Food For Less

by , Monday July 22, 2019
Food For Less

 

 

About the author: Raven is an author of numerous essays which she wrote in cooperation with the https://great-essays.com/ writing service, where you may also find a lot of informative essays concerning different topics.

 

 

Food For Less is a price-impact warehouse store that belongs to the Kroger Company. According to estimations of 2008, the overall number of stores was 2500 and annual food sales reached $66.1 billion. This index is much less, compared to the Wal-Mart and Sam’s Club with $355.4 billion sales, while the latter possesses a less number of brands.

The target market segment for the store is “budget conscious” customers. The brand name Food For Less clearly shows that the grocery chain sells low price goods. After many years of presence in the food store market, the top management made the decision to close the chain in Las Vegas and to convert some of them to Smith’s, another Kroger’s brand. A small number of shoppers with low paying capacity as constant clients showed the inability of the shops to compete in the market. The competitive conditions, reputation saving strategy and partial rebranding are the reasons to preserve the rich target buyer in the brands that still operate. Therefore, the chief management of Food For Less failed to satisfy the major needs of its buyers, which led to the closure of the grocery due to wrong managing tactics and incomprehension of market conjuncture.

The Reasons for Food For Less Closure in Las Vegas

Shopping industry is one of the most developed in the USA. The techniques of adaptation to clients’ needs constantly expand and change. The availability of supermarket chain stores, a wide assortment of foods from different cuisines, online services, and proper price policy attract many clients and create competitiveness in the food service market. The appearance of many companies and chain stores aspiring to satisfy customers creates high competitiveness in this field of service. Therefore, the key strategy of the grocery shops’ management is to ensure proper quality-price ratio and use necessary strategies to retain the proper market position, which often demands risks and sacrifice.

In many cases, the closure reasons of the chain stores are common for many companies. It can be a poor service, unsuccessful location or low competitiveness because of the redundancy of the stores that sell the same goods with better service or location. The main drawbacks due to which the company fails to function properly on the market is bad service. Customers’ reviews on the firm show the way of providing service and depict the main facts that could cause the closure of the warehouse chain stores.

Firstly, Food For Less offered inappropriate service to shoppers. The reviews in the Consumer Affairs claim that sometimes the staff of the shop is silent when the client comes or there are few people when a customer cannot find the item needed. Some of them complained about the food. In few cases, the products bought were spoiled. One of the buyers in Las Vegas compared Food For Less in the city to the same Food For Less stores she visited in the other cities claiming that she had visited many of them. There are certain foods available only in the Food For Less stores, like jicama and rutabaga. The first food item, jicama, looked not fresh. The second item, rutabaga, was better, but the area of keeping food was either wet or refrigerated and many products looked spoiled and uncared. Besides, the client marked the appearance of “questionable character” and dirt in the mall. Cashiers demonstrated poor service to elderly people by their unwillingness to help them carry heavy bags. Still, most of the shoppers prefer Food For Less for its low prices.

One more problem of the service is long lines. The clerks do not seem to cope with their work quickly. Therefore, customers have to stay in long lines waiting to pay. Such fact demonstrates either an inability to provide quick service or the lack of the staff or high exploitation degree.

Secondly, centering the strategy only on low-paying capacity shoppers is ineffective. Companies that introduce low prices have lower incomes. Therefore, they become unable to cover the expenses needed for gaining profits. To provide an optimization in such situations and to retain more clients, the management cuts down the staff. The cashiers overwork and become less able to serve buyers properly as they are under stress. Such people can be irritated or silent due to long hours of work. Moreover, the salaries in such cases remain unchangeable, which leads to demotivation as well. The number of consultants is small, so the constant clients have adapted to self-bagging.

Finally, shoppers marked the untidiness of the interior as the third major problem. For instance, one of the constant clients noticed an unpleasant smell of rotting vegetables from the greengrocery section. The client found floors dirty with black marks. It seems that the staff does not clean the store at all or there is no staff available to do such work. Again, the only positive side of his choice was a close location to his house. He marked the other employees as “unfriendly” and “sullen”. Certainly, such carelessness of the store management is unacceptable. The availability of unpleasant flavors can repel any customer. It also states of the hygiene lack.

Overall, the drawbacks mentioned require peculiar attention of the management. Proper motivation of the staff and food control could require the price growth. Nevertheless, such policy could be more acceptable than keeping lower prices and poor quality.

Management Strategies in Food For Less

The management model chosen for the company plays the leading role in positive customer’s feedback. The way of organizing the staff needs much attention. The key goal of a professional manager is to satisfy not only the client, but also to ensure proper level of working conditions for the staff and be fair in both penalties and rewards. In the case of Food For Less, providing low price tactics purely cannot manage high costs and retain different clients.

To begin with, the majority of customers that prefer Food For Less have no car. Therefore, they choose this store not only for its prices, but also for close location: “I shop here a lot.....the prices are awesome !!  but the produce is normally less than par, and my family eats a lot of produce. It’s close to my house which is great” . It allows creating constant clients’ basis, though it may be not very numerous.

Furthermore, most of the higher paying capacity buyers come to Las Vegas from other cities. That is why it is important to make applicable impression of high-quality service and to work on a brand reputation.

Finally, in case of proper location, managers should keep in mind that the competitors providing high-quality food at higher prices could appear more suitable for the customers. Majority connects the reasons of the choice to a better service delivered by properly taught professional staff. In this situation, cleanness is the only needed basics. Thus, the chief management did not pay attention to the main strategy of retaining a high-quality service in order to keep the clients and create a loyalty program. In this case, location and low prices cannot be the only favorable facts due to which shoppers choose Food For Less. The most necessary prerogative of each store is a good service delivered by the polite workers. Staff should help people carry bags and consult them if somebody asks to.

Although Las Vegas staff reports that working conditions in Food For Less team were acceptable and they were satisfied with their work, some workers mark inappropriate management. The former baker, for instance, underlined that chief managers were getting stressful and such behavior quickly reflected on the subordinate co-workers. Keeping up with the work on holiday season was the hardest part as the number of clients is the largest at this time. The workers had no free time due to such work and were occupied during the extra hours.

Partial rebranding of Food For Less under Smith’s confirms many drawbacks in management. Managers apply rebranding in case the brand reputation is rather inappropriate. Yet, in case of closure and retaining the workplaces, it is a good strategy.

Having analyzed the closure reasons of Food For Less chain in Las Vegas, one can distinguish ineffective human resource strategy. The chief managers employed fewer workers as required and they were often overloaded and unable to manage all the tasks.

 

Food For Less, the part of Kroger Company, has been experiencing difficulties in terms of delivering a proper service to budget conscious clients due to underpay and low motivation of the staff. Inefficient human resource management is the main reason of closure. Many workers are under stress and they are unable to deliver high quality service. Many low price stories have less income, so they have redundant staff. Downsizing in this situation is irrevocable. At the same time, the amount of work remains the same and the remaining staff is unable to cope with it properly and remain polite to the customers. The company should find new product markets and change low price policy by providing higher quality of food. The Kroger should invest into Smith’s to retain the brand reputation and due to proper measures taken, it would be possible to renew the lower price service.

 

 

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