In the wake of the COVID-19 pandemic, retailers like DiBruno Bros. in Philadelphia have had to remain flexible and pivot their business strategy to fit customer needs. SFA’s new Working with Buyers: Rise to the COVID-19 Challenge webinar series is meant to give members the retailer perspective on current conditions first-hand from buyers as they discuss the challenges they are facing. In this installment, Emilio Mignucci, VP of culinary pioneering at DiBruno Bros. gave his perspective on retail and online sales, the supply chain, importing issues, managing staff during a crisis, and how his customers are buying right now.
Supply Chain Challenges
Since the core of the DiBruno Bros. business is cheese, the COVID-19 pandemic has forced the retailer to pivot its strategy to move the massive amount of product that it had stockpiled. To that end, DiBruno has implemented reduced pricing and created in-store and online promotions. These strategies are helping make room for commodity items like flour, yeast, eggs, and butter, as consumers seek more ingredient-type products. “Right now it’s about cash flow and focusing on bringing in the right product,” Mignucci said.
DiBruno Bros., which imports products from Italy and France, has faced some sourcing challenges with these products. Containers that were already on the water didn’t see much of a slowdown, said Mignucci, but now that there is a reduced staff at loading and receiving ports, items have been delayed up to 10 days. Customs has also slowed due to staffing issues.
DiBruno Bros. has also faced workforce difficulties. It started with close to 400 employees, then was whittled down to 340, and now the retailer is working with 295 staff members. The retailer has helped employees who were able to work but weren’t able to do their current position by changing their job to sanitation specialists who work in teams to sanitize the retail locations all day long.
DiBruno has begun to offer curbside pickup and to work with third-party delivery services like Caviar, Instacart, and Mercado to keep up with customer demand. “It’s not the business we were doing, but it’s enough to keep it going; enough to keep our employees happy, comfortable, and working,” said Mignucci.
Consumer Behavior
DiBruno’s customers are beginning to get used to the new norm; they come in with gloves and masks, or use the ones that the store provides them. They are more patient, according to Mignucci, and respect the store’s limit of customers inside.
DiBruno’s e-commerce sales have increased exponentially, and the retailer is seeing shoppers from the Baby Boomer generation and older really become comfortable with online shopping.
Mignucci also noted that surprise and delights (giveaways and surprises for customers) really seem to be resonating with the store’s customers. “In our line of work, customers have plenty of options,” he said. “It’s stuff like this that keeps them coming back.”
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