Building the Organizational Infrastructure
The Super AM format required changes in EXPO-AM’s approach to both
merchandising and store management. Super AM was given two merchandisers of
its own to buy specialty and local products offered in its stores. These were shipped
directly from suppliers to Super AM stores. Super AM’s merchandisers could also
draw product from EXPO-AM’s merchandising operations, capturing the low cost
due to high volume purchases. Super AM’s merchandisers alone decided pricing
and advertised weekly promotions. They were also given the authority to hire and
fire store associates—in EXPO-AM this was the responsibility of the store manager.
This meant that the store’s department managers and associates were very
attentive to what the merchandisers said.
Super-AM’s store management was kept separate from that of other stores because
the union agreement and the GSP process required a very different approach to
management. As part of this approach, only Super AM’s employees were allowed in
its stores.