Stop & Shop Creates Office Depot, Toys "R" Us Concept Shops

Usually, retailers are working with their product suppliers to create concept shops for their lines. But the Stop & Shop supermarket chain recently had the unique experience of turning areas within its stores into concept shops for other retailers such as Office Depot and Toys "R" Us.The chain has opened new prototype stores in Walpole, Mass., and Rhinebeck, N.Y., that feature branded departments and other unique supermarket services. "These stores will change the way people see Stop & Shop and food retail in general," says Marc Smith, president and ceo. Among other areas, the stores feature a party goods center, a "Best Sellers" department for the latest books, music and videos, and a consultation room in the pharmacy for meeting with the pharmacist. Toys "R" Us will create the "Toys 'R' Us Toybox" department in the Walpole store, while Office Depot will supply office and stationery supplies for all of the stores in a branded department."Our goal is to provide more convenience, to create a one-stop shop for all items, and to offer more features at our customers' fingertips," explains Megan Pratt, a spokeswoman for the 330-store chain. The company currently has Dunkin' Donut shops in 100 of its stores, she notes, and this new concept extends that branding to other top-line retailers. "We want to team up with great brands and store names that are well recognized by the consumer. In working with Office Depot, we want to expand our offering in that category to better serve home-office workers and students, in particular."Office Depot saw key advantages to the partnership, adds Lauren Garvey, a spokeswoman for the retail chain. "Stop & Shop approached us with the idea, and we see it as an important strategic alliance," she explains. The chain doesn't operate stores in the region outside of New York and New Jersey, offering only e-commerce and commercial business-to-business operations. "This alliance is appealing because it expands our presence in New England and gives us a great opportunity to leverage the Office Depot brand and access a new segment of the market without the need for the significant four-wall commitment that such expansions usually require."Office Depot will be supplying approximately 800 SKUs for the concept shop areas, which will vary in size depending on the store's layout and customer base, Garvey says. About 50% of the products will be Office Depot store brands, with additional private labels and manufacturer labels supplementing that offering. "Our presence is replacing the stationery department in the stores, so it will feature core supplies for school and office," she explains.The area will incorporate distinct Office Depot signage, including an overhead logo sign and department signs reflecting the company's signature colors. "We will be adapting the Office Depot design to the Stop & Shop look," Garvey says. "Depending on the store, the P-O-P options will vary, but they will include shelf talkers, danglers and other pieces." Both companies worked together to determine the final layout and adjacencies. Office Depot worked through its store operations team to create the design and planograms.The first two stores opened in November, with five more opening in December. Stop & Shop plans call for another eight to open this month, with others to follow based on initial results. "This is the first time we've tried working with a grocery chain, but we anticipate a lot of success," Garvey says. "It's a great opportunity to be in the New England market without a real estate commitment and to be able to leverage our brand with another great store brand."

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