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A STOKE MODEKNIAAIION PROGRAM
THKOUGH THE AGflICUhTURAh EXTENSION SERVICE

IN PUEdTO RICO

by
Enrique Abruna

AN ABSTKACT

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 Marketing and Transportation Administration
Curriculum in Food Distribution

1958

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2
ENdIQUE ABRUNA ABSTMACT

Statement 2; the Problem

The changes that are taking place in Puerto Rico
are affecting the food marketing situation. The island,
traditionally an agricultural country, is changing toward
industrialization. With higher incomes as a result of
"Operation Bootstrap," consumers are beginning to change
their eating habits. More fresh fruits and vegetables,
meats and dairy products are now consumed by Puertoricans
than 15 years ago.

A number of modern food stores have been established
in metropolitan San Juan to serve consumers looking for
better services. There are still a considerable number of
service type grocery stores--colmados--that are not keeping
pace with changes taking place in food retailing in Puerto
Rico.

The absence of a well organized educational program
towards better food retailing techniques accounts in part
for this situation. However, the Agricultural Extension
Service of the Commonwealth in an effort to better food

marketing, recently started an educational program for food

handlers.

Procedure
The exPerience of the writer, dealing with food
marketing problems in Puerto Rico, has been used to analyze

the problem. Basic information in self-service merchandising

 

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ENRIQUE ABRUNA ABSTRACT

was obtained from text books, trade magazines, government
publications, and periodicals. The author also used ideas
and information obtained from courses taken in the Food

Distribution Curriculum at Michigan State University.

Summary and Conclusions

 

The following conclusions were reached in analyzing
the problems involved in a store modernization program for
Puerto Rico.

1. Puerto Rico is rapidly changing from an agri-
cultural country to a manufacturing island.

2. Wholesaling at present, with few exceptions,
operates on nearly the same basis it did 50 years ago.

3. Food retailing at present is experiencing a
change toward self-service merchandising.

4. Present physical facilities for handling farm
products are inadequate.

5. Fresh meat supplies are not adequate to meet the
island's consumption.

6. A recently organized food distribution program
is being conducted by the government of the Commonwealth.

7. The Agricultural Extension Service is a coopera-
tive venture between the United States Department of

Agriculture and the Puerto Rican Government.

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mNRIQUE ABRUNA ABSTRACT

8.

The Puerto Rico Agricultural Extension Service,

organized in 1932, is conducting educational programs for

rural and urban people including production and marketing

activities.
9.

progressive
10.

departments
ll.

stores into

prise.

Self-service techniques have been adOpted by
food retailers.

Self-service merchandising is being used in
in the food stores.

To convert conventional types of service food

self-service outlets is not an expensive enter-

 

 

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CHAPTER

I. INWODUCmI-CY. o o o o o o o 0
Purpose of the Study . . . . .
Need for the Study . . . . . .
Preview of Organization . . . .
Scope of the Study . . . . . .
LiBthOd 0f RGSSQI‘Ch .9 o o o o 0

PART I. KNCNING PUlERTO RICO
II. A GLIHPSE TO THE ISLAND . . . . .

-he Wholesaling Situation. . . .
Retailing at Present . . . . .
Physical Iflarketing Facilities For
Farm Products . . . . . . .
Present Supplies of Heat in P.n. .
Present Marketing Practices for
LiveStOCko o o o o o o o
Elarketing Live Animals. . . .
Slaughtering Facilities . . .
The Organizafion of the Food Dis-
tril:vution Program . . . . . .
Details of the Program. . . . .
Accomplishments . . . . . .

PART II. THE AGRICULTURAL EXTENSICT SERVIC
III, ORGANIZATION IN THE UNITED STATES. .

Laws Creating The Extension Service
Morr ill- Lan.-Grant College Act .
.Smith-Lever Act of 191L . . .

'.Capoer«Ketcnam Act of 1928 . .
Bankhead-Jones'fi ct of 1935 . .
The Agricultural yarketing Act .

Present Situation of the Extension
SerViCe o e o o o o o 0
Federal Agri. Ext. Service . .
The State Extension Service . .
The County Extension Service. .

IV. THE AGRICULTURAL E'TPNCT‘i SERVICE
IN PUERTO RICO .' . . . . .
Present Organization . . . . .
Rio Piedras Zone. . . . . .
Arecibo Zone . . .' . . . .
Bayamon Zone . . . . . . .
Caguas Zone .- . . . . . .

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The Dairy Department . . .

O O
T’ierChandiSingo o o e o o 0
Management of the Department. .
Prozen Woods . . . . . . . .
Location of the Department . .
Displaying. . . . . . . .
Non"i‘100dS o o o o o o o o o
In the Small Stores. . . . .
Displaying. . . . . . . .
Counter and Check-Out Systems . .
Rectangular Type . . . . . .
"U" Shaped Counters. . . . .
"L" Counters . . . . . . .
IX. PRACTICAL ASPECTS OF LAY-OUTS . . .
The Grid-Iron Layout . . . . .
The Diagonal Design . . . . .
Alcove Arrangement . . . . . .
Free-Plow Lay-out . . . . . .
X. STOPS ENGINEERING . . . . . . .
Modern Store Fronts. . . . . .
Store Lighting . . . . . . .
Tloors . . . . . . . . . .
Parkil‘lg Area 0 o e o o o c 0
Miscellaneous Equipment . . . .
XI. SALESfiANSEIP IN SELF-SERVICE STORES .
Spoken Salesmanship. . . . . .
Printed Salesmanship .. . . . .
Value of Displays . . . . . .
Location of Displays . . . . .
XII. SUHMARY AND CONCLUSIONS . . . . .
Food Distribution in Puerto Rico .
The Agricultural Extension Service.
Self-Service Principles . . . .
Conclusions . . . . . . . .
APPENDIX
Table I Value of Exports to the United
States and Foreign Countries:
Fiscal Year l9L5-SS . . . . .
Table II Value of Imports From the United

States and Foreign Countries:
Eiscal Years lQLS-ISSS . . . .

108
109
113
11L
11L
115
119
121
122
1211

131
133

133
137
1110
1111
1L

ILLS
1115
its
1L6
1A7
150
150
151

152
153

1511

155'

Table

Table

Table

Table

Table

Table

Tabl 6

Table

Table

Table

Table

Table

v

VI

IX

><

XV

XVI

Shipments to U.S. and Exports to
Foreign Countries by Main Commo-
dity Group: Fiscal Year l9SL-SS

Shipments Trcm the U.S. and
Imports From Foreign Countries,
By Major Commodity Group: Fiscal
Year 196k-R‘; o o o o o c 0

Production of the Main Agricul-
tural Crops In Puerto Rico:
Fiscal Year‘1195u-SS. o o o a

Number of Industry'GrOup§.and
Value Added By Manufacture:
Fiscal Year 195L . . . . . .

Births and Birth Rates; Deaths
and Death Rates Per 1,000 Popu-
lation: 1930-195u c o o o 0

Public Day Schools - Enrollment,
Urban and Rural: Selected School
Years 1900-01 to l95L-55 . . .

Number of Food Wholesalers in
Sample, and Average Sales, By
88183 31833. c c o o o o 0

Percentage of Sales of Full-Line
and Limited-Line Wholesalers, In
Which Products McVed Through

Wholesalers' Harehouse-. . . .

Source of Supply for Principle
Products of San Juan Wholesalers.

Inventory Turnover, Full-Line and
Limited-Line Wholesalers, By
Sales 01383. 0 o o o o o 0

Major Components of Present In-
vestment by Full-Line Wholesalers,
By Sales Class. . . . . . .

: Sales, Sales per
, Sales per customer
ion, by Sales Class . .
Gross and Net Margins and Opera-
ting Expense Ratios for Retail

Tood Stores, By Sales Class . .

Suppliers to Retail Stores: Per-
centage of Sales purchased from
and number used by Sales Class,
Ly lines Handled, and By Type of
Supplier. o n o o o o o o

157

158

159

160

162

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Table TVTi Shipments or Edible Anim 13 a
Arfi n1.al Products from the U. S.
to P. R. Ey Commodity: “is al
Year 199h-5S .' . . . . . . lTC

r71able- KVIII Imports into P. R. of Meat and
Meat Products from Foreign‘
Countries: Py Commodity and
Country of Origin: Fiscal Year
lgSLL‘F‘TS o o o o o o o o o l?1

Figure l aricult ural Extension Service of

Puerto Rico: Orpanizational

Chart. 0 o o O O 0 O O 0 172
Pigyre 2 Agricultural Extension Service of

Puerto Rico: Agricultural Econo-
mics Department . . . . . . 173

~IBLIOGRAPHY, 3 . . . . . . . . . . . 17h

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I

Analyzing the resul13 of the research conflicted
by various public and hrivete agencies in Puerto Rico, it
look: oiwxioufi rnet by improving the efficiency of our foofl

s”).

sfieres ani ofher'outlets 0? fine islen Food flistribution

LO

sye5em it may well be possiole to reduce food prices in
uerfio Rico by as 1uch as eight per cent, perhaps more.
T? everare Food store prices were reiueel by this 5 per
aen*, if wouli amount to saving consumers about ”$9,000,000
HHH.1311V.It would repres;ent real income for the same
fizoqni to our eozlsuners. Considerin: the Size of families
in $3erfio Rico and still the low incenes coaperej wifh
tkose in fihe main lend, this W111 bring the greatest bene-
Pit *0 those in greatest neea.
"here are many smell re tail outlefis 1r Puerto 110
?nnwn as "colmafios”. ”hey really are fhe backbone of our
re‘gil marketing s35fiem, so fhere is a neei to provide
them with the necessary information through en 6 ucati one”;

ram *0 Face

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10 competg*ion of bin supermarkets.

01‘ ‘Ehe 11,7131 re‘reil firms. Listed ‘33 the
Censu.€ of Districution as sellin' Food, 1h,139
- are des or ribed as grocery stores. The Census
“describe. such a. store, 11110 m in Puerto Rico as
fhe colmelo", as orineriLy enraged in selling
processed foodr eni irv j:roceries, althouoh
Fresh meat, vegetebLec and ruits may also be
carried. It is these stcres which are back-
beles o? the re‘eil norxe*in; Sysoea--these
are the sfiore t*at ulSoPiQUfP fhe inocrued

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sPaple Too 3.

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echn K. Jaloralth end P h1har:1 h. Bolton, u°“'C‘1Q”

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>~.‘Sl.”ne1ee in Puerto Rico, (Camuridre: Howard inixerslty

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“or the ituiy

During the lest three years a number of bin super-
markets have been established in Puerto Rico. “he small
onerator, as a general rule, is working with the same old

method that he leernei twenty or thirty years ago. “he

9
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increase in coloetition has censei a neeiffor more efficient
merchandising in the food stores. “he Government f Puerto
Rico orernized s iood distribution prorrem to modernize the
present merketing activities of food iistrioutors. out one
agency is not enoush, perhaps not even two or three. There
are so many coxolicated problems in the food retciling situa-
tion that the combined ef?orf3 of different ecencies and
organizations arc needed. "he Africultural Extension flcrvice

being an educational soency is in e good position to educate

f‘ood retailers in moiern techniques of food stores operation.

Preview of Orqnnization
mhis is the orier in which the investigation will
oe presen‘ei:
,

1. A review of the present economic nnfi social

conditions of the Commonwealth of Puerto Rico incluling a

(1‘

birfiseye View of the Poori fiistribu ion problems presented
knit enough tables are usei to comnlement the written infor-
me tion.

2. The second part of this study is devotei to the
orfi?€niization and present situation of the Agricwltursl Ez-

f“?fifision Service both in the-United States and Puerto Rico.

Ehnérlagis is given to the retailers educational proqrem in

‘

the Unites States as well as the‘methods used for the ac-

’I

coupiishment o: the program.

3. mhe third part of this research is a summary of
the principles and techniques of self-service food merchan-
dising. It covers the basic principles needed for converting
service type stores into self-service ones.

h. Summary, conclusions and sugecstions for further
study.

Scope of the Study

This stuly is not striving to give a complete pic-
ture of the social and economic progress of Puerto Rico
during the last years. Looks have been published intending
to cover the whole situation, but they rapidly become obso-
lete due to the dynamics of our economy. if studying the
tailes presented in this stuiy, the reader can see why the
Commonwealth of Puerto Rico is taken as an example of raoid
economic growth. Yvery year a big numter of foreigners visit
f the Point “our Program. A store

Puerto Pico as students 0

modernization program like the one presentei in this study
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can also serve to help 0 her countries to improve their

ct

33reqent fooi marketing conditions. “his research is intended
tc> cover only the aspects of store moiernization through a
plianned educational program. Other aspects such as services,
f‘T—nencial advise, or promotion to join organizations, are

OU’7 0“ the scope of the study.

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Method of Research

mhe information pres,ntei in this thesis was ob-
taiuiefi primarily from secondary data. “he nature Of the
sttldy is adapted to the use‘of this source of data.

‘or the first part of the study covering the present
eocarumnic life of Puerto Rico, in¢ormatLon was obtained chief-

. - ._ ~. 3'.

15? ‘firom.government publications. The experiences of the
:ri.t<=r working as a marketing scent for the Agricultural
Vfi<trnnsion Service were used.

For the second part that ieals with the Agricultural
Exiworision Service, the information was obtained from books
at Erichiran S,ate University library publications from the
Puervtn Rico Extension Service and personal experience of
the :author working during the last five years for that organi—
zaticgn. ”he writer has conducted interviews with specialists
“WUWCirmgirithe retailer educational program at the Extension
gerwrimte of Michigan State University and at the Federal Agri-
Cdlthrel Trtensicn Service of fieshington D. C.

“or the last part of this stud‘, the informaticn was
05593.ned.from secondary flats: books, periodicals and bulle-
tins 'written about the food industry. The writer also used
ideaf= and information obtained in courses taken in the Food
fiiS”I*ibuiion curriculum at Aichigan State University. It is
fihe CKDinion o? the author that the grocers on the island of
P118!“ #10 Pl

co do not have enough inforraticn, as a reneral rule,

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‘ SSSLf-service techniques to justify thn use Of a survey

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among them, also those having the necessary knowledge to
till in_a questioniaire are so few that a sample would not
he renresentative. Therefore, the writer decided to use

the secondary data available.

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The Commonwealth of Puerto Rico, approximately one-

hundred and ten miles long and 35 miles wide, lies at the

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eastern end of the west Tndies chain known as the Greater

Antilless Puerto Rico is approximately 1,600 land miles

southeast of New York, 1,000 miles from Hiami, 65 miles
east of the Dominican Republic and 500 miles north of Venezuela.
The northern shore of the island is bordered by the Atlantic
Ccean, its_southern b‘r the Caribbean Sea.

Puerto Rico is now self-governing under a constitu-
a constitutional convention, approved by

tion drafted by
uthorizing full

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voters in a reterendum. The act, .

island

atitonomy in island affairs under a homo-written constitution,

rues passed by the United States Congress in 1950.
The total population according to the last census was

2,8ZLC,000, approximately one-third residing in cities and

toanns,.and exceeding a concentration of 6h0 per square mile.

“an .Tuan, located on the north coast is the capital and lar-

gest: city, with a population of about 600,000 persons.

Puerto Rico is a Spanish-speaking community. English,

hOWEWIer, is a required subject in the public schools, which

are Ibatterned largely on the American system. For eJample,

the €M~3~3 plan has been pushed. Higher education is avail-

8 o
ble at six colleges and universities on the island. The

largest of these, the University of Puerto Rico, is state

supported and is a land-grant college.

Haritime freight service, weekly between the princi-

pal sea ports of the United States and Puerto Rico, is pro—

vided by seven steamship lines. A number of the principal

airlines_of the United States operate daily flights between
San Juan and Miami and San Juan and New York. A local air

line provides daily air service between principal cities and

between Puerto Rico and the Virgin Islands.
mhe dOminant agricultural activity of Puerto Rico is

the production 0? sugar cane. Under present conditions the

island can produce about 1,350,000 tons of raw sugar annually.

”ederal law, however, limits exports to a lesser amount and

of most of the local crop

('37

i1] effect, prohibits the refinin

ir1 Puerto Rico. Next in agricultural importance is the dairy

mo expand it further, there are plans to develop

1

industry.

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Sinerilizeu milk", w ich should also relieve the excess of

mhe pineapple industry is also growing very ¢ast.
« , . _ .
hancniern plant For proce531ng the crop has been established

at 81 cost many millions of dollars. ‘Highgafiade coffee is

1‘.5

gPOVHE, under shade, in the hills of Puerto Rico. The United

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Vatfiés buys most of the island's tobacco for use as a filler

in *file production of cigars. In addition to these major

pFoal-lets, the island abounds in citrus fruits, coconuts,

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Car, The process originated :n Switzerland and consists of
nolr‘ilug sterilized milk. Milk processed in this manner does
' Ileed either refrigeration nor preservatives.

long staple cotton, bananas, plantains, tropical root crops

I

and horticultural products.

“he tourist trade is a good source of income for

Puerto Rico. Because of its geographical location, the

island in recent years has become the travel crossroads of

fhe Caribbean. Excellent air and maritime connections at

modest cost, Fine beaches and first—class accommodations

make finerto Rico an excellent vacation spot.

Since Spanish days, agriculture has been the main

source of employment and income, out at the present time

there is a stronz trend toward industrialization. The pre-

sent government, convinced that agriculture is not able to

gorovide sufficient employment to raise the standard of living

for a constantly increasing population, established the Indus-

‘neiel Development Company in 19h2- In 1950 the industriali-

zafyion program was Further strengthened by the creation of

the Economic Development Administration. “his well-planned

iruflxstrial program is producing excellent results. To date
| . «A .
ANN? irflustries have been established in ruerto hico creating

more! than 32,000 jobs. It is expected that by 1960 there

will be more than d0,000 factory employees. In 1957, for

* n o " .
:he irst time in the history of Puerto nico, income from

manUf’acturing was higher than that from agriculture.

The wholesaling Situation *

olesalers, as others in the food distribution

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~5i'ens in Puerto Rico as a general rule, operate on the same

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per year. "hey Pat 7* 513“<;7i7‘ if in;ppers, Qrckars,
jObher’S, 1111'- I;Ll :‘QC tdIW-f‘ {, _. 1; to ;- r._' a. ' In. ’- i ‘ ‘7 5'3 5 ."i" \ U.‘ ' . ~51 f“? :-
butors. Host 0? fhmm hay??~ Opc‘i-Tfso :7. 3 Cf qrbcorit.
OI" process.9d L733 7: 7.1139 ...,Ig‘, L 4 , I -‘ '1'?- {l :‘C! X “3.1:?” c v: (,1 "‘ STj-r ($131.1 -
Zed wholesalers and ‘0‘ v;: Ii .~C, .; 433,-9’ l‘ptr*inp

merchandise from the fti'e? ”“cter :" Fania can iepaxlic.
another factor that wages w:elasaianx inefi-cfani is
the large number of small scale vial» alers or
as they are called. The gerohan~ise ~h'nrs the islanf throat.
.an exclusive distributor in the 7rn Tarn :rrc cr T3 fine Li:
cities of the island. He sells to a Hflci=s~ier, 90& in Jahy

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cases to another smaller wholese;er. ‘évL

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arui Finally to the consumer. ”hr: *h this rruflc, east of

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thee hsnilers adds to the cost 0? an» gnois an; mffiefi a large

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prwjfit. horeover the inadeouate i
thfilesalers increase the cost of tee ruo‘ . zest of the
warefisouse "facilities" on the island er: on fine 33; Juan
watétrtront. These buildings are with inv PLCefifiivfii. *nv
seams ones that were in use at the beginnin. e: the c fthJ.
L30}? of platforms, absence of adequate tPiCK routts at9 park-
in? IPacilities, limited cold storage Facilities are sure c

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niarked deticiencies of these relic biiliinis. ”urge

{Mility conditions limit fine use p

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and pineapples .

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are unable to buy national brands as reely as they do so

on the main_land. 0n the island nercnsnd1 e is imported by

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franchise is elers. mhey handle a limited n star of nation-

¢

ally advertised products. mhese organizations althoug qh having

the limitations and deficiencies previously mentioned, main-
tain a relative good control of business operations. r“hey
corduct a promotional campaign using the various communica-
tions media available. “hey have obtained excellent results
since consumers as a rule, are brand-conscious asking for
the advertised products wherever they go shopping. Usually
these exclusive distributors have little real competition so
their margins and earnings are large.

Although Puerto Rico has been tra diti ionally an acri-
cultural country, most of the basic foodstuffs including

‘resh Fruits and \e1etables are Imported. The agricultural

cc.l.odities locally proiuced are sugar cane, coffee, tobacco

“hey are considered staple pr olucts for ex-

POT”t. 3n all amount of winter Vejetable es, tropical roots

CPCfifis an? bananas are exported to New York.

“

in

The metropol itar San Juan marim t is the most

inrortant wholesale market pl.ace in Puerto Rico
in the receipt and distribution 0‘ locally grown

‘ products. lncludei in the imports are meat and
meat products, larl, fats and oils; rice, beans,
and otter grains and cereals; canned and processed
foods. .dry *roce*1° , fresh fruits and vege tables;
poultry anl poultry products ani other foodstutis
o? lesser importance from the volume standpoint.
”he locally produced products include fruits,
vegetables, poultry, eggs,'meat and some commer-
cially canned goois.

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2 N
i} U. 3. nepartment of Agriculture, Production and harks
.Siffiistraticn, Marketing and Facilities Research branch in

 

 

CO
Pu233‘3ration with the )epartment of Agriculture and Commerce,
at 1“tonne. Marketinn facilities for Farm and Related Products

- Eigfll Juan, P. E., {’“ole t01, D. 8., IQBST} p. 11

[,4
[U

mhe “ollowine Facilities are available for handling

...

imported food products in the San Juan area:

1. An area six-blocks of wharves.

A general wholesale market carrying all kinds of
commodities in the Rio Piedras area.

3. A wholesale business in the Senturce area scat-

tered through different territories.

Piers are maintained in-san Juan by all shipping
lines using the port. Some of the warehouses are adjacent
to the wharfs, others are situated within a few hundred feet
from it and some are separated from it by a roadway 50 to
100 Feet in width. Each steamship line provides, without
charge, warehouse space for storing merchandise for a period

not to exceed 5 days.

‘bly perishable commodi-
ties must be moved 1mm ately to cooler or freezer

All the unloaded h c
19:.
storage on retail outle 3. Since retail outlets
a
a

i
d
t
are limited in the volum they can store, they
buy mostly on a day-to-J y basis. Most whole-
salers and brokers move as large a volume of the

commodities unloaded as is possible within the
period of grace grantei by the shipping line.3

Retailing at Present
Our present food stores have not evoluted from the

germBrel stores or other forms of retailing. They started

as Sringle line operations and still are at present. With

t , ° ‘
'iu? eexceptions o? the proere331ve owners, that nave modern-

izedl their stores and of course the supermarkets, the bulk

 

|i

13

of our Food retail outlets are as nearly the same as grocery
stores used to be in the mainland in the late twenties.

When Mrs. donsumer wished to buy her groceries,
meats and produce, she generally had to visit three
different shops. Cookies and crackers came out of
the big barrel or box. Did the merchant know how
much it cost to do business? Or how much profit
he made? No statistics were kept, there was no
measuring stick. Goods were simply sold at mark-
up, and overhead expenses were considered only in
connection with rent, light, paper, and ice. All
meats were cut to order. Plattered meats we e a
rarity because customers would not buy them.;

Although the present conditions in Food stores in
Puerto Rico are not a pressure-copy of the above, similari-

ties leave no doubt that there is a need for a native Saunders

or a modern Cullen on the island.
- s

1

¢he to d business ”panorama" of theiigland reveals
nuany types of retailers, the commonest is the one "at the
.ne)<t corner“ working chiefly in straight groceries. He may
”Have 2 or 3 bags of onions and potatoes, a case of garlic,
arui in season, a limited supply of apples, pears, grapes
and prunes.

Since the end of world Var II many of these grocers
haVEB bought service type meat display cases. ”hey use this
equiqoment as an "all purpose" unit. r"hey use it for meats,
daiffiv and produce items. Despite this, more than 90% of the
Storne volume comes from dry groceries.

There are no records (the writer has not found them)

Of . .’ ’ .
tile iirst self-service store opened in Puerto Rico. During

 

\ w.—

Zimmerman, A. 3., The Super Markgfi: (New York, 1955),

D. (9"

14

the war period the government of the island estabiisned a
number of stores. The purpose was to overcome the "bla:k
market" practices_of tmose days. Whey were Operatei b: a
public corporation named the Puerto RicO Agricultural Co.
and known by the initial letters as P R A C 0 stores. These
stores carried groceries, meets and produce. The grocery
section operated on a self-service basis. Although they
were a Pailure as business enterprises due principally to
management deficiencies, they WVQL raged the grocers to
endanger in the self-service departmentalized store. Many
of these stores were bought by private operators and today
some of them are very profitable.

Consumer owned stores or cooperatives have beer ir-
creasing in number since l9hb. At that time the~governmvnt
eff raved a Cooperative Law that guarantees to members uhoifi is»
venatments- Close government supervision of the organizations,
(urinational programs and financing institutions helped in
therir development. These cooperative stores have been de-
velcnsed principally in the rural area and small towns. They
Worfif in_nearly the same lines as the small retailers soon as
”Over? the counter sales", sales on credit, poor lOCblffEtiOU,
1QUOPance of modern procedures in store management and a
mark3Gdneed for working capital. In 1950 these small coopera-
tiVe’ stores organized a Central Wholesale.

In 1955 a grocer.from New Jersey opened the first

4.
'I‘ue super market on the island. Although there were other

good volume fix;

:3
in
(D

stones.of a relative good size and CC

0;

did not fulfill the concepts of the definition of a suiev

market.

I
I_-u

A highly departmentalized retail establis
ment, dealing in foods and other merchandise,
either wholly owned or concession operated, with
adequate parking space, doing a minimum of
*1,000,000 annually.. mhe grocery department,
however, must be on a self~service basis and fill

sales are on a strictly cash and carry basis.’

The advent of this new type of operation awoke sore c? the

grocers. They started remodeling and modernizing pro 73%”

for their stores. rr'he result has been that a hinder

super markets are being built all around_the island but

especially in the San Juan area. A fairly good num‘er hf

better retailers usually of the self-service type have de-

've10ped. Advertising was unknown to grocers three years

says, but is now a necessary tool.

Physical Marketing Facilities For Farm Products

The inefficient marketing facilities for farm pi:

ducrts; in the San Juan, Santurce and Rio Piedras areas are s
heaxrijly burdened with inadequacies that the need for rm-
’.: {'6 v

pletne revision of this situation can no longer as orvrg.
The marketing of agricultural produces sole cut'i

0? PLlerrto Rico is left to brokers, agents,and :rmmi::ic;

mePCIIEIrflm. Retail food stores get their supplies fPON

tPuCLCErrs whoIbuy from farmers, or they are obtained at thr

 

 

public market places. Importei produce is bought from

wholesalers and from brokers and di tributing agents who

functions of wholesalers._-_

perform the

. .
,I.

The lack of an orderly marketing system for farm

products has greatly influenced the pattern of agriculture.

It has prevented desirable diversification and limited pro-

duction below that warranted by available res urces. Lands

which should be planted to food and other crOps for local

use are not utilized to the best advantage. where is a fear

on the part of the farmers of producing food crops because

of the risk that these may not be absorbed by the local

inarket, thus forcing prices to low levels with the subse-
cquent losses to the producers. As a direct result of this

ssituation, farmers are more inclined to follow extensive

prubduction practices instead of intensive farming.

Consumers in most towns and cities need the food

armi other products that could be produced but are not avail-

ablss due to the limited volume that reaches these markets.

iflqera local products are available, they usually are of low

ty and poor condition. ”he distribution of tomatoes,

“I.

QdEil
firmi’fzs, and some root crops has improved in the metropolitan

1
Sari 1Tuan area, due mostly to the educational activities con-

ducytféci by thc_Acricultural Extension Services and other agri-

c .
ultural agenCLes.
As a result of the inadequacies and lack of the phy-

Sic ' ‘
£11marketing: facilities, farmers care very little about

vap ~’
i“Eaties and production. Chen a crop is harvested, the

 

1?

portion to he sold is marketei without regard to grading or
packing. mhe production moves to the market as harvested;
the good mixed with the inferior. There is no grading for
the local market and no commercial stasdaris set until 1953,
when standards were developed for a group of local products.
Warm products reach the market in odd types of containers,
most of which offer little protection in shipping or storing.
Much of the production moves either in bulk or in bass. mhe
indiscriminate packafihs and handling that is employed slows
down the buying and sellinr functions and prevents the de-

velopment of buyer c nfidence in local products. All of

1

Hid t

‘i

this is renlectchin both the price p the tuyer to the

(a!
‘1

farmer and that charged to the customer.
“he improper handling and transporting reduces the

Ineepina quality of the products in such a way that sales to
thrs merchants are reduced or given at such low prices to
avwaici carrying the supplies back to the farm that this itself
consatitutes a theoretical surplus. Storekeepers do not want
a: Irisktstocking poor-keeping quality fruits and vegetables.
Stonzlcs: usually are low and consumers are unable to satisfy

" a x 1 o
J‘eiil‘ demands. Instead, wholesale :nri retail outlets prefer

L. o - ~ 0 o
to *‘Efirldle imported substitutes such as Irish potatoes, onions

“he bulk of the food c0nmooitios finds its way to the

CC,” I} 0 t

tbtrhier through the municipal market places. These markets

SQI‘ .
"“ cints for agricultural produce.

lr- . \
u ‘ ' ‘5 . . " O V _ ‘_ ~_
'rf ari retail‘“W :unc‘ians are mostly performs! L:

LL -..

the same Operators and are interminclefl. The physical facili-
ties are inadequate and are used mainly for retailing wear-
ing apparel, Fool, and beverare stands. As not operated,
these municipal markets serve neither the wholesaling nor the
retailing tunctions effectively, The lack of parking space,
the absence of loading and unloading platforms, the multiple
activities performed that are not related to the marketing

of agricultural profiucts, and the crowdefi conditions at these
municipal markets result in con‘usion and prevent the free
erpression of the economic forces 09 supply and demand.

The municipal markets of the metropolitan San Juan
area, located at Rio Piedras and Santurce, :once and Mayaguez
cuserate with fairly large volumes of prodzce, but there is
a ‘tendency to glut them with commodities which most other

nuarkets may be lacking. None of the municipal markets have

’ 0

retirigerated facilities for perishablps; and few private
conttercial cold-storage facilities are available.
With the exception of a limited amount of open street

8r)?"

«

ssidewalk space-at the Rio Piedras and fianturce markets,
*h91“fi? are no facilities for farmers and truckers. mhe limi—
h“3 =333ace available offers no protection to the produce of-

c ,
.ered for sale.

Present Supplies of Heat in Puerto Rico
Although some costs and sheep are produced for
318
ljéikifter, cattle is the Islani's most important source of

meat:
3 11093 ranking second. Large land areas with small

populations are most adaptable to the raising of beef cattle.
In Puerto Rico, just the op osite condition exists, too many
peOple and too little land. The island has, for many years,
imported meat to supplement its inadequate local supply. Per-

L

haps this is the main reason why Puerto Rico is not a meat-

eating country. . ' --~. 3 +

' .. ‘a

During 1955, average consumption'gf all meats in-
cluding noultry was around sixty pounds per person. This is
anproximately one-third of the meat consumption per person
in the United States. How incomes partly explain this, but
there is also a scarcity of food quality meats. The future
promises a difterent picture because of the rapidly rising
income in Puerto Rico and plans for improving the quality of

ineats.

Cattle production is more or less distributed through—
cnjt the island. In the south and southwestern areas of the
larid, it is not suitable for cultivation because the rain-
?alil is low, and consequently more are raised for beef. They
arer :naintained in the open range without any special care or
mafhaggement for finishing to the market. "he predominating

brFH?'is are the crosses of native cattle with Zebu or Indian

luunFDGPri cattle and also blood from the dairy breeds such as

\ P

‘
Hols tein and Guernsey.

In 1952, the Department of Agriculture of Puerto

P . .
‘iC‘D eestablished a program for the purpose of imprOV1ng the

pa . ‘
‘ S blllne land on the island, aha with good results. Farmers

are ‘ .
Lissinc icle land for cattle crating consequently the

qua“ . : .
i‘i~ily o? the cattle is improving. The Land Authority, a

20

public corporation engaged in the agricultural business, is
also conducting a program tor the improvement of beef cattle.
Private concerns, especially sugar cane gr were, are now
using part of their land to raise improved breeds such as

Hereford, Santa Gertrudis, Shorthorn, Brown Swiss, and

Charelois.

Present Marketing Practices for Livestock
As mentioned previously, beef cattle ffered for sale
in Puerto Rico are not Fed properly. Producers depend large-

L th

. 4 ’ ‘ ~; \ .
ly on pasture for eqrishing cattle, calvesyand goats. Table

rbage and root crops are used for finishing hogs. At

to

g

“present, the island does not produce corn and other grains
in sufticient quantity for feeding farm animals.

ldarketingthve Animals

 

The farmer may either lead or truck his animals to
the? market place or wait for an independent buyer who visits

fiue Farm in his truck.

Tarmers with meat animals for sale make sales
.n two ways. They sell them_to an independent
buyer, who usually owns a truck, or they take them
to one of the market places. The market places
in general use are near the central part of the
cities and towns near the "plaza" or certain
vacant lots in or near many cities and towns,
where weekly or bi-weekly sales are made. In
any event, the farmer makes his own sale to the
buyer, since the auction method is not in use.6

There are 18 private sales lots on the island. The
{‘8 ‘
'Pn1631‘s or independent ouyers pay from 10 to 25 cents per
ani.‘ ~ ‘7 o
'nii—L fku’the use of the lot. more livestock is sold in

the
86 open lots than in any other type of market.

\

 

21

Slaughterin: Tacilities

In 1957 there were 76 abattoirs operating in Puerto
Rico; 71 are municipally owned and the other 5 belong to
private concerns. The abattoirs provide fresh meat to con-
sumers daily and a market place for meat animals produced
in Puerto Rico. In'a study conducted by the United States
Department of Agriculture in cooperation with the Department
of Agriculture of Puerto Rico, many deficiencies in the
Operation of public abattoirs were pointed out.

The abattoirs var greatly in size, shape,
and design. They are ‘hulls" of buildings, with
a killing loor, a hoist, and a carcass rack.

The carcass rack is generally in a room of the
killing room. Windows or doors are not screened
for protection against flies or other insects,
and there is no cooler and chilling equipment.
Host animals are killed and skinned on the floor
in the killing room. The usual practice is to
kill beef animals by the pitting method, an
ancient method whereby the animal is stunned

by the severance of the nerve at the base of the
skull, which retards bleeding. The blood remain-
inc in the flesh of the animal tends to add soft-
ness to meat and hastens bacterial reaction, con-
tamination anl spoilage. 7

Conditions in the privately owned slaughtering places
Her-e not much different:

The six known privately owned slaughtering
pl.aces in Puerto Rico primarily slaughter large
cattle and heavy hogs, some 0Q which are produced
on the farms of the slaughtérers. :everal of the
larger plants do a limited amount of processing
and curing, but the facilities used for these
purposes are very crude and are not inspected for
sanitation. The slaughtering facilities are of
about the same design as the public abattories.
Several of the larger ones have some cooler space,
smoking and cutting rooms, and equipment for
sausage manufacture.

7Ib1d., p. 110.

8Ibid., pp. 111-112.

22

The Organization of the Food Distribution Program

lab

The ef ects of the deficiencies in the food distri-
bution activities both at wholesale and retail levels neces-
sarily were felt by consumers. The research studies conduc-
ted by public and private agencies brought good information
in regard to the situation.

The consumers of Puerto Lico were paying an excess
of *29,J00,000 due to deficiencies in the food distribution
activities. To try to overcome that situation the Governor
of Puerto Rico appointed a Wood Advisory Commission in 1953.
This was a group of some twenty business and governmental
executives from Puerto Rico and the continental United States.
In February 195h4 the Commission submitted a report to the
gzovernor with the following_conclusions:

l. The cost of marketing_tnhtuerto Rico was too

high.

2. The diet of the majority of Puerto Ricans was
uneatisfactory.

3. Too much f‘ood was imported, thus raising the
cost 0? food to consumers and losing potential
revenue for the Puerto Rican farmers.

h. Since food takes a big share of the family
budget, a reduction in the distribution costs

5 food would substantially improve the standard

of living.

r
k.)

F Distribution on the mainland was more efficient
, 1 ' 0
than in ruerto Rico.“

After studying the Food Advisory Commission Report,
the Governor of Puerto Rico appointed a commission in order
to draft an action. The Economic Development Administra-

. 11:) “.7 h'.’ l .

tion employed MP. Lee Feller, a riCllEan State University
graduate, to prepare a Food Distribution Progrmn. The
following were the recommendations of Mr. Feller in line
wit the recommendations of the Wood Advisory Committee:

1. A Consumers Cooperative Development Progrwn.

9. The Crganization of a Retailers Owned Wholesale.

L

1. To Promote the Efficiencv of Wholesaling.

' v

° .. a n, .. 3:. ., -.-.-
. «hhfiatioual.znua tollow-uw..1cwn «.3.

r” “.,,... . ....° .. "‘ -. - «*- ~- 7' "’c' "‘ ‘1 1" ‘ ' ‘
:j, . ’...I‘.’Q',2.n3.; .L fir E'ld '19. V01 DESIRE. .- U‘ “L'.l\411]..'i1;x v': (HUT ’
-’ 5‘. -. > .‘ L T‘“ .. .: ...“, 1 , - .... . . ..
f". 'ili‘rfi’ " "5;‘1f‘-’_ 'J’I’lriflC'Q 9!.1 ~¢‘.’t' -. -.'..:."1r-Y:~". ‘ (... 413:», .
. -
'7 n ' . , .‘ l . : ‘ .-. 'V
,. other “#19,?” programs.
7 ‘ . I" - "., . .... .
18972” is O; the 1’1'019': an;
I 'v . ~(51‘ y-v- \ -. V r‘ ‘ 3 ,o‘- 1-: .-~
" O ( .‘Jfll‘fz ‘3 u-O‘.)U‘..rd ‘-v'T-'S

A.

,‘-.. _ v . \ . '- ‘ -‘~ . 1 . . -, A 0 'v .
*rv “you advisory CommissLOH ¢.nnas12eq the neces-

R? t" "“ D " ‘ V: ""ivv'r t'v-J Acmri r ‘n' r 'v"r'-'~-‘~*-i'r3 ’1'“ all v~
‘ I.' K." n‘ CL]; 8T; .‘..11'. ..". ,k..1.“'.X.r19. S Ck-‘OI‘C.‘A r1 11 V53 \ t, .I‘.+On1.«;.; 1";

 

9Commonwealth of Puerto Rico, Beer c yevelopment

 

‘ o i

Ajfll Flistration. A Brief historv o? the iconomic Development

‘ — - _ “fl” Mrmn'“; ...? ...-«.- 1 A‘- q;
.Lfll-Flistration's Tood Distribution rrogram. (ban Juan, 19;/),

 

. f-

knxqu. lOWOte: ’The Economic Development Administration is

wi1zrlr1 also as FthHTO and L. D. A. It works in coordination

GOWrs: 1the Industrial Development Company (PRIDCO) and the

ass {I‘nment Development Bank. The last two offer financial
Stance to new industries.

wheeze stores constitute an outpost in the improvement of
exissting marketing conditions in the rural areas. For
Heeinr growth and development they needed technical assistance
in 210th retailing and wholesaling Operations. -mo attain the

prcquosed goals, the financing help by Fomento was of a para-

mourit importance.

2. Retailer-Owned Wholesale
The rec0mmendation was that "Pomento" provided a

fullu—time organizer to encourage retail grocers to establish

and. operate their own wholesale.

ifiholesale Efticiency Program

mhe present wholesalers were faced with the problem
of rnovina their establishments to a new waterfront. Before
theft they had to improve their present operational activi-
tiesx. It was proposed that ?omento provided a full-time

COrHaultant to assist in modernizing these establishments.

h. Educational and Follow-up Proarmn
Fomento proposed to hire a full-time training director
and a fulletime assistant. Fomento stated that "in a long

TI

.un all.plans will rise or fall on a well conceived and execu-

ted_ 33ersonnel training program".11 Plans were to coordinate
t . -

*“3 .activities of the training director with the vocational
pr°§§13ams of the Department of Education. It was also pro-

posfiaci that in the long run the educational program be

\

but 1Economic Development hdflinfstration, A Food Distri-
_-l£23 Program for Puerto Rico, (San'Juan), p. T3.

25

abscurbed by the University of Puerto Rico through the Agri-

cultnlral Extension Service.

The aims of the educational program are:

1. Seminars with key people from the food field

in Puerto Rico.

2. Training programs for store managers and key

personnel. ‘

3. A publication program to keep up to date persons
working in the food business, both retailing and
wholesaling.

. Personal assistance to aid individual operators
with technical help to remodel old stores. A
program to send people to the United States for
special three-months on the job training.

5. Super Market Pinance and Coordinating Co.

One of the recdmmendaticns oP the Food

0“.
J .

Advisory Commission to the government was the estab-
lishment of big Super Markets. They alleged that
this type of operation "offer the greatest potential
for immediate improvement of the marketing system,
since they can be used as examples of modern distri-
bution and as a training group".12 This same com-
mission recommended to the government the acquisi-
tion of suitable sites to locate super markets. At

the same time the government should construct and

12Economic DevelOpment Co., 22. cit., p. 1h.

26

equip stores for rent or sale on equitable terms
to bonafide grocers or operators or to provide
financial assistance for this purpose. mhe advisors
were thinking of providing the efficiencies of
multiple store operation and at the same time re-
tain the advantages-of the individual ownership.
To implement theSe recommendations, Pomento is
actively fomenting the organization of a Super
Market “inance and Coordinating Company to be made
up of investors from the food field, preferably
local. This type of organization will operate in
the following way:

a. A private concern would lease or buy a
number of super markets (ten is considered
the minimum for an efficient multiple store
operation) from the Puerto Rico Development
Co. (PRIDCO).

b. The Super Market Finance and Coordinating
Company is to equip and stock these stores.

c. The same company sub-leases the stores to
independent Operators provided they sign
an operating agreement with the private
company. - ,

d. The operatinv agreement between the Super
Aarket Finance and Coordinating Company and

the independent operators provides for cen-

tralized services such as accounting, meat

e.

"'3

AccomFLLishments

In July,

ticn are

{‘0
“J

supervision, produce supervision, centralized
advertising, personnel training and limited
freedom on purchases and employee selection.
The operators leasing stores from the pri-

vate Finance and Coordinating Co. are to

'go to the United States to take a training

course. This on-the-job training must last
for at least three months. The Operating
agreement also provides for the hiring of

a "State-side" manager supervisor.

Fifty percent of the profit from each store
should be returned to the private develop-
ment organization to pay interests and the
cost of the centralized services rendered.
mhe remaining 50% of the net profit from
each store would be transferred to the
owner-manager as his equity. rnhe manager-
owner would be paying for his store out of
his 505 of net profit. When the total pay-
ment'would be completed, the owner has the
privilene oflsigpiha a new contract with

the private Winance and Coordinating Company,
doing all the centralized services availahle

to him at 1% of gross sales.

1955 the hcoromic Development Administrg-

ated the "Department of Commercial DevelOpment"

I"“

28

”he creation was in recognition of the need for

assistance to commercial establishments other than

food stores.l Put the Food Distribution Program
..L' ‘

remains as the major part. mhis new hepartment of

Commercial Development is at present engaged in a

series of activities with the purpose of continu-

5

ing the growth and improvement OI the food distri-

bution in Puerto Rico.
"he education program has cdnducted numerous activi-
ties with the purpose of training new employees for
the store, and for the betterment of those already
in the business. The following training and work-
shOps have been coniucted:

l. M.nagement Training.

2. Cashier Training.

3. Sacker-carry-out “raining.

t. Meat Cutters and Wrappers.

5. Retail ficeounting Crainina.

6. Produce Clinic and Workshops.

7. Dairy Personnel" Training.

b1-1

cat‘ons.

Ho

’ubl
a. Tnundamentals of Balanced Store
Planning.
a; A Pasic Course in Crocery Merchan-
dieing.

c. Produce Merchandising.

d. Importance of the Heat Department.

e. Dairy Merchandising.

f. Planning Your flork at the Checkout.

9. Selecting Good Personnel.

h. Developing Executive Ability in
Store Managers.

1. Indoctrination and Orientation of
Employees.

j. ,ome Practical Guides to Better

I

"J
V!

helf-Stockinq.
9. Assistance to Individual Retailers.

All of these educaticnal activities have been conduc-
tved in a coordinated form with other rovernment agencies
emrpeciallv with.the Tenartment of Education and the Agricul-
-tuz°al Extension Service; The Extension Service has partici-
§u3+1=d very actively in these activities. icing an educational
irnsizitution, they have conducted a considerable number of
treiiziing programs for the personnel in the Food Distribution

Prcu?I“am and with retailers. The main emphasis has been on

brochuxxe and meat merchandising.

(3. Remodeling program converting old service stores to
self-service, has been successful. Some private
concerns are cooperating with retailers to help
them modernize their stores. The Agricultural Ex-
tension Service last year started an educational
program for food distributors including store re-
modeling services.

33- A general lowering of the food prices has been re-

ported since the Food Distribution Program was started.

A

E.

a

A general lowering also 09 the prices charged by
the United States manufacturers to Puerto Rican
importers has been reported. Many lines of items
charged as export merchandise have been revised
and changed as domestic operations.

rphe organisation of acooperative buying group.

In 1955 twelve grocers united together to pool
their efforts and organize a retailer owned wholcu
sale unit. The office of Food Distribution assignni
a consultant to assist this group in developirc a
wholesale operation, a cooperative advertising pron
gram, other services to member stores and promotinx
new members.]3

The Government Development Bank provided
$300,000 in individual loans and ‘3,000 to members
of the association. The name they adopted was

Independent Stores Incorporated or better known as

I. S. I. Pomento promised to purchase €300,099 in

I. S. I. preferred stock as soon as they were rat‘s
to operate a wholesale warehouse.

I. S. I. has made satisfactory procress and
it is anticipated that the year 1956 will see a
large increase in the number of retailer memters
and in its sales volume. The present membership

is twenty-seven stores, with an average weekly

volume of over Q1u,000. These stores are procrsssl*;

\

A d

ministration, loc . ci

:13

Commonwealth of Puerto Rico. Economic Develcrmenr
t.

, p. h.

:7)

very fast and are entering in the competition with
big super markets.

r"he consumer cooperative movement, as stated pre-
viously, has been growing since l9h6. In 1950-51,
they organized a central wholesale unit known as
the Fuertorrican Federation of Consumers Coopera-
tives. ”his Federation, although having the limi-
tations of similar oroanization on the island, grew
steadily and performed an excellent job. r“he Con-
sumers Coornerative decided that it was time to
enter the urhen areas of Puerto Rico.

IA ". I” l' l-| ,
a.

In lvpp, hr. man :Smfilflan, General Manager of
fireenbelt Consumers'Services, Inc., Maryland, was
appointed as adviser for carrying out the previous
recommendations of the Food Advisory committee in
regard to the coonerative movement. The plan pre-
pared by Mr. Ashelman was accepted. A corporation
was organized by the Puertorrican Federation and
Puerto Rico Development 00., known as Borinquen
Consumers service, Inc. or E. C. S. The following
commitments were made:

1. Puerto Rico Industrial DevelOpment Company
disbursed to B. C. S. $1§0,000 for expenses
incurred during the first year in training
and development activities. The Legislature

offered an additional $150,000 to be given

to a. C. 8., $100,000 the second year and

it»)
.'\)

§§0,0CO the third year. ’

2. P R I D C 0 contracted to lease to B C S
for a period of five years with an Option
to purchase, six rolling stores in return
for a down payment of $138.09 each, and an

annual rental of T2,?S7 each. Total cost

of the stores was 260,000.

‘40
o

P R I D C O contracted to purchase 2,000
shares (all) of B C S preferred stock at
par-value of 0100 each to help E C 8 finance
its retail and wholesale operations.

h. P R I D C 0 contracted to construct a shOp-
ping center to be leased to B C S and to

lease a central warehouse building.

\ .71

. In December, 1955, B C S entered in a manage-
ment contract with Greenbelt Consumers Ser-
vices, Inc. of Maryland. Consultants from
Greenbelt were to receive travel and ex-
penses plus a fee ranging from an to 3100
a day.

At the present time B. C. 3. have practically dis-
appezazread. In charge of the managenent of the cooperative

Q m
super- Diarket at Mayaguez is the Puerto nican Hederation of

r . '
donsuniexrs Cooperatives. "his store has a volume of sales

‘ ‘ a "

0f *1?:,(300 a week. In March. 1957 909‘?in03 Super Market was

inaugnirea ted. This is a big store of about 16,000 square

r 5 - “
-99t C)t gselling area and weekly sales of “33.0000 Although

the organization has a number of co onti nen a1 officers and
very well paid_personnel, it is not operating as expected.
The main reason seems to be lack of sound management
practices as pointed out by Mr. Lee Feller in a memo to
Mr. Heriberto Alonso, of the Economic Development A wninis-
ation. "The keys to the current problem lie in procuring

adequately trained personnel for operations management."lbr

H. Development of Super markets. Although there were
some relatively big self-service stores before the
program was established, they were no super markets
in the true sense of the word. The organization
of the food distribution pronrsm has provided
grocers with technical assistance and‘financing.

the following super markets have received technical

and/or financial assistance:

I. Pueblo Super Markets (3 units)
2. Todos " " (3 units)
3. Superama " " (2 units)
h. Millers " " (3 units)
5. Caribe Stores (5 units)

6. Ottrc Super Market

7. Balet Super Market

 

\

l
(“ ”Economic Development Administration, Policy” and
‘*~§31§jional Recommendations (San Juan), D. 1.

 

...

fl
2)
“d
'3
H
H

v. "‘O‘. n~vT TTQ- I T -‘ ' T‘
Th? AirnI’ "m‘c‘i'fril_: L ..Tz‘.

\_' LA“ Jl

N 9 T 0»)? SERVI C E

CHAPTER III

Organization in the United States
Extension work is largely the result of the working
together of two great forces. First, American agriculture
characterized by cheap land, scarce labor, new products, and
the use of credit, second, American education--as character~
ized by Ezra Cornell's ideal of education for any man or
woman in any field. Americans early recognized the respon-
sibility of the government to provide practical education
as distinguished from the classical type.1
The very beginnings of extension activities can be
trauaed throughout American history. Since the early days
cfl"ttm.republic, their leaders filled the necessity of
spreeading information to farmers and rural people.
George Washington recommended to the first
Congress that a University be created with a
class of Agriculture having the responsibility
of Spreading information to farmers. Benjamin
Franklin helped organize the Philadelphia Agri-
cultural.Society in 1785. This was one of the
first organizations pledged to disseminate

agricultural information through lectures,
meetings and publications.2

Both Washington and Jefferson participated actively

halide: affairs of their estates at Mount Vernon and Monticello

 

 

\
l 1 V ' ‘I o
pr Lincoln 0. Kelsey and Cannon 0. Heorne, Cooperative
E$4§§l§4ion Work, (New York, Comstock Publishina Company, 19u9},
. 1‘...__._ --

mane 2"Development, Philosophy and ODjectives", Your gppoint-
Efiié’ (East Lansinz, Cooperative Extension Service, Michigan
9 ‘University), p. 2. '

 

‘1

0 0"
J I.
s .l

respectively. Georae Washington did much to promote a dis-
continuance of the one-crop tobacco system in Virginia
among the tennants of his 70,000 acre estate. He also took
interest in mule breeding, having received a gift of some
superior asses from the king of Spain. In 1796, he urged
Congress, in his State of the Union message, to create a
Board of Agriculture.3

The firm conviction that all persons, including
those who till the soil, could benefit from education is
typical_to the American way of being. It is significant in

the development of extension work that, there has been from

,—

‘Hie beginning, a social-pol’tical-economic climate in the

Ihiitmd.8tates that encourages men to learn and to apply

kncywledge to the problems of making a livina.h

This in part, accounts for the rapid spread in the

13550'8 of agricultural societies, patterned after the
idiifiiadelphia Society,_to nearly every state in the Union

for~ the purpose of extending information in the field of

8QIriculture, The Michigan Agricultural Society was in-

strfllnmntal in settinc the state leg slature to pass the

1

a

9C3t- creating Michigan Agricultural College, now Michigan

2

:‘+. c ' L.’ ~
:’481Je University, in 1555. These societies, togetner with

\

138 3John T. Stone, "A Direst of Sienificant Historical
ieCIEIOPTentS Leading to the Passing of the Smith-Lever Act
“ii '191h_, (East Lanaing: Acricultural Extension Service,
;) CEFisan State University, 1957. unpublished mimeograph),
‘ . I

‘- O

u"Development, Philosophy and Objectives", loc. cit.

m.

 

 

36

other agricultural organizations, were also influential in
the establishment of the United States Department of Agri-

3ulture in ldb2.S

Laws Creating the Extension Service

1, Horrill-Land-Grant Collese Act. 'In 1355:

 

i

i
Justin Merrill of Vermont introduced the first.Land }rant

g

ZOTIegeEill which was vetoed by President Euchanan under
areaiure from the South. In 1361, Mr. Merrill introduced
it again, and it was signed by Abraham Lincoln during the
Civil War in 1562. In the sane year were passed the first

FLwnestead Act and an act setting up the TDederal Department

6

of‘ Agriculture.

2. Smitthever‘£:_lg£ lng. This Act is the

fig“ ...-- ...—.— ~—

fOLiruMNfiIHIUpon which the whole system of cooperative ex-

teris;ion work was built. The following is a brief sumxary

0" “file Four major provi31ons of the act:

2. Must be a cooperative work: It must
be carried on in connection with the
land-grant college, in cooperation
with the U.S. Departtent of Agricul~
ture. The act enables the use of
plans which maybe mutually agreed
upon by the Secretary of Agriculture
and the State College of Agriculture.

5’

Finance and Availability: In the first
year a certain amount of money ($10,000)
was pranted to each state without need
of state offset. r71he sum continued an-
nually. The next year $600,000 was
added, and ”500,000 was added each year

0
\
0

r1

"'l'bid.
”a
C

6John T. Stone, on. cit., p. B

\JU
.‘J

thereafter until 19 22- 23. Additional
anorOpriaticns had to be offset by a
like amouzit raisei within the state.
c. Duplications or offset: After the
original 210,000 has been paid to the

state, no additional funds may be alloted
to th state except if equal amounts of

VIA.

funds are anproprietei for the year b3

the leg islature of such state or pro-

vide:3 bv state, county colleie, local

authorit3 0r individual contributions

from within‘the state.

d. Limitations in the Use of Funds: There

were some limitations to the use of

funds such as rental or purchases of

building or rental of land, teaching

at colleges, agricultural trains,

printing in excess of 5 percent.

The state had the per roaative of de erminine wiiich
(college or colleges should administer the funds. The deter-
?nirued college was to make annually a detailed report of re-
ceairnm, expenditures, and results to the governor of the
steate and the Secretary of Agriculture. It established a
ruatzinnal system of cooperative education between the state
agtricultural college and the Department of Agriculture, which
‘Was soon to lead the world in methods and effect on rural
lice,7
3. gapper-Ketcham Act of 1928. mhe main objective

P .
0‘ tilis act was to help the further development of the co-
oper‘ative extension 33 stem as inausura ted under the I'Jlorrill
Act: 11nd the Smith-sever Act. The expansion of the service

Worq( ‘was to be with men, women, boys and girls. The words

"
bOS’S" and "girls" did not appear in the Smith-Lever Act.

\

7Kelsey and Cannon, 22. cit., pp. 27-29.

a - . B
nome economics work also was expanded by this act.

h. Bankhead-Jones Act of lgié. This act was passed

 

to enable the extension service to carry on educational work

for various agencies of the United States Department of
Agriculture which had come into being since 1933, and which

resulted in a temporary change in the nature and amount of

extension work in some states. The increase in appropria-

tions resulted in an increase or home iemonstration activi-

tieSog

S. Eankhead-Vlannacan Act of EQMS. Provides addi-

-*~-.——~————~—~q—
tional Funds, not in substitution for sums appropriated
idirough.the €mith-Lever and other acts supplemental thereto.
Vine purpose is to develop Further the cooperative extension
serevice, especially at the county leve1.lo

_

6. Whe Agricultural {arketinv Act. Was passed by
‘Hiea United States Connress in lth. It provides For the
thevmelopment of new and additional lines of work relating
dilcexztly to marketing of agricultural commodities. Vunds
KPe' alloted to the states on the basis of approved projects
’“9ttzing forth the problem to be worked on, objectives to be
acftcnnplished and_a definite plan of operation. The Division
0? ‘Afzricultural Economics Prooram of the Federal Extension
Service, has the responsibility for assisting states in

de"€filopinn Agricultural Marketing Act projects and appraising

r
‘3SLllts of marketing programs.

 

39

The Cooperative Extension Service has the respon—

sibility for coordinating educational work conducted under

this Act with other extension marketing work. Generally,

projects under this Act should involve work on market ng

problems beyond the farm,-but close liaison should be

. . ‘ . . ll
maintained with other marketing and production programs.

Present Situation of the Extension Service

1 I'
._A

The Extension Service is a cooperative arrangement

between the land—grant institutions and the United States

Department of Agriculture. It is legally known as Coopera-

tive Extension Work. There is an Extension Service for

eacfln state, each territory, and the United States Deparhment

of Agriculture. All these levels are bound together by

agrmeements in line with the basic legislation enacted in

Hue Smitthever Act. The state director of the Extension

SeIeVrice is appointed by the state government, with the
apFlrwoval of the United States-Department of Agriculture.
In tscnne states the cooperating land-grant institution is
the estate university; in others it is a state college.
The activities of the Extension Service are at

thr*3€> levels: Federal Extension Service, State Extension

36TW71433, and County Service.

\

 

V4 ”Handbook for Extension Marketing Projects",
Dgishinggton D. C., Federal Extension Service, United States
w‘azetment of Agriculture, May 1956), pP- 1'6-

\

MO

1. Federal Agricultural Extension Service. The
Extension Service is the agency through which the various
bureaus and agencies of the DepartMent of Agriculture
channel information and educational material to the field.
It is in charge of a director who represents the Secretary
of Agriculture in his relations to all cooperative extension
work conducted by the state colleges of agriculture, the
counties, and the local units of farmers' organizations.
¢he Federal office has the responsibility for developing
and understanding of the various national programs and
policies affecting agriculture. mo accomplish its aims,
‘Hde Service has six divisions:

1. Division of business Administration.

a.. Administration.
b. Personnel.
C. Budget.
2. Division of Extension Information
a. Administration.
b. Publications.
0. Press-Radio.
d. Educational material distribution.

3.. Division of Field Studies and Training.

a. Education Research.

b. Research and Training.

0. Personnel ”raining.

d. Foreign Student Procram.
h. Division of Subject Matter.

a. Program Development.

S. Division of Field Coordination.
a. Supervision
b. Coordination
0. State and Count; fork

‘I'

6. ivision of A~r1culturafi Economics

3. Program Development.

b. Research and Marketing.

0. Soorflination.

d. Appraisal. 12

2. The State Extension Service. There are varia-

 

tions of Extension Service in different states:
a. Where the dean of the college of agriculture
is also director of the Cooperative Extension
Service. Within this axrangement there are
also variations.
1. The dean is also director, but an
assistant, as: woci ate, or vice-director

in opereti a1 charge of extension work.

N
0

There is a director of Extension, res-
ponsible_to the dean of the college of
agriculture.

b. In universities with state colleges of agri-
culture end home economics, the director of
extension is responsible_jointly to the deans
of both of these colleges for their coopera-
'tive extension work.

\ m

Amerq_ 12Edmund de S. Brunner and E. Hsin Pav Yang, £253;
EEEUEESEELLand the Extension Service, (flew York: Teachers College,
*bia University, 192.69). pp. 20-21;.

““51

-A;..

Ir;

- I

~

" -\
A: .'
‘1' ,.
“'y‘

h2

“he state colleges with the director of
extension resnonsible to the president of
the institution. This director may, also,
be responsible for all extension done by
the institution, general and cooperative.
The organization of the State Extension Service is
arranged in such a way to assist the County Extension Service
in those things they cannot readily or easily do.13
3. The County Extension Service. The county work
is centered in an adviser to the farmers, usually called a

I

county agent- In about three-fourths of the counties there

is; also a home adviser, usually known as a home demonstra-

ti<3n agent. Several hundred counties have agents for boys'
arui girls! clubs, but usually this activity is an added
usual

reszeonsihility of the adult workers. This is the
setnlpu. many of the larger and more prosperous counties
have additional agents for one to all of the three major

area s of work.

There is no single pattern of county extension or-

gaanation in the United States. Among the states the dif-
ferez1c3es are related to variations in the laws which approved
state; cooperation and to varying administrative procedures,

Whicki 'in turn express somewhat differing philosonhies of

extens ion. Among the counties and within the limitations

\

 

a

l .
)Kelsey and Cannon, 22. Cit., p. D2.

43

set by the state laws, individual ideas of agents or local
people, varying social and economic conditions as the case
in Puerto Rico, such as population density, and sometimes
the ingenuity, originality, or administrative ability of
the agent are some of the factors accounting for the

differences.1u

\

1h 7
Erunwer and Yang, on. cit.. pp. 30-31.
' e - . 1

 

‘ ' .
- . d-
1 . ’
-. a
' v

CH‘PTT'IR IV "

mhe Agricultural Extension Service in Puerto Rico

Extension-education to rural people was started in

Puerto Rico by the College of Agriculture and Mechanics

Arts in 1911. Correspondence courses were offered to rural

school teachers and a weekly pu olication where information

in regard to agriculture ani home economics, was published.

The scarcity of basic foodstuffs as a result of

World War I, showed the necessity to increase agricultural

jproduction. To overcome the problem of land scarcity,

Inethois :or intensive agriculture were stressed. In 1917,

tfi1e government of Puerto Rico established the Food Com-

:ni:ssioni(Comiaion de Alimentos) to deal with agricultural

gmrcuduction affairs. To conduct the extension teaching,

35? :agents ind 10 vocational agriculture instructors were

*tions in the Organic

apgoczinted. In the same year, by dispos.

Ac h,. the :eoartment of Agriculture and Labor was organized.

Extension Service was

Toarmers.1

’18 a division of this departnent, an

Ol‘gaziized to teach and advise
'In 1923 the eXtension activities were reorganized.

m . a
-h9 t Gr ricultural nevelopment Division of the Department of

A€P1.<:Lxlture and Labor was organized.
...)

 

 

\
lRoberto Huyke, Guia Para el ker301al, (Rio Piedras:
Em 3-.0143 de Extension Agricola, Universilad de Puerto Rico,
p. 60

2Ihid.

 

In 1931 by amendtents to the Organic Act, the
Isular Department of Agriculture and Commerce was estab-
lished and a separate Labor Department organized. The edu-
cational programs to rural people were continued under the
new agency. During that year the benefits of the "Extension
Acts" were extended to Puerto Rico by the Federal Congress:

Be it enacted by the Senate and House of
Representatives of the United States of America
in Congress assembled, that teqinrinn with the
fiscal year ending June 30, 1933, the Territory
of Puerto Rico shall.be entitled to share in the
benefits of the act entitled "Act to establish
agricultural experiment statiOns" in connection
with the colleaes established in the several
States under the provisions of an act approved
July 2, 1862 . . . . . . That the experiment
station so established shall be connected with
the College of Agriculture of the University
of Puerto Rico and it shall be conducted
jointly and in collaboration with the exist-
ing T"ederal eXperiment station in Puerto

Rico.3

In 1933, by resolution of the House and Senate of
Pueez~to Rico, the c00perative activities for extension edu-
catzi¢on between the United States Department of Agriculture
and! tshe University of Puerto Rico were accepted. As a re-
8N1 t (3f this agreement all the educational activities of
the Thepartment of Agriculture were transferred to the newly
crea ted Agricultural Extension Service of the University of

Puerto Rico.’4

 

3

Kelsey an Hearne, . cit., p. hOZ.

”a

a
I

1"
o
a
'U
o
‘1
o

oberto Huyke, 22. ci

at

In 1935 the Congress of the United States made
effective the extension of the benefits of the bankhead-
Jones Act to Puerto Rico:

That the provisions of section 21 of the
act entitled ”An act to provide for research
into basic laws and principles relating to
agriculture"and to provide for the further
development of cooperative agricultural ex-
tension work and the more complete endowment
and support of land-grant colleges approved
June 29, 1935, and known as the Bankhead-
Jones Act, he and the same are hereby, ex-
tended to Puerto Rico in such amounts as are
herein after authorized without diminution of
the amounts authorized for paymentswto the

tates and the Territory of Hawaii.3

In l9h6 by virtue of the dispositions of State law,
292, a cooperatives education department was created as
part of the Agricultural Economic Division and in 19h?
new appropriations from the Federal government helped to
increase the activities in consumers education and agri-
cultural marketing.6 r1T‘he Extension Service is constantly
increasing activities to reach the population in rural and
urban_areas. During 1957 the C00peratives Education Project,
a division of the Agricultural Economics Department was
transferred by virtue of law to another government agency,

but a retailers educational program was started that same

Kelsey and Hearne, op. cit., p. h07.

6Roberto Huyke, 10c. cit.

M7

Present Organization
At the present time'the island of Puerto Rico is
divided into eight Extension zones with a total of 70
districtsl The zone organization ofi the Extension Service
in Puerto Rico is:

1. Rio Piedras Zone. Comprises the north-east area

 

of the country and includes the Extension districts of Rio
Piedras+ mrujillo Alto, Carolina, Loiza, Rio Grande, Luzuillo,
Vajardo, Vieques and Ceiba. The zone is headed by two super-
visors, one for the district agents and one for the home
demonstration work. Where are 17 agricultural agents, 1h

home demonstrations agents, two soil conservation workers,

5 consumer education agents and 3 marketing agents. Four-
teen employees are in charge of office and clerical work.

....

Two extension agents are working in a :arm and Home develop-
ment program.

2. Arecibo Zone. Is situated in the northern part

 

o” the island. Eight districts are included in this zone;
Arecibo, Barceloneta-Plorida, Camuy, Ciales, Eatillo, Isabela,
Mansti and Quebradillas. Thirteen district agents are in
charge of giving information to ruraijand urban residents
1r1 agricultural modern practices and related fields. r"here
ar‘e ll home demonstration agents in the whole zone whose
”Work is complimented by a consumer education agent. A
marketing agent works with producers and handlers of agri-

cultural produce. mwo workers are in charge of soil

conservation activities and one agent in the Farm and Home
Development Program. Nine office workers are for the whole
zone. All of these personnel are supervised by two line
supervisors; one for the agricultura1_agents and one for
the home demonstration personnel.

3. Bayamon Zone. Includes the north-central

 

region of Puerto Rico. As in the other extension zones,
there are two supervisors. “he cistricts included are
Bayamon, Catano, Corozal, Guaynabo, norovis, Naranjito,

Toa Alta, Vega Alta-Dorado, and Vega Baja. The total
agricultural agents in the zone are 17 and 15 home demon-
stration agents. Where are four agents in a rural develop-
ment program and one in consumer education. Office work

in the zone is conducted by nine employees.

U. Caguas Zone. Comprises the east-central part

 

of the island. mhere are ten district” in the zone: Caguas,

u ‘. .'

Gurabo, Humacao, Juncos, Las Piedras, Maunaho, Naguabo,

San Lorenzo, and Yahucoa with 15 extension agents releasing
information to farmers and non-rural people. Fourteen home
demonstration agents work in the zone. ”he extension activi-
ties are complimented by two marketing agents, two soil
cOtis'servafzion workers, one consumer education agent and one
lflnt:er in the farm and home development program. mhere are

11office workers for the whole zone.

1-2-9

5. Coamo Zone. Occupies the south-central area of

 

Puerto Pico. 'Aibonito, Barranquitas, Cayey, Cidra, Cosmo,
Comerio, Orocovis and Villalba are the districts included

in the zone. To conduct educational activities with rural

and non-rural people, there are 1h extension agents. The

home demonstration work is conducted by 12 agents. In this
zone there are three marketing agents; three working in soil
conservation and one in the farm and home develOpment program.
There are eight county clerks and two zone supervisors.

6. Lares Zone. This zone conprises the central

 

mountanious area of the island. mhe districts included are:
Adjuntas, Jayuya, Lares, Las Marias, Maricao, San gehastian,
and Utuado. ”o conduct the extension activities in the zone,
there are 13 agricultural agents, 11 home demonstration
agents, one consumer education.worker, four soil conservation
agents and one marketing worker. A total of 8 county clerks

work in the zone.
9 . i

7. The Hayaguez Zone. Includesfithe districts of

 

A,uada, Aguadilla, Anasco, Cabo Rojo, Lajas, hayaguez—
Hormigueros, Koca, Rincon, and San German. The area

covered by the zone is the western part f the country.
Fiftyuthree employees work in the zone; 22 agricultural
aaents; 13 home demonstration agents; two marketing agents;
One consumer education worker, threetcorking in soil conser-
vation and one in the farm and home development program; 10

county clerks work for the zone.

SO

8. Ponce Zone. Comprises the southern part of the

 

island. The included districts are: Guayama-Arroyo,
Guayanilla, Juana Diaz, Patillas, Penuelas, Ponce, Sabana
Grands, Salinas-Santa, Isabel, and Yauco-Guanica. Where

are 19 agricultural agents and 11 home demonstration agents.
The extension activities are complimented in the zone by
three marketing agents, one consumer education agent, three
soil conservation workers and one agent for farm and home
development. mhe office work is performed by 11 county
clerks.7 -

Practically all ofthecities,.towns and rural com-
munities of Puerto Rico are served a§“thé Extension Service
in all phases of work from planting and harvesting to proper
handling of the product and different methods to consume it.
r”he activities are not restricted to production and mar-
keting only. but fields such as Home Management, Family Life,
Health and Hygiene, Public Relations, and Youth Organizations
are covered. With the present organization and personnel
available the agency is in an excellent position to conduct

an educational program with food retailers.

Of 7The information was obtained from the Personnel
~fice of the Puerto Rico Agricultural Extension Service
on request by the author.

\fL
H

CHAPTER V

THE FOOD R?TQILERS FDUCAmIONflL PROGRAM

The Program in the United States

The Extension Service in the United States received
a broad mandate in the Research and Marketing Act passed
in 19h6, to enter a whole new field of activity-~food retailer
education.

During the 1920's when the farm problem for the first
time became acute the government began attacking it direct-
ly. "he emphasis was primarily on orderly marketing, en-
couragement of farmers to join cooperatives, and eXport-
dumping proposals. In the 1930's the activities were di-
rected to shrink the supply of agricultural products through
the Agricultural Adjustment Adninistration, and other related
programs. The immediate results of this approach was that
production outran the consumption power. As a logical re-
sult, the production activities were reduced. "In the late
1930's and through the l9h0's, agricultural programs tended
to emphasize expanded consumption through such programs as
the School Lunch Program, the Mattress Program for surplus

‘11

cotton disposition and the like. During l9h6 when the

Research and Marketing Act was approved, the emphasis in
agricultural programs was directed to eXpansion of consump-

tion through educational activities with.consumers and food

' 5 -. ‘0
L8. ’ ...“

handlers. * ' ;-3gn

lEarl i. Butz, The Job Ahead in Extension Retailer
Education, (Lafayette; Department of Agricultural Economics,
Purdue'University,‘1952), p. 9. '

 

 

\n
re

Extension's educational program in the field of
food distribution is an activity among personnel of food
handling and distributing agencies, with primary emphasis
on work with retailers and wholesalers. This includes work
in areas such as maintenance of product quality, reduction
of spoilage losses, source and availability of supplies,
information about products, preparation and uses, business
principles, pricing procedures, merchandising practices and
customer relations, training of personnel and more efficient
use of space, facilities and equipment.2

The purpose of the program is to assist retailers
and other food handlers to improve the efficiency of their
operations by the adoption of improved methods. The ac-
complishment of this purpose will mean greater profit to
the grocer, better returns to the farmers and more conven-
ience and satisfaction to the consumer.

The Extension Service has been conducting work in
this field for many years, but the period of concentration
effort has been confined to about ll years. During this
time, programs have been started and successfully conducted
in different States. Similar programs are in the organiza-

tional or development stage in other parts of the country.

2"Extension's Job in Meeting Problems and Educational
Needs of Food Handlers", Report of the ggtension Retailer
Education Clinic, (Purdue University, June 1-6, 1952?:
p. 169 - I ‘u . ‘

 

.. ‘
.. .‘A
J .'
i t

’v

mhese programs have demonstrated successful Extension
education with retailers, wholesalers and other aroups.

During the educational activities, primary emphasis
has been placed on fruits and vegetables, while recently
work with poultry products, meats, store remodeling and
management has been developed. In general, Extension per-
sonnel have been interested in the overall efficiency of
the marketing operation, and several approaches have been
used in an effort to accomplish this end.3

In some states, schools for store personnel have

. A..._':n A_

been conducted to demonstrate the skills‘needed for care
and handling of produce, display techniques, meat cutting
procedures_and rec rd-keeoing procedures,u Another approach
has been to give retailers, wholesalers and other food dis-
tributors the information obtained from research on specific
subjects. Many different states reported doing work in
retailers' education especially Massachusetts, New Hampshire,
Indiana, Delaware, Illinois, Florida, Iowa, Kansas, Michigan,
New York, Ohio, Maine, North Carolina, Oklahoma, and Pennsyl-
vania.

mhe Michigan State University Retail Food Marketing
Program. Is typical of the programs conducted by other

Extension Services. The program is set up to help retailers

apply the newest and most profitable methods of store operation.

 

31b1d., p. 17.

hibid.

 

Sh

T“acts on improved food retailing methods, successful mer-
chandising ideas and food market information are gathered
from many sources and passed on to retailers. mhe program
in Michigan‘was,started in l9h8 as a part of the Cooperative
Extension Service of Michigan State University. The activi-
ties were expanded with the approval of the New Michigan
Marketing Program of l9Sh. She services were expanded be-
cause of requests from farm organizations, the Michigan

Food Dealers' Association, the Michigan Stores Bureau, and
others. There are four Extension specialists assisted by
the local Extension personnel and trade organizations. Re-
cently a demonstration grocery department was set up in a
Chatham Village Super Market in Detroit. Several complete
store analyses have been made by the specialists and assis-
tance was given to management of the stores in getting rec-
commendations implemented. Specific topics covered by the
Michigan program have been in buying, receiving, handling,

merchandising, pricing and equipment maintenance.5

The Program in Puerto Rico
rr‘he program is beginning in Puerto Rico now and
organized as part of the Agricultural.£conomics Department

Of the island's Extension Service. Retailers are beginning

 

Information obtained from Earl Brown, Glenn Woods
End Mike Wood, Specialists,id charge of the Michigan Retail
.ood Marketing Program, (East‘Lansinp, Michigan, State

lgég?rsity, Department of Agricultural Economics, Spring,
’ lo

to realize the importance of our work, so the good demand
for our services. Last year, three retailers asked for
remodeling services for their old service-type stores. A
traftic study was conducted at the produce department of
one big supermarket in Rio Riedras. A three-day produce
school was conducted in that same store. Trimming techni-
ques for produce items were demonstrated at two food stores
that asked for them. One of the big wholesalers of Fuerto
Rico asked the services of the Extension Service to conduct
a workshop with their salesmen in store modernization tech-
niques. Petitions for similiar activities have been in~
creasing from the San Juan area as well as from the rest
0? the island. No doubt that more personnel will be

i

n,

needed in the coming year to satisfy_the petitions of food

6

retailers that want to receive these services.

 

éihe writer is the only specialist-at the present
time assigned to conuuct these activities with food retailers.

56

CHAPTER VI
EDUCATIONAL METHODS USEQ EY'TEE EXTEHSIOY SERVICE
The Agricultural Extension Service uses effective
methods for educating people. Emphasis is given to methods
where results can be demonstrated. Among the methods used
by this agency, the author selected those that are best
adapted to teach food handling techniques:
1. Pesult Demonstrations.
2. Method Demonstrations.
3. Visits to the Stores.
h. Oftice and Telephone calls.
5. Meetings.
6. Group Discussions.
a. Study circles.
b. Panels. ,c
c. Sorums.
7. Publications.
a. Bulletins.
b. Extension Circulars.
c. Information circulars.
d. Special circulars.
e. Circular letters.
f3 Flying papers.

8. Raiio and Television.

9. Visual Aids.
lo. mripso
11. Short Courses. . '

12. 3Ch001s o

1. Result Demonstration. Is ole perFormed by a

 

grocer under the supervision of the food retailer's educator.
The purpose is to teach by means of a demonstration, the
practical use of a new technique or an improved one already
tested. It is not experimentation with the purpose of
solving a specific problem. The use of perforated polyethy-
lene bass in pre-packing potatoes and onions is an example

of the use of this method.

Advantages of the Nethod

 

a. Shows the practical value of certain
techniques.

b.’ Is a good method when dealing with
groups or using visual aids.

c. It creates goodwill to the instructor.

Disadvantages

 

a. It is not adapted to many situations.
b. It reaches only one retailer or a small
group dealing with the specific problem.
Fesults can be corraborated a relatively
long time.after the demonstration has

7 i

been conducted. ”V".x. ;

2. Methods Demonstration. Is one of the oldest

 

Methods used by the Extension Service. The method is

taught objectively, giving the opportunity to the instructed
to listen, to see anfi to participate in the demonstration.
It is adapted to such activities as produce trimming, meat

cutting, displaying techniques and checkout operations.

Advantages of the Method

 

a. Nell adapted to teach hand skills.

b. Provides the opportunity of individual
participation.

c. It helps to spread new techniques or

improve old ones.

,—4
‘ -10
S

H.
d’

.ation__

 

a. It needs a very s illed demonstrator.

b. Good demonstration material is needed.

c. Enourh amounts of material are needed
to give the opportunity to each grocer

+J 18) . . a e ‘. ‘I v
_c p rtic1p . . _.3

I
‘. I

3. Xisits to the Store. “hey can be very effective

 

in creating good relations between the extension manzand the
grocer. Using this.method, the extension agent can help the
store owner to change his Opinion in regard to pre-packed
produce, self-service meat or the need for a better lighting
system for.the store. mhe disadvantage of this method is
that it is costly since it may take too much time i.e., some-
times the extension acent goes to the store when the grocer

is too busy, and much time is wasted.

59

b. Office-and Telephone Calls. Each personnel

 

agent is stimulated by a specific need for information.
The number of callers serves as a good barometer of the
agents influence. Teachine under such conditions can be
directed and effective. When a retailer decides to go to
the extension office in need of advice, it is a sign that
he trusts the advices of the extension agent. During these
visits, the agent and the retailer can speak plainly about
specific problems in the grocery store or perhaps any con-
fidential info’mation that he wants to give the educator.
The agent can give the visitor any new publication in regard
to his_particular problem. It is advisable that the agent
devotes one_day each week for office work. If the agent is
workinv on a store layout, the presence of the store owner
in the office may be valuable to assist him.

The use of telephones is an economical way to con-

tact retailers. “he Tttension'Sermicelfipys the employees

their traveling expenses, but it is more convenient and
economical_to call instead of traveling. But thisrnethod
is limited to specific problems without opportunities for
the agent to observe and find more information to solve the
problems.

5. Meetings. for Extension purposes, meetings are
considered as a grouping of two or more persons that receive

a new idea or knowledge. This method has been used in Ex-

tension for a long time.

60

Advantages

 

a. It is an economical method to develop a
program covering a large group. To ex-
plain to a group of grocers the advan-
tages of self-service merchandising is
a good subject adapted to this method.

b. Offers the opportunities to the listeners

- _ r,-. , a
to participate by asarhg questions.

0. Broad topics can be covered faster. This

is a good point when discussing the advan-

tages of self-service produce.

Disadvantages

 

a. Good physical facilities are not always

available.

b. The groups are usually heterogeneous
making discussion difficult to conduct.

For example, considering the store-
layout arrangements, different grocers

have different problems.

a. Group Discussions. This methOd 13 used when a

 

number of persons meet in an organized way to present and
discuss their own experiences and ideas that are in relation
.uith a specific problem. mhe our ose is to channel the in-
dividual's ideas to find a solution to a problem. r"he purpose
is not to argue or start arguments among the participants.

Advantages of this method

 

a. Stimulates each participant to think

about the.problem.

b. Individual's ideas are improved and
adapted by the rest of the group.
7

ach participant contributes with ideas

for the final solution.

 

Panel Discussions. It is formed by a small group
0? persons, usually from four to eight and a leader.
mhey discuss a problem in front of a bigger group.

At the end of the discussion the audience contributes
to the discussion by asking duestions and giving ideas.
Problems common to a group of retailers like discussion
of lefiislation, organization of trade associations can
be approached in that way.

Forum. Consists of a group of persons that meet
with the purpose of broadening their knowledge in re-
gard to a specific problem or to clarify their think-
'ing towards a problem of general interest that encourages
discussion among the group. mhe decision to sell don-
foods by the grocers in Puerto Rico can be approached

by this method.

7. Publications and Iniormation

 

a. Bulletins: A printed publication that
covers quite thoroughly a specific tech-
nique. Is broad in the subject matter.
For example: "Pre-packaging Produce"
can be the title of a publication. The
field is so broad but it is covered by

the publication in a general way..

Co

62

Extension Circular: The subject matter is
not discussed neither intensive nor extensive
as in the bulletin. iany circulars can be
printed covering a specific field like trim-
ming produce or cutting pork loins.
Information Circular: Is released in mimeo-
graphed form. It is shorter and more specific
than the Extension Circular. Trimming head
lettuce-or cutting center chops are examples.
Special Circular: Is a mimeographed sheet
printed on both sides. It is still more
concise than thefidehée two circulars. The
purpose is to point out the specific points.
How to trim the central stem of head lettuce
is even more specific than trimming head

lettuce.

Print

(D

i Flyers: Whey are printed sheets
with the purpose of encouraging the adop-
tion of a certain technique or techniques
that are related. They can be delivered
during meetings or conventions. It is an
inexpensive way of communication. A flyer
encouraging retailers to keep records is
an example of the use of this technique.
Circular Letters: Is a good means to com-

municate new information to groups like

abundance Of a specific commodity,

8.

63

possibilities of a strike that may affect

the grocers, or a change in date for the

next meeting.

‘

Radio and Islevision. Is an effective method con-

 

sidering factors as time, distance and number of persons that

can be approached.

It isoa good method to give general in-

formation, to announce meetings and for follow-up purposes

of other methods.

Where are certain limitations to the use

of radio as an educational medium.

9.

Limitations

 

a.

C.

Visual

The message is fugacious. The audience
cannot use it further as with printed
material.

Very well trained personnel in radio
communications are needed to produce a
good program.

It must be complemented.with other edu-

cational methods and techniques.

Aids

 

8.

Films: They can be effectively used to
arouse the interest of the group in the
presentation or solution of a problem.
The topic can be presented in a realistic
way. 'A film showing bottlenecks at the
checkout counten;&r_one pointing a good
produce display, each are problems adap-
t

able to this method. “he high cost of

6h

the film is the main disadvantage of

this educational_technique.

' A

h. Slides and Film sifips: This technique
is best adapted than the film to empha-
size certain aspects of a problem in
‘method demonstration, a result demonstra-
tion. As a general rule, it is less ex-

pensive than films and more handy. It

requires the explanation by a well informed

person in the topic under discussion.

0. Photographs,-Drawings, and Charts: They
should be related to the subject under

discussion.

10. Eield Trips. The purpose is to observe new
techniques or improved ones that are in use by other grocers
and are proving to be effective. The grocer can adapt the
observed methods to his own conditions. The layout or the
backroom operations observance in a visit to a market can be

helpful to a grocer that is planning to modernize his store.

11. Short Courses. They are generally conducted

in colleges, universities or in any educational institution.
It is not widely used, but effective when dealing with rela-

tively technical matters such as "How to Forecast Sales,

!

"Store 8 dgeting," "Retail Accounting"or "Meat Cutting".

12. Extension Schools. mhey are organized to pro-
vide practical instruction to persons engaged in a particu-
lar activity as are food handlers. The duration of these
schools is generally from two to six days. In these schools
various topics of one problem are discussed as for example:
How to take the Inventory or How to Break Beef Sides into

Retail Cuts.7

7The Agricultural Extension Service in Puerto Rico
provides training for new employees in extension teaching
methods. rnhe writer spent about six weeks in that training
and has been using the described methods and others for the

past five years.

BASIC INF‘ORi-‘MTION FOR

66

CHAP TIER VII

CONVERTING A STORE TO SELF SERVICE

Advantages of Self Service

In the food retailing business self-service merchan-
dieing has developed rapidly. Retailing as a whole has
passed through stages of change most of which are directly
related to self-serVIce merchandising.

Self-service stores were first opened by Clarence
Saunders in Memphis, Tennessee thirty years ago. A standard
lay-out for self-service stores, however, has not been de-
veloped that can be used in all communities or areas. The
application of_the self-service principle differs considerably,
depending upon the special consumer problems of the store
in question, the locality and also the average income of the

potential customers.1

It is a very noticeable fact that
wherever the self-service techniques have been adopted, sel-
ling expenses have been appreciably lowered.
The self-service technique to operate food stores
did not just happen. They came into being as a necessity
for step savings. I
Scientific step-saving meant planning. Planning
meant order. Wandering stock and equipment were
swept out the back.docr infthE'of an efficient,

logical flow from entranceft&“exit . . . Labor
costs were slashed to a frugal minimum. The labor

 

1Meat Merchandising C0,, Your Self-Service Stores,
(Saint Louis: Von Hoffmann Press, I9h7), p. 1h.

 

67

force was reduced. -Individual employees were paid

more, worked shorter hours, and were no longer ex-

pected to perform the manual_tasks of the delivery

boy.2

It is an accepted belief that no single factor has
contributed so much to the tremendous improvement in food
marketing efficiency as has self-service Operation. This
modern type of store has become so popular and so successful
that it now sets the pattern of food distribution for both
small_and large operations.

The first self-service unit was Clarence
Saunders' Piggly Wiggly in Memphis, Tenn., opened
in 1916. Today, the once revolutionary principle

of self-service is accepted by the food chains as
a basic operating premise.3.

From the very beginning to the present success, self-
serviceevolution has been interesting. r11he rate of change
to this new technique has not always been rapid and even
today there are many stores which do not have selfuservice
in all departments, sapecially in meat and produce. In
Puerto Rico there are many grocers who operate their stores
by the conventional "over the counter" service. In a study
conducted on the island to compare the efficiency of the
two systems, it was found that: "Self-service stores used

labor much more efficiently than the full-service stores."u

2Ibid., p. 13..

 

3"Revolution to Evolution", Chain Store age, (November,

1956), P- 72.

 

uJohn Kenneth Galbraith and Richard H. Holton, Marketing _
Efficiency in Puerto Rico, (Cambridge: Harvard UniverSity Press,

1935'] 9 p. 31?:

 

 

 

.s.‘

In the same study it was concluded that sales per-employee
were nearly twice as high in self-service stores compared
with.sales in service stores. The question is whether many
old-fashioned store operators in Puerto Rico can in the'long-
run continue to remain prosperous unless they adopt the
labor_and expense-saving features of self-service in the times
ahead. Metropolitan San Juan is rapidly becoming "self-
service conscious" with a good number of modern stores Opera-
ting in the city.

It is considered that the final test for the switch
to self-service occurred when: "The A & P conversion from
lh,600 small service stores to about 6,000 stores of which
1,500-were supermarkets."S In the 1939 Retail Census, 52.5
per cent of all chain dollar sales were from self-service
outlets, while only 28 per cent of all food store sales were
the result of self-service. In spite of the delays in con-
version caused by the war, the chains pushed self-service
sales to 77 per cent by the time of the 19h8 Census.6 This
is proof that the self-service food store operation is no
longer on trial. Self-service is being extended to most
food departments. It has been amply demonstrated that self-
service has its application to most any kind of a store,
large or small,.city or country, service or cash-carry.

Small operators in congested metropolitan areas are "again

in business" by adopting self-service methods:

5"Revolution to Evolution", 92. 01%., Do 86.

 

Ibid.

 

 

69

Doubting strongly that the "corner grocery
business is going to the dogs“, owners of six small,
widely separated Philadelphia retail outlets re-
cently tackled the accepted shortcomings of neigh-
borhood markets, and came up with uniformly fine
results . . . The dealers re-vamped interiors, ex-
panded selling areas, added new departments, modern
display methods, gglf-service, etc. Each of these
steps quickly brought the markets into areas of
increased store traffic and greater dollar volume.7

 

This is a good example to be followed by operators
in Puerto Rico who usually operate small sized stores and
many of them think that self-service is for big outlets.
Many grocers on the island would like to know if the public
they are now serving would buy more or less at a counter-
service store than at a store converted to self-service. The
staff of the Meat and Food Merchandising Publications say that:
Women generally buy more merchandise on each
visit to a self-service store than they ordinarily
buy at a counter-service store. They see more mer-
chandise on display in a self-service market, the
store itself is a more cheerful, inviting store, and

the natural temptagion to open a pocketbook is con-
sequently greater.

Small volume and charge and deliver are not obstacles
to convert a store to self-service. The small stores do not
have room for too many clerks, so they need all their space
facilities for customers. Self-service does not conflict in

any way with charge account service. The delivery orders can

7"MetrOpolitan Operators Squeeze Added Volume From
limited Space", ProgresSive Grdceg,¢§February, 1957), p. 70.

I
.-*..a ~-
..

 

6"Meat Merchandising". 22. cit.. Do 22°

7O

, I .I O
u . .1 .-‘

'J .‘

t .i "

be assembled as efficiently in a self-service store.9 Al-
though most of the self-service stores operate on a cash-and
carry basis, those grocers in Puerto Rico still engaged in
credit and deliveries practices can start by remodeling the
old type service store and gradually eliminate the charge

accounts and deliveries.

Self-Service Terms Defined
There are some terms and key-words that will be
used repeatedly throughout this study. For the sake of the

reader they are briefly defined:

 

iisle: Space between gondolas or cases.

Back-bar: Karrow unit of shelving for keeping small,
pilferable items such as cigarettes, cigars, candy bars,
chewing gum, adhesive tape, non-foods, etc. 'Usually located

near the checkout counter.

 

 

Cash and Carry Store: One that doss,not extend

charge account privileges.

EEEEKQE: The employee who Operates the cash register.
Duties vary with the organization but as a general rule they
separate the items into moat, produce, groceries, non-foods,
and other groups, itemize on the cash register, make change
and accept payment. Frequently also_sclis articles from

Check-out counter: Last stop of the self-service

 

customer where the purchases are itemized and bapced and
9 . “d. 9

account settled.

71

Dump tables: Individual movable tables, top of

 

which is usually edged byflvertical boards of three to eight
inches in width. Used for special displays.

Dry Pgoduce Case: Open, unrefrigerated case for

 

dry produce.

'§fl§.21§plgy: A platform or semi-circular display of
either one or several shelves, usually built to match the
gondola at the end to afford additional display space.

gppdolas: Called also island or battleship. Is an
arrangement of shelves with aisles on all four sides.

igmblg gisnlayi:, A display of canned or bottled
goods, thrown into a mass display as an attention getter.

Prepacking: Process of preparing items for self-

 

service selling which are not delivered to the store in
units suitable for that purpose.

Reach:in Case: A refrigerated case holding milk and

 

other items for self-service, but necessitating customer to

open door to get item.

Conversion Problems and Procedures
Before a grower decides to convert a service store
to a self-service, he must take into consideration certain
local factors. Perhaps he has customers who want and still
demand certain Services like credit and delivery or even
clerk service. If so, he may consider it advisable to con-
tinue all.those services and when converting his store, he

must make proper provision for them in his new plan. In

Puerto Rico, many food retailers have to consider the above

,
i

when modernizing their stores.
For a store to be truly self-service, customers must
be able to see, identify and select with ease, the desired

items . If‘the owner wants to accomplish this he should pro-

vide for every packaged item in the store to be made easily
available to customers, so they can see and handle them. Pro-

per fixtures and equipment must be used and arranged care-

fully to this end.

There are different methods to produce a plan to

modernize a store. Modernization can be an expensive and

Ccnnr>licated as the ambitions and desires of the owner dic-
ta tea. However for practical uses a plan can be reached by
the simple and inexpensive cut-out method. "One of the
easiest and most practical methods of planning a store ar-

Paligament is by the cut-out method."10 The method consists

a
0* reducing a store size to a convenient scale. The equip-

ment and fixtures are reduced to miniatures by the use of

Car‘Cilaoard cut-outs so that they can be easily moved about

uni: 11 the best possible layout is achieved. The following

Steps can be followed to produce a floor plan suitable to a

particular store:
1. Measure Floor Space.
The starting point in planning or remodeling is the
.,, v .

n it ”h '9‘
ereSGent floor space of the store as occupied-by the selling

r .
00m and, back room. The store has to be seen as if nothing

\ ‘

10"Procressive Grocer Staff", Self-Service 1food Stores,

L1

 

"\
--

N . ..
ew York, The Butterick Publishing 00., m7, p. 717.

73

is 1r1 it disregarding all partitions, all shelving, all
counters and other equipment. In thisway, the merchant
is able to visualize hispempty store as a floor, and four
walls.
a. Measure the overallwidthflénd depth of the
store floor area from well to wall. Disre-

gard all partitions, shelving, coolers and

other equipment.

b. The plan of the store may be influenced by
posts, stairs, plumbing and other structural
parts of the building which cannot be re-
moved. Measure the exact portion of all
doors, windows, stairwalls, plumbing, posts
and wall irregularities. Mark all these in

exact position in the floor plan.

2. Equipment that will definitely be used in the
3m3irea is cut to scale--usually one inch to one foot--from
Stilél? cardboard. Under this heading falls such items as
WELI€-—ir1coolers, meat cases, frozen food cases, dairy cases,
ref‘3r‘i.gerateti produce fixtures and so on.

3. After models of the fixed dimension equipment
haxrei ‘been cut, the next step is to plan the dry produce
backs and checking counters. After determining the number

ot‘ .
(iflecking counters that will be necessary and a decision

as ‘ .
+3<> the type counter to ca used has been reached, out

cardboard models to the same scale. Decide on the type and

length of produce dry rack for the store, then cut a card-

board model in the same manner as for the other fixtures.ll

After having all the fixed-dimension equipment and
necessary fixtures that must be included, the next considera-

tion is shelving and gondolas thatxcan be made in more flex-

ible sizes. Before that, the grocer should experiment with

the fixtures and equipment on hand by placing them on the

floor plan and determine just how they can be utilized be-

fore going further. In many buildings the location of

lebing, electrical wiring, and other service utilities
may make it advisable to retain equipment such as meat and.
f‘r'ozen food cases where they are now. On the other hand
better layout may beaccomplished by moving some or all of
them to another part of the store. By placing these out-
out Inodels in different locations on the plan, the grocer
can Visualize the advantages in each location. For example:
the planner may have decided to place the meat case on the
right side of the store as a result of trying various loca-
tions for the meat department. Using the trial and error
method the planner finally decides that the best location
for the produce is atsthe front and a frozen foodcase on the
same side between the produce and meat departments. Having

thi ‘3 beginning with two departments already settled the

pl
. antler can {911:1}: the next steps.
., 1: .. '1 4 . .

J. '5;

... » .,

 

11:b1d., pp. u9-SO.

h. Place the checking counters preferably in the
conventional self-service location in the front of the store.
5. After a little experimenting the grocer may find
that a good arrangement might be to have wall shelving down
the entire side of the store opposite the produce, and meat
departments, and one or more gondolas down the middle of
the store. Aisles should be at least four and one-half
feet wide. and preferably five or six, Narrow, crowded
aisles should be avoided if possible. Aisles should be
wide enough to permit customers pushing barcarts in Oppo—
site directions to pass with ease. Aisles in front of
meats. produce, dairy and frozen foods should be about 9

feet. Aisles in front of checkoutS,should be at least 8

feet and more.12 . f'di'

6. After the planner has determined how many feet
of‘.shelving and gondolas are needed, and placed the card-
bozird model on theflbor plan, the floor arrangement is com-
Dleated. When a final arrangement is reached, it is advisable
to thumbtack the pieces into position. The use of different
coiLor cardboards--red for meats, green for produce-~18 rec-
cC’lf'lrnended.13

In converting a store to self-service it is wise to

alllnjgnate out-of-date gadgets and display racks that were in

N

(J 12"551‘31'1 NARGUS Convention", Progressive Grocer,
lily 1957): p0 159’

 

13"Progressive Grocer Staff", 23. cit., pp. 51‘52°

 

76

use for the service type store. Sometimes the use of worn-
out equipment jeopardizes the appearance and efficiency of

the new self-service arrangement.

Shelving for Self-Service

In a self-service store there are three ways to dis-
play the groceries. These are (l) on wall shelving, (2) on
gondolas, and (3) in special displays.

Some store engineers recommend that the wall shelving
be less than five and one-half feet high since this is the
desirable height limit. The shelving should be built no
'more than four feet, eight inches high with a sturdy top
shelf which can be devoted to tOp-of-shelf items, such as
breakfast foods.lui In Puerto Rico the shelving can be
lower considering that the average height of our wauen is
less than in the mainland. ”However, the greater capacity
cfi"the shelves, the less backroom space needed.

There are several factors to be considered before
deci<ding which type cf shelving to select:

1. Size of the Store.

2. Available sellingareaajf‘

?. Length of wall space.

'

h. Accessibility.

 

3h
”Meat and Food Herchandisinn", o . cit., p. 93.

..
frk l
"t

O

In small stores a high percentage 0; the groceries

 

are usually carried on wall shelving- Or the other hand,
stores of bigger size use the wall space for refrigerated
cases for produce, frozen products, dairy and meats, dis-
playing_most.of the groceries in gondolas.

When a store has a small selling area the wall

 

shelving.must be deep enough to house large quantities of
stock. In some instances, it may be necessary to use space
from within six inches of the floor to above eye-level to

15

accommodate grocery stocks. There are some stores with

inadequate backroom space, that build a tOp high.shelf to
be used purely for storage purposes.

Accessibility to items in the wall shelving is a

 

very'important consideration. "Products displayed between
eye-level and waist-level enjoy far greater sales than those

diSTflayei above or below these limits;"10

When designing
the vaall shelving, the grocer must have in mind that most

Of tile thmes, shopping is done by Mrs. Shopper. "A woman's
buyixag power is measured by the least. of her arm."17 It is
obvicvusly impossible to keep-all merchandise displayed at a

convenaient eye level, however the grocer can use the following

techni ques:

15"Progressive Grocer", op. cit., p. 2h.

\

l Ihido, p. 259

La 17E. A. Brand and others, Food Merchandising, (East
rmirlgg: Michigan State University. 19567, p. 177.

75

'1. Bring the bottom and second shelf out farther
from the wall than those above.

2. The bottom.shelf should be raised from the floor
12 to 18 inches. _

3. Stock lightweight items on the higher shelves and
the heavier items on the lower shelves. Women
are reluctant to shop heavy items from high
shelves. Breakage is less when light items are
displayed on the higher shelves.

There is no end to variety'of shelving a grocer can
use to modernize his store. The use of the different styles
depend on the different situations. The store owner can
save money by doing part of the work or having them built by
a local carpenter. Some manufacturers are offering steel
uprights for adjustable wall shelving and gondola at relative-
]Jrilow prices. The grocer can assemble his shelving. He
shoulfiselect the type of shelving that best fits his parti-
cular needs: Basic types of shelf design are:

1. Slightly Slanted, Step-back Style. The bottom

shelf is raised 12 inches from the floor and 1
inch of slant back and 17 inches deep. The depth
for each of the shelves is lb inches with top
shelf being 1h inches deep. The slant is to
increase visibility of merchandise. It is
adapted for moderate sized stores. The space
between floor and first shelf can be used for

storage of surplusimercfiandise.

‘ 434'
,.

\

3.

' \

5
"Progressive Grocer", op. cit., pp. 25-29.

79

Slightly Slanted-Average Depth. Similiar to

 

the above, but the bottom shelf is raised 15
inches from the floor and 2h inches deep. This

style is adapted to rather small sized outlets.

Slightly Slanted-Very Deep . Bottom shelf is

 

raised about.15 inches from the floor with a
2 inch slant.l Thefldapph of the bottom shelf
is 30 inches and the other three, 26, 22 and
20 respectively. They are adapted for stores

with very heavy traffic on Saturdays.

Very Slanted-Regular-Depth. The bottom shelf

 

is only about 10 inches from the floor with a
back slant of 3 inches. The depth is only 21
inches at the bottom shelf and 1? inches for

the other three.

Semi-Slanted Style. The lower shelf is raised

 

1h inches and 2h inches deep and is level. The
second shelf is 13 inches deep with 2 inches
slant and the top one is level and 9 inches
deep. The height is only h? inches. It is
also referred to as super-market type of shelv-
ing. This type is useful for the display of
fast-selling, bulky items like cereals, flour

and sugar.1U

I
...I.“

SO

Slanting shelves cost more than level shelves and
are more difficult to stock. When making the final selec-
tion, the store owner must look for_the following funda-
mentals in.wall shelving design:

1. The bottom shelf should project so as to increase

sales at lower levels.

2. The top shelf should be within eash reach.

3. Shelves must provide adequate storage capacity

consistent with the needs of the store.

h. The plentiful mass effect should be maintained

as far as possible.

5. Details such as prominent pricing should be

worked out so that "buying through the eye“

19

is made as easy as possible.

Different Types of Gondolas
The use of more refrigerated equipment in the food
storenh has moved the shelving from the walls to the main
flocus. "Effective gondolas have been made simply by placing
inn) saections of wall shelving back to back and moving them

out izqto the store where people can circulate around them."20

191b1d., p. 30.

ZOHMeat Merchandising", 29. Cito: Po 97-

81

The grocer planning to remodel his store can either buy
them or make_his own gondola with the aid of a carpenter.
"Many of the large chains have their own carpenters who
make the shelving as needed for'new.pruremodeled stores."21
It seems that the modern tendency of big supermar-
kets is to use metal gondolas bought from manufacturers.
In a recent survey conducted by Progressive Grocer, 52% of
stores reporting preferred metal gondolas compared with h6%
who still use wooden shelving.22
Gondolas may be either vertical or pitched styled.
The first, those with straight ends, are vertical; the
pitched style has ends tapering from bottom up, resembling
a triangle, that is, each shelf from bottom to top has less
depth. Both styles are popular among.store operators.
'fluere are some essentials that gondolas must have no matter

whicklstyle the grocer decides on:s

1. They should be sturdily built. Gondolas usually

 

must bear heavy weights and withstand a certain

amount of abuse by stock clerks and customers.

 

 

 

2. They should permit full View of the store. Pro-
per low construction will guarantee this, but
precautions must be taken to prevent the stock
clerks from building displays too high on the
top shelf.

\

21?

no A. Erarld, 0T3, Cit,, p. 123.

Pr 22"How Leading Store Engineers Plan New Super Markets"

0-‘ _, "\ J.
aresSive Grocer, (may 1955), p. 59.

\A)

(r
in

They should provide mouldings for price tags.
-..—J— ‘ —-—‘—.
The price of the item, shown in small letters on

23

the item itself, is not always enough. Most

Operators use shelf moulding price markers.

Some operators adecate the elimination of price
9 ‘0.

tags from the gonddlas to enqqdrage customers

to pick up the item to find the price.

They should provide certain flexibility. The

 

 

differences in shape and size of packaged items
makes flexible shelf height desirable for ef-
ficient shelf utilization and attractive look-
ing shelves.

They must facilitate shopping. Gondolas should
be constructed so as to put all merchandise

v
within sight of-the customer.24

 

1V

2% ~o -' 0 ’ ‘
snfleat merchand181ng", on. c1t., p. 9b.

2}

.‘u-n-fl

ilohn W. Ernest, a Basic Course in Grocery Merchan-

 

(New York, Supermarket Publishing—50., inc. I§s7

0)
be

CHAPTER VIII

THU STORE DEPARTMENTS

Produce Department
There are many reasons why the produce phase of re-

tail-food store operation is of vital importance to the

owner: . -,vg'
1*" " ‘
.- t

‘l. Drom the'volume of sales and profits in the line

itself.

2. The aid the department offers in building volume
in other lines.1

In the recent Super Valu Study the Produce Depart-
ment accounted for 8.8 per cent of total store sales, the

third department in the store, but the per cent of total
store gross profit was lh.0 second only to the meat de-
partment.2 With customers preferring shopping at one store
and being influenced strongly by the color and luxury of a
good ynméuce department, the grocer can easily appreciate

flue importance of this section of his store.

The merchandising of fresh fruits and vegetables is
becomaing more important each year. "According to a United
Freer) Fruit and Vegetable study, 66 per cent of all vegetables
PPOduced in the country and 5 per cent of all fruits, were

sold fresh."3 Per- capita consumption of fresh produce is

M

 

l - ’ q q 1
D r‘ Nelson A. Miller and others, urccery Store, (dashington,
““ 3 Government Printing Office, lghbl, p. 2 o.

2 m .
(Mav "super Valu Study", Part 5, fpogressrlg_gpggep,
~ 1958), p. 3-77.

\U
\n
-x‘

3"Produce Packagingel957", The Packer, (Sept. 7, l‘
a p- 9-

(1
.380 . I}:

8h

increasing, and is gradually replacing some of the food

staples. With greater emphasis on proper diet and greater

‘

I‘"

consumer desire for fresh produce there is every ind cation
that consumption will continue to increase. Many grocers
agree that a well managed proddce department is the heart
of a successful food store. "It can he said most emphati-
cally that a well operated inviting fruit and vegetable
department;tficreases store traffic. As every merchant knows,
\ - ‘. h ."
gatore trafPic is the life blood of a modern Food market.
EH1en consumers come into a store bo buy their fruits and
vfegetables, they also patronize other departments of the
storefhv
Location of the he artment: “he opinion that the
I’rcniuce Department should be located in th front part of
tile' market is held by many stores' engineers. However,
tinezee are others who say that this department should be
located at the end of the traffic flow:

Even today, there is a great variety of
opinions about the proper location of the produce
department in the modern store. Many experts
say it should be the first department the customer
sees because of its eye appeal. I believe that it
should be one of the last departments in the shop-
ping pattern. Produce is highly perishable and

should not have to stand the maulinp it can get
on the bottom of a shopping basket.3

p hmhe Progressive Grocer, How 32 Make Money Selling
Aresrl Taruits and Vegetables (New York: The Butterick Co.,
19505 . “

’P. o

 

5Ralph E. Ernest, "Store Layout", Work presented to

t L
Dilelg'? 17h NARGUS Convention, Ppogpessive Grocer (July 1957’:

' i
....

Those who believe that produce should be the first

department the customer sees point out that: "Surveys in-
dicate that as much as seventy-five percent of the produce

sales are on impulse. It is possible to create a quality and

freshness impression upon the consumer at the beginning of
the shopping tour through attractive eye-appeal, buy appeal
displays."6
A good appraisal of the situation was giVen by Mr.
Imsonard J. Gerweck who said that many profitable produce
dfxpartments are located either at the front or the back of

tile store. The important thing, he added, is to have a

‘gcnod produce department no matter where it is located.7

Space Needed for the Department: When considering

33>9<3e needs, the grocer must realize that the important
p<>irit to remember is that the department should be given

the; rdecessary floor space to develop produce sales volume

to as satisfactory point. So many variables enter into the
matfuer-cfi‘space that no fixed rule can be set for all stores
(n? alfll situations. "Anywhere from 10 per cent to 30 per
cenf; c>f floor space may be regarded as average, depending

on ifiag. type of store and its location."6

N A
6F. A. Brand, gp.‘git., p. 10}.
7Leonard J. Gerweck, Manager of Store Planning Grand

r
gnigri (70., conference before the Food Distribution Class,
p r“; i1958, Michigan State University, East Lansing.

(Ch1 8"How Much Space is Needed", NARGUS Produce Guide,
“‘:8‘?cu National Association of Retail Grocersl, p.‘E.

66

Equipment: Everyday, more and more stores are

adopting the use of refrigerated cases to display produce.
In hot climates, like Puerto Rico, this refrigerated equip-

ment isinecessary to maintain good looking produce and re-
duce losses_by shrinkage and spoilage. Unfortunately, the
cost of the equipment in the island is high and sometimes

the volume of business of the small grocer does not justify

such high investments. "“he food merchant, however, can pre-

pare wooden display racks and use ice to maintain freshness.
“here are some stores in Puerto Rico, especially remodeled

consumer c00peratives, that are uSYing-».a.6threecdeck dairy

.

case as multi—purpose unit displaying fresh fruits and vege-

tables on the bottom shelf and dairy items on the other two.

Prepacking_§roduce: Produce prepacking has been

congfdered as the "last frontier." within the self-service

Operations- During the last years the acceptance of this

system has been increasing. Still there are many differences

of «arrinion. "As a subject for discussion, prepacked produce
wilfii ggenerate about as much difference of opinion as religion
or 13011t‘ics."9 Regional differences are very pronounced.

In tkue New England and North West Central regionsxnost of

the 8 tores have adapted the method of selling produce pre-

packaged... On the other hand, the practice is not as popular

in the South West Central and Mountain-Pacific areas.

\_ M‘—

back 9330128 G. Kline, "Tests in Sixty Stores Prove Pre-
‘ 1’19; Lifts Produce Sales, Margins-Ppof1ts", aggressive

G
W (July 195m, p. in.

 

57

Consumers in all parts of the country are accepting
prepackaged produce. Research conducted by government agen-
cies and by private organizations has demonstrated that con-
sumers favor it. Cleanliness and shopping Convenience are
strong-points considered by shoppers. Retailers are changing
to prepackaged produce to take advantage of the increased
sales volume. In Puerto Rico the practice is rapidly gain-
iing in pOpularity and is considered as a "must" for a modern
3 tore.

For any retailer, planning to initiate the prepacked
rneathod, the logical question to be asked is: What is the
cost and who is going to pay for it? The cost of prepacking
xrazeies widely between stores and between one item and another.
{Manuald R. Stokes, marketing research analyst of the U. S.
Department of Agriculture, an authority in prepacking, es ti-
Imatmes cost of packaging materials at around 1%¢ per retail
of llrllt one to two pounds. He estimates cost of labor at
arcnarnd two cents per unit. mhus he arrives at a rough ap-
IHeriJnation of 3%¢ per unit for material and labor. However,
30"“? 'items will cost much less and othersznuch more, to pre-
pac”{8636.10 Cornell University conducted studies in regard to
fiiis Inatter. "On the average it takes about 2.h minutes to
packaEEe'each consumer unit in retail stores. This figure in-
01UC“98 all Operations from washing and culling to closing

and :LaJoeling. The requirements for fruit are slightly less

\
10

1' 3. v
I 3“

The Progressive Grocer, 22° c @4435; 1&2.

than for- vegetables due to the large number of operations

required for. vegetables. Fruits requirements run slightly

under. 2, minutes per package, whole vegetables run about

2.5 m1nutes."11

Labor is the largest expense in a prepacking opera-
tion, usually running over 50 per cent of the total cost.
The cost of film runs under 20 percent when sheet film used.
Tfide cost of bags was higher due to the overhead of making

them. Trays or containers are also a cost item running about

one fourth of the cost of packaging. The cost of packaging

vegetables, is about 1;.5 cents per unit, 1.5 cents for the

bag and 3 cents for labor when using film bags. rPhe average

cost of packaging fruit was a little less than for vegetables
since the labor cost was lower due to the less handling
necessary than wi th vegetable‘s4.12 Lewis F. Norwood, from
the U. S. D. A. offers the following figures in regard to

cost of materials: "Polythylene bags that range in size

from 3 to 10 pounds cost from 2 to 3 cents. Cellophane

bags of various sizes range from 1 to 2 cents each. Cello-

phane sheets used for wrapping lettuce and for overwrapping

trays costs from 1%; to 2 cents. Food trays cost less than

M
‘1 g ‘9

w h ‘o

F 11v. H. Wallace, and F. a. Taylor,fiPreoackin Fresh
rut t8 33d Vegetables, (University of Rhode Island, Eingston).

Po .

 

12
Ibid., pp. 16-20.

59

o, "r .
I, ‘ . ‘
J .
| I

1 cent, while staples, twistems and labels cost less than
l/lO of.a cent for the bag, or a total of 2 and 2/10 cents.
The cost of overwranping a tray of pears would be 1 cent
for the tray, 2 cents for the cellophane sheet, and addi-

tional 1/10 of a cent for the label or a total of 3 and

.2.
‘40

1.10 cents for the package.

Equipment and §upplies for Prepackiqg. There are

(zertain pieces of equipment that are needed in any opera-
tirnn The equipment needed’for prepacking may vary from
guractically none in a small operation to an expense of many
tfl1ousands_of dollars in a large operation. For efficient
zgcxrk3,for maintaining low costs, and to provide packages
tfll€9 custamer will accept, the prOper equipment is a very
innocyrtant consideration.

Pouipment will vary with each situation. "There
area all types of machines, moving belts and the like avail-
mwlea for these operations, but the amount of machinery
neeriewi is dependent upon the volume handled in order to
Ree!) “the labor expense down and increase the efficiency of’
"the (aperati0mm”L The following list is a typical one in

Iwurt <stores nardling prepacaed produce:

“fi-‘_~ -.-

Dh“ J'3Lewm F. Nervood, Store Preoa-iirg, (Boater: Kev
r a . - _.__*__._.-._._
-~J&nd Extension service, 195?), a: . 3.

1‘: , ...
H. w. xellace, on. ci ., p. 21.

...—....

l. Packin« Tasle. Cne long table has been found

ht~line operation.15

satisfactory for a strai The table

(u

should be of a dark color with a top of waterproof material.

The dark color helps to avoid eye strain, ,The contrast

3 a ‘
'J '-

makes the wrapping sheet easier to see."Theysoft surface
speeds production because the cellophane does not slide
around and can be easily picked up by the operator.

2. Produce Scale. ”here are many kinds of scales
giveilable on the market. A flush mounting type is very
ccnnmon in the back room operations. This type of scale per-
Ini ts an easier Operation and great efficiency.

3. Label Imprinter. This type of machine is rela-
‘tixzely new, but gainirg popularity very fast. This particu-
lvar’ type of equipment saves time and labor. It quickly
gueiruts_on the label the name and quality of the produce, as
welfll as weight and price of the‘paokage.

h. Label Activator. This is specialized equipment
ussed. principally to assure the adherence of the label to the
IMM3k119e. The imprinted label is placed briefly on the face
or tile activator. This system has the advantage that no
1“”3t ‘is applied directly to the package or the product.

5. Sealing Hot Plates. The plates are installed

Flusll into the table. This hot plate provides a quick and

e \
83y Sourcebf heat to seal. a paCH-aF’ie'

\“ ~_—_- .

pro 15liote: The straight-line operation is one in which
f‘ergr‘essive steps in building the package are handled by dif-
‘ en}; persons. '

91

stores and some

6 ,Hand Sealing Irons. Some

operators prefer this type of sealer. 9or some types of

packages, hand sealing irons are desirable. They are simi-

lar to those used in a packaged meat department.

8. Tape Closure Machine. With the use of synthetic
films for wrapping the closure machine is becoming very
pepular. It is a fast and easy way to close plastic bags.

V-Table. This is a movable trim pack table

I.

especially designed to hold a lug, box or crate of produce

at a convenient height and angle. When the container is

placed at an angle it is very easy for the trimmer to grasp

the items. Sometimes it is wheeled to facilitate bringing

the produce from the storage to the trimming area.
Perforation of wraps

libera-

10. Plastic Film Perforator.
1}: sometimes necessary for some items to permit the
tirnfi of gases produced during the complete ripening process.

Sevweral kinds are available, such as the ticket punch, needle

.'
1‘7.

and dull types
ll. Cart and Platters. A new cart for handling pro-

ducme has been designed. It is a wheeled metal cart with

ahixninum or stainless steel platters. The cart is used for

tralnsporting the finished packages from the back room to the

hOIding cooler or to the display case.

12. Other equipment is used in the prepackaging

renal..such as knives, scotch tape, twisters, etC. In smaller

MOPS-s- where the use of expensive equipment is not advisable,

pr1°<3t markers, crayon pencils and other hand equipment are usei.

Labels and Labeling ip_Prepacked Produce: "The

 

lgat>el on a self-service produce package is the connecting
:1111k;hetween the product and the shopper . . . it serves as
g; sgilent salesman and since it must "speak" for itself, it
skuaiild tell the product story at a glance."16
There are a number of suppliers that can furnish
gcnbci labels. The following three physical characteristics
are recommended for labels: A.
1. Right size for easy handling, easy reading.
About 1-5/6 " x 9-1/2" is an average size.
-2. Colors are Important. They should show up
well stainst product. A second or contrasting
color for product name will make it stand out.
3, Layout is Important.

.8. Product name snould stand out and be
easily read.

b. Price of the specific package must be
easily understood, and not confused with
price per pound or the weight figure.

There are different kinds of labels that are adapted
to ‘31 fferent packages.
1. Ihggmgplastic type is made for application on

outside of package by application of heat. Some

of the advantages are:

\

E. T. Du Pont De Nemours and Company. Self-Service

16
-EESEEEL Fruits and Vegetables (Wilmington. 1957)! p. 35’

a, rT‘hey are easy to read that represents
a customer service.

b. Good keeping qualities.

0
o

Speeds the work of scales since it is not

necessary to touch produce.

 

2. Insert Egbels are placed inside the package.
The product must be weighed first. When using
this method the label sealina_0peration is un-
necessary. Sometimes there is the difficulty
that moisture may set between the label and the

packaging film.

Header or Saddle Labels. Certain items or

...: U ... —.-_.. ..

 

I

assortments can he packed in a bag using a

saddle label affixed to the top of the bag.

”have are different m8C33“3? n the labels. “Mesa
are rnerchandising aids such as: ”resher by Far, Reduced,

‘ 0
n8 AfiVePtised, SpeCIal, etc.

Packaging Materials for Self-Service Produce. The

 

{COS}

common packaginfi films used for produce prepacking are:

l. Cellophane. This was the first of the modern

 

paChfwging materials to come into use about 1923. At that

thus (sellophane was used for packaging candies and perfume.
In 192? a moisture-proof sheet was develOped and since then,
many «Offiqer improvements have come about. Cellophane is now
proaucremi by Du Font and other companies manufacturing about

100 _ .
‘ "iilJlion pounds annually.

CellOphane is sold by code numbers and letters.
The prefix number refers to the gauge or thickness. For
example, BOO-Msem‘means that the film is .0009 inches thick,
M means moisture proof, 8 means sealed by heat, A stands for
anchored (wetfiraresistant) and T for transparent.

Temperatures affect cellophane. When it is too
cold, it becomes brittle and will crack. Hieh temperature
may cause it to block or heat seal. The adequate tempera-
ture for storage is about 700 F.

?. £01ye+hy19ne* N83 developed in England, after

 

several improvements, it was produced in the United States
in 1930. It is a by-product of petroleum derived from
ethylene.

Polyethylene is a waxy material, though flexible
and transparent. It comes in a different number of gauges.
Polyethylene stores well and is quite tear resistant. It
has the advantage that is permeable which permits breathing
by the produce items.

3. Cellulose Acetate is similar to cellophane in

 

appearance. The film is transparent with a high luster.

It has a fair degree of permeability to carbon dioxide and

oxygen, and it will neither shrink nor stretch. Cellulose

acetate is a waterproof film and resistant to drying out or

brittling. .

 

h. _§liofilm is a synthetic plastic containing a
hydrochloride of rubber as its base. It is moisture-proof,
transparent and has a high permeability to carbon dioxide.

Pliofilm is very resistant to punctures and tears. The

‘31

\1’)

primxry producer is the Goodyear-Company.

?or "Hard" items, such as potatoes and onions, mesh
bags and paper bass with a mesh window are used. mhese
types of bass provide ventilation and allow breathing. Also
annles are sometimes packed in these bags.

mrays, Ml atters or backing boards have been common
in prepackaaine meats. Now they are becoming very popular
for packasin_ fruits and some vegetables.

It must be remembered that the type of film or
material need in packinc is not as important as the ventilau
tion and refr ice ration of the produce. "he preference for
a particular film or packaairc material shOIld be based on
availability, price and adaptability to the different items
and prepackinfi methods. "Wherever obtainable, it is ad-
visable to purchase good quality prepacked produce items
.. . . "1'7 .

GIPPCt from growers OP HhOlPSRlePS. ‘ however, many pro-
fitable items are not available for buying that way. It
must be remembered alSo that the chief value of packaging

is to standardiVe the produce and make it adaptable to self-
service.

Hethods for prepackaging produce: basically three
major methods are used in prepaCking produce.

1. Direct firap for solid items that need no support,

and lead th,mse1ves to a direct wrap. Customers are afforded

H

The Dobeckmun Company, A Brief Manual on Produce

**w

P epa cki_g (Cleveland, 192:5} p. c.

maximum visibil.c

bags in

‘ A.)

ity since no part of the produce is obscured.

b .

”ray

8.

Lo

Place the produce on center of film sheet.
Fold the opposite corners of the sheet to-

gather and seal with an iron.

The wrap is completed by rolling and fold-
ing the ends of the sheet around the product
and seal in it with a hand iron or sliding

\a

the package over a flush mounted hot plate.
; the neat seal label and mark the price.

r; Free flowing items that can be put into

and fast operation.

Fans are loaded by head or with the all
of a funnel.

Adjus+ +m>§uquffl qeight usirn; the cats}

weight nethod.' ’; ~_;‘

\_
'

Close the law with o'closingtnachine or
by hand with twistens.

Pack or necking boari is sometimes used.
The product is olaced on a backinr board,
and a sheet of film is laid diagonallv

across the tap. There is a variation of

1-

,he method consisting in placing a fihn

sheet eatti-cornered on an appronriate

i~l.

zei moulded tray.

to

Lift the tray from the table. The opposite

corners are tucked under the backing boar.~

and sealed in place.

c. The remaining two corners are folded under

and 'ealed.

U!

o. The label is put in place and the package

is ready.

b. There is a variation of the method consisting in:

a. Placing a film sheet, catti-cornered on ap-
propriate sized moulded tray.

b. Goods are arranged in mold with stem or
buttaup. An appropriate sized paperboard
backer is placed in top of the produce.

c. Opposite ends of sheet are brought tovether

ani se.led with iron.

'\

d. The remaining corners are joined and sealed.
Disnlayina Produce: The following f ctors should be

“—t A- ..- r-' - 5—. ..w _~—-—-v -—-- a...

considered by the grocer When displaying produce:

v ‘i
‘I
{9

1. Color contrast. .ruits apfl vegetables are natur-
ally beautiful in color and when the proper contrasts are
made the items become more prominent. The produce merchan-
diser should take advantage of this natural color to increase
produce sales. If al tie greens, all the reds or all the
white items are out together, the customer will see only
three items in the display. But if red tomatoes are put

next to green cucumbers, and red apples next to green celery,
the red items look redder and the green ones look greener.

2. Variety. To have variety at the display pays.

The produce department with a good variety can give to the

98

H H

housewile that needed item she is looking for to build her
meal around. 0? course, there is a limit to the items a
store can_carry. But with smaller packages now being made
available For many items, the store owners will be able to
add variety to their displays and continue to hold down their
spoilage losses.

3. Space Fig sellers. There are some items that

1‘

are on the shopping list 0; cust.mers every week. These
are considered demand items. Give enough space in the dis-
play to stand the continuous picking by customers. Take
advantage of this, by disnlaying non-planned or impulse
items in between the demand ones.

h. Butts Up....?or lettuce and cabbage. Pricing
on the butts encourages eye selection instead of grabbing.

C. Horizontal Displays.... of roots and stalk vege-
tables. All of these should be displayed parallel with the
front 0? the display case.

6. Jumbled Displays....invites selection and buying
without the danger of causing an avalance From a nice elaborated
"pyramid".

7. Use of Dividers....to maintain a place for every-
thing and everything in its place.

8: Even Height....to make display eye-appealing at

ell timeS. Even height means that display will never look

overloaded or overshOpped.‘

99

mhe Meat Department

Meats, either fresh or frozen usually are first on
most shopping lists. That gives this department a tremendous
pulling power in the self-service arrangement. "It is around
the meat course that Mrs. Housewife plans herzneals. In
most instances, the meat department determines to a great
extent, the over-all success of the market."18 In fact, the

per-capita consumption of meat is increasing in the United

- V. i
‘4 .'
y I

States.
The per-capita consumption of all meats is
running about 162.5 pounds a year. That means each

customer in yourznarket should be buying about that
.much.meat annually for each member of the family.19

The per-capita consumption of meats in Puerto Rico
is approximately one-third the consumption in the mainland.
Fortunately the consumption on the island is increasing due_
principally to a raise in family income and improved.market-
ing techniques. In 1956 the total production of meats on the
Puerto Rican farms amounted to Sh7,000 hundred pounds units
compared to h78,000 in 1953.20 In the Appendix of this study
there are tables showing the imports of edible animals and

animal products from the United S,ates and foreign countries.

18M. M. Zimmerman, The Su er Earket, (New York: MoGraw-
Hill Book 00., Inc. 1955), p. 2 .

'IQ ’
""The 1957 Meat Manual", Chain Store Ape, (December,
1956), p. 106. ‘

 

9
“O"Agriculture. Production and Related Subjects", 1957
Statistical Yearbook. (San Juan: Puerto Rico Planning Board
9 po 6..

ggpatiOn.9£.:hg_Department: Physical factors must
often be taken into consideration when deciding on where to
locate the meat department in a store. "The traditional
location for the meat department in the food store is at the
rear of the building, most frequently occupying the full
length of the backwall."21 Those preferring this setting
for the department say that: "the meat department is placed
in the rear of the store because it is a demand item which

"22

draws the customers. Some store engineers, on the other

hand, advocate the entrance location for the meat department.
Apparently reflecting the View held by many
that-~meat makes the meal--and therefore should
be first shopped by the customer, a considerable
number of store engineers said this department is

situatejfifirst in the traffic flow of their new
stores.<fi

Tn most food stores today, a.Cross-rear location of
the meat deparhcent is often preferred, and frequently the
meat department can join a side produce department at a

right'angle.

H3

via

(3

of the Department. Space today in most food

i

1

stores is at a premium; therefore no reasonable food merchant

1
2"‘Meat and Food Merchandising Staff, Self-Service Meat
Guide Book (Saint Louis: Meat Merchandising, Inc.,’I956}, p. ll.

 

 

9
Lab-Tn.

s. A. Brand, 223.21 ., p. 103.

’)
“3How Leading Store Engineers Plan New Super Markets,
Progressive grocer, (May 195c), p. 56.

 

101

wants to allot more space than is needed.

Estimating meat sales at 25% to 30% of total
stores sales, a store doing $5000 or under should
do fido per linear foot display space per week;
stores in the $5000 to $25,000 volume bracket should
do 5100 per linear foot per week, 325,000 to £50,000
per week stores should do filho per_linear foot; and
supermarkets doing over 050,000 should be able to
handle $160 per linear foot per week in meats. 4

Self-Service Meats: Time has brought many changes

tca foodiretailina since May, lghl. Those changes in re-

ixaiiina have been of both kind and degree. or these changes,

udiich.have affected every department of the traditional

focvd store and have forced the addition of new departments,

horde has been as significant as the'erowth of prepackaged
at

IM?{1t merchandisin2.L“ mhe development of the self-service

cease and packaging materials were attempted; various types

wares; tested and abandoned. In 1939 in Pennsylvania, the

A at '5 Co. devised a self-service case that proved to be

..L

e?f‘ic:ient. This improvised case was improved by manufac-

tur‘ers, and the modern refrigerated case was born.26
There are many advantages to the customers Mean
buying self-service meats:
1. Every package is clearly marked.
2. Shoppers are served faster.

3. The product is not more expensive.

“\_- *.
éE-v \ o

ibid.

 

 

2:. .
”Meat and Food Merchandising, on. cit., p. S.

}“

2'2- " r s ' . '
':” (ears of Self-Say ice”, Chain §tore Ase.

. .‘
, .

(Nova ”“’ '
'rntberg Lfi73)9 p. 52-

a”:

include

10.

11}

102

The customer sees exactly what he buys.

Where are opportunities for selecting the cuts.
More variety of cuts are offered by the store.
Packages are leak-proof.

Mrs. Shopper can take all the time she wants to
select the desired cut.

The customer can adjust the budget when shopping.
Packaaes are well adapted to storage in home
refriaerator or freezer.

The customer still has service in the self-

9
service operations.*'7

Vouipment: Is used over and over. This does not

the

building itself, which would house any meat

merchandising system. It does not include supplies that

have to be constantly replac

ed.25 ”he equipment for the

meait Operations can be classified in four different cate-

 

 

ROI-ins:

1, Equipment for Receiving and Storage.

,. iuttinr and Processin? Ffiuipmert.

3, Packaging Equipment.

h. Equipment for the Retail Area.

The use of equipment is conditioned by different
facrtors. One of the most important is the volume of business

27 ‘

1". 1-5.9 DP. Lib.-!l§.
go

I

. \J'
Food and Meat Merchandising Staff, 22. cit,, p. h7.

 

of the store. The following is a partial list of equipment
mised at the different levels in fire meat department operatlcns.

l. Deceivigg and §torage.

...—

 

a. The Cooler: Incoming meats are first
stored here chilled and otherwise condi-
tioned for cutting and wrapping.

b. Carts, follies: Used to store the cuts
ready for packaging, and packaged cuts
awaiting display.

c. preezer storage: Valuable for storage of
packaged fish, poultry, and other prepared
items.

d. Hooks: Should be of nonecorrosive metal.

Used for cooler storage.

:3
o
r"!

-uss, ”rays, Pans: To store'smaller mis-

~72

ellaneous cuts.

’1
9
f1)

acales: To cheek incoming merchandise.

r. Shelving: To facilitate storage inside the
cooler.

h, “racking: Overhead rails, or tracking,
justify their cost in terms of saving
time and strain.

i. Waste cans or onzs: ”o dispose of waste
and also for fat and lean trimmings that

?9
are to be used.°

291b1d., pp. us-so.

0’4

 

?. Cutting and Processing Equipment
. ~, 'v .

a. Electric Saw.:' May be used.f0r meat-and
bone cutting.

b. Knives and Cleaners: Boning knife, cutting
knives, fish knives, and cleaners should be
kept well sharpened and placed on rack when
not in use.

C. West Blocks and Mest-Cu+ting Tables: Should
be kept in good condition by daily care.
mable tops are generally not more than three
inches thick.

d. Meat Trays and lens.

e. Molding Machines: For ground beef.

f. Patty Machines

9. Slicing Machines

h. fray Carts: For moving meat from prepackaging

 

line to case or caolep.30
3. -gctaring Equipment: Comprises a number of items

necessary to provide customers w

packages, proper labeling and clear information
in regard to erect weights and prices. Included
are conveyors. tape diapensers, film cutters,
label machines, packaging tahles, packaging
machinery, racks and platters,_scales, sealing

1
devices, stands, storags'for supplies.‘l

? , I
’ "heat and Food Merchandising Staff", 22. cit., pp. 55-37.

b. Eguicment for the Retail Area: In the self-

 

service meat departments, the retail area must
be planned with great care, for the general ap-
pearance of the department is vastly more im-
portant when so much of the personal contact
with customers is lacking. Included in this
group are display cases of different styles,
display case accessories such as dividers, signs
and sign holders, tags, thermometer, and related
item displays.32

Supplies heeded:. Supplies are those materials used

 

 

during the course of the self-service packaging operation.
”hey need constantly to be replaced. It is estimated that
the cost of supplies is approximately 1% to 2 percent of
total sales. mhe function of packaging materials is, of
course, that of helping to produce an attractive, durable
package. Usually the wrapping materials used in the meat
department are the same or closely similiar to those used
in the produce department. In the chapter covering the
Inmniuce department, the wrapping materials are discussed,
so tiley are only mentioned here as supplies needed for self-
serviLce meat Operations. Among the wraps the transparent
films: are included such as: cellophane, pliofilm, saran,
hnmnsiimiand other synthetic products. The "backing" group
inclucies laminated boards, pulp flatboards, trays, lard
\ _ I

N 7 I ." " '.

A .
. ‘ .'
. ,.

321bid., pp. 55-55.

 

106

trays, and more recently plastic wax dip. For merchandising
many food specialties, self-service meat containers are used
such as window cartons, paper cups, plastic cups, trans-
parent bags, and shrinkable plastic bags.33 An adequate
supply of labels is a necessity. There are many different
kinds of labels_that the grocer can buy imprinted. Suppliers'
catalogs describe them and the store owner can decide which
type or types to select. In large operations labeling is
done by machines.

Displaying Methods: There are different opinions
as to the best way to arrange displays in a self-service
meat case. But in general, the different methods used
'follow certain basic merchandising principles. Fast moving
cuts, should never be placed side by side, slow moving cuts
which usually carry a highermark-up,lshould:be‘given the
benefit of'being displayed alongside-aidem‘anditem.3hr Many
stores arrange the meat displays so that when the customers
enterithe meat department, they observe the large items such
as canned hams, smoked hams, picnics and piece bacon. From
here the customers work down to the roasts, the chops, and
then. the cold cuts. On the other hand, some operators prefer
to cheange‘the displays every two or three weeks to maintain

the iriterest of the sheppers trying to find their favorite

33Ib1‘3 c 9 pp. 59-65.

D #9 3l"""”he“nfhy and How to Self-Service Meat", 22. cit.,

107

CNtS along the display 0886.35 The season influences the
display techniques- During the summertime, many stores dis-
play ground beef at the beginning of the refrigerated case
and sausage and cold cuts scattered along the case.

mhe following principles are recommended by U. S. D. A.

as guides for minimizing labor requirements in the display

.. . d
J .’
\‘l

.._

Operation:

1. A fully loaded pan, or two or more partially
loaded pans, should be carried to the display
case on each trip.

2. Wherever possible, a cart or dolly should be
used to move several pan loads to the display
case.

3. mhe floor or walkway behind cases serviced from
the rear should be at the same level as the
floor of the packaging area.

L. Doors connecting the packaging area and the
display area should be swinging doors or should
open out in the irection of the flow of product.

5. All items should have a definite location in the
holding cooler, and the various sections of the
holding cooler should be marked accordingly.

6. whenever possible, both hands should be used to

1 ‘6

place the merchandise in the display case.“

3SPersonal interview with meat manager at Schmidts
Supefimarket, Okemos, Michigan.

6 u , Q 0
,1 3 Edward M. Harwell and Others, Packaging and Displaying
vsats in Self-Service Meat Markets, (Washington D. C. Government
-1" n “cg mm, , )m, p. -. -

 

The gairy Department

a greatgamount of emphasis has been given to the

J-

\“

product knowledge required in the operation of a dairy de-

HJ

nartment o a sumermarket.

A

There is not a supermarket operator in the countr'

who does not realize the importance of his dairy department.

The two main reasons Miy chain store managers
like to handle dairy products are because almost
every customer has at least one dairy product on
her list each time she shops, and because these
prolucts tie in naturally with many other foods
and canntherefore point the way to adiitional
sales.3r

To attain success in the dairy department, store
nmrnagers must develop and practice the_habits of success.
The purpose of the writer has been to collect information

1""!

Unit can help grocers in Puerto Rico. to accomplish success
in izheir food stores, grocers must have a better understand-
irE: of the basic practices of successful dairy department

Operati on.

In many supermarkets the dairy department is still
corisidered as part of the grocery department. The dairy
Opeuretion today, becazse of its size and importance, demands

thee attention of individuals who can devote all of their

tinie to the operation.

Based on the firm belief that dairy manage-
ment is an important skill-~in the same sense that
meat-cutting and produce-handling are generally
recognized as specialized operations-~the Grand

(n 37"Tie in Dairv for Added Sales", Chain Store Age,

 

Union Co. has spent more than six years operating
and perfecting its training course for dairy de—

partment managers.

Merghandising Dairy Products: Milk draws traffic
to the dairy department. If the department is fairly large,
milk and cream contribute about 13_percent of the depart-
ments total sales dollar. About*10 percent of every milk
sale is gross profit. Milk contributes about nine percent
of the dairy department's total profits.39

Milk is a big attraction, since it is competi-

tively priced. Two-percent butterfat milk may also

be stocked as an additional price incentive. Con-

sidered in the light of total dollars that go into

the cash register, milk vies with eggs for first

place. As a turnover item, it is the staple-~the

heart of the dairy department.u0

‘It is possible to give the mass display effect to
mill{ by stocking it high in the cabinets but not above the
Tflmqaerature line. [The use of°false foundations made from
empity cartons will be of advantage in giving the impression
0f \rolume sales. Many supermarkets price milk in units of
tWO' offering a slight saving over single bottle price. Tie-
in Inilk promotions with newspaper and magazine publicity on

nutlrition and health. Combination sales go well in other

departments, coupling milk with a variety. of food products.

 

k

38"Grade A Dairy Personnel", Chain Store Age, (March,

1957), p. 137.

39"Dairy Department", Unpublished mimeograph, (University
°f I’uerto Rico, 1956).

A hO"Dair Complete Merchandising Operation", Chain §§Qre
is (March 1956 , p..1ut. "

Wherever possible display milk with other iiems such as.
cereals, soups and chowders, gravies and sauces, milk
with bread, crackers and cake.

Cheese. Should be displayed in large quantities.
Use contrasting color display. Since cheese has an appetite
appeal, it should be displayed attractively. Samples will
also increase the effectiveness of cheese displays. In any
display of cheese, should. be such related items as crackers,
bread, spaghetti, beer, and other beverages. Cheese should
be suggested along with Fresh fruits and vegetables for
saladl Brand or label should be in plain sight and clearly
marked, Cut pieces of cheese should be covered with cello-
phane- In displaying cheese, keep packages flat so as to
pPevent the foil from loosening.

Butter. Turnover on butter is the most important
PPofit factor. Since the better is generally kept in refri-
geration, the chances for creating mass display are limited
but they are not impossible. Butter. can be effectively dis-
Played in open or closed types of the refrigerated cases to
Create the mass effect for selling large quantities. When
tI‘af‘fic is very heavy in the store and the temperature in
the store is controlled by air conditioning, the display can
be placed, outsidéiéf’the refrigerator and mounted on empty
cartona. The empty cartons, provide the base for a massive

salea prompter which requires a minimum amount of butter

lll

packages. Butter should not be displayed outside the re-
frigerated case for more than four hours. No display is
complete without proper signs to reinforce the pushing power
of the merchandise.

Margarine. There are many brands of margarine on
the markets ”"0ne of the most serious mistakes made by super

i
. 3.. r'." A. .
market merchandisers of margarine is the stocking of too

many brands."hl An excess of brands resslts in a confusion
to the shopper. The result is that some brands can never
sell enough to pay for their space. The best thing to do
is to offer customers a variety, but always watching the
sales volume of each and eliminating the slow movers. ”hen
margarine is displayed in the dairy case some merchandising
tips can be followed to increase sales:
1. Vary the package colors for easier shopper
selection.
2. Add new stock at the back and bottom of each
row to assure first in, first out selling.
3. Keep products with strong pungent odors away
from margarine.

b. Price each package before stocking in dairy case.h?

Margarine can be displayed outside the refrigerated

case provided the store is air-conditioned. When this is

— A-

ulKraft Food Company, Successfgl Dairy Department
(Chicago 1955): p. 9.

 

helbid.

possible, special related item displays are most effective.
Many store managers stated the following related goods are
effective volume producers:

l. Sa'eet corn with margarine.

é. Biscuits and margarine.

3. Popcorn and margarine.

h. Bread with margarine.

5. Baking potatoes and margarine.

6. Pancakes mix and margarine.

Margarine requires the same handling care as butter.
'fluat means, it should be kept under refrigeration, even

thcnagh it has excellent keeping qualities.

Eggs. Draw customers to the dairy case. In most
Supnermarkets eggs contribute about 22 percent of dairy's
tof- tal gross profits, about 20 to 21 percent of the depart-
merltfls total sales dollars. Eggs must be refrigerated im-
mediiately upon delivery. Cartons must be arranged in
Orciesrly rows; arranged also by grades and sizes. It is
1mportant to rotate the merchandise in the display.

To make a mass display, empty cartons or crates are
“3‘913 as a foundation for pyramidal stepped-up or other
Stlylses or arrangements. This method of using "false" foun-
dafiicans eliminates the danger of spoilage and breakage which
ma37 (occur when too many eggs are displayed at once. The egg

d13133_ay needed not to be confined to the dairy department.

 

113

Many managers feel that if their stores
are air conditioned, they can safely put up displays

of eggs and margarhne at any point, providing there
is rapid movement. 3 '

Eggs tie in nicely with products such as breakfast

meats, with cheese or jelly for ,omelets, with the different

kinds of baking supplies.
flanagement 9.: the Daigy Department: It is impor-

tant, to give to fast moving items the facings they deserve
based on volume, reducing the space given to slow-movers.
Another way to get more space in the display is to stop
carrying the slow-moving products that are similiar or

substitute to fast-movers but do not sell as fast as the

more papulan brands. ’T'he space allocated to any product

should be based on sales.
Impulse items are the products that the shopper de-

Cicles to buy at the point of sale. More than half of the

PPOducts customers take to the check-out counter are impulse

products. Generally, impulse items yield a fairly high margin.

In the dairy case, the impulse, items are mainly
cheeses, biscuits and delicatessen items. Many cheese pro-

duCts are semindemand items. "‘he other products in the

dairy case that are demand-items are butter, milk, eggs,

margarine and cream.

The following six steps are recommended to increase
dat PTY business:

\_

Sc ember 1956a). p- 78-

11h

l. Allot space on the basis of sales and profit.

2. Allot some space to more volume-building cheese
varieties.

3. Arrange demand items to pull’traffic through
the entire department.

h. Group cheese in sections according to type,
flavor and color.

5. Post a "space.allocation diagram".

5. Spotlight the non-refrigerated products.m4

Frozen Foods

Frozen foods are important to the retailer for dif-
ferwerlt reasons. Sales of the product have been increasing
siruzea the end of world war II. With the improvements made
tc)the refrigerated cases, the small grocers are able to
carry a complete line of foods in a minitum space. More and
more customers are using and demanding frozen foods each year.
Industry leaders believe that sales may reach eight to ten
per cent by 1960. New-equipment, merchandising procedures
and new concepts in store sizes have resulted from the fast
growth and development of. frozen foods.

Location 2: the Frozen Food Department: Frozen foods

 

have not been accepted as a Separate department within the

f‘
otki store. In many super markets frozen foods are considered

\

MLKraft Foods Company, 22. ci ., pp. 26-28.

‘ ‘1 v -
. ' . - OI“ ‘
.’ 'J .'
o ‘ t

115

a part of the grocery department, in others sales of this
product are included with sales from the produce department.
In a few large stores, frozen foods are considered as a de-
partment with a manager in charge.

Many retailers still feel that the produce department
is the best location for frozen food display. The Progressive
Grocer Magazine conducted a survey to determine which loca-
tion for frozen foods the dealers preferred. The following
was the result.

1. Location near the Produce Department ... hd.5%

2. Near Cneckouts ......................... 23.9%

3. NeaqflfleatyDepartment ................... 17.6%

h. Between Produce'and Meat ............... 5.0%

Displaying Frozegggoodsz' A major factor necessary
for attaining good sales in self-service stores is meat dis-
playing. Customers are constantly disarranging displays.
When an item is covered it will not sell. ”Neatness and
effective usage are worth about 20% of the frozen food
dollar sales at the cash register."”5 There are many gimicks
that grocers can use to build more frozen food sales for
his store. Sales results from highly successful chains
show that_can be accomplished. National Tea, for example,

reported 7% of total store sales in frozen products in 1955.

 

“S”Displays for Plus Sales", Chain Store Age,
(April 1956): p. 126.

116

This year.this same Company is operating at a rate of 8%.
In many cases. individual store results show 10% and 15%
of total store sales in frozen foods.“6

An effective method to build tonnage in frozen
foods is by using special diaplays.' They can,be.used
either in case and out-of-case. But the igbms'to be pro-
moted have to be tonnage items. A ”dump display" usually
takes up extra space and is_cooled with dry ice. Mass dis-
plays and mass dumps of tonnage leaders such as juice,
frozan_peas, french fries, pot pies and strawberries are
justified by the-extra sales. In.many stores these tonnage
items get out-of-case display. The big problem is watching
these items to make sure that there is no deterioration in
quality. Out-of-case displays are just as effective for
frozenlfoods as mass ends are for dry groceries. But these
items_must be good sellers in order to move quickly. No
matter how well-the display is set up with dry ice, the
possibilities of thawing is always present and, unless the
turnover is rapid, quality problems may develop.

Effective signs and price markings insure added
sales. It is not enough to price-mark every item on the

back of the display case. Specials need to be highlighted

to draw customers' attention.

 

117

Multi-unit pricing is growing as a sales stimulator. Par-
ticularly in large suburban stores, multi-pricing offers an
opportunity to sell two or more packages at the same time.
The larger refrigerator capacities of today and the growth
of home freezer sales make milti-purchases more likely in

these areas.

There are different opinionS'of thegway in which the
items should be displayed. The accepted practice in the past
has been to display the items by category. The purpose is
to give customers the opportunity to compare similiar items
of different brands. .There are others however, who advo-
cate the displaying or grouping of all the items of the
same variety.

The agricultural Marketing Specialists of the United
States Department of Agriculture have developed very effec-
tive techniques for handling frozen foods. Using these
improved methods, many operators are obtaining 31% to hhfi
increase in production over best conventional methods. Among
the recommendations of the government_specialists, the fol-
lowing are very useful in displaying frozen foods:

1. Use dump displays where possible. Dump displays
save time for fast-moving items and permit the
operator to sell more merchandise from a given
space. Dump displays should not be attempted
with less space than that required for three
regular rows of merchandise.

2. Do not display less than half a row of an item,

if consistent with merchandising practices. The

3.

‘fl

7.

118

operator can then stock a half or whole carton
without returning excess merchandise to the
storage freezer. It also helps prevent cover-
ing of one item by another through customer
handling.°

Do not backtrack in stocking a display case.
Stockmen often ust run back and forth to find
a certain item. Segregate merchandise on the
cart and move the case length only once in fil-
ling displays.

Combine rotation with stocking. Move old mer-
chandise to the front and stock to the rear of
each row. Move most of the old merchandise for-
ward when policing the cases prior to stocking.
Get the carton close to the display. Best pro-
duction was obtained in the U.S.D.A. tests when
Operators placed the carton directly in the case
for stocking.

Use both hands effectively. Stock frozen foods
rapidly by using both hands. Lift the merchan-
dise from the carton two or three units at a
time with one hand and transfer them to the
other in the proper position to be placed on
display.

Keep displays below the full line of the dis-

play case. Building displays above the maximum

119

fill line causes disorder and is one of the
major causes of ice forming.’

5. Use dividers.‘ Special dividers are a great aid
in stocking and displaying frozen foods. Insert
a divider between each row of the merchandise and
the next.

9. Keep packages facing the front. r"his results in
easier handling and a better view of the package.

10. Do not stock the merchandise too tightly into
the case.. Displays which are too tight take
considerably longer to stock, make it difficult
for customers to obtain the merchandise, and

often result in torn packages and bent casesJ‘7

Non-Foods Department

Non-foods is a term used in the food industry to
designate the merchandise that modern supermarkets are
carrying that was practically unknown to the food merchants
in the early thirties. This classification includes items
like health and beauty aids, household suppliésj'non-pre-
scription drugs, toys and soft goods among others. But
non—foods are not newcomers in the supermarkets. When the

historic Big Bear of Elizabeth, New Jersey, which opened

in 1933. earned eighty-six thousand dollars, better than

LL7Dale L. Anderson & Paul F. Shaffer, Improved Handling
23 Frozen Foods in Retail Stores, (Washington, D. C., Govern-
ment ?rinting Office, I§555, p. 22-23.

 

half_of its total net profit from its non-food concessions
the first year of operation.”8

Today, non-foods departments are continuing to ex-
pand in all the country, although on a somewhat more selec-
tive basis than in the past. Customers have proved their
willingness to buy a great many non-food lines in their
favorite grocery store. There is no longer any question
about customer's acceptance of non-food service. The only
problem is to find lines on which there is sufficient turn-
over to justify costly grocery store Space. There are many
good reasons why non-foods are sold in supermarkets. One
seems to be the operators' need for available merchandise
during the war. A very general but sound reason is the
fact that more customers frequent a supermarket more often
than any other type of-retail outlet. A good reason for
non-food sales in supermarkets lies in their high profit
margin“ In the SupereValu Study” the gross margin on sales
of the household supplies was 28.3 per cent compared to

18.1 per cent of the grocery department.u9 The relatively_

high profits derived from these items make it possible for

uaM. M. Zimmerman, The er Market,6 (New York:
McGraw Hill Book Company, Inc.,su ), p.

u9"Super Valu Study", Progressive Grocer, (March
1958) .9 p0 S'L‘l'

121

an organization to either make money for the owners, pass
the added profit down to the customer in lower prices, or

offset the loss of another department.

Non-Foods in the small Stores
Small markets in large cities often claim they have
no room for many non-food items. A small chain in the East
Coast offers thousands of items that many big firms have not
yet started to handle- To accomplish that, they are stres-

sing in the followingzso

l. Careful buying. The non-food buyer of the firm
says his three main goals,in_choosing merchan-
dise are to pick items that have lasting appeal,
to remember differences in local tastes, and to
concentrate on seasonal promotions. In his ef-
fort to pick items that have lasting appeal,
the firm leans heavily to staple lines. Patterns
of dishes, crystalware, and cookware, for exam-
ple, are usually offered on an open-stock basis
in preference to in-and-out deals, because this
gives customers an opportunity to accumulate
full sets over a long period of time and to
replace any pieces that get broken or damaged
in use. Buying habits differ among people of
different communities and even among those in
the same area. Seasonal appeal is another
factor that cannot be overlooked in the selec-
tion of items.

2. Utilization of Space. Since it takes so much
more floor space to get the same volume from
non-foods as from foods, it is necessary that
all space available for variety lines he care-
fully utilized. In the Massapequa Markets a
5 unit chain of New York, walls are lined with
shelving and the center sections are filled
with island fixtures and tables so that all
lines can be an open display and easily acces-
sible to customers.for close examination. All
items are carefully departmentalized so that
related lines are displayed near each other.

SO”Non-Foods: Problems and Opportunities", Chain Store
Age, (October 1957). p. 13h.

h. .

122

Main sections in the mentioned stores include
household gadgets, phonograph records, have
furnishings, lawn and garden equipment, clean-
ing needs, cookware, tableware, plastic items,
lamps and lamp shades, electrical supplies,
paints and wall paper, laundry supplies, no-
tions, stationery, toys and gifts.

Adequate Staffing. Since the non-foods merchan-
dise as the rest of the groceries is operated

on a 100 per cent self-service, large staffs are
not needed to Operate them. But the personnel
must be chosen carefully, because their jobs
involve much more than just checking out mer-
chandise. Most of the chains have tried to
select men and women for the non-food depart-
ments who are particularly interested in

crafts and hobbies and who have natural apti-
tudes along these lines. In the small chains
usually one person is responsible for receiv-
ing orders, price marking merchandise, stock-
ing shelves, arranging timely displays, keeping
merchandise clean and displays orderly, and
making rotations of any items customers call

for that are not carried in stock.

Handling Closeouts. Many operators of small
food stores feel that two of the toughest prob-
lems are to avoid introduction of lines that
lack popular appeal and overstocking of strict-
ly seasonal items. Many of them are pretty
conservative in buying seasonal specialties

and things that classify as useless novelties.
They do not like to carry over a lot of mer-
chandise nor to hold close-out sales or offer
shopworn merchandise.

Improving Non-Food Displays

One of the leading chains on the West Coast recom-

mends the following seven gimmicks to improve the displays

of non-foods. These techniques, the merchandiser manager

says, are carefully engineered to give sales velocity, con-

sidering them both an art.and a science.

1.

v - .i '3‘: '

UsefwellfiKnown Brands. The big namesrnean big
box-office. What they do to get maximum turn-
over is to select only the tried-and-true fast
sellers. They take.these and allocate space
for them on the bases of their gate receipts--
the more dollars the more prominence.

2.

‘JT
'0

123

Maintain a Proper Stock. The merchandiser
manager of the chain points that out-of-stock
is their worst enemy. Nine times out of 10

it is incorrect ordering that creates those
selling gaps. What they are doing is to set

up the order pad to correspond with the line-
up of merchandise on the shelves-~left to right
and by sections- This, they say eliminates
tapes or marker identifications. Once the
alignment is established, the shelves are
filled to capacity. In this way it is easy

for the store clerk to locate items in the
line-up. They alledged that with this tech-
nique it takes only a few minor adjustments

to handle new items.
Use the Proper Fixtureg."-When shelves are
rigid, it is the toughest trick in the world
to pack the merchandise in without leaving
empty areas above and below, they say. It
wastes space, and gives the customer an im-
pression that the store let the diaplays run
down, or that are discontinuing lines. To
avoid that "empty feeling" this western firm
recommends the use of adjustable shelves so
that they do not show big gaps above odd sizes
of bottles and packages.

Try the "Per-Board". They maintain a d-foot
section of 'peg-board" in the center of each
non-foods gondolas. It has shown that it can
hold three times as much merchandise as peg-
boards strung completely across the tops of
each gondola. .

Provide a permanent place for items that are
hard to stack. Manufacturers' deal packs at
special prices or with free merchandise attached
often are difficult to stack in the regular
shelving. The store provides a permanent place
for them right at the end of the health-and-
beauty aids gondola.

Display Related Items. The merchandise manager
of the firm says that they like to duplicate
certain items in related grocery departments

so that they catch the customer who has hap-
pened to by—pass the regular drug display.

30 they show sanitary napkins at the paper
goods table and baby needs within the baby
foods table. '

7. Use "Spectacular" Displays. This chain or-
ganization authorize two feature displays per
month which they call."spectaculars". Gen-
erally these displays either tie-in with the
holidays or they are special manufacturers
promotions of major importance. These pro-
motions are always merchandised on special
and diaplayg designated by the grocery
department. 1 .

Counters and Check-out Systems
In modern self-service stores the main function of
the check—out counter is not to maintain a physical separa-
tion between the cashier and the client, but to set up a
convenient place for checking each patron's purchase. "I
will receive merchandise, move merchandise, and aid in the

a .‘

physical handling of merchandise.

There are three major types of checkout counters
used in self-service stores today:

1. Rectangular type of counter.

2. Counters that form a "U".

3. "L" counters.

Grocers can use the type of counter best adapted to
their particular needs. The following is a brief description
of each type: -

Rectangglar Eyng: Are commonest in small stores

that have a considerable part of theirflvolume in charge-

51"The Truth About Health and Beauty Aids", Super
Market Merchandisigg, (March1957)a Pp. 67-68.

52

E. A. Brand, et. a1., 22. cit., p. 12h.

and-delivery services. Other than checking counters, they
are used in assembling delivery orders, handling credit

deliveries and serving the few customers that still prefer
the clerk service. They are adapted to small stores with

limited floor space.

 

"U"-shaped Counters: This type of counter works

good in medium sized stores Whereflthere is a limited credit
- 'r. ’4 it"
service and where the managementwants to maintain friendly

customer.relations. This type consists of two counters

forming an "U"

”a? Counters: Are the type adopted by the strictly

 

cash and carry stores. Is the best type for stores with
large volume of sales. The commercial types of counters
are "L” shaped. They are good for easy traffic-flow and
rapid checking.

In bigger stores with a heavy traffic a clear
separation of lanes and sometimes doors for incoming and
outgoing traffic should be clearly stipulated. This is very
important when planning the location and arrangement of
checking counters.

The checking counters should be located near the
store exits so the flow of traffic will be to these exits.
The shOpper usually plans the merchandise on the counter
where the checker moves it item by item with the left hand
and using her right on the register keys. The merchandise

is usually sacked by a part-time employee known as "sacker"

126

or "bagger". During slack periods the checkers perform
both Operations.

In a recent survey Conducted by Progressive Grocer,
indicated that on the average three checkout stands are
being, used in stores averaging C310,000 in weekly sales;
four in #720,000 a‘w’eiek stores, and for $50,000 outlets,
eight check011ts'n'arié. b‘e‘ihg used.- The number of checkouts

used by a particular. store willl‘vary according to local

needs, however, these averages indicate the number of ‘
checkouts used by over half of the operators surveyed.53

The Food Merchandising Staff recommends determining
the number of checkouts in regard tofloor space. They
say that for stores of 100 to 200 square feet, one Checkstand
is enough 2 for stores from 2,000 to 3,000 square feet,
fiVe in stores 6 to 10,000 and six in markets of 10,000 to
13-UOOO square feet.5u’ The final decision depends, of course,
on Inany different factors. "Variables, such as the speed
of the cashier, number and speed of the baggers, and whether
the cashier must cash checks, handle bottle returns, coupons,

stamps, weigh produce, etc., affect the dollar sales that

pass through a checkout stand per day or week.55

/

AA.

0 53"How Leading Store Engineers Plan New Super MarketS":
‘13.. cit., p. 58. -

P Shml‘iinimum Requirements on Fixtures", Food Store
lanner, (Saint Louis: Food Merchandising Publishing 00.,
I§55L p. 7.

SS ,
E. A. Brand, loc. cit.

M

127

CHAP TEE I X

PRACTICAL ASPECTS or LAY-OUTS

Where are certain basic ideas when designing a

practical store layout such as accessibility to the merchan-

dise, Opened displays and visibility of all items. What is

meant by these three terms is that the merchandise should be

allowed to sell itself. The days.when the merchandise was

purposely placed to be out of the reach of'customers are

Self-service merchandising principles have affected

store designs and internal arrangements of fiXtures and mer-

chandise.

ments look

As a result of these changes, retail establish-

for certain basic objectives when designing the

store layout.

1.

5.

To facilitate complete customer circulation
of the entire store.

To increase sales of high margin merchandise.
To establish a buying routine consistent with
the consumer's thinking, habits, and methods
of planning. —

To make the task of shopping as pleasant as
possible, so pleasant that satisfaction is
apparent by repeat visits._

To provide the most effective utilization of

space from the standpoint of operating efficiency.1

.—
—

A‘. Brand, .92. Cit.’ p. 102.

Merchandising eXperts agree, that a good arrangement
of stock is one in which there has been an integration of
impulse, demand and convenience items.2

The first logical step to arranging stock for self-
service is to classify the thousands of items into general
groups or departments so that customers can easily find.them.
Generally speaking these natural groupings are based upon the
way in.which they are used. So the shoeping habits of the
communitys served by the store is very important in arranging
the stock displays. "Possibly the best way to approach the
merchandise layout problem is to consider the thousands of
grocery items in your inventory in terms of just to to 50
basic product classifications with which the average customer-
is familiar."3

Demand items in the grocery department are those
that are practically always on the housewife's shopping list
such as bread, eggs, sugar and coffee among others. On the
other hand impulse items are those that the shopper buys,
but were not on her list or on her mind when.she entered the
store. At sometime or another, any item in the grocery de-
partment may serve as an impulse item.

Demand items are generally spotted throughout
the department, with the majority of them toward the
rear 30 as to draw customers through the entire

department and give them a chance to see all the
merchandise.’4

— ‘

2Pro ressive Grocer Staft, Modern Supermarkets and
Superettes, %New York: The Butterick Co., 19557, p. 18_

3Ibid.

 

“John ‘31.. ErnGSt’ 9-2. Cit., p. 18.

129

The impulse items are recommended to be placed
where they are more accessible to customers. Grocers in
Puerto Rico should have in mind that staples like rice,
beans, tomato sauce, lard, dry and evaporated milk and sugar
are typical demand items. When arranging the merchandise,
these items should be spread throughout the grocery depart-
ment so that customers will shop the entire department.

The relationship which one item bears to another is
important. In arranging the merchandise on shelves, the
grocers in Puerto Rico must keep in mind the tastes and
habits of his clientele. Usually olive oil is the every-day
dressing_for salads so it should be placed near the produce
department. Dry and evaporated milk near breakfast items;
soaps near_household goods. Soda crackers are very popular
in Puerto Rico for breakfast, while native fruits and jams

are used for desserts as is cheese.

The Grid-Iron System of Lay-Out
The traditional layout pattern in most retail stores
is the grid-iron. It consists of placing the gondolas paral-
lel to each other. Gondolas are usually long without breaks
for cross aisles, This type of gondola arrangement produces
an efficient flow of customer traffic. Short gondolas with
many cross aisles result in customer confusion and waste of

floor space.5 Some of the objections of the grid-iron

5Russ Maintain, "Layouts--Hopeful and Helpful", Super
Market Merchandising, (June, 195?): pp. 62-63.

130

layweuzt are monotony caused by the long gondola lines and
the; avarehouse-like appearance of the arrangement. Of course,

in.:a. small store this objection is of_little importance.

The Diagonal Design

The diagonal layout is a variation of the grid-iron
pairtearn and consiSts in arranging the grocery fixtures in a
diaggcxnal way. This type of layout is popular among small
armi rnedium-sized operators because it gives the illusion of
greater size. The Independent Grocer Alliance is a booster
of this system:

The angle alignments of the island's make

it easier to snap the overall storeo-all depart-

ments easy to identify--selection of merchandise

easily madeo-traffic flow congenient for maneu~

vering of the shopping carts.

Some store engineers claim that the diagonal system
Uti.lfizes floor space less effectiv ly. In research conducted
‘by 53<3me grocery chains, it was found that this arrangement

PF*“i’Llced consideratfly the display space in the produce and

fro:: en food departments .7

\ A.

I W. H. Longenbaker, "Ways and Wherefores 9f Store
(:YOut", Independent Grocers' Alliance DistributingéCou

U5: Sport 9;: the Extension Retailer Educatipn Clinicfiurduo
n-‘versi y,—l§§27, p. 39.

"1

d1_ '"Av053 the Diagonal Lays t", Super Market merchan-
$111.7, {‘z."U.'J'.‘-:"- 1957’, p. 63.

 

131

Alcove Arrangement

This is an innovation in the standard arrangement
anti teas deveIOped by an eastern chain. The walls of the
store are divided into semi-circlesErigdepartmental bays.
Threads bays are designed so that eivht carts can be maneuvered
wiiibi relative ease in each one. This arrangement permits
higher shelving without interfering with the vision of cus-
tamer-s in the market. Departmental isolation is possible in
the? zalcove system so the customers can speed up their shop—
ptrfig; as soon as they are familiar with the location of‘

difffearent items. A one-way traffic pattern is usually used.8

Free-Flow Layout

This system is characterized by the absence of sharp

tUrns, regularity, and uniformity in the shopping areas.
The free-flow arrangement consists of a

series of circular, octagonal, oval or U-shaped

fixture patterns, resulting in curving aisles

characterized by a deliberate absence of unifor-

Some of the food chains in the east, especially
Grand-Union Company, are using a‘ radial store arrangement
’flisrh actually is a free-flow design. AThe main advantages
Cléiimed for this unusual store arrangement are:

l. Flexibility is facilitated in that the linear

counter frontage of a department can be contracted

\ __-

T

i' 8"Grocery Bays-~A Novel Layout Dimension", SUPEE Market

\“el‘ohandising, (June, 1957), pp. 76-77,

( 9Paul L. Brown and William B. Davidson, Retailing,
New York: The Ronald Press Company, 1953), p. 132.

 

T

or expanded by inserting-drkremoving fixtures
without altering the general pattern.

2. It increases customers' exposure to merchandise
by eliminating straight aisles and provides
incentive for devious courses of customer
movement.

3. The departments stand out clearly from one

another with distinctive size and shape.10

 

10221;].-

133

CHAPTER X

S TOR E RNGI NEER I NG

Modern Store Fronts

PeOple get their first impression of a business from
the store front. To serve‘as an invitation to enter, the
front must be attractive and suggestive of solidity and
chartacter. Grocers know by experience that very often the
customer's decision to step into a food store is stimulated
by the quick first impression that she receives from the
store exterior. "The store exterior must appeal not only
to regular and transient shoppers, but also to new families
EWittering the area."1

A store front is a form of advertising. When plan-
ning; store modernization, the front mustliec onsidered a
Apart of the overall merchandising plan. It is the store's
personality to the customers. The food chains are using
m°dern materials and designs, increased attention and more
‘ planningto make the, most of the is tore fronts. Generally
fbod chains use three different types of store fronts.

1. Open fronts: They are Open to view and utilize
full windows and glass doors to diSplay the interior of the

Store to passerby.
\

A 1"The Outside View in the Inside Sale", Chain Store
£§_g (OCtOber‘ 1955), p. 1190

 

2. Closed Fronts: Are markets without display
windows. Some chains adopt the closed front where space

necessLtates use of the street will for refrigerated dis-

? .
- .4

Play cases or similiar selling equipment. "

3. Flexible Fronts: In this type of front the
sales floor- can be shown or concealed. Curtains or remov-
atilcs show-window backs allow ready transition from one style
tc> 13he other or a combination of thetwo.2

There are a great variety of materials that can be
useeci to make store fronts attractive. The grocer can select
those that best fit his conditions such as cost, avail-
atTiilijy; adaptability to weather conditions, etc. The
f'Oliiowing is a list of some of these materials:

1. Marble .

2. Granite veneers

3. Stone

k. Terra colta

5. Roman brick

6. Brick

7. Pre-cast terrazo

8. Ceramic tile

9. Porcelain enameled metal

10. Cement stucco
11. Metal alloys

12. Structural glass

A 2”Making the Most of the Store Front”, Chain Store
\ELQ‘, (October 1953), pp. 176-150.

135

Ralph Ernest, a store engineer for N.A...G.U.S.
makes the following recommendations to small operators

planning to remodel. their store fronts:

1. Get rid of all foreign signs, for they give a

very cluttered appearance. Consider the possibility of re-

locating the entrance, and revising it in such a way as to
create a "new" impression on people going by.

2. Re-face the front of the store. Today the ten-
dency is to create a hori zontal line plus the impression of
a longer, wider store, and that is not possible with a two-

story false front on a one story building. He recommends

products like redwood, plywood, imitation stone, tile, brick,

some only a half-inch thick to be nailed onto an existing

wa11.3
_’"_1r_x_e_ Store Entrance: - The-entrance should invite
customers to enter and shop. Entrances,aregdesigned to im-
PPOVe the overall store appearance, wearing qualities, and
1311911. ability to be Opened easily. Doors are often (318831"

fied by their position in the store and by the way they are
operated. The following is a general classification for

(1001‘s used in chain stores:

1. Clear-vision doors: ”heir big appeal is that

they are light in weight and easy to operate.

\

 

BQl BRalph Ernest, "Annual Modern Stores Issue", N.A.R.G.U.S.
1313111,- (February 1955). P- 50-

136

2. Electrically operated: Are preferred by grocery
stores where purchases tend to be bulkyrgj: A

3. Revolving doors: Are more common in big depart-
ment stores but are not used by food store operators.

A. Central doors: Are sometimes criticized since
‘they limit the space available for window display.

5. Doors at the corners: Are most favored by drug,
tuobacco and candy chains and others not requiring traffic
cue either street to go out of its way around the corner.u

Store planners recommend using off-center entrances
for s upermarke ts .

When talking about any type of store build-
ing, we must consider the front . . . An off-
center entrance is usually more efficient and
easier to operate than a center entrance. There
are some exceptions to this such as in large mar-

kets where space is secondary, or where a cegter
entrance gets closer to more parking spaces./

‘§tgrg‘§ig££: They are considered as part of the
sales promotion. in modern food stores. "Each market has an
(“itiicxn'salesman who plays an impressive role in the creation
of 'hngsiness. This salesman is your store sign."6 If there

Q
‘8 51 trade mark or name in script, the grocer should use it.
\ ~

C o

h"Making the Most of the Store Front": loo. 1

5Ralph Ernest, on. 01 ., p. 52.

in

6 ' e
"Your sign is your Salesman", Super Market Merchan-

M, (May 1953). p. 183.

 

137

The purpose is easy identification of the store. Stores
located some distance from the road or roads need signs with
larger letters so as to be readable. Plastic signs offer
‘great varieties of color and lighting and being flexible,
<:an be used for script signs or for trade marks. Wood,
rnetal, stainless steel or plastics are all good materials
:for signs- mhe grocer must check adjacent buildings or
<>bstructions to determine the possible height for the sign.
When deciding on a sign, the operator should con-
ssider the night time appeal of the store, since currently
timers is a strong tendency toward evening shopping especially
1r] suburban areas and shopping centers.
fygggg: r71hey are now being erected by food store
Operators in the form of signs rather than actual towers.
t)57'3.()ns must suit the lbcation of the store. Outlying subur-
Ibéiri shonping centers design pylons and lighting to attract

passing motorists. In urban locations,.l'however,‘ they re-
‘ " ' 3"? .

- ' .44' - '
tain more mooest proportions in keeping with a shorter eye-
r‘1‘—=1n£};e.7 A pylon on the street is probably one of the best

«a

131.3ces to spend money for a Sig

D

iphting

'o.

["1

Store
By improving the quality in general, and adding

C
‘34.3play and spotlighting, sales can be greatly increased in

\ ”a .-

_7"Pylons Point the Way", Chain Store Are, (May 1955)!
pp . 86-57.

136

self-service stores. Good lighting is one of the most
valuable tools for an aggressive retailer.

The modern, progressive grocer of today
realizes that lighting can be more than interior
decoration--it can be a strong merchandising de-
vice. A well-engineered lighting installation
will draw attention to the store and its merchan~
dise; it will lead sales appeal, induce peonle to
see more items, and it will contriout etc a cheer-
ful stimulating interior.5
There are three general types of interior lighting

[Ased‘at the food stores:

1. Accent lighting: The purpose of this system is
to draw attention to special displays. "Dead"
corners become sales centers when the lighting
is above the level of surrounding areas.

2. Down lighting: Is especially effective at
meat and fresh produce counters to improve
color, add sparkle to shiny surfaces, and em-
phasize form.

3. Perimeter lighting: Identifies departments
by using wall-mounted signs and decorative
elements, improves store appearance and one»

9

tomer circulations.

The General Electric Cor “pany recommends that there
Sflcn11d be a minimum of at least 100 foot-candles throughout
a. f'Dod store, up to a maximum of LOO foot-candles. What is

1"‘~"‘3&3L2iy important to the grocer is the amount of light on

\- —_

8Progressive Grocer Staff, op. cit., p. 150.

 

(J. 9R. T. Dorsey, "The Silent Salesman" , Iight Magazine
uljy-October, 1957), p. 45. ' y

 

159

the labels of items, not on the store's floor. In food
5 tores today with many sales being made on impulse, it
15 important for the labels to be seen. The requirements
for food store lighting may look rigid, but fortunately
there is. a variety of fixtures and systems available that
Ineke the task quite simple.

The basic and simpleSt unit is the individual fix-
fnnlree- It can be surface mounted or recessed into the ceiling.
The units- can be installed in groups or placed end-to-end to
form rows, or geometric patterns.10

To prevent glare and excessive brightness, the bulbs
are shielded by use of glass or plastic bottoms and sides.
Many manufacturers prefer the "egg-crate" bottom as they
diffuse and direct the light properly.

The ultimate in lighting is the luminous ceiling
in which the entire surface is illuminated. Plastic squares
01‘ leng th of corrugated plastic are placed in .a grid to

d' f‘
1f use and conceal the actual lights mounted above. A1-

H‘Oué’s'h rows of fluorescent tubes are the actual source of

light, the light spread on the plastic is so even, the en-

tire Ceiling appears to be illuminated.11

A combination of incandescent and fluorescent light-
in? wi— 11 give sparkle especially to cellophane-wrapped items.

\ ..

ébr_ 10"Latest in Lighting" , N. A. R.G.U. 3. Bulletin,
“ax-y 1956), pp. 67- 87.

llIbid.

W

U?

53cnne food stores have fixtures with incandescents mixed in
yji_th the fluorescent tubing.

Auxiliary lighting is used no matter what type of
3_i_5;bting system is selected by the grocer. Spotlights are
very necessary to attract attention to special displays.
quaéafm look better when incandescent lamps are used, there-
ifcrxrerfloodligits or spotlights are preferred over the meat
casesl Additional spotlighting can be used to illuminate
wall directories, departmental signs, plaques or wall dis-
Ialmaqys.

Colors 22; Modern Stores: The color scheme for a
fcuaci store inhances the personality of the store and helps
iri tfiae proper illumination of the interior. Pastel shades
reflect more light. Walls and ceilings should be rough

surfaced or have a flat paint to prevent glare. For stores
111 a (:limate with predominately hot weather, colder colors
like blues avoid the impression of more heat. The use of
Wall, paper, murals, and panels isincreasing. Manufacturers

of wall paper are making more patterns which have food

theme 3 . 12

i
.4

Floors *.32"
There is a rather wide variation of materials and

003*? 01‘ floor coverings. In selecting a floor covering,

the grocer should consider the following factors:
1. How long the new floor covering will last.
2. Which is the best adapted flooring for the store.

N

12

Ralph Ernest, 92. cit., p. 56.

141

3. Maintenance cost of floor covering.13

The better grades of asphalt and vinyl tile gener-
ally are guaranteed. for 10 years or more in stores with
heavy traffic.

Some grocers prefer the dark-colores patterns of
asphalt tile for the resistance of the product to scrapes,
scuffs, cigarette burns and rough treatment. On the other
hand other grocers prefer linoleum because it can be laid
in a pattern that will direct store traffic.

Preper maintenance is essential in setting the most
satisfactory usage of the flooring selected. Good vinyl has
an advantage over linoleum and asphalt tile in that foot
traffic helps to buff the surface, so that wax is not re-

qui red and the hazards of slipp‘eryf floors are avoided. 14

. O

Grease-proof tile is convenient in the meat room
"for long senvice. Many retailers use a small rubber mat
in the meat operations or use a rubber tile that withstands
humidi ty and will not damage. Grocers in Puerto Rico can
use tar-razo and cement tile as they are locally manufac-

tured and in most cases store owners can afford them.

Parking Area
The commonest location for parking areas in modern
P .
“00d markets is in front of the building, next most desirable

N

ndC 13Lucas Coving, "Give Your Floors a New Face” ,Voluntary
.9..- wratives Gro_ups Magazin3,~(-January 1955), p. 19.

 

 

1bTbid., pp. 19-22.

11.2

is side parking or a combination of front and side. Store

engineers agree that the least desirable is rear parking.

Usually the parking area is considered in relation to store

3 5, ze. "In a metrOpolitan location you should try for a

3.. 110-1 ratio of parking lot-to-store size, in open areas

2 t least )lPtO-l is to be preferred.15

On rectangular plots lengthwise narkin lanes are
l . a c l 8

recommended for a better use of the space. If the lot is

irregular, variations can be used such as lanes parallel to

the length of the building on one side, and perpendicular on

another, depending upon the lot. A 90 degree angle for park-

ing utilizes the space to the best, but drivers, especially

women like better to park at a 115 degree angle. "Women will

continue to park at a MS degree angle, so why fight it: A

145 degree angle is, you might say, virtually the only angle

for self-parking."1° Unfortunately most of the grocery

stores in Puerto Rico lack proper parking facilities, and

in the big cities and towns none at all. Of course, the

new stores Opened provide relatively good parking facilities.
Parking; lanes eighteen feet deep and eight feet wide are

enough to accommodate even the biggest cars.

Miscellaneous'Equipment

Air conditioning: Everyday more food store opera-

tars are aware of the great merchandising aid of an air

conditioning system. ""I‘tm principal reasons for air con-

N

15 I

Progressive Grocer Staff,3éfi.'c1t., p. 9.

lélbid.

 

1&3

ciixtioning are: bringing additional customers to the super-

znsazfikets while retaining the present customers, and maintain-
171g; a.competitive position in the trading area."17

There are two main systems of air conditioning,

{'1 rest, the self-contained unit available in small sizes and
aaéiaaxoted to small outlets, second, a large conditioning
system with a central installation. Both systems can be
either water or air cooled. In a hot climate such as exists
111 Thierto Rico, air conditioning is more than a needed cus-
fxannemr service, but a way to reduce spoilage in perishables

especially produce and meats.

Shopping parts: The evaluation of this equipment is

very interesting from the first ones used at Humpty-Dmnpty
. . .

anorwes in Oklahoma to the modern foldingiohrt. mhe moderni-
czadtirwn of this equipment has run parallel with the growth

of‘ s elf—service merchandising.

The modern folding carrier is a resting cart,
with a capacity of possibly twice that of the
original carriers. It is beautifully made, chrome-
plated steel, and Mrs. Housewife's side arm when
she enters a super market. Operators found that
as they increased the size of the cart, the size
of the order also increased, so that now they are
making them as large as they possibly ,gn. The
supermarket created this new industry. U

17E. A. Brand, 22. cit., p. l30.

18M. M. Zimmerman, The Sgper Market, (New York,

Md}P8&w.&HJJ.Eook Co. Inc., l§55): Po l33.

Some Operators recommend one shopping cart per 3225-

6330.“: sales per week. Others recommend the use of 15 to 30

carts per checkstand.1‘9

. .-.

Markini‘iI devices: In studies conducted by the U. S.
Department of Agriculture, it was found that retailers who
mar-k prices on grocery items wi t‘n crayons or grease pencils
can save as much as 10%.— hours per 1,000 cases of groceries
by switching to the use of improved stamping equipment.
The researchers conclude-:1 that the test methods were using
the self-inking stick stamp and the band type adjustable
starnp.20

Knives to Open cartons are a great help when stock-
ing shelves. Intercom systems are used in big stores to
0811. Orders from the backroom, to the store area for re-

StOCking- 1‘1an.factorers are continually working on new

T’F‘m'llc 1; research to develop more efficient equipment.

19 , .
"now Leading stores' Engineers Plan New Super Markets"

on. ,
““ ~°1\t.. p. 60.

Mark: 'ZOPaul F. Shaffer and Dale L. Anderson, "Faster Price
ture 119;", ”Marketing- Activities, (U. S. Department of Agricul-

 

’ Agricultural Marketing Service, November 195M, p. 1.

CIEA 1W3}? XI

IN S FL F-SEHVICE S 'T‘ORES

C3
0
CI]
C)
{J
81‘
I-
9.4
~ 4
J
D
J;
1
v‘
(j)
....2
4
Fr,

Spoken Salesmanship
Many Operators think mistakenly that personal sales-
znsarxship is something that has passed out with the advent of
seelwf-service. Consumers still like to have information about
+1163 znerchandise they are buying, so always will have ques-
‘ti<3ris to ask. New products arrive practically every day and

O 9 A-vn'\-. . huh“. ! r + 4
Mrs - Housewife, nee}; t; he in“ “up". about th...,.. and tne bes. ways

in which they can be usei. This familiar atmosphere where
owner and employees can talk to shoppers and answer their
ques tions. is one of the big advantages that small indepen-
dent Operators usually have. over the big corporate chains.

“(.7

When agcustomer is in doubt or guessing which item

v

.1

to I>i<2Lc Qfilwfiepe as find something, this is a good opportun-
ity 1?c>r~efTective salesmanship. The usual question of the
owns]? cu*employee is - can I help you? In self-service
this Question should be changed to - did you find what you
were logging for? Hi th this second approach the clerk or
owner can guide Mrs. ShOpper to find what she is looking
for"‘1ead her along certain areas where there are special
disrilEizvs or merchandise the grocer likes to be looked upon.
Printed Salesmanship

Printed salesmanship has many applications. In

C:OMbLIlatinn with spoken salesmanship it can be very effec-

tiv
e,_ Salesmanship is well adapted to seasonal events like

his

Christmas, New Years, Easter, I~iothersDay, Dairy Month and
national. celebrations such as Washington's Birthday. Show-
cards- and sign writing is neither difficult nor expensive.
In nearly all, communities there are persons and organiza-
tions. who are able to produce for grocers.
Consumers want to know how to get variety in meals,
what to include in the meal for the party or what to put in
the lunch box, Printed salesmanship is of special value as

a c onsumer education service.

The Value of Displays

No description or picture of the merchandise can be
as e f’f‘ective in inducing shoppers to buy as the product
itself, To show customers a new item carried in the store
in the most effective way is the purpose?“ ordisplay.
"Displays are used primarily to increase sales. And food
chains“ have found that such diaplays up sales of virtually
any 1 tom in the store."1 Displays can be one of the most
effec tive ways of promoting new itez'us and at the same time
one Of‘ the least expensive methods of increasing sale 3.
Well- displayed goods are simple, direct, and honest adver-
“Sings For using them as promoter of new products, they
Should not draw the attention to the elaborateness of the
display but rather to the merchandise which is displayed.

"
A spacial- display may have the effect of‘ spotlighting a
\ ‘—

1: , n
1956) . p. @2938 Display Manual -V, Chain Store Age,(February,

1147

certain high-profit department where it can build sales of

:92

many items. Good display, therefore, is unobtrusive and

focuses the entire attention of the prospective buyer on
the product.

Diaplays {bi ipcreasing sales of a specific item is
one feature of‘grOCery store, merchandising over which the
grocer has a large measure of control... A store manager at
Carpentersyille, Illinois, moved about 1‘30 cases of canned
foods of a new brand in a 10-day period by displaying them
ir1 21 high traffic location.3

Special displays are built for many good reasons to
premata new items. They create a price impression, estab-
lish. customer confidence in quality of products, influence

traffic patterns in the store and accomplish a number of

Other results .

Where to Locate Special Displays

Every store has a place where special displays can
be made which draw the customer's attention and are of great
Salesx value. 01‘ course, no rule of the thumb "catch-all"
method can be named. Each store has its own set of var-
iables; the store layout, the flow of traffic, the buying
habits of the. customers, the store fixtures, etc. All of
these effect where a grocer should, and can place a displaY-
Previouslh stores generally thought only of the store win-

dow ‘
33 the place for special. displays. More and more window

\ L

2Ibid., p. 63.

31b1d.. p. 57.

ILLC’:

ciisplays have been replaced ty special displays placed in-

g;i_de the store. The following locations are recommended by

true leading executives of the food chains:

1.

2.

h.

5.

End displays now account for a greater percen-
tage of store sales than ever before. There is
a trend to more ends, to variety in fixtures
and props, caution and discrimination in choosing.
items for display.

Parking lot For excessively bulky items that can
be exposed to outdoors conditions like Christmas
trees.

Free Aisle Space especially at the produce de-
partment where aisles are relatively wide as

a general rule. This is a good spot to promote
a new brand of salad dressing or a new type of
spread.

Checkstands displays are good for moving small
items like candies, cigarettes, and health and
beauty aids.

Entrance Positions in some stores are used to
move a special pre-Christmas layaway diSplay of
a high-ticket item.

Mid—Gondola displays are, in effect, ends in

the middle.

Pillars locations can be used to display a wide
variety of merchandise and tie-in with a new

related item.

10.

Wall displays can be used to spotlight bulky
items like paper tissue. They are more conven-
iently located at the end of the main aisle
leading to the checkstands.

Odd Space is used sometimes by displaying items
of other departments. A good example of that
is to display dry groceries in a freezer case
when there are no frozen specials.

Overhead Risers help to do a good volume on
seasonal items like Christmas merchandise.

The top of the refrigerated cases is used in

many supermarkets for this purpose.

CHAPTER XII

SUMMARY

During the last few years there has been a trend in

Puerto Rico toward industrialization. Under "Operation

.a from an agricultural

Bootstrap" the island is c-_a:i;,in;;

economy to an industrial isle. This year the 667th factory-m

a cutlery plant in a small town of the interior-~went into

production. To accelerate the establishmant of industries,

.-

F’omento, a public corporation, got the island $275 million

in investments. As a result of that 60,000 new jobs have

‘ l
D ‘5
‘ v

*.. ..

been created.

In 1937. the average family income was 92,h00 com-
Dar‘ed to “3600 in SUMO, The gross product of the country last
year was 911.2 billion compared“ to 533257 million in 1914.0.
"Like the moving. needles on the instrument board of a climb-

“?th plane, all of the economic indicators rose."1

Food Distribution in Puerto Rico
As a result of the studies conducted by government
and private organizations, it was. found that deficiencies
in Food marketing were costing island consumers approximately
99 million dollars. 'T‘he governor of Puerto Rico appointed
a con-unittee to conduct further studies and file recommenda-

t
ions as to possible solutions of the situation.

\
1“The Bard of Bootstrap", Tdme, (June 23, 1955): P0 350

 

151

In line with the suggestions of this Food Advisory

Committee a Food Distribution program was organized as a
division of the Puerto Rico Development Company, a public

corporation- 'l‘he program was headed by a food distribution

graduate from Michigan State.

Efforts have been conducted by this new agency known
at present as Office of Commercial. Development in cooperation
wi th other public and private organizations to improve food
marketing at both wholesale and retail levels.

Some programs to improve the existing conditions in

produce, meat and dairy prOducts have been established and

others are under way.

The Agricultural Extension Service

The Extension Service is a government agency organ-
ized in 1911.; by the approval of the Smith-Lever Act. It is
a COOperative organization between the TFederal and State
SOVePIments. rT'he main objective of the agency is to educate
people, not in classrooms, but in farms, dairys or grocery
Stores- The educational activities are very broad includ-
ing agricultural education, home economics, marketing, youth
organizations and other related fields. Both rural and. urban
population are covered by Extension teachings.

The Extension Service uses a varied number of educa-

ti
Onal methods to accomplish its objectives, but demonstra-

tin
n methods are preferred.

152

Since l9h6, food retailers are receiving practical
instructions. from the Extensi on Service in modern methods of
food handling.

The Extension Service was started in Puerto Rico in
193d- and has grown so fast that today practically all of the

rural and urban families depend on this agency to obtain in-
formation on agriculture, home economics, marketing, [health
and youth organi-.ations. In most of the cases, the extension
agent and the home demonstration worker are the advisers in

practically everything in their respective communities.

Self-Service Principles
No single factor has contributed so much to the re-
cent improvement in retailing efficiency as self-service
operation- This type of operation has become so popular and
so successful that it is now setting the pattern of food dis-
tribu tion. Now the modern self-Service food market handles
a Conigolete line of foods with a great deal of emphasis on
periShables- All of the stock is represented in the displays,
and he aply all of them can be handled by customers. Operating
”menses are low because customers serve themselves to most
items and thus save work for store employees.
Self-service may be more readily distinguished by the
Use 0’7 merchandising factors in a particular store rather
than considering a store tyne ' As a matter of fact eel.“-
u «- 1° ’ ~ 9 L
Service is no longer an exclusive of the food store, as drug

Store
*8 a specialty stores. and even department stores are

adoptine‘ it

133

Conclusions

rr’he writer has tried to present the actual condi-
tions in Puerto Rico today. With the rise in the living
standards. the population is improving the diet and expend-
ing more of his budget in food both in quantity and quality.
The food distribution in.existance was good to serve condi-
tions in the island before 19h0, but customers now want
better stores and more facilities to shop.

Some supermarkets have been organized on the island
and are doing very well using modern merchandising techniques.
The old grocery stores--coimados--are now deprived of a
good orientation program to convert them from "Father and
Mother" service stores. into modern retailing outlets. The
Extension Service has been conducting a very successful pro-
gram with food retailers on the mainland. The Extension
Service in Puerto Rico is now going to enter this field.
Before contacting grocers interested in getting the services,
it is necessary to give basic information on self-service
merchandising to the entension marketing agents and train

them to conduct the big task of modernizing food stores in

Puerto Rico.

APPENDIX

Table I

FISCAL YEAR:

In Dollars

15h

VALUE OF EXPORTS TO THE UNIlED STATES
AND FOREIGN COUNTRIES:

19u5-19SS*

 

 

 

 

 

 

Year Total To United States To Foreign Countries
19hS-h6- 161,h59,h90 157.633.277 3,826,213
19h6-h7 175,561,186 170,622,h90 7,826,213
19u7-u8_ 192,025,825 185,7t5,350 6,280,h75
19a8-49 20h,125,026 195.8u3,6h5 8,281,381
19h9-50 235,183,739 210,035,599 25,1a8,1u0
1950-51 271,2u1.87u 25u,365.527 16,876,3u7
1951-52 257,029,929 237,821,296 19,208,628
1952-53 318.76h.5h1 302,508,982 16,255,559
1953-Sh 3h8.1h9.077 332.50h.0h1 15.6h5,036
195h-SS 352,9u0,580 ' 3u2;577,772 10,362,808
1955-56
nSource: Information obtained from Table 168 of External

 

 

 

Trade Statistics, ?iscal Year 1956, Puerto Rico
?lanning anrd, San Juan, Puerto Rico.

 

VfiIUE
F0 F1 EEI SN

09 Imsosms PROK "HE UNITED STA
COUNmRIES FISCAL YEARS 1985-1955*

In

Table II

Dollars

"1'."
.11153 XXIII)

 

 

 

 

From From

Year Total United States Soreign Countries
19hS-h6 2hh,579,656 221,6351h75 22,98u,181
19u6.u7 311,010,359 287,952,093 23,088,266
19u7-u8 361,935,828 338,788,811 23,191,018
19h8-h9 350,506,151 326,295,198 28,208,953
1909250 3uu,660,007 317,958,309 26,685,698
1950-51- b37,§35,606 800.397.676 37,137,930
1951-52 uu8,087,592 611,227,129 ‘1 36,860,u63
1952-53 h96,012,280 853,227,600 52,786,680
1953-5): 525,826,987 l;75,889,798 119,537,189
19Sh-FS S7H.539.870, 52h,232.383 50,257,527
1955-56

fiSource:

 

l

 

 

 

1

Information obtained from Table 168 of External
Irade Statistics, Fiscal Year 1956, Puerto Rico
Planning—Board, San Juan, Puerto Rico.

 

...-J
\J'L
’3‘

Table III

SHIPMENTS TO UNITED S

m: as AND Eisoams 90 FOREIGN
COUNTRIES, EY_K$IN CenHQDITY cast?
9- . "

: FISCAL YEAR 195u-55*

In Dollars

 

 

To To

Commodity Group United States Foreign Countries
Animals, and animals ‘
products, edible 2,178,298 72,308
Animals and animals 2
products, inedible 10,887,929 93,695
Vegetable Food Products
and beverages lhh,l82,l32 1,892,713
Vegetable products, in-
edible except fibers V -
and wood 22,880,196 78,935
Textiles fibers and manu-
factures 89,008,685 590,015
Wood and Paper 8,663,280 502,558
Nonmetallic Minerals 5,160,892 2,33h,9l7
Metals and Manufactures
except machinery and
vehicles, 8,761,616 1,156,280
Idachinery and Vehicles 16,027,886 1,773,368
Chemical and Related '
Products 6,371,385 618,353
Miscellaneous 27,719,208 1,619,670
{baited States Merchandise '
Returned 10,662,086
Foreign Merchandise 518,627

 

 

 

ex-Sourcezc Data obtained'from: Statistical Yearbook, San Juan,
Puerto Rico Planning Board, 1956,p. 29h.

 

 

Table IV

SHIPI‘CEI‘I'T‘S NHOH 'T‘UC‘ UNI‘-':.II) STATES AN?) IMPORTS

‘ ‘ALJ

FROM RORRICN COUNrRISS, RY 5:109 COM ODIWY GROUP:
FISCAL YEAR 1950-55*

In Dollars

 

Commodity Group

'From

United States

From

Foreign Countries

 

Animals and Animals
Products, edible

Animals and Animals
Products, inedible

Vegetable food products
and beverages

Vegetable products, inedible ,
except fibers and wood

Textiles fibers and manu-
facturesi

Wood and paper
Nonmetallic minerals

Metals and manufactures,
except machinery and vehicles

Machinery and vehicles

Chemicals and related
products

Miscellaneous

 

56,258,013

20,821,8h9

83,898,879

17,932,833

8h,800,679
21,599,310
- 3 9 J-L'ZLL: 37.0

38,966,373
97,388,367

36,170,u56
33,019,168

 

9 9 111-3 9 M41!»

130,29h

6,785,693

8,370,559

2,071+! 792
99 199’ 970

1,206,098

1,928,850
2.652.513

 

€$Sourcez

 

0'.
9 I‘ I
.

’.

Information obtained from'Table 171, "External Trade",
Statistical Yearbook, San Juan, Puerto Rico, 1956.

{.4
\fl
U)

Table V

PRODUCTION 05‘ ”HI? L‘ZAIII AGEIIC’JL'I‘URAL CROPS IN
POWR'PO RIC-O: FISCAL 1’73"]? l95).1-55'3<-

Tn Thousands

 

 

 

Product Unit Production
Sugar Cane tons 9,873
M1115 qts. 225,795
Pineapples crts. 862
Coffee cwt. 193
"‘0‘09 0 c: o cwt. 3210
Citrus thousand 165,768
I893410163 cwt. 233
Stare hy "Jegetables cwt. 1,8110
Plarfitnains and Bananas thousands 1,019,UOh
Cereals cwt. . 220
Leafy and Vleshy Vegetables cwt. 518
Eggs ., ‘. ;- doz. 8,577
Beef V ‘9' ' cwt. 191
FDIqi ewt. 178
Poul try m. 113
other Meats cwt. 9
\ _

 

 

93-3 -
Our-c6: Data obtained from Statistical Yearbook, Puerto
Rico Planning Board, San Juan,

 

1956. pp. 182-183.

Table VI

NUHBER OF INDJSTRY

BY MANUFACTURE:

GROUPS AND
FISCAL YEAR 1958%

1...:
\J".
\O

VALUE ADDED

 

Industry Group

Number of

#Va1u69Added by Manu-

 

Food and Kindred
Products

Textile Mi11-Products'
Tobacco,Manufactures
Apparel and Related
Products

Lumber and Wood
Droducts (except furni-
ture)

Furniture and P1ixtures
Paper and Allied
Products

Printing and Publishing
Chemical and Allied
Products * '
Products of Petroleum
and Coal

Rubber Products
Leather Products

Stone, Clay and Glass
Pottery and Related
Primary Metal Industries
Fabricated Metal
Products

Machinery (except elec-
trical

'Electrical Machinery
”’ransportation
Equipment

Instruments and Related
Ifiiscelleneous Manufac-
tures

‘4

 

Establishments facturer in thousands

897 71,599
36 8,618
259 11,h27
.331 31,102
38 1,h10
202 5,739
9 3.173
93 h,h28
71 7.555

3 Not reported

6 Not reported
28 3,236
132 9ah85

2 Not reported
10 h26
60 6,3119
19 2,689
31 #:756
5 [L58-
12 2,368
86 12,911

 

 

*Source:

Statistical Yearbook, Puerto Rico Planning Board,

’San Juan*1956: pr—152-172.

’ 4..

 

 

 

 

 

 

160
Table VII
BIRTHS 153121Rma names, DEATHS AND DEATH RATES
PER 1,000 POPULATION: 1950 TO 1955*
Births Deaths

Year Estimated_ngulation Number *"Rate ‘ Number Rate
1950 2,207,000 85,h55 38.7 21.917 9.9
1951 2.238.000 88,007 37.6 22.371 10.0
1952 2,227,000 80,200 36.0 20,508 9.2
1953 2,213,000 77.380 35.0 17,966 8.1
1959 2.229.000 78.008 35.0 16,871 7.6

 

 

 

 

 

 

9‘3 on re a:

§an Juan,_I956, p. 10.

'Statistical Yearbook, Puerto Rico Planning Board,

PUBLIC DAY SCHOCLS-EWROILHQNT,

SELECTED scsooL YEARS 1900-01 TO 1956-55*

UFEAN AND RURAL:

 

 

Year Total Urban Rural
1900-01 38.211 16,502 19,709
1903-06 68.590 31,261 33,329
1910-11 113,921 62,287 '7l,63h
1916-15 160,3Su 68,388 91,966
1921-22- 216,618 77.717 136,701
1936-35 2h6,35h 115,288 131,066
1939-60- 286,113 137,709 168,606
19u5-66 369,961 179,965 169,996
1950-51 639,687 227,736 211,953
1953-58 505.151 261.565 263.586
1958-55 529,226 278,176 251,052
aaSource: Infomxi‘atti-‘on obtained from Statistical Yearbook,

 

Puerto 3106 Planning Board 1956, p. 6h.

Table IX

NUMBER OF FOOD WHOLESALERS IN SAMPLE,

AND

AVERAGE SALES, BY SALES CLASS*

162

 

__

 

Monthly sales (dollars) Number of wholesalers Average sales f
per firm F
Less than 10,000 20 8 6,218 3
10,000 - 19,999 30 18,287 5
20,000 - 29,999 38 23,200 11
30,000 -' 09.999 30 37.067
50,000 - 99,999 2L 68,875
100,000 - 199.999 10 126,071
200,000 - 29939991. 6 233.333
300,000 - 099.999 3 395,999
500,000 - 750,000 2 60h,l67
Total 171 ---
Average sales for all firms 57,h27

 

«ta-S ource:

Marketing Efficiency in Puerto Rico by Galbraith and
Holton (Harvard University Press, 1955), p. 37.

163

Table X

PERCENTAGE OF SALES OF FULL-LINE AND
LIMITED-LINE WHOLESALERS,
IN WHICH PRCDUCTS MOVED
THROUGH WHOLESALER'S WAREHOUSE*

— r

Phll-line wholesalers Limited-line wholesalers
Monthly sales -

 

 

 

(dollars) Number Average Range Number Average Range
Less than 10,000 9 100 100-100 1 100 -
10,000- 19,999 25 98 50-100 7 81 20-100
20,000- 29.999 23 99 80-100 7 83 00-100
30,000- 09,999 26 ’ 98 75-100 2 75 50-100
50,000- 99,999 19 95 75-100 5 7h 00-100
100,000-199,999 5 97 85-100 7 57 20-100
200,000-299,9995-, 2 72 05-100 3 63 20-100
300,000-2799.999 " ”'1 ' 28 - 2 30 20- 110
500,000-750,000 1 6 95’ - 1 -
Total .11": I 33

 

«nSource: Marketing Efficiency in Puerto Rico by Galbraith and
Holton (Harvard UniVersity Press, 1955). p. M2.

69?...» 2....

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INVENTORY TURNOVER,
LIMITED-LINE WHOLESALERS,

Table XII

EULL-LINE AND
BY SALES CLASS%

165

 

 

Monthly sales Full-line Limited-line

(dollars) wholesalers wholesalers
Less than 10,000 8.7 50.1
10,000- 19,999 12.6 15.6
20,000- 29,999 13.2 13.2
30,000- 09,999 16.3 hh.8
50,000- 99,999 20.6 18.3
100,000-199,999. 18.9 17.9
200,000-299,999 17.1 32.3
300,000-899,999 11.2 10.0
500,000-750,000 27.1 --
Average 16.h 16.3

-aSource: Marketing Efficiency in Puerto Rico by Galbraith and

Holton, (Harvard University Press, 1955), p. 50.

 

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l—J
O\
61

Tabl 3 HIV

RETAIL STORES: SA 38, SALES PER EMPLOYEE, AND SALES
PER CUSTOMER TRANSACTION, BY SALES CLASS%

Average sales (dollars)

 

 

 

Per
Monthly sales Number of Stores Per °~ Per customer
(dollars) Urban Rural Total Store Employee transaction ern
Grocery stores
Less than 500 73 {720'Va’a93 -‘ 296 253.86 0.38 i
500- 999 87 21 108 ' 686 h66.00 0.70 2
1,000- 1,999 93 17 110 1,330 723.78 0.99 :
u,000- 9,999 as 2 h8 5.753 1,080.01 1.77 g..-
10,000-no.000 12 o 12 '17,583 1,900.90 0.00
Total 36b 61 025 - - -
Average -- - - 2,009 970.33 1.39

Fruit and vegetable stores

Less than 99 10 1 11 52' AB
100- 299 19 2 21 188 158
300- h99 13 l 10 387 362
500- 999 2 1 3 583 350

1,000-1,999 3 0 3 1,351 676
Total 'h? S 52 - -
Average - - - 303 250

 

-%Source: Marketin% Efficiency in Puerto Rico by Galbraith and
Holton, Harvard University Press, 1955), p. 17.

 

168

 

 

 

 

”“033 ‘ ) NET “’HQ AND OPERATIH EXPENSE RATIOS FCfi
331AIL 7C QqURES, 1' SAlES CLASS
(PCR'JJEYTFUJE 0?? TOTAL 5‘ ESP
Monthly sales (dollars)

Less $00 1,000 2,000 0,000 10,009

than to to to to to

500 999 1,999 3.999 9.999 00,000 Averavs
N0. of stores 35 MS 68 39 33 10
20. total of
sales (a) 12,811 29,135 €9,926 10h,058 180,226 189,000
30. average ‘
net margin
per qtore(e) 27.67 82.3: 176.15 296.1? 781.53 2,83 .10 386.10
Gross margin 21.25 25.63 25.00 21.59 22.71 23.35 23.11
Net margin 7.9M 12.31 12.32 11.10 10.31 15.26 l'.75
Total exp. 13.71 13.32 11.68 10.09 8.0 3.09 9.:1
Rent and
Utilities S.§5 3.99 2.61 1.91 1.15 1.57 1.78
Taxes 0.50 0.65 0.33 0.21 0.17 0.30 0.27
Equipment °
expense .90 1.0h .95 .76 .55 .50 .66
Supplies .10 1.3‘ 1.22 .71 .50 .05 .CS
Insurance 0.02 0.08 .05 .09 .08 .07
Stock loss 0.90 .S’ .63 .51 .L2 .20 .43
Selling costs 0.30 3.30 2.06 2.09 1.03 1.20 1.77
Buying cost 0.0b 0.92 0.06 0.65 0.65 0.30 0.35
Labor" 0b.} 109:0 2078 3.58 30]“ 30140 3012

*Souroe:

Holton, (Harvard University Press, 1955), p. 31.

Marketing Efficiency in Puerto Rico by Galbraith and

 

 

 

 

 

 

 

 

 

 

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SAI“HTN“S Ov‘EDIBLB ZNIMALS AN) ANIMAL PRODUCTS FROM
mHE w. 3. me P. R. BY comma; w" WISCnL_YEAR 19Su-553

 

 

 

 

 

 

 

 

 

 

 

Statistics:

 

Fiscal Year 1955,

P. F. Planning Board.

Sea udity & unit Quantity Dollar Shipping
quantity (000} Value weight
(000) (thousand
pounds}
ALL TMPOPTS ..... ............. --- 30F62.u 132,38:
Cattle for breeding ..... ........No. 551 253.5 398
Other cattle....................No. 26 5.9 h
Hogs............................No. 202 12.0 15
Meat & meat products...........Lb. 6311h668 19632.9 77,1gh 1_
E & V, except canned:
Frefih OT frozen.-.............Lbo 8973286 £006.? 93522
Pickled or cured..............1b. 85577 32.6 102
Pork, except canned:
”rash or frozen...............1b. 6137975 2&32.M 6,771
Ham & shoulder, cured/cooked..Lb. 99u6957 3593.1 11,10u
Eacon.........................Lb. 392976 131.2 h53
Other cured porkooooooonooooooLbo 22585609 297201 30,006
Lamb/mutton, except canned...... 986u0 53.5 10h
Sausage - Sausage meats - bolo-
gna - franters - not canned... h933718 2729.2 ,,651
Beef & Veal canned..............Lb. 29hh2l 113.6 363
Hams & shoulders, canned........ 1081950 698.3 1,269
Other pork, canned..............Lb. 171h356 659.8 2,023
Sausage - sausage meats - bolo-
gna - franters - canned.......Lb. 37u1h65 1357.6 5,82h
Canned baby food, meat or main 3
value meat, strained or chop. Lb. 363b79 131.1 502
fleet/meat products, canned......ec. 139015h 328.1 1,766
Sausage casings, natural:
Hog...........3...............Lb. 12696 5.1 lb
OtheP......o........o..o......ibo 7689 he? 9
Edible animal oils & fats..... 60710226 10668.1 66,950
Oleo oil & stearin..............Lb. 23975 76.9 32
Lard (inc. rendered P. fat) 6032685h 10585.5 66,522
Shortening, main wt. an. fat.... , 35A397 7A.? 396
-*Source: Data extracted from Table 1 of External Trade

 

171

“able-YVIII

 

 

 

 

 

 

IMPORTS INmO P. E. OF HEAT AND MEAT PRODUCTS FROM
FOREIGN COWNTEIESfi BY COMRCDITY AND COUNTRY
OF ORIGIN: FISCAL YEAR 195t~195§e
Commodity, description, and origin Quantity Value
(dollars)
All meat products imports ......, 7,2h5,7h2 2,508,889
Meats, fresh or frozen:

Beef .............................ib. 2,837,98h 818 ,768
Dominican Republic ....J........Lb. 2,726478h. 790,679
Mexico .......................,.Lb. 111,200 28,085

Pork ..........................i..Lb. 1,335 1,686
Dominican Republic .............lb. 8,335 1,6h6

Hutton .....-....................,Lb. 19,086 7,129
Dominican Republic ............,Lb. 19,086 7,129

Other fresh meats ;;..............Lb. 62,958 19,h08
Canada ........--.....-......,.,Lb. 20,000 1,700
Cuba ...........................Lb. 9,025 h,603
Dominican Republic .............Lb. 33,933 13,105

Heats, prepared or preserved:

Canned beef ...............-.,....Lb. 2,8u0,38h 997,072
Argentina 300.08..)nooeoooooocooLb. 2,362,656 828,h09
Uruguay ........................Lb. 887,728 168,663

Beef and veal ....................Lb. 65,u90 22,163
Uruguay ........................Lb. 65,890 22,163

Hams, shoulders, bacon & other pork 787,798 3h?,60h
Canada ................,.-......Lb. 3h6,500 32,192
Denmark .......................,Lb. 338,987 229,2hh
France .........................Lb. 3,375 2,823
Netherlands ....................Lb. 76,162 59,308
Norway o0......—oooooooooooonoooLbo 7,583 6,071
Spain ..........................Lb.15,828 15,682
West Germany ...................Lb. 3,398 2,68h

Other prepared or preserved meat,..1b. 627,707 295,103
Cuba ...........................Lb. 25,880 12,715
Denmark ..............i......,..Lb. u17,271 195,983
Italy ......OOJOOOOOOJOOOIOOOOOJLbO 155,31“ 53,038
Netherlands ....................Lb 1,157 1,390
Norway Q.,.........-............1b 10,600 5, 3ifi
Spain :..:......................Lo. 17,185 16, 676

*Source: Data extracted from Table 2 of External Trade

Statistics: Fiscal Year 1955, 8:78. Planning board.

 

 

172

 

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178

BOOKS

Anon. How to Make Eonev Sellin: 7resh 7ruits rnd Vecetables
New York: Progressive Grocer Coipany, 1950.

 

 

Anon. Modern Supermarkets and uYerettes ongressive
Crocer Staff, New York: ! ne Eutterick 00., 19L 6.

Anon. Self-Service Food Stores. Progressive Grocer Staff,
Ne w York: The Butterick Publishing 00., 19h7.

 

Anon. Self-Service Meat Guide Book. Pood Merchandising
Staff, New—York: The butterick C0,, 1956.

 

Anon. Your Self-Service Store. Meat Merchandising 00.,
Saint Iouis: Van Haffman Press, 1987.

Brand, E. A., et. a1. n1ood Merchandising. East Lansing:
Michigan State University, 1955.

 

Brown, Paul L., and Davidson, William R. Retailin . New
York: The Ronald Press Company, 1953.

Brunner, Edmund S. and Yang Hsing Pan E. Rural America and
The Extensiqn_§grvice. New York: 7Teachers College,
Celumbia University, 19u9.

 

 

Galbraith, John K. and Holton, Richard H. Marketing Effi-
ciencv in Puerto Rico. Cambridge, Kassachusetts:

Ha rvard—University Pr ress, 1955.

Kelsey, Lincoln.D. and Heorne, Cannon C. Cooperative Exten-
sion Work. New York: Comstock Publishing Company,

. O
0

Miller, Nelson A. and others. Grocerx Store. 'dasnington,
D. 0.: Government Printing Office, ”1986.

Zimmerman, M. M. The Super Market. New York: McGraw-Hill
Book Company, nc., l9,

BULLETINS
Anon. "Latest in Lighting," N.A.R.G.U.S. Bulletin, (Feb. 1956).

 

Ernest, Ralph. "Annual Modern Stores Issue, N. _A. R.G. U. 8.
Bulletin, (Feb. 1958).

 

17E

GOVERNMENT PUBLICATIONS

Anon. "A Brief History of the Economic Development Adminis-
tration's Food Distribution Program," Economic Deve-
lopment Administration of the Commonwealth of Puerto
Rico. San Juan, Puerto'Rico, 1957;,fl: W

Anon. "A Rood Distribution Program for Puerto Rico,"
Economic Development Administration of the Common-
wealth of Puerto Rico. San Juan, Puerto Rico, l95h.

 

Anon. ”Agricultural Production and Related Subjects," 1957
Statistical Yeagbook, San Juan: Puerto Rico Planning
Board, 1957. ?

Anon. "Extension's Job in Meeting Problems and Educational

Needs of Food Handlers," Report of the Extension Re-
tailer Education Clinic: Purdue University, Lafayette.
Indiana, 1952.

Anon. "Handbook for Extension Marketing Projects," United
States Department of Agriculture, Rederal Extension
Service: Washington D. 0., May 1956.

Anon. Improved Handling of Frozen Foods in Retail Stores,
United States Department of Agriculture: Agricul-
tural Marketing Service. Washington D. C., Govern-
ment Printing Office, 1955.

 

Anon. "Marketing Facilities for Farm and Related Products
at San Juan, Puerto Rico," United States Department
of Agriculture: Marketing and Facilities Research
Branch, Agriculture Information Bulletin No. 60,
Washington D. 0., Government Printing Office, June 1951.

Anon. "Policy and Operational Recommendations," Economic
Development Adninistration: Commonwealth of Puerto
Rico. San Juan, Puerto Rico, 1957.

Anon. "Your Appointment," COOperative Extension Service of
Michigan State University: East Lansing, Michigan,
1955.

Butz, Earl L. The Job Ahead in Extension Retailer Education,
'Purdue University, Department of_Agricultural Econo-
mics. Lafayette, Indiana, 1952.

 

 

Harwell, Edward M. and others. Packaging and Displaying Meats
in Self-Service Meat Markets, Government Print ng
Office: Washington D. C., 1956.

 

Huyke, Roberto. Guis Para e1 Personal, Puerto Rico Agricul-
tural Extension SerVTce, Rio Piedras, 19kt.

Longenba

Shaffer,

Norwood,

Wallace,

Anon.

Anon;

Anon.

Anon.

Anon.

Ernest,

Anon.

Anon.

Anon.

Anon.

Anon.

176

cker, w. H. "Whys and Jherefores of Store Layout,"
Renort of the Extension Education Clinic, Lafayette,

indiana: Pfirdue University, 195?.

Pau1-F., and Anderson, Dale L. "Faster Price

Marking," Marketin Activities, United States De-
partmentof Agricuéture, Agricultural Marketing

Service: Government Printing Office, Washington
D. C.. 195a. -_

Lewis P. Store Prepacking, New England Extension
Service: Boston, Massachusetts, 1957.

w. H., and Taylor, R. P. Prenackin Fresh Fruits
and Vegetables, university of Rhode sland: Kingston,
Rhode fsland, 1950.

 

- “Tn.-.” .... 3,7 -_ A ,
A V

l

.3

MANUALS

sfl- .-

..p.

A Brief Mar ual on Produce Preoacking, Cleveland:
The Doheckmun Company, 194T.

 

 

"How Much Space is Needed." Narsus Produce Guide,
Chicago: National Association of Retail Grocers.

How to Operate a Successful Dairy Department, Kraft
RoodTCompany, Chicago, Illinois, 1955.

"Minimum Requirements on Pixtures," Food Store Planner
Saint Louis: r'ood Merchandising Co., 195?

Se ele: ervice Fresh Fruits ani Vegetables, Wilmington,
E. 7T. Du Pont De Nemours and Company, 1957.

John M. A Res ic Course in Grocerv Merchandising,
New York: Super Market tPEblishing Co., Inc., 19h7.

PERIODICALS

"Avoid the Diagonal Layout," Super Market Merchan-
dising, \June 195/).

"Dairy Com Lete Merchandising Operation," Chain Store
Age, (March 1956

"Displays for Plus Sales," Chain Store Ace (April
1956).

 

"56th NARGUS Convention," Progressive Grocer,
(July 195/).

 

"n0 Years of Self- Service," Chain Store Ace,
(N oven: *er 1956)

Anon.

Anon.

Anon.

Anon.

Anon.

A1101] .

Anon.

.Dnon.

Anon.

Anon.
Anon.

Anon.

Anon.

Anon.

Anon.

Anon.

Anon.

Coving,

Dorsey,

"wrozen noods

,‘ ... r 4 ,4: . . 7.
ables Up swz in Two Vears,’ Progres-
sive Grocer, (Decanter l9 ‘

6 .

\j1

TPOCPTV

Ia Novel Layout Dimension," Suoer
i'arket ‘Wer

EVS
m} sing, {June 1957).

 

"How Leading Store Enaineers Plan New Superl Markets,
Prcgresaive Grocer, (May 1956).

 

"Makin: tr e Host of the Store Vront," Chain Store
Ace, (October 1953).

 

 

t

Squee: e Added Volume From

rs
ssive Grocer, (Pet ruarv 195 71

etropolitan Op
1'

oer a 0
Limited Space,’ Progre

 

"Non-Foods: Problems and Opnortunities," Chain Store
Ace, (October 19571.

up !

.roduce Packaging-l95'/,
(Septenkmu"7, 19521.

The Pa.cker, Sec. B,

 

"Pylons Point the Way," Chain Store Age, (Ma

(.5
Fl
\0
' 11
\hr
0

 

"Revolution to Evoiution," Chain S ore Ase,
(hovember 19561.

N .3 7'

uner Vain Study,

 

Progressive Grocer, imay l9EO).

"The Bard of Bootstrap," Time, (June 23, 1958).

"The 1957 Meet Manual," Cha sin j_ore Ave, (Decernler
19561.

 

 

"The Outside View in the Inside Sale," Chain Store
Ace, (October 19551.
cu-huo

 

"The Truth About Health and Beauty Aids," SuEea
' ' e y n . A , (w a qrv '
Market leichanuising, “arch 1,5.).

t

 

"The Why and How to Self-Service Meat," Meat and Food
Merchandising, (July 1957).

 

"Pie in Dairy for Added Sales," Chain giggg Age.
(December 1956). -

"Your Sign is Your Salesman," Suner Narket Merchan-

disina, (May 19531

Lucas. "Give Your Floors a New Face," Voluntar r3 and

Cooperative Grougs Magazine, (January 19551.

R. T. "The Silent Salesman," Li; ht Mavazi.ne, (July-
October 19571.

 

 

'
.1
'4
Q
P
3.; .

Ernesf,

H ‘6} JJ

Maintain,

‘ ‘
I'n

alnn 3. "Store Laxout,"
8r}: Nargus Fonventicn,
OFT).

Russ. "Layouts--Hopeful

”archandising, (June 1957}.

Kline, George. "Wes ts E
Lifts Prod uc Mle s, Margins-P ro-
Grocer, (Jun lQSI)

An()11.

Gerweck,

f:- I" Fina, ,

UNI UEIIEH?“ NEWERIAL

1...!

"Dairy Deparfiment,"
sity of Puerto M100, 1955.

"”*ore Plann_rr,

Leonard J.
191:6), 55C {St LanSIUf’,

Gprweck, May

2:5: fr» ‘ rchanF

Jnhn fl A fiicest of IL;
f0 fhe _‘a:;s Rina of the Smith-L

O
manta Ieadwnzr

In I§1Ih rnv“T7qua oqraph,

o5 Mickigan State Univer:ity, Ea

ani Helpful,"

 

’4
-J
\I

Work Prespntei tc
:Mfifirw"°1vp flrocer,

Mper Mal k3

3'19

 

n Sixty Stores Prove Prenacking

its ," figogressive

Unpublished mimeograph,

Michigan.
Historical

ExtPHSIOH
st Lansing,

Univer-

' An address by L. J.

De V? 1 Op "

ever .12}.

Service

1957.

ROOM use ONLY

ROOM USE OELY.