Monday July 12, 2010

Jewel Tests New Format

Chicago — Jewel-Osco is testing a new store format that has 15 to 25 percent fewer SKUs in order to lower costs, make room for its own brands, and compete with Walmart Stores, Inc., according to reports.

The grocery chain, part of Supervalu, Inc., will try the new layout in Bolingbrook, IL. Sources report Jewel plans to eliminate electronics, motor oil and fragrances and cut down the number of sizes, brands and varieties of other products while promoting its own brands.

New store formats are said to feature an open layout, lower shelves and more signage.

Reports indicate the retailer is gearing-up to compete with Walmart, which, in late June, announced its intention to build several dozen stores in Chicago through the next five years. Walmart has recently received approval from Chicago’s City Council to build a second store on the city’s south side.