By Micah Cheek
In any business, markets shift and tastes change. Navigating these ebbs and flows is what makes a business stand the test of time. Nancy Herring, Co-Owner of Now We’re Cooking in Albuquerque, New Mexico is in the process of shifting the kitchenware store’s stock and style of business to suit customers’ new needs.
The biggest change Herring has seen is a shift away from cooking classes. “Our cooking class response has really dropped off. I think they’ve decided to spend their money somewhere else,” says Herring. Recently, she has had more success with education groups and weight loss communities that will set aside time to come in and watch a suite of demonstrations. Working with outside organizations also takes some of the administrative work off Herring’s shoulders. “They handle all the advertising and signup,” she adds.
Another changing factor is purchasing habits. Large single-item investments have given way to smaller purchases. “You’ll hear people look at a big piece of cookware and say, ‘That’s too expensive,’ but then they’ll buy that same amount in smaller stuff. I think people have been exercising caution for a while,” says Herring. Now, a large part of Now We’re Cooking’s sales are smaller accessory items. “We have always maintained our integrity as a kitchen store, not a gift and kitchen store. We have some pretty things, ceramics and things, but we don’t go heavy into that,” Herring adds. Lots of entertaining kitchen accessories now are now on display at checkout, and some of Now We’re Cooking’s specific sections, like the baking area, have leaned more in that direction. “We sell a tremendous amount of cookie cutters.”
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As Herring has been reshaping her business model, she has moved to a new space to suit the new needs of her store. “About two and a half years ago, we moved to this location,” says Herring. “Better layout, better light, it was definitely time for a move. The new store is much prettier than the old store was.” When the store updated its location, the space allowed her to make changes to her previous layout that made everything easier to navigate. “We have rows and rows of Metro shelving,” says Herring. “None of them match. I’ve got old Metro, new Metro, black and white. You don’t notice, you just see what’s on it.”
There are corners dedicated to knives, linens sections and a full gadget wall as well. The only part of the store that regularly changes is three-wheeled shelving units to be moved to make space for classes, and the first row of shelves, which are altered for seasonal items. “We don’t move everything around. I know you’re supposed to keep it fresh for people, but customers know where everything is. Christmas time, we move a lot of things around the front, and bring in a few more things.”
Herring is always on the lookout for what is next for the industry. From her perspective, focusing on color and adaptations of the classics are the way forward. “Everybody’s talking about what’s new. There’s new colors, new adaptations, but we haven’t seen a brand new product,” says Herring. “I remember when bread makers came out! In terms of a new category, we’re not seeing it. It’s back to basics and color. Hot pink mixers and bright Microplanes.”
Central Grocers, Inc. has announced that the company and all of its subsidiaries have voluntarily elected to file for relief under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. The company intends to use this court-supervised process to conduct an orderly sale of its Strack & Van Til stores as going concerns and anticipates entering into a sale agreement with a stalking horse bidder in the near future. Central Grocers is also seeking to sell its distribution center in Joliet as it winds down its wholesale distribution operations. The company has been cooperating with its lenders and expects to have access to sufficient liquidity to continue operating its stores and winding down the distribution center in an orderly fashion.
Strack & Van Til Stores Are Open for Business
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All 22 Strack & Van Til, Town & Country Market and Ultra Foods stores in Indiana and Illinois are open and serving customers. Employees are receiving their pay in the ordinary course. Strack & Van Til intends to pay vendors in full for goods and services provided on or after the filing date, May 4, 2017.
Jeff Strack, President and Chief Executive Officer of Strack & Van Til, said, “Our stores are open, and we are as focused as ever on supporting our customers and providing the legendary service that we are known for. As we move through this process, our priorities, values and commitments to our customers and our communities will not change. We thank our loyal customers for their continued support, and we thank our employees for their hard work and dedication.”
Central Grocers Working Toward Sale of Stores and Distribution Facility
Central Grocers is continuing to work toward implementing a sale of the Strack & Van Til stores and a sale of its distribution center in Joliet and certain other assets. It is anticipated that any such sale transactions will be conducted pursuant to a court-supervised auction process under Section 363 of the U.S. Bankruptcy Code.
Ken Nemeth, President and Chief Executive Officer of Central Grocers, said, “In light of the increasingly difficult environment for independent supermarkets and retailers, we have been working tirelessly to achieve an outcome that is in the best interests of our stakeholders. We are using this court-supervised sale process to provide us the time and flexibility to conduct an orderly sale of the Strack & Van Til stores, while we work to sell the warehouse in Joliet and wind down our wholesale distribution operations.”
The company has filed a number of customary motions seeking court authorization to continue to support its operations during the court-supervised process, including payment of employee wages and benefits. In addition, the company intends to file a motion shortly in the U.S. Bankruptcy Court for the Northern District of Illinois seeking to dismiss the involuntary bankruptcy case commenced against Central Grocers in view of its voluntary Chapter 11 filing.
The U.S. Food and Drug Administration is extending the compliance date for menu labeling requirements from May 5, 2017 to May 7, 2018. This extension allows for further consideration of what opportunities there may be to reduce costs and enhance the flexibility of these requirements beyond those reflected in the interim final rule.
The FDA is inviting comments for 60 days on the implementation of the menu labeling requirements, such as approaches to reduce regulatory burden or increase flexibility related to (a) calorie disclosure signage for self-service foods, including buffets and grab-and-go foods; (b) methods for providing calorie disclosure information other than on the menu itself; and (c) criteria for distinguishing between menus and other information presented to the consumer.
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Submit electronic comments to http://www.regulations.gov. Submit written comments to the Division of Dockets Management (HFA-305), Food and Drug Administration, 5630 Fishers Lane, rm. 1061, Rockville, MD 20852. All comments should be identified with Docket No. FDA-2011-F-0172 for “Food Labeling; Nutrition Labeling of Standard Menu Items in Restaurants and Similar Retail Food Establishments; Extension of Compliance Date and Request for Comments.”