Competitive Assortment in the Retail Channel: Cvs vs Supefresh
For this assignment, we decided to visit CVS on 20th and Chestnut Street and Superfresh on 10th and South Street. CVS is a chain convenient store and Superfresh is a chain grocery store. CVS carries high-convenience items and food basics that people commonly use and need quickly, such as toilet paper, soft drinks, beauty aids and microwavable and prepared foods. Superfresh carries wide variety of food products, including perishable items like meat, produce and dairy, along with general merchandise items like cleaning supplies, paper products, and health/beauty care products.
There are two categories we have identified that Superfresh and CVS compete with each other on are ice cream and makeup. At Superfresh, the selection of ice cream brands and flavors is both broad and deep – at CVS it is narrow and shallow. However, at CVS, the assortment of makeup products is both broad and deep, while at Superfresh it is the opposite in both regards. These two categories fit within our perception of each store’s overall strategy in many regards. Superfresh, being a supermarket, is generally known for its large assortment of food products – that is, customers specifically go to supermarkets like Superfresh for their variety and product assortment, especially in frozen treats. In Superfresh, the ice cream takes up an entire freezer aisle – along with many displays and end cap promotions on new products and flavors. Consumers also go to supermarkets as planned visit – an i.e. a Sunday outing to the grocery store to load up for food for the week is considered a common occurrence in many households. This is another reason why prices are generally lower at the supermarket vs. a convenient store – besides a supermarket being able to capitalize on volume buys and inventory discounts. At CVS, ice cream purchases generally tend to be impulse buys – therefore, a large assortment is not necessary – the basics usually fit the bill. Because CVS also carries less inventory, their
There are two categories we have identified that Superfresh and CVS compete with each other on are ice cream and makeup. At Superfresh, the selection of ice cream brands and flavors is both broad and deep – at CVS it is narrow and shallow. However, at CVS, the assortment of makeup products is both broad and deep, while at Superfresh it is the opposite in both regards. These two categories fit within our perception of each store’s overall strategy in many regards. Superfresh, being a supermarket, is generally known for its large assortment of food products – that is, customers specifically go to supermarkets like Superfresh for their variety and product assortment, especially in frozen treats. In Superfresh, the ice cream takes up an entire freezer aisle – along with many displays and end cap promotions on new products and flavors. Consumers also go to supermarkets as planned visit – an i.e. a Sunday outing to the grocery store to load up for food for the week is considered a common occurrence in many households. This is another reason why prices are generally lower at the supermarket vs. a convenient store – besides a supermarket being able to capitalize on volume buys and inventory discounts. At CVS, ice cream purchases generally tend to be impulse buys – therefore, a large assortment is not necessary – the basics usually fit the bill. Because CVS also carries less inventory, their