Supermarket operators strive to differentiate themselves from their competition, something that gets tougher each year as rivals multiply and more retailers from many channels join in the scramble to sell groceries.

In the greeting card category, this is especially challenging. A $7.5 billion business, the category is sold via 100,000 retail outlets, which include drug stores, gift shops, mass merchandisers, and convenience stores, as well as grocers.

Progressive Grocer's exclusive retail research study, "Executive Insight Series: Greeting Cards," reveals some of the strategies and products grocers are employing—or hoping to employ—to separate themselves from the crowd and drive traffic to the category. These strategies include offering value cards and/or ethnic selections, cross-merchandising greeting cards with other departments, and even redesigning the department.

Regardless of which tacks they take to drive traffic to the section, by far the most important greeting card offerings grocers can provide, according to those polled, are ones that reflect their customers’ voices.

How much space is enough? The amount of space supermarkets devote to greeting cards runs the gamut, from at least 70 linear feet per store to less than 10, with an average of 35 linear feet per store. The various sizes were distributed fairly evenly among the respondents. Approximately one-quarter of respondents reported devoting less than 20 feet to the category. One-fifth (21 percent) of respondents devote 70 feet or more to this segment.

For the most part, retailers said they’re quite satisfied with the amount of space devoted to the greeting card category. Seventy-two percent of respondents said they considered the linear feet allotted to the category to be “just right.” While this answer is often followed by
the caveat “that’s all the room we have,” some respondents noted their positive response was based on a successful space-to-sales ratio. “The average is about right when viewed with sales and profit per foot in mind,” explained one retailer.

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