Carnival's Challenge: Appeal to Latino Shoppers While Merchandising Stores for Their Neighborhoods; While Other Chains Close DFW Stores, Lone Local Grocer Plans New Units.

DALLAS -- The new Carnival flagship store open today in southwest Oak Cliff is the fruit of months of hard work developing a vision to fast-forward a supermarket company with deep Texas roots into a new era of rapid growth, planning new stores in a market other grocers are fleeing.

"The Dallas market is well known as one of the most competitive in the country," said Michael D. Byars, chief executive officer for Carnival Supermarkets of Coppell, Texas, which operates the new Carnival Super Market. "To remain successful, we had to come up with a breakthrough in supermarket design, construction, and, most of all, merchandising. We had to get it just right."

Carnival stores traditionally have served a greater proportion of Latino customers than the stores' overall market share. With a hunch that this was the way to go, the top management team spent months researching their existing customer base and the burgeoning U.S. market of Latino consumers. They visited supermarkets in Mexico and across the United States and hired additional senior managers with expertise in operating grocery stores in both countries.

Although the company already had decades of serving predominantly ethnic shoppers, no one took anything for granted. Instead, they did extensive demographic research on the Latino market. They delved into best practices in the supermarket business. When the numbers fell into place, it was clear that the company already had the foundation for growth.

Rapid Customer Growth

"Where our stores were positioned, we were looking at as much as 40 percent growth in the customer base over the next five years," Byars said.

The Latino population comprises 36 percent of the Dallas population and 30 percent of Fort Worth's. Even more pertinent to Carnival, they spend 46 percent more than the general population on groceries.

Through focus groups, Carnival also asked current customers what they want in their supermarket and learned that they value fresh produce, fresh meat, fresh baked goods made from scratch and authentic Mexican recipes. They want it all available early and throughout the day. They also value cleanliness and a farmacia (pharmacy) that offers them traditional home remedies from their native country along with all the standard U.S. assortment of over-the-counter products and beauty aids.

All that--and much more--is now available for them in the new Carnival Super Market, which is state-of-the art for the industry, and located at 3434 W. Illinois Ave just west of Westmoreland Road.

Yet the new grocery store also is merchandised for everyone in its neighborhood. "We're including everyone in our approach," Byars said. "Each store will stock the goods and services that its neighborhood customers say are important to them. It's the only way we can succeed."

The company has acquired more land and will use the new format for future expansion. In the meantime, the company has already spent millions remodeling four existing Carnivals along the format and merchandising of the new flagship super market and on refurbishing existing Minyard Food Stores, and Sack 'N Saves.

"While we have confidence in Minyard and Sack 'N Save," Byars said, "Carnival will lead the way forward for us."

About Carnival Supermarkets

Carnival Supermarkets (www.carnivalsupermarkets.com) consists of 24 grocery stores in the Dallas - Fort Worth metropolitan area that serve North Texas's fast-growing Hispanic population. With its flagship store in Oak Cliff, Carnival has launched a unique approach to the grocery marketplace - one that will act as a testing ground for its expanding chain of stores. Carnival is committed to satisfying the needs of customers in the communities the company serves.