HOME GENTER MERGHANT

Bill Fishman & Affiliates

11650 lberia Place

SanDiego,Ca.g2l2SthequantityofeachSKUstockedthatisincreasing rather than the number ofbrands

I pnBOICf that 1987 will be the year of I the independent.

Here's my rationale. If you review the headlines within all our trade publications published in 1986, it's clear that this was the year for Chapter lls, take-overs, liquidations, absorbtions, and every other device that reduces the number of parent companies retailing our product mix.

As chains buy other chains, they produce an overlap of company stores within the marketplace. The surviving parent company closes the less profitable ones. They also consolidate the buying functions to reduce the payroll and to exercise more clout with the suppliers.

The suppliers are worried. Now, not only are many American producers threatened by the imports, but they are also being squeezed for margin by the retailing giants. And, while stores are getting longer, wider, and higher it is merchandised. The consolidation of stores and buying functions is not good news for supplien. For some manufacturers it means the loss of a million dollar account - overnight. The smaller size manufacturers feel the hurt in greater proponlons.

I have no doubt that at their upcoming strategic planning sessions more suppliers will be discussing a five-year plan geared to diveniff their distribution. But, whether their products are positioned to be pushed through, or pulled through distribution, suppliers now also recognize thisit is important that they make provisions to help sharpen the marketing skills of the independent retailer and his distributor.

The role of the supplier will have to change radically from that ofjust helping move his own product through the front register. It becomes important that the manufacturer support the health of the retailer. This additional support must come not only in the form of item movement reports, store detailing, extra discounts, or added promotional funds, but also in market research, strategic planning and professional guidance for the operation ofthe retailer's business.

Here are some of the things that manufacturers will have to do to help the independent survive and keep the markeplace competitive: o Provide the means for the retailer to conduct introspective long and short-range planning sessions. o Show the retailer how to compete with item-and-price promoters by highlighting his service levels, quality of products and the benefits ofhis convenient location. o Help the retailer identify and contact his primary psychogeographic market through the marketing data now available by neighborhood. o Provide educational programs that demonstrate how to effectively use the co-op