Fine Chocolate Fits Perfectly at AJ’s
By Mary Ellen Kuhn
Fashion-forward Southwestern specialty retailer embraces upscale chocolate.
Call it the
three Fs of merchandising: Freshness. Flexibility. Fashion. Phoenix-based
AJ’s Fine Foods gets an A+ in all three categories.
Each of the 11 gourmet/specialty stores in the chain, a
division of Bashas’ Supermarkets, has its own brand of retailing
panache thanks to management’s flexible approach. None of the
AJ’s stores are planogrammed; purchasing and merchandising decisions
are made at the store level from an assortment of products and vendors
approved at headquarters. And the result is a retailing environment
characterized by fashion and flair.
As gourmet buyer Steve LeFevre puts it: “I
approve the colors, but they go make the painting. … We try to let
the stores sell the most appropriate products for their specific clients.
We like to change it up so the customer gets a fresh look every couple of
visits or so,” he continues. “We try to keep it
dynamic.”
Dramatic, too, if a vibrantly colorful array of Joseph
Schmidt confections on display in AJ’s Camelback store this spring is
any indication. Hues of orange, yellow, purple and teal dominated the
impossible-to-miss display of gourmet boxed confections.
“The bakery department has custody of Joseph
Schmidt,” says LeFevre, “and they work a lot with that.”
Table displays of upscale confectionery treats are a frequent fixture in
AJ’s bakery — or make that “boulangerie” —
departments.
The AJ’s stores also tempt shoppers with
expansive refrigerated case displays of upscale confections near the deli
— a.k.a. “bistro” departments. To help keep chocolate top
of mind among store patrons, bistro sandwich purchasers routinely reap the
benefit of an upscale chocolate treat with their order.
“They put a little piece of chocolate in with
every sandwich we sell,” says LeFevre. “Some might do Lindt for
a few weeks and then change to Valrhona or Scharffen Berger. It’s a
freebie.
“We always love sampling when we get the
opportunity,” LeFevre adds.
A fine fit
Gourmet chocolates are a perfect fit for the specialty
food lovers who populate the aisles of the boutique-like AJ’s stores.
“A lot of the people who appreciate the finer food categories we sell
also appreciate the fine chocolate,” says LeFevre. AJ’s
shoppers tend to be ahead of the curve in their food preferences, he notes.
For example, “We’ve been doing dark
chocolate all along, before everybody else caught up with it,” he
says. … Our clientele likes dark chocolate more than milk
chocolate.” Single-origin chocolates definitely have a following
among AJ’s patrons as do higher-cacao-content products.
“It’s almost like one upsmanship,” LeFevre observes.
“We’ve got some 72 percent and some 99 percent.”
While LeFevre experiments with all kinds of products,
including organic and fair-trade, he emphasizes that at AJ’s, nothing
is more of a priority than product quality.
“Our first responsibility is to bring our
consumer what is superior,” he says. “After that, if it’s
natural or organic or fair trade, that’s a bonus.”
AJ’s patrons tend to be adventurous consumers,
eager to try what’s new, and that allows for considerable pricing
elasticity within the stores. The average price for a premium chocolate bar
at AJ’s, for example, is in the vicinity of $3.99, but there are a
number of brands that go beyond that, LeFevre reports.
New bar display
One of the AJ’s stores just revamped its approach
to chocolate bar merchandising, and LeFevre is impressed with the results.
The bars are displayed vertically. A system of spring-loaded dividers means
that it’s no longer necessary to use the sleeves in which the
chocolate is shipped. That’s a good thing, LeFevre reflects, because,
“you were starting to see more cardboard on the shelves than
chocolate.
“It makes the section look faced up and presented
well,” he continues, noting that he expects the new fixture approach
to be implemented in additional stores very soon.
As might be expected, chocolate gift items are well
represented at the stores in the chain.
“We sell Godiva and Ethel M and
Bissinger’s, and they have gift items,” says LeFevre.
“Some we carry all year long. You can always come in and find a box
of chocolates.” He hastens to add, of course, that the boxed
chocolate mix is expanded for seasonal occasions.
The boxed chocolates AJ’s sells tend to be in the
$25 - $35 price range. “On occasion, someone will sell a box of
Godiva for $100,” LeFevre adds. “We try to have them [very
upscale gift SKUs] there, so if somebody wants that, we have it, and they
need look no further.”
In keeping with AJ’s experiential approach to
retailing, there are frequent sampling and other special events at the
stores, including visits from local chocolatiers. “A lot of times we
like to tie chocolate in with the wine department,” LeFevre says.
There’s also the occasional price promotion. For
a “Springtime in Paris” promotion this past April, AJ’s
offered Valrhona chocolate at a special price. “We don’t
typically do that,” he says. In this case, however, “our goal
was to bring more people in.”
Staying informed
Making new product decisions involves less quantitative
analysis than with more mainstream products. “For specialty foods,
there’s not great data, so we have to rely on word of mouth and
buzz,” says LeFevre. “We have to stay in touch with the market
more than just [reviewing] numbers on a piece of paper.” To
keep abreast, LeFevre relies on gourmet food publications and specialty
food shows, among other resources.
The chain’s approach to confectionery retailing
is working well: Chocolate sales are up. LeFevre also credits the category
growth to the prevailing positive mindset about chocolate.
“I think people are seeing more of the positive
aspects of chocolate,” he says. “It’s fashionable once
again to eat chocolate.” And what better place to give fine chocolate
the fashion treatment than AJ’s?
Made in Ghana, Served in Milwaukee
Chocolate molten center cupcakes, dark milk chocolate
pear cake and chocolate mousse were on the menu one evening this spring at
a tasting event sponsored by Milwaukee-based Omanhene Cocoa Bean Company at
the downtown Roundy’s Metro Market store.
Omanhene had previously sold its products primarily to
specialty retailers, chefs and gift basket purveyors, so the decision by
Roundy’s buyers to stock its distinctive made-in-Ghana chocolate
bars, hot cocoa mix, and baking chocolate was cause for celebration for the
small, but growing company. The festive sampling event drew raves from
several hundred Metro Market customers who enjoyed the chocolate
delicacies.
The discriminating shoppers who patronize the Metro
Market are a perfect audience for such an upscale offering, notes candy
category manager Mike Overschmidt. And, he adds, he appreciates the
awareness-building initiatives from the relatively small company.