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Changes at Stop & Shop include logo, color scheme

01:00 AM EDT on Tuesday, September 2, 2008

By Paul Grimaldi

Journal Staff Writer

Grocery shoppers who visited a Stop & Shop supermarket recently have probably noticed signs that things continue to change at the 94-year-old company.

A new logo and a new color scheme are filtering into the grocery chain’s nearly 400 stores. The logo looks a bit like a bowl with three pieces of fruit in it. Employees also are giving up their black and dark-green short-sleeved shirts for ones of eggplant and yellow.

The same logo and color scheme are being introduced at Giant Food, Stop & Shop’s sister chain in the Mid-Atlantic states. Previously, the chains had separate logos.

Stop & Shop and Giant stores have been undergoing renovations recently as well.

“It’s a symbol that exciting things are happening inside,” said Faith Weiner, a spokeswoman for Quincy, Mass.-based Stop & Shop. “We didn’t just change the paint color.”

Both chains are owned by Amsterdam-based Royal Ahold NV (OTC:AHONY.PK).

The changes come as Stop & Shop is nearly 85-percent finished with aisle-by-aisle price cuts it undertook in 2006 as part of a “value improvement program.”

Stop & Shop also continues to adjust its offerings and will add more prepared foods to its menu this year. In addition, the chain is testing a collection of color-coded fresh ingredients that can be combined into a meal for four in 20 minutes, including meat, poultry or seafood, a vegetable, starch and sauce. A recipe comes with the food.

The chain also is putting more gadgets in its stores, all intended to make shopping easier for tech-savvy customers. Hand-held price scanners, self-service DeliVision kiosks and digital produce scales are being installed in the 389 Stop & Shop and 181 Giant stores over the coming months. The scanners and scales allow customers to price groceries as they shop. The deli kiosk allows them to order items from that department and then continue shopping while the orders are filled.

The technology changeover started with self-checkout registers, now available in 342 Stop & Shop stores.

While Stop & Shop is the market leader in Rhode Island — with 50.1 percent of sales, according to TDLinx, a service of The Nielsen Co.— the moves are intended to lure back customers here and elsewhere from discount chains, warehouse clubs and convenience stores, all of whom are selling more items once found only in supermarkets or the neighborhood deli.

The effort comes with a cost, as Royal Ahold is incurring “significant” expenses to cut prices and remodel its U.S. stores, according to John Rishton, the company’s chief executive officer.“Because we’re investing in price, our market share in terms of dollars has gone down slightly,” Rishton said in a conference call with investment analysts.

“Ahold might have to intensify the changes at its U.S. stores as it aims to boost sales in a period that the consumer is trading down,” Johan van Geeteruyen, an investment fund manager, told Bloomberg News.

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