November 2013

Increased Pricing for Thanksgiving Papers a Growing Practice

By Kevin Doyle

Web Editor, The Nexxus Group

tg_newpaperDANVERS, Massachusetts (November, 2013) — Charging consumers premium prices for Thanksgiving newspapers laden with Black Friday advertising is becoming common practice across markets large and small. The reasoning is that since single-copy consumers receive a Sunday-sized paper that costs more to produce and deliver, then they should expect to pay Sunday prices.

“There has been a year-over-year progression in this practice for the past seven or eight years. In fact, I am always surprised to find a newspaper that is still charging a daily rate for the Thanksgiving product. It is becoming a rarity,” said Russ Fant, President of The Nexxus Group.

Nexxus_Thanksgiving Sales Report

In many instances holiday editions stuffed with pre-printed shopping inserts outweigh the Sunday editions. Research conducted by the Newspaper Association of America and reported by NAA Vice President of Communications Cheryl Sadowski showed that 2011 holiday inserts broke records for both number and weight and that single-copy sales increased with more than one-third of U.S. papers now charging more on Thanksgiving.

According to the NAA, The Charlotte (NC) Observer’s 2011 Thanksgiving edition carried 87 shopping inserts, weighed a record-breaking 6.5 pounds and was distributed in four sections while charging its Sunday rate of $2. Meanwhile, The Dallas Morning News sold its holiday paper at a Sunday price of $3 for the third time in 2011 and tripled newsstand sales over a typical Thursday.

Mark Contreras, senior vice president of newspapers for E.W. Scripps told Greg Besinger of Bloomberg News that “It’s a once-in-a-year sort of event for us. The Thanksgiving paper in every place we offer it is the biggest newspaper of the year. Frankly, I don’t know why you wouldn’t charge more.”

Based on Nexxus Group scan data, the use of Sunday pricing on Thanksgiving Day has risen from 78 percent in 2008 to more than 95 percent in 2012. As a result of this continued migration to Sunday pricing, year over year single day increases in retail sales for Thanksgiving Day have grown in excess of 20 percent over this four-year span.

As the adoption rate nears 100 percent and unit sales decline, the opportunity to reap the large gains will now have to come from increases in pricing on the Thanksgiving Day products. We have seen this trend in 2013 and will report on that impact in the next newsletter.

About The Nexxus Group

Established in 2003, The Nexxus Group provides the industry’s leading full-service Scan Based Trading (SBT) solution and is a trusted business solutions and services provider to 85 retailers at more than 40,000 locations nationwide, in Canada and Puerto Rico. The Nexxus Group’s innovative and cost effective SBT solution delivers data exchange, sales and margin reporting, consolidated billing and world-class customer service capabilities. Nexxus Group clients experience more efficient and effective management of product categories while increasing sales and lowering costs in the supply chain. The Company’s customers include market leaders in the Convenience, Grocery, Mass Merchant, Discount and Specialty Retailer industries. The Nexxus Group supports retailers and manufacturing partners in categories such as Newspapers, Magazines, Ice Cream, Propane, Books, DVDs, Snacks and Novelties.

For more information, please visit: The Nexxus Group.

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New Client Update:

Kroger banners Dillons and Jay C join with Nexxus Group

By Kevin Doyle

Web Editor, The Nexxus Group

DANVERS, Massachusetts (November, 2013) – The Dillon Stores Division and Jay C Food Stores are the fifth and sixth grocery store banners of the Kroger Company to join The Nexxus Group family. Dillons came on board earlier this year, implementing a Scan-Based Trading program for the newspaper category on Monday, July 29. Program launch date for Jay C Food Stores is scheduled for Monday, Feb. 17, 2014.

The Nexxus Group’s proprietary Scan Based Trading solutions will manage newspaper sales for Dillons and the Baker’s, Gerbes and Food4Less banners within the Dillons Division, a total of 91 stores; as well as 29 stores in the Jay C Food Stores chain.

DillonsDillons was founded 100 years ago when Jonathan S. Dillon opened his first J.S. Cash Food Market in Hutchinson, KS. A full-fledged grocery supermarket chain, Dillons serves the Midwest and maintains a major presence in the Greater Wichita metropolitan area as well as Topeka.

Kroger’s merged with Dillon Companies, Inc. in 1983. Kroger CEO David Dillon, the great-grandson of Dillons Co. founder J.S. Dillon, announced his retirement in September, effective January 1, 2014.

Swiss immigrant Jonathan Groub and his wife Elizabeth founded Jay C in 1862 in Seymour, IN. Kroger acquired the John C. Groub Co. in 1999 and 29 Jay C locations in Southern Indiana. The company has a long history of bringing hope and help to the communities it serves, maintaining ties with numerous volunteer organizations.

“We are very excited about the efficiencies that our program will bring to Dillons and JayC Foods,” says Mark Landgren, CEO of Nexxus Group. “We look forward to working with such growth-minded companies, both with a long and storied history and commitment to the community.”

About Dillons

Founded in 1913, Dillons is a grocery supermarket chain based in Hutchinson, KS, and has been a division of The Kroger Company since 1983. Other banners under Dillon Stores Division include Gerbes in Missouri, Baker’s in Omaha, NE, and a Food 4 Less store in Fremont, NE. Dillons operates grocery stores throughout Kansas with major influences in the Wichita metropolitan area and Topeka, KS.

For more information about Dillons, please visit: http://www.dillons.com.

JayCFoodAbout Jay C Food Stores

Founded in 1862, the Jay C Food Stores supermarket chain maintains headquarters in Seymour, IN. It serves the Southern Indiana market and was acquired by The Kroger Company in 1999.

For information about Jay C Food Stores, please visit: http://www.jaycfoods.com.

About The Nexxus Group

Established in 2003, The Nexxus Group provides the industry’s leading full-service Scan Based Trading (SBT) solution and is a trusted business solutions and services provider to 85 retailers at more than 40,000 locations nationwide, in Canada and Puerto Rico. The Nexxus Group’s innovative and cost effective SBT solution delivers data exchange, sales and margin reporting, consolidated billing and world-class customer service capabilities. Nexxus Group clients experience more efficient and effective management of product categories while increasing sales and lowering costs in the supply chain. The Company’s customers include market leaders in the Convenience, Grocery, Mass Merchant, Discount and Specialty Retailer industries. The Nexxus Group supports retailers and manufacturing partners in categories such as Newspapers, Magazines, Ice Cream, Propane, Books, DVDs, Snacks and Novelties.

For more information, please visit: The Nexxus Group.

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Meet Our Account Specialists

Casandra Judd

CasandraJuddCasandra has been with The Nexxus Group for five and one-half years and, as a key member of the Customer Service team, provides direct service to Nexxus retailers and vendors.

Casandra joined Nexxus with five years of Customer Service experience at The Salem Evening News, where she worked directly with stores, customers and District Managers.

“We pride ourselves on our Customer Service. We care. Our team’s goal is to provide excellence in all aspects of Customer Service to each and every vendor,” Casandra says of how The Nexxus Group strives to differentiate itself.

The Salem, MA native enjoys camping, reading, playing Nintendo Wii, taking nature walks, and watching all Boston sports. Her favorite vacation spot? Camping in the middle of the woods in the White Mountains. In fact, Casandra says she would be a wildlife photographer if she weren’t working for Nexxus.

She would one day enjoy meeting Judge Judy and Mark Wahlberg.

Favorite Quote: “Life is not always a matter of holding good cards, but sometimes, playing a poor hand well.”

— Jack London

Sarah McLean

SarahMcLeanA 2010 graduate of Nazareth College, Sarah holds a BA in International Studies, Business Administration, and Spanish. She is nearing her first anniversary with The Nexxus Group and previously worked for a privately owned sales and marketing company in Pittsburgh.

As an Account Manager, Sarah oversees all launches, audits, and reporting for the Pinnacle Propane Energy account. As an Account Specialist, she was responsible for maintaining 10 retailer accounts.  She considers the Customer Service Nexxus provides to be top-shelf.

“Many companies pride themselves on having superior customer service, but The Nexxus Group team is second to none. The customer is always first and foremost to us. We, as a company, are constantly working cohesively to ensure that each vendor and supplier feels like they are business partners not only for the present but more importantly for the future,” Sarah says.

Sarah is a native of South Korea, was raised in upstate New York, and currently resides in Indian Trail, NC. She grew up in a house of men. “My amazing dad and two older brothers raised me to be the strong, stubborn woman I am today.”

Sarah loves traveling whenever able and calls the entire west coast of Ireland her favorite vacation destination, hands down.

If she could meet one person, it would be her grandfather on her father’s side. “(He was) the only grandparent I didn’t have the chance to meet. My dad looks up to him in a way that I can only relate to. I hear he was an amazing man.”

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Favorite Quote: “The best revenge is massive success.”

– Frank Sinatra

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The barcode turns 61

By Cynthia McCarthy Ginman

VP of Client Services, The Nexxus Group

DANVERS, Massachusetts (November, 2013) — Monday, October 7 marked the 61st anniversary of the ubiquitous barcode, a small invention that is integral to our business. US Patent 2,612,994 was issued on October 7, 1952.

Barcode history has its roots in the Great Depression. It has evolved from a punch card system, designed to speed the purchasing process, to the modern barcodes we see on every product imaginable.  The basic idea for the barcode came from Morse code but the dots were extended into lines that alternated black and white in a parallel fashion, and this is still the case today.

It wasn’t until the 1960s that barcodes were scanned with a laser. The laser interprets the width of the black lines; each number has its own specific width. The white spaces tell the laser where one number ends and the next begins. Any string of numbers in any order or length can be scanned against a database of information to account for inventory, sales and purchases. Today we use a standardized 11-digit code that identifies any unique product. This code is referred to as the UPC, or Universal Product Code.

The Kroger grocery chain – in conjunction with an 18-month test by RCA, which had purchased the rights to the original patent – became the first retailer to use a barcode in its Cincinnati store in July of 1972, utilizing RCA’s bullseye concentric circle pattern.

However, the first successful scan with the familiar linear system of a 10-pack of Wrigley’s Juicy Fruit gum occurred on June 26, 1974 on a testbed system installed by National Cash Register (NCR) at Marsh’s Supermarket in Troy, OH. The gum and receipt are now on display at the Smithsonian.

You can generate your own barcode easily – great for parties or for your next tattoo.

Barcode

 

 

Add the numbers and it becomes a Universal Product Code.

http://www.barcodesinc.com/generator/index.php

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Last Posted Dates function delivers real-time sales information

This is a great feature of our website.  If you want to know if sales are posted to our website for a particular retailer, you can find it here.

This lists every retailer that The Nexxus Group works with and the date that sales have been posted through.  Check here often so you can be up to date on which sales are available.

Below is example of what this looks like and it is updated in real time.  As soon as sales are available on our reports, this will be updated.

LastPostedDates