Milan, part 2. – Iper and Esselunga: „Merchants should be modest”

The Italian retail network is not a very concentrated one by European standards. Modern stores make spectacular efforts to attract customers. Our correspondent has visited hyper markets of Finiper and Esselunga in Milan. According to Marco Ruzza, director of the Iper store located in the Portello district, it is the wide assortment of high quality fresh food that brings customers to the store. They are experimenting with a new system of product placement. The displays of meat, cheese and delicacies are positioned in a way that is intended to boost customer spending, with fruits and vegetables located near the cash registers. There are 200 kinds of cheese on display from various regions of Italy. In the middle, a cheese manufactory can be seen in operation, as a guarantee of freshness and tradition. Demand is seasonal, with softer, creamy cheese being popular in the spring and summer, while winter is the season for more fermented cheese. We can see a small bakery next to the bakery products. The assortment of hams is also spectacular. It is worth taking a closer look at the assortment of 500 wines. The sales concept is based on the idea that people are willing to sit down to sip wine and buy it if they like it. When people drink, they tend to eat as well, which means that that a quiet little corner seating 12 people and offering warm food is a good idea. Promotional activity is strong. One or two week promotions are held and it is rare to see any products unsold at the end. The hyper market of Esselunga located in Rho, called „Superstore” reminds us of a fortress from the outside. The chain generating annual revenues of EUR 4 billion and owned by the Caprotti family is currently undergoing transformation. At present, they have 130 stores, but intend to sell the smaller than 2,500 square mater units and will focus on 4-5,000 square meter stores in the future. Fresh food is the key to profit in this store as well. They also have a restaurant of their own called Bar Atlantic and a boutique selling premium perfumes. Convenience products form an important part of the assortment. Processed vegetables wrapped in foil are sold on 60 shelf meters. A lot of fish is also sold in processed form. Customers can choose either fresh or processed fish. Prices are the same in both segments in order to persuade customers to buy processed products. They seem to be successful with this idea, as they are already building a new 16,000 square meter fish processing plant in addition to the already existing 10,000 square meter unit. According to Signor Magnani, the store director: – Merchants should be modest. It is important to watch and listen to housewives in the store to find out what they need.