; time that could be

devoted to stocking the shelves. This device is no substitute for well stocked

_“\___
31. Receiving, Warehousing, Stocking, The University of Texas,

Texas Education Agency, p. 47.

 

7O

shelves but it is a desirable function for emergency situations that arise

occassionally.

Cleanliness

All shelving, whether new or old, should be kept as clean as possible.
Under pressure of doing business, this important function is often neglected.
The majority of women run immaculate households, therefore, they are
immediately aware of the condition of store fixtures, shelving, etc. Many
shoppers are instantly repulsed by unkept shelves and merchandise. Since
housewives are our most important customers, it is of paramount importance
that they be pleased with. the store's housekeeping. A damp cloth or feather
duster on the stocking trucks, used to clean each shelf before merchandise
is placed thereon, can do much to solve this problem. That such a minor
task can result in sales gains or losses seems incongrous. Nevertheless,
it is true. Controlling the many little facets of the operation will prevent

large problems from occurring.
Dented Merchandise

Dented merchandise should be removed from the shelves as soon as it
is discovered. Although the denting of a can does not affect the contents.
unless the can has been pierced, the appearance will be unsightly to customers.
Dented or broken merchandise can also reduce the sale of the regular unmarred

merchandise.

71

Merchandise that is dented or disfigured can be (1) sold to employees

at a reduced rate, (2) dumped in a bargin display, (3) or given to charity.

Arranging Stock

How to arrange stock on shelves is a last consideration in shelving.
Some of the principles to be observed in good shelf arrangement are:

1. merchandise arranged within reach.

2. merchandise arranged within sight.

3. shelves kept well stocked.

4. stock arranged neatly and kept clean.

5. related items grouped together.

' 6. rotation of stocks.

Methods of Operation

Methods of shelf stocking concerning the listing or calling forth of
items also vary. The three most common methods currently in use are:

1. inter communications systems

2. complete listing by one responsible employee

3. sub-dividing responsibility to employees.

Inter-communication system. This method of stocking shelves consists

 

of a portable receiver and mouthpiece with an extension wire carried by the
floor man. When plugged into one of many outlets on the selling floor, a bell

rings in the cellar or back room. As soon as attention is gained at the other

72

end, the floor man starts at one end of a section and calls off all the items
needed for that section. After one section is completed, he disconnects the
circuit and proceeds to another section. As the message is received at the
other end, the items needed are marked with a grease pencil and pulled for
price marking or direct shipment to the selling area if the items are pre-
marked. The stock in the storage area is arranged to correspond with the
particular sections on the selling floor. This method is very efficient and it
saves valuable time. Misunderstandings are held to a minimum and there is
no paper work involved.

Complete listing by a responsible employee. A responsible employee,

 

preferably the assistant manager or a head stock clerk should be held
accountable for the complete listing of needed items for the shelves if this
system is used. Under this system, the individual so designated makes a
systematic tour of the store, listing the items that need replenishing. As he
finishes a section, he can send the list to the storage area and have it pulled
by the cellar man or back room personnel. As he continues to list the re-
mainder of the store, the merchandise already listed can be pulled and sent
to the selling area for stocking. In this manner a continuous operation is
attained until the store is fully stocked. Spot checks of shelving may be nec-
essary on busy days, especially in fast moving sections, such as paper goods.
When completed, the lists should be returned to the individual making the lists
so that out-of-stocks can be noted. An example of the listing sheet is illus-

trated in Figure I.

 

 

.“
.n
3..
l

.54.

I}.

‘

‘

c I

n

E:

_ A.

73

 

 

Figure I
Commodity , Size Full Cases Half Cases Out of Stock
Kelloggs
All Bran 8 oz. 2
Corn Flakes 10 oz. J
Sugar Jets 8 oz. 1

 

 

 

 

 

Sub-dividing responsibility to employees. With the sub-division

 

system, individual employees are assigned specific sections or gondolas.
It is their duty to keep the shelves well stocked and their areas clear and
uncluttered. The individual lists, pulls, marks and stocks his own merchan-
dise, unless, of course, the merchandise is pre-marked.

This arrangement works well, but a close check should be maintained
to ensure that the work load is distributed evenly. Members ‘should also be
rotated periodically until all personnel are acquainted with the type of mer-

chandise handled.
Meat Department

In 1955, nearly four out of every five new super markets (78 percent)
opened with the meat department completely self-service. 'hventy-one per-

cent offered partial self service and one percent was completely service. 32

 

32. Super Market Institute, Op. CE:

74

The high percentage of self-service meat departments indicates that full
cases are as important to the meat department as full shelves are to the gro-
cery department.

The stocking or displaying operation of a meat department includes
carrying the meat from the scaling or wrapping tables to the display cases,
or from the holding coolers to the display cases. It also includes arranging
the packages in the case, rearranging them, rotating merchandise, removing
out-dated, discolored, torn or leaky packages and returning them to the
cutting or packaging room.

Meat departments differ in layout, therefore, stocking procedures
for individual departments vary in degree. Self service meat cases can be
stocked either from the front or the rear.

Front feed. Personnel stocking the display case from the front are

 

required to walk around the end of the case in order to get to the "work area".
Carts or specially equipped trucks are used to transport the meat from the
wrapping area to the front of the case. This is usually the procedure if the
cases are located flush against the wall with no access from the rear.

In other operations, namely the ultra modern "rolling cold" type, the
trays are simply balanced back of the display case and the individual doing
the stocking reachs over the case and arranges the meat accordingly. Front
end stocking is advantageous in that the person doing the stocking or re-
arranging of the merchandise sees it as the customer does. As a result, a

neater display is often the result, with labels facing the customer and "upside

75

down" labels held to a minimum. One disadvantage is that interference with
customers is likely to result on a busy day.

Rear feed. Rear loading cases are common to the perishable de-
partments except for dairy and frozen foods. In the meat departments of
today the use of rear feeding is widespread.

Theoretically, rear feed offers an improved merchandising method.
Cases can be constantly restocked and kept in top condition throughout the
day without interfering with the customer as she makes her selections.

Many new stores have not only rear feed meat cases but also open or
glass front prepackaging rooms. By linking prepackaging with rear loading,
restocking becomes relatively easy and probably , more efficient.

There are a few objections to rear feed operations. Primarily they
focus on the difficulty of reading package labels upside down when checking
dates and weights. Many meat men, by force of habit, still go around to the
front of the case to do stocking in a case designed for rear feeding. Another
objection to the rear feeding principle is that merchandise should be displayed
and set up as the customer sees it from the front.

Mirror-back cases, with the processing rooms directly behind them,
are usually fed from the rear.

- . .. . 33
Open end cases, incorporating the rolling cold", equipment are also

—_

33. Rolling cold designates conveyors running from the processing
rooms in recessed refrigerated aisle about one foot deep.

76

stocked from the rear. Both type of operations can be arranged more satis-
factorily from the front.

No one system of stocking meat cases is used exclusively. Both
systems are invariably integrated to obtain better results in displaying the
merchandise effectively.

Rotation. Rotating merchandise in the meat department is extremely
important. Super market operators are proud of their self service meat
departments and they are continually striving to keep the meat as fresh and
presentable as possible. The best method of attaining this, all factors con-
sidered, is to rotate the merchandise whenever possible and practical to do
so. This process includes inspecting the meat, noting the code, and placing
it in a position where it is likely to be picked up first. Merchandise that is
turning black should be removed. Unsightly or bloody packages should be
sent back to be rewrapped or reprocessed.

The restocking process is considerably curtailed on Saturday afternoons
if the store is not open for business on Sunday. At this time, there is greater
emphasis placed on special orders to hold down weekend storage of retail
cuts.

Cleanliness. Little need be said about this subject except that its im-

 

portance is magnified a hundredfold in the meat department. Dirty cases
attract insects, especially during the summer months. The cleanliness factor
alone can ruin the reputation of a meat department and eventually the entire

unit.

77

Produce Department

Stocking produce (also meat) necessarily incorporates the funda-
mental techniques of display. It is not enough to simply load up a produce
rack. Displays can change the character and overall appearance of a chain
food store. The look of glistening freshness that is associated with well—run
produce stands is not easily obtainable. Restocking displays must be done
carefully, quickly and efficiently. It is essential that all displays be as
attractive as possible. Freshness - the key to top volume in produce - must
be closely guarded. Items must be rotated regularly to insure a fresh pro-
duct for every shopper. Mixing old merchandise with new is not the solution
for a high sales volume or low inventory at the end of the week. Off-quality
stock must be pulled quickly - - particularly when items are prepackaged.

A bad item in a prepacked carton or tray ruins the sales of that unit, there—
fore, it must be pulled and repacked to prevent a complete loss.

Whether set up on refrigerated racks, dry racks, ice racks or in a
special display, produce should be arranged and restocked for best appear-
ance. Color contrasts should be considered and exploited as much as pos-
sible.

Refrigerated racks can be stocked more abundantly than dry racks due

to the holding quality of merchandise under refrigeration or kept cool by

ice.

78

Dry racks are, in many cases, "dummied" to give the effect of mass.
They should be restocked often with less amounts of merchandise to maintain
a high degree of quality.

Turnover is very’important in the produce department and the produce
clerks should continually rotate their merchandise.

Customers often "catch on" to the rotation procedures used by the
various food chains. Such customers continually select their produce from
the rear of a display. In this case, a leveling effect should be instituted with
fresh looking, desirable merchandise kept throughout the display ribbon.

Off quality merchandise, as mentioned previously, should be pulled quickly
to insure a high degree of turnover.

As in the meat department, produce racks are either rear feed or
front feed. Mirror-back cases should be stocked up to the mirror in an

orderly fashion to achieve the best results.

Regardless of what department is involved, the question of how many
sales are being lost due to low stock and stock outs is one deserving careful
consideration. It is obvious to any super market operator that no shelf or
case can be kept fully loaded at all times. However, it is equally obvious to
most operators that there is, today, a great opportunity in virtually every store
to improve on the stocking techniques and methods used at present.

Many of the techniques used are an integral part of the store. One

eastern chain has incorporated the use of gravity fed shelving to help solve their

79

problem. Another large chain company places its bottom shelf of merchandise
on its side. Still others use techniques that to them are practical and worth-
while.

Whatever systems, methods or techniques are used, they should be
used according to sound merchandising principles.

Finally, store managers should realize that shelf space is contracted
and expanded with greater effort given to expediency rather than overall ef-
fective merchandising. Shelves should be periodically inspected and re-
aligned according to sound merchandising principles.

Attractive displays and well stocked shelves are the "silent salesmen"
of the self service super market. These salesmen must be fed, kept clean,

and properly dressed if a retail food unit is to survive.

CHAPTER V
Housekeeping, Care and Maintenance

Modern merchandising encompases more than ordering, receiving,
price marking and stocking. It includes every relationship between a store
and its customers. The subjects discussed previously in this thesis were
primarily concerned with placing highly attractive and desirable merchandise
at the fingertips of the consumer. Naturally the process does not end at
this point. The operation, in itself, is not completed until the customers has
left the store, and to go a step farther, until she has returned time and time
again. This latter action can only be achieved if the customer is "taken" with
the store. The initial impression made on a customer can be the most impor-
tant. It is axiomatic that the first impression is a lasting one, and this is
true of 3 customers first contact with the retail outlet. Any succeeding con -
tact 3, resulting from this first impression, will bear testimony to the fact
that she is satisfied with her choice of a shopping unit. This satisfaction can
be the result of personal contact with friendly employees, reasonably priced
merchandise, well. stocked shelves, clean surroundings, etc.

Customers are seldom aware, and often care less, about the physical

effort, time and money spent in their behalf. This is as it should be. Except

81

in rare cases, the "behind the scenes" activities are conpletely foreign to

the customers of a particular unit. Their patronage is reward enough, and
all the effort expended has this patronage as its final goal. This continued
patronage requires pleasant surroundings, spotless fixtures, and clean
merchandise. Above all, the absence‘of elements or situations that are
distracting or annoying must be eliminated. Littered floors, congsted aisles
and unsightly aprons on personnel must be avoided at all costs if a particular
unit hopes to gain in popularity with its clients. Slippery floors and other
hazardous situations can result in costly law suits and ultimately lead to un-
wanted publicity and the loss of prestige and reputation. Bearing in mind
that all other factors are of prime importance, it is also evident that the
above situations or dilemmas can be avoided through an effective and effic-
ient program of housekeeping, care and maintenance.

Proper housekeeping, care and maintenance results in more efficient
operation and more effective selling space. Increased variety is thus possible,
which in turn gives birth to higher sales volume and better profit margins
which in turn benefit the store and the customers as a whole. This completes
the circle of the customer entering, happily shopping, leaving well pleased
and returning. Thus the entire efforts of the combined store staff have been
facilitated through this important phase of the operation - housekeeping, care
and maintenance.

We have learned from modern psychological research that the physcial

Senses, particularly the auditory, olfactory, visual and palpus nerves are

82

acutely affected by the environment and these effects, in turn, determine
patterns and judgments. It is the exceptional store in the exceptional neigh-
bothood that manages to continue operating in the midst of clutter, dirt, re-
fuse and disorder. A study of why such a store remains in business would
undoubtedly reveal circumstances of a socialogical nature such as foreign
populace neighborhoods, low income groups, minority housing sections and
isolated areas.

We are living in a time period that has been labeled many "ages"; so
for the writer's own purpose we shall call it the age of motivation. People,
it has been discovered, do things for some definite, pre—determined reason
and this fact could be used to great advantage in the great business world.
Smart indeed is the management that considers this in deciding the location,
architecture and decor of its stores.

Once the stores are completed and are functioning smoothly, as was
anticipated, the task is to see that the physical qualities which have attracted
the customer are maintained at every level; from the cleanliness of the

windows to the always right temperature of the refrigeration system.

Planning the Program
The formulation of general housekeeping, care and maintenance
policies is naturally a responsibility of top management or headquarters per-
sonnel. It would be foolhardy to allow each unit to set up its own practices
and standards, just as it would be disasterous to allow each individual store
to carry out its own pricing and personnel problems. Headquarters must

assume the responsibility for the overall policy and the methods recommended

83

for the implementation of that policy. The execution of the policies will
naturally be the responsibility of the store manager and his department
heads. Included in this zone of accountability should be the district super-
visor or branch supervisor as the case may be.

The headquarters staff has available to them all sorts of written
material on maintenance and up keep through store engineering firms,
fixture manufacturers and goVernment publications. This information should
be assembled, digested and evaluated. From this should result a set of
housekeeping procedures applicable to the particular company's needs. The
staff will undoubtedly work with the original department responsible for the
selection of equipment and fixtures so that the purchases will be executed
wisely with the aim of ease of maintenance and care in mind. Only if top
management actually feels the importance of good housekeeping, care and
maintenance will such a program be successfully assured. The policies
concerning equipment, its maintenance, and the maintenance of the area sur-
rounding it, must be an integral part of the whole philosophy of the company.
In this way the policy of proper housekeeping will be embodied throughout the
whole organization - right down to the newest stock boy. As a new employee
is hired, he will be taught the company's operating procedures including
housekeeping, care and maintenance. He will see them written in manual

forms, and being acted upon faithfully by each employee in his own capacity.

'84

When planning such a program, it will be necessary not only to set
forth policies and procedures but also to educate and even indoctrinate the

store employees to their use and importance.
Organizing the Program

Organizers of a program of housekeeping procedures should keep in
mind the fact that all policies so prescribed must be within the scope of the
persons so delegated to carry them out. In reference to this point, minimum
requirements as well as maximum requirements should be set forth. Veterans
in the food industry realize all too well the limitations that the pressure of
doing business places upon the managers shoulders. He is not a technician,
therefore, a competent and reliable staff of maintenance experts should be
at his command. Keeping in mind the above, the most important jobs in
organizing are:

l. to assign areas of authority and responsibility on a sensible and

pragmatic basis.

2. to "sell" the program to all employees.

3. to furnish proper maintenance equipment to all stores so that

required standards may be policed on a chain-wide basis.

Delegatipg A.“ authority and responsibility. Delegation of authority and

 

responsibilities should follow the regular organizational pattern; that is,
passed frcm headquarters to supervisors, to store manager, to working per-

sonnel. Responsibility should be enacted from all these levels for the proper

85

execution of maintenance duties and for high standards of achievement. An
overall program should be designed at headquarters - - lower levels should
not be held responsible for the program or the contents of a manual. They
should be held responsible for achieving whatever standards are set forth. If
a program ultimately fails, its failure could just as easily be the fault of the
headquarters .

Areas of responsibility should be assigned by departments. The meat
managers and meat specialists should be responsible for a particular meat
department and so on for the rest of the unit. Department heads will naturally
assign the necessary duties to subordinate employees and arrange for just
and equitable distribution of such duties. Above all, the wholehearted cooper-
ation of everyone concerned should be insured.

I

Selling the program. Selling the program to the employees is another

 

headquarters and supervisory responsibility. This cannot be accomplished
unless supervision itself is sold in advance. Treating this area of operations
lightly usually results in serious repercussions. Once all supervisory per-
sonnel are "sold", it is their duty to influence the store managers and their
department heads. Portions of regularly scheduled management meetings
could be allocated to this subject. A project to sell work level employees on
proper maintenance and procedures could be accomplished through already
established channels. Such factors as suggestion boxes, posters, and
regular "back room talks" could be used to successfully sell the program to

employees. Once started, a selling program must not be allowed to diminish in

86

importance. Employees must be continually reminded personally by the

manager or his department heads. Delegating this function to a subordinate

 

may cause it to cease upon his promotion, transfer or separation. The
activity of "keeping things looking right" will be in serious competition with
other work functions. As mentioned before, the pressure of operations may
well result in placing this important phase on the bottom of the list.

Furnishing the tools. Supplying the necessary tools is basic to the

 

operation. Many wasteful make-shift practices are currently being mani-
fested at store level. Aprons are being used to clean shelves, non-foods
departments are constantly being raided to furnish screw drivers, sponges
and other miscellaneous equipment. Expensive detergents, high priced
waxes and other materials are used right off the shelf. Such practices result
in poor inventories and lowered profits.

Lighting fixtures, scrapers, screw drivers, proper cleaning com-
pounds, etc., should be furnished on as liberal a basis as possible. It is the
writer's opinion that such action will result in increased efficiency, higher

morale and increased savings.

Controlling the Program

Effective, continuing control will determine the degree of success of
the maintenance and housekeeping program. Housekeeping, care and mainten-

ance is comprised of many simple, repetitive efforts not demanding undue

87

pressures on the work force. In many cases the work is not challenging and
the routine may become monotonous. Mental alertness and physical exer-
tion are important but not demanding.

The danger to the successful accomplishment of this function is lack
of effort, insufficient insistence on high standards and the apathy of the
employees. The employee must be sold on the fundamental values of house-
keeping and the results that it will accomplish. Store employees are no
different from other people, they aspire to do great and important things.
Cleaning up is often distasteful to them and they consider the work suitable
for a janitor. However, people usually learn that the great and important
things are composed of many small, seemingly unimportant tasks. The
employee must be made aware that the housekeeping efforts required of him
have a direct effect on sales, profits and, undoubtedly, his own salary.

The store manager should control the store's housekeeping by periodic
inspections - accompanied by the district supervisor - to ascertain whether
department heads are recognizing the importance and need of such a program.

Preventive maintenance procedures and schedules can be controlled
through the use of a simple check-off chart. Such charts, usually supplied
by the maintenance departments or some outside agency, provide a list of
the duties to be performed on a periodic basis. Such duties would include
oiling motors, checking wiring and electrical outlets, listening for unusual

motor noises, checking temperature gauges, etc.

88

Although many of the factors listed can be checked according to an
established routine, it is nevertheless important that this task he performed
"thoroughly and conscientiously; preferably under the supervision of the
department managers.

Field supervisors, or assigned specialists could compare these check
lists with the actual appearance of the unit and thus determine the extent of
accomplishment. If the unit if found lacking, corrective measures should
be taken and the reason for non-compliance carefully studied. Here again
the "selling program" may need to be intensified. Special attention to certain
areas of activity may be necessary in order to achieve the standards desired.

Periodic store meetings, aimed at improving the overall efficiency
of the store, could be held and the importance of this subject stressed to all
employees. Favorable results can also be achieved through the use of safety
posters and other printed literature relating to this function.

Once the program has been planned, organized and implemented, the
task is not finished by any means. As mentioned previously, many of the
duties are considered menial tasks. This must not in any way minimize their
importance. Management must continually re-plan, re-organize and re-
implement the program. Keeping particular units under scrutiny, continually
impressing the personnel and taking corrective measures where necessary
must be accomplished if increased sales and customer satisfaction is to be
achieved. Areas of weakness must be strengthened and employee attitudes

must always be kept in mind. Labor expended, supplies used, etc., are all

89

part of overhead expense. In reality it is an investment. An investment in
future sales, increased profit and smooth running machinery.

The writer wishes to reiterate that a fair and equitable assignment of
duties must be undertaken if high morale is to prevail. Nothing is more
shattering to a person's ego than the feeling of being "picked on" or not being

thought of as capable enough of assuming any duty other than "cleaning up".

Breakdown by Departments

A housekeeping, care and maintenance program must naturally be
adaptable to each department. Basically it is guided by a set of general prin-
ciples which are, in turn, applied specifically to each department. In this
manner its implementation can be facilitated by approaching the employee
through his particular department. Such a program serves the dual role of
encouraging the employee to feel proud of his work area, while inducing him
to cooperate with others whenever necessary for the good of the whole.

Before a department breakdown is set forth, however, it will be nec-
essary to discuss briefly the role of the maintenance department as a separate
entity. Its functions encompass the entire unit and are primarily concerned
with operations and repairs beyond the control of the store manager.

These complicated repairs and preventive maintenance procedures
are accomplished through the use of a maintenance department. Most food
chain companies operate and staff their own departments as an integral part

of the organization. Others negotiate contracts with outside firms wherein all

9O

heavy repairs and preventive maintenance procedures are executed on a
contract basis. A combination of the two policies is often evident in that
store managers are authorized to contact local repairmen‘in event of an
emergency.

A program combining emergency and preventive maintenance is, in
the writer's estimation, an ideal program. This can be greatly facilitated by
centralizing and systemizing the maintenance operation; which in turn will
enable the chain to cut costs and realize increased efficiency. Companies oper-
ating in such a manner could work out of a central base, strategically located
so as to minimize the distance to any one store. Because of the distance sepa-
rating most stores (especially in a suburban area) a company realizes that
getting maximum results from each service call is of paramount importance.

Under a system such as this, a maintenance employee called out on an
emergency would phone the central office after completing his original assign-
ment. If there are no additional emergencies, he can perform a pre-determined
preventive check at the same unit. If an existing emergency demands his
attention during this time, he leaves immediately and completes the check
when he is again called to the area. If he is not summoned to another emergency
he can proceed to regularly assigned stores and complete his preventive main-
tenance schedule. This cycle should be completed at least once every quarter
or oftener as conditions dictate.

Regular maintenance crews usually handle the necessary repairs on

refrigeration units, electrical equipment, such as air conditioning and heating

91

systems, plumbing and general carpentry. In addition, it is often their

responsibility to transfer equipment from one store to another.

Excluding major repairs, an average preventive maintenance check

list would include:

34

Oil motors in refrigeration units, fans, heaters, air conditioners,
compressors, etc.

Clean condensers in refrigeration motors.

Inspect machines incorporating belt systems to see that the belts
are not frayed or badly worn.

See that refrigeration equipment is working properly and main-
tained at proper temperatures.

In summer, check air conditioning systems and make certain that
correct room temperatures are being maintained.

Clean air filters in air conditioners and heaters.

Replace any burn-outs in outside floodlights or inside light fixtures,
also check for defective wiring and maintain a ready supply of fuses
where they can be easily located.

Inspectfaucets, piping, traps and toilet bowels for leaking and
congestion.

Be constantly on the lookout for signs of rodents and pests. (Refer
any findings to the store manager and subsequently to pest control

unit or agency servicing the chain.)

 

34.
that Work",

List partially taken from Chain Store Age, "Maintenance Programs
October, 1955, p. 212.

 

92

10. Leave further instructions and suggestions with the manager as
the case may be.

General responsibilitj_. No matter how effective and complete may be

 

the help supplied by the company or outside agency for inspection, preventive
maintenance and repair service, store managers know that definite respon-
sibilities rest with them regarding good housekeeping and daily inspections.
Store level personnel have definite responsibilities to (a) follow through on
daily housekeeping and close inspection cf operating equipment and (b) to meet
simple situations which call for intellignet action by department heads, assis-
tant managers, etc. Good housekeeping and regular checkups by trained
personnel are the best assurance against breakdowns, fires and expensive
replacement bills. "An ounce of prevention is worth a pound of cure" applies
very well in this case. Periodic inspections will often uncover dangerOus
signs of wear and tear on equipment and fixtures. Bringing minor deficiencies
to the attention of an expert will result in corrective action being taken; there-
by preventing a major breakdown at a later date.

The following points posed in question form should act as a guide for
all store managers.

1. Is there a systematic program of housekeeping, care and mainten-
ance currently in force?

2. Are daily inspections of machinery, equipment and rest rooms being
made?

3. Are legible typed or printed lists of telephone numbersof company main-
tenance departments, after hour service contacts, and contract service firms

posted in a conspicious spot?

93

4. Can the police and fire departments be summoned immediately?
5. Is every department head familiar with company maintenance in-

structions (also as to what, where and when to report for emergency help or

 

for routine checkup and repairs)?

6. Are requests for needed service, repairs or fixtures changes
written up immediately or are they allowed to drag out until "you get around
to it"?

7. Are personnel educated to the fact that proper housekeeping, care
and maintenance procedures will prevent accidents, fires and breakdowns?

8. Are employees (primarily full time) trained to cope with emergencies
such as power failures and fires?

9. Is company policy and instructions being followed in all respects
concerning housekeeping, care and maintenance?

10. Are clean-up personnel, such as porters, aware of the damaging
effects of strong detergents and their effects on walls, gondolas, etc?

11. Do employees realize, or are they made aware of the fact that a
clean, well cared for store means better sales records and ultimately greater
benefits to them?

12. If safety news bulletins and other instructions regarding cleaning

news and contests are disseminated to the stores, are they properly posted?35

 

35. Chain Store Age, "What Can Managers Do To Hold Down Mainten-
ance Costs", December, 1955, p. 46.

 

 

94

It is not enough that super market personnel have a knowledge of how
to prevent accidents and properly police a retail unit — ~ the knowledge must
be translated to action. This can be accomplished by setting forth sound per-
sonnel policies and efficient operating procedures. The writer advocates
supplementing these requisites with contests, bulletins, training courses and
frequent briefing of store employees.

Following is a breakdown of specific areas and responsibilities ac-
cording to departments. Non- foods, dairy and frozen foods, for the purpose
of this thesis, will be regarded as a part of the grocery department.

Grocery Department. The grocery department occupies approxi-

 

mately 60 percent of the selling area of a food store. Included in its dimen-
sions are hundreds of square feet of shelving and gondolas that contain
thousands of items. The personnel assigned to keeping this department clean
and uncluttered often find their work area extended to all parts of the store.
From an almost traditional viewpoint, meat cutters and produce clerks seldom
operate outside their respective work areas in respect to housekeeping, care
and maintenance. Therefore, the grocery personnel are assigned to work
"areas" rather than the grocery department, as such.

Such areas normally include the front end of the store, the checkout
booths, the front office, sidewalks, parking lots, cellar or backroom areas
occupied by dry groceries, the dairy room and dairy cases, frozen food cases

and the frozen food storage areas (in some instances) conveyors, restrooms,

95

stairs, windows. the selling area designated as the grocery area and other
miscellaneous areas normally cleaned by the regular clerks.

Meat Department. The meat departments of most stores are so

 

situated (usually along one wall) that their area is clearly defined and set a-

part from the regular grocery and produce selling areas. It occupies all the
area behind the meat cases including the cutting rooms, sealing and wrapping It
areas, refrigerated storage rooms, meat walk-in freezer compartments and O,

the meat receiving area. The above areas are usually positioned in one com-

 

pact location to better facilitate the receiving, storing and preparation of the t '
products handled. This department is maintained by the meat manager and

it is his responsibility to keep it clean and functioning properly. In many

chains he is held accountable to the general store manager.

Produce Department. The produce department, under the jurisdiction

 

of the produce manager, includes the area on the selling floor occupied by

the racks, tables or gondolas used to display fresh fruits and vegetables. It
also includes the refrigerated storage areas and that part of the back room
used for trimming purposes. Due to the perishable nature of the merchandise
and the wetness associated with many leafy vegetables, extreme caution should
be exercised in handling produce and the containers used in transporting the
items from one location on to another. Wet floors, cluttered aisles, etc., are
ever present hazards to the consumer. If this area is allowed to go unattended
for more than an hour, the possibility of an accident occurring is magnified.

In the process of selecting merchandise, customers inadvertently drop merchandise,

96

brush against displays, etc. If a cluster of grapes accidently falls, it is

not being facetious to imagine twenty lawsuits rolling in all directions.

The housekeeping, care and maintenance of these departments are
the direct responsibility of the store manager and his department heads. It
is the duty of every individual employed in the market to cooperate with their
immediate supervisors so that their work load will not become unduly burdened
with the execution of their duties in this respect. Each individual should take
pride in his appearance and the appearance of his immediate work area. Pride
of workmanship and conscientious effort are necessary traits needed for this
accomplishment.

In concluding this particular section, the writer wishes to point out
that the large investment in a modern food store and its fixtures demands that
an intelligent maintenance program be planned, organized and controlled.
Protection of the heavy investment in buildings and fixtures would, in itself,
be sufficient reason for such a program. Other reasons for such a program
would include reduced spoilage, increased efficiency, higher levels of employee
morale and higher profits. Proper training procedures must be adapted and
the responsibility for the overall program must be pin-pointed at the various
levels of the organization. The food industry has entered the age of customer
service. A clean, well maintained store can offer better service in terms of
pleasanter shopping trips, confidence in merchandise quality, and lower costs

through increased efficiency.

97

Safety and accident prevention. Housekeeping, care and maintenance,

 

safety and accident prevention are intrinsically related. Every food store, no
matter how big or small, needs to protect its customers, its employees and
the very business itself against unnecessary accidents. They happen all too
frequently, and in most cases are preventable. According to the National
Safety Council the risk of a customer or an employee being injured is from
two to four times as great as that evidenced by the employees of many big
steel mills. 36 Falls account for over one-half of all types of food store
accidents.

Many accidents can usually be traced to poor housekeeping in the store.
The following check list, in question form, can be used as a guide for in-
structing employees in accident prevention. Strict adherence through coopera-
tive effort should result in check marks being placed in the "YES" column only.
, In the final analysis, it is every employees responsibility during the course of
his work to check any areas of the store that could be danger spots. It does
not take much time - - just a little added effort. This check list should act as
a reminder to all personnel.

YES NO
1. Is floor free from:

a. produce
b. dirt and rubbish

c. gum

 

36. Due to the fact that heavy industries have a planned accident
preventive program.

37. Progressive Grocer, "Be Sure Your Store is Safe", january, 1956,

 

p. 97.

additional items.

designed specifically for the safety and welfare of the stores' customers. Other

d. water
e. excess oil or wax
f. defects (holes, loose boards, etc.)

Are the following areas swept regularly:
a. entire store (twice daily)
b. around produce rack (every hour)

Are aisles free from unattended:
a. stock trucks
b. cartons
c. baskets
d. crates

Are floor displays:
a. safely placed
b. safely built

Are shelves safely stocked

Is sidewalk free from:

a. dangerous holes, irregularities, etc.

b. rubbish
c. ice and snow

Is parking lot free from:

a. glass
b. rubbish
c. ruts

Total

YES

I

II!
III

98

NO

38

This check list, although not all inclusive, could be aupplemented by

This listing applies primarily to the selling area and is

lists could be compiled for separate departments or specific work areas

 

p. 102.

38.

Progressive Grocer,

 

"How Safe Is Your Store",

january, 1956,

99

depending upon the discretion of the store manager or company policy as a
whole.

Three well-known chains believe that more than 70 percent of employee
and customer accidents result from the workers failure to follow simple safe
work practices and good housekeeping in sales, stockroom and other work
areas of the store. 39

In order to cut the cost and consequences of accidents in food stores,
the personnel and safety departments should actively campaign for greater
awareness and training dealing with this particular problem. Store managers
and department heads should be constantly alerted to the reasons for efficient
housekeeping. They, in turn, through the development of careful work habits,
can indoctrinate their employees concerning the vital need for the elimination
of sloppy, careless on-the-job practices. A simple plan for daily store in-
spection would remove hazards and overcome careless work habits ' 'A Safety
program M be set up and carried through the year.

Getting a safety program "off on the right foot" can best be accomplished
by incorporating it into the regular orientation and training program used for
new employees. New employees are impressionable and the importance of
safe work habits, elimination of hazards and proper housekeeping procedures

should be impressed upon them as soon as possible.

 

39. Chain Store Age, "Safety Programs That Cut Costs", November,
1955, p. 269.

 

CHAPTER VI
Conclusion

Many revolutionary changes have taken place in the food industry
during the past twenty-five years. New methods of operation are continually
being incorporated into the overall function at all levels of activity. The
increasing costs of labor, materials, advertising, etc. , necessitate a
high degree of operating efficiency.

The role of the store manager has been expanded to include many new
supervisory functions, therefore, delegation of responsibility is necessary
in respect to the actual physical operation of a super market. Such acti-
vities as ordering, receiving, storing and price marking are becoming
at least semi-specialized. In many cases, due to improved operating pro-
cedures and new materials handling equipment, specialization is becoming
more prevalent.

Ordering merchandise is becoming a systematic process based on
facts derived from past sales records. Hit or miss procedures based on
hunches or speculation can no longer be tolerated as such. An element of risk
and uncertainty will always be present. In the grocery department this risk
can be nullified to a great degree by periodic readjustments of inventories.
Ordering perishable merchandise will no doubt remain a challenging

factor in retail food distribution. However, such processes

101

and facilities as prepackaging, improved refrigeration equipment, larger
storage area for frozen products, etc. , will. reduce the risk involved con-
siderably. The increasing use of such innovations as teletypewriter service
at the retail level plus improved transportation facilities will also minimize
the possibility of loss through spoilage and deterioration. In the not too
distant future, radiation with all its wonders may also solve many of the
problems currently evident in the perishables department.

Receiving, storing and price marking procedures are continually
being improved. Conveyor belts are now considered standard equipment.
Materialehandling devices are becoming familiar sights at the retail outlets.
Companies currently operating in a "conventional" manner are gradually
changing by incorporating improvements such as telecommunications systems
and palletized loads into their operation.

Shelf stocking is being improved through the use of adjustable shelving
and gravity fed dispensers. Gondolas and stock bins, in many instances, are
affixed to mobile carriages to make the restocking or moving of displays
much more efficient.

Housekeeping, care and maintenance procedures are being improved
through the use of electrical devices such as floor waxers and buffers.
Timing devices, automatic control mechanisms and foolproof locks, etc. ,
are making this important function easier to control.

The list of new or proposed improvements currently being contemplated
is almost endless. Each passing day brings new ideas and new methods.

The retail food outlets are becoming spectacular showplaces that reflect

102

the ingenuity and wonderful restlesness that is typical of the American
business scene.

Amidst all these wonders, the basic fundamentals of retailing are
being conscientously fostered. Sound merchandising policies, spotless sur-
roundings, preventive maintenance procedures and the effective utilization
of manpower are contributing to maximum efficiency, thereby insuring success
and future expansion.

No single factor will "make or break" an operation; but nevertheless,
every single factor must be considered. A clean floor accentuates an attrac-
tive display; effective utilization of manpower and equipment cuts labor costs
and increases profit; legible price marking builds customer confidence and
a friendly atmosphere increases customer satisfaction and improves employee
morale. These and many other factors, both physical and psychological,
have made the super market an American institution that the members of the

food industry can be justly proud.

BIBLIOGRAPHY

Books

 

Brown, P. L. and W. R. Davidson, Retailing, Principles and Practices,
New York: The Ronald Press Company, 1953, pp. 440-462.

 

Duncan, D. J. and C. F. Phillips, Retailing, Principles and Methods,
New York: Richard E. Irwin, Inc., 1947, pp. 441 -470.

 

Zimmerman, M. M. , The Super Market, A Revolution in Distribution,
New York: McGraw-Hill Book Company, Inc., 1955, 327 pp.

 

Periodicals

 

Anon. "Be Sure Your Store Is Safe", Progressive Grocer, (january 1956)
pp. 97 - 102.

 

Anon. "Greater Profits with Self Service Meats", Successful Grocer,
(September, 1953), p. 5.

 

Anon. "Safety ProgramThat Cuts Costs", Chain Store Age, (November, 1955),
pp. 269 — 272.

 

Anon. "Shelf Stock Only Ordering Plan Cuts Costs", Progressive Grocer,
(August, 1955), pp. 58 - 61.

 

Anon. "What Can Managers Do To Hold Down Maintenance Costs", Chain_
Store Age, (November, 1955), p. 46.

Anon. "You Can Improve Your Price Marking Methods Up to 100%",
Progressive Grocer, (November, 1955), pp. 62 - 65.

 

Drake, L., "Perishables - The Picture for '56", Chain Store Age, (Ianuary,
1956), pp. 73 - 75.

 

Kline, G. , "Planned Grocery Space Allocation", Progressive Grocer,
(August, 1953), p. 41.

 

3...).

,n.

I IM.II,|.I .I..:

104

Mueller, R., "Customers Buy 22% More When Shelves Are Well Stocked",
Progressive Grocer, (June, 1953), pp. 40 - 48.

 

Paquet, H., "Night Stocking", Super Market Merchandising, (September,

 

 

1955), p.142.

Phippeny, R., "What Temperature for Meats", Chain Store Age, (january,
1956), p. 98.

Bulletins

Anon. ”An Analysis of Some Methods of Loading Out Delivery 'll‘ucks of
Produce Wholesalers", United States Department of Agriculture,
Washington, D. C., Market Research Report, No. 15, May, 1952.

Anon. "Food Distribution: Research, Educational and Service Work of the
United States Department of Agriculture", Agricultural Marketing
Service, Washington, D. C., May 1955.

Anon. "Methods of Handling and Delivering Orders Used by Some Leading
Wholesale Grocers", United States Department of Agriculture,
Washington, D. C. , Market Research Report, No. 13, May, 1952.

Anon. "Packaging and Displaying Meats in Self Service Meat Markets",
United States Department of Agriculture, Washington, D. C., June, 1953.

Anon. "Some Improved Methods of Handling Groceries in Self Service Retail
Food Stores", United States Department of Agriculture, Washington,
D. C., Market Research Report, No. 7, May, 1952.

Burbrink, P., "Receiving, Warehousing, Stocking", The University of Texas,
Texas Education Agency, Distributive Education Department.

Pillar, R. , "A Guide to Better Handling and More Efficient Merchandising of
Fresh Fruits and Vegetables", National League of Wholesale Fresh
Fruit and Vegetables Distributors, 1948.

Super Market Institute, "Facts About New Super Markets Opened in 1955",
Super Market Institute, Research Division, Chicago, Illinois.

Manuals

Grand Union Operating Manual, Grand Union Company, East Paterson, New
jersey.

105

Grand Union Meat Manual, Grand Union Company, East Paterson, New jersey.

Grand Union Produce Manual, Grand Union Company, East Paterson, New
Jersey.

 

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