NORTH OLMSTED, Ohio -- Between the furniture and patio chairs, next to the pillows and bath puffs, Big Lots has refreshed and reshuffled its grocery section. Bright orange signs and exclamation marks posted throughout the store point to the closeout retailer's expanded selection of name-brand and perishable foods.
By adding more staples like milk, eggs, cereal and ice cream, Columbus-based Big Lots is hoping to both draw more shoppers and increase the amount they spend in its 1,496 stores nationwide. It's a strategy that's also been successfully adopted by Marc's, Discount Drug Mart, Target, CVS/Pharmacy, Walgreens and Walmart.
Big Lots, better known for its closeouts, doesn't carry as many items as a typical supermarket, but by carrying some of the items people buy most, it is hoping to draw new customers and keep them in its stores longer.
Bob Skinner, district manager for Big Lots' Northeast Ohio stores, shows off the expanded selection of healthy snacks at the Big Lots store in North Olmsted on Thursday, August 21.
"We don't have 14 different kinds of pickles, but we do have one or two," said Bob Skinner, Big Lots' district manager for Northeast Ohio, during a tour of the North Olmsted store.
"I can't walk into a supermarket without picking something up and saying: 'Honey, you know what? This is a buck-fifty at Big Lots.'"
Skinner oversees 13 stores from Lorain County to Ashtabula County that employ 250 to 300 people.
"When I came to Big Lots 14 years ago, every store had a wall of freezers," he said. After years of doing without them, Big Lots has installed an aisle of freezer-coolers in about 300 of its stores (including all 104 of its Ohio stores) to sell dairy, deli, frozen entrees and ice cream. "We're more in competition with Dollar General and Family Dollar on the foods they sell," he said.
Bridget Newman of North Olmsted checks out selection in the expanded freezer section at the Big Lots store in North Olmsted on Thursday, August 21.
"I think it's a great idea, and I think it's great competition for the other supermarkets," said shopper Bridget Newman of North Olmsted. "I have noticed that they've expanded, which is nice."
She compared it to the grocery expansion at Super Target and Super Walmart, and said she liked the idea of not having to make another trip after leaving Big Lots.
Big Lots' "World Flavors" international section now includes more Hispanic, Asian and European brands, from rice crackers and biscuits to pickles and condiments, as well as more ethnic foods sprinkled on other shelves.
Cafe Bustelo, for example, a Hispanic coffee brand owned by Ohio's J.M. Smucker, is in the coffee aisle. And coffee and tea are no longer with other beverages, but are in the breakfast aisle with the cereal, jams and jellies.
Big Lots is offering more ethnic foods as part of efforts to draw more customers and get them to spend more in its stores.
Each store's ethnic assortment depends in part on the demographics of its customers, but every store will have some, Skinner said.
Big Lots is also doubling quantities of what it calls "never-outs," 450 to 500 of the most popular consumer brands, including Kraft Macaroni & Cheese, Mike & Ike, Life Savers, Nutella hazelnut spread, Miracle Whip, A.1. Steak Sauce, Velveeta, Smucker's, Duncan Hines, and Pillsbury. "We've got twice as many [never-outs] in foods as we have in the rest of the store," Skinner said.
Never-outs are stocked on the same shelves every week, whereas seasonal items and temporary promotions are carried on shelves labeled "Crazy Good Deals Today." Big Lots also carries Veggie Chips and Caramel Coconut Fudge Cookies under its private label "Fresh Finds" brand.
And except for its Hostess snack cakes, none of its foods are closeout items from other stores, he said. It also sells American Greetings cards opposite the candy aisle, "which if you think about it, makes a whole lot of sense," Skinner said.
The Big Lots store in North Olmsted is among 104 in Ohio that have received new coolers, freezers and shelves to carry more groceries.
Shopper Krista Pecchia of North Ridgeville, who was helping her daughter, Isabella, stock up before leaving for college at Mount Union, appreciates Big Lots' efforts to offer more variety.
"It's good, but they don't have everything that you need," she said. "It's good for snacks and everything like that. I like the eclectic style of food."
Kim Marshall of Strongsville, who was picking up chips and snacks for the office, said: "It's great for lunchtime and to take things home after work. It's good for simple things." She says Big Lots' Veggie Straws taste just as good as the name-brand ones, adding that "they offer everything that the big boxes don't."
In-store signs remind shoppers that Big Lots welcomes SNAP (Supplemental Nutrition Assistance Program) and EBT cards (Electronic Benefit Transfer, also called Ohio Direction Cards).
About a year ago, Big Lots came up with a composite model of its typical shopper, a woman that company executives call "Jennifer." Jennifer is about 42 years old, 51 percent likely to have kids, 67 percent likely to work outside the home, and has a household income of $30,000 to $100,000. "That's basically who she is: She's a working Mom," Skinner said.
Big Lots' grocery section is located near the furniture and other items not found in grocery stores.
"Our business has always been based on the needs of our customer, 'Jennifer,' and bringing her amazing values on great brands and products she loves," said Andy Stein, Big Lots' chief customer officer, in a written statement. "This is just another way we are building on our promise of surprises in every aisle, every day."
Big Lots is also renewing its emphasis on customer service under the acronym "GO BIG": Greet every customer who walks in the store; Offer her a cart or assistance; Bring her to the item she's looking for; Identify yourself by name ("If you need help, I'm Bob"); and if you don't know the answer, Get help or call the manager on duty.
"We're not Target or Walmart or other big box stores," Skinner said. "Our customer service standards are a little bit higher."