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Wegman’s, the privately held, Rochester, New York-based supermarket chain has always been the envy of most food retailers. A highly successful operation, the Wegman family has been approached countless times to sell out to larger chains. They have steadfastly refused, preferring to operate their 70 store chain, mostly in New York, but in additional locations in Pennsylvania, New Jersey, Virginia and Maryland.
In 2006, almost 5000 letters from consumers begged them to open additional outlets in their communities. “An additional 4100 wrote to say how much they liked the Wegman’s shopping experience”, this according to a recent article in the Cincinnati Enquirer on May 7th.
What is it about Wegman’s that makes this grocery chain so exceptional, so attractive to consumers? Great food assortments? Yes, of course.
A wonderful blend of gourmet, natural, organic, mainstream and international foods? Yes.
But there’s more to the Wegman’s recipe than that. A very important ingredient that so many retailers, food or non-food, are sorely lacking. Wegman’s has always made, and continues to make, a solid investment in company personnel. The company commits to training its people well, and feels that in-depth knowledge of products and cooking pays off handsomely for its customers.
Furthermore, Wegman’s listens to its employees and solicits ideas from them. Its over 35,000 employees are considered by management to be important assets, and it shows. Thus far in 2007, Food Network, BusinessWeek and Fortune magazine have all cited Wegman’s in three key areas:
• Changing the way consumers shop for food
• Providing the best customer service
• Being one of the best places to work
The company is willing to try new ideas, willing to experiment and innovate, willing to offer new products and services. Company president Colleen Wegman: “We listen to our people. We get ideas from all over the company. We try out the ideas. If they don’t work, we change course.” How refreshing is this? How uncomplicated and how open is this open door policy?
As is the case with most food retailers, Wegman’s counts heavily on attracting a pool of young workers. Since 1984, the company has awarded $63 million dollars to more than 20,000 employees, with both full-time and part-time status, under the auspices of its scholarship program. In the article, Eugene Fram, a Rochester Institute of Technology Marketing Professor noted: “The scholarship, though modest in amount, is a nice bonus for mid-and low-income students. Over the years, that’s a substantial investment in people.”
It looks as though that kind of investment pays off. Handsomely. Kudos to Wegman’s and their enlightened attitude about valuing their human capital so that their work force, in turn, delivers the brand to the stores’ customers with conviction, pride and tremendous service. The result: great success in one of the toughest, most competitive areas in the retail arena.
Question: Have you ever experienced the Wegman’s brand, or another retail brand that you felt was exceptional? What part did the employees play in making your experience such a good one? We’d love to hear from you. . .
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Comments
I am originally from Rochester, NY and have had many experiences with Wegman's. Friends of mine worked there, my family often shopped there and late at night, when everything was closed and we were bored, my friends and I would wander the aisles making bizarre purchases. I have always been impressed with their quality service and product. Their success is no surprise to anyone who grew up with them.
Posted by: Nic Darling | 05.16.07
Wegman's clearly illustrates how a company's investment in building a corporate culture, aka, internal branding, can pay huge dividends. When employees are sold on the corporate brand and represent it so faithfully to the customer, providing great service naturally follows.
Calls to mind Stephen Denny's excellent post on the subject yesterday. Thanks, Stephen and Ted.
Posted by: Claire Ratushny | 05.16.07
Thanks, Nic and Claire, for the observations. In this day and age of poor service complaints, it's a pleasure to be able to shine a light on an example of the opposite.
I'm curious to hear from Daily Fix readers out there, anywhere in the world, who can cite examples of other companies like Wegman's. And I'm hoping managers who read this take a cue from Wegman's to train and fully integrate their employees like they have. Wegman's deserves our accolades.
Posted by: Ted Mininni | 05.16.07
Wegman's has created an outstanding customer centric environment. I have been in several stores in New York and they all have the combination of unique selling points: great in-store layout, excellent product choices, an assimilation of wholesome, fresh and tantalizing food offerings, empowering their employees to quickly resolve or assist customers requests or complaints. The stores are well layout to make the shopping experience fun and exciting. The employees evoke a sense of pride, are courteous and genuine. Wegman's definately sets the industry standards high.
A natural food supermarket I have experienced was Mrs. Gooches in LA before they were bought by Whole Foods.In fact, Whole Foods is another, however they fall short to Wegman's overall service , selection and quality.
While in Japan over 10 years ago I visited an upscale Dept. Store with an exceptional customer service attitude. There was respect and courtesy for the customer. The employees greet you at the door with a traditional hello and the bow. Same holds true when you are leaving; the staff emits a gratitude that the customer has honored them to visit their store. During the purchase the staff assigned to me actually ran through the aisles to get the merchandise, wrap the gift and meticulously place it in a shopping bag. I was amazed with such an attitude toward pleasing the customer.
If retailers in America implemented a small percentage of the service level of Wegman's or the Japanese, they would have greater customer loyalty and repeat sales.
Posted by: Richard Pres | 05.16.07
Richard,
Thanks for your input on this issue. Many questionnaires have put Wegman's at the top when it comes to delivering satisfaction and customer service; and yes, many have put it above Whole Foods.
It makes a powerfully positive impression on customers when a high level of service is the norm, as was the case with your experience in Japan. You still remember it vividly 10 years later. That should say something to retailers. . .
Posted by: Ted Mininni | 05.17.07
Richard has brought up an interesting point. Having spent years at United Natural Foods as a marketing manager in both the wholesale and retail divisions, I can vouch for the power of Wegman's in the natural products arena. In fact, a number of independents went out of business in upstate NY due to the power of Wegman's and its natural grocery, personal care and supplement selections; its effective marketing of these categories and its knowledgeable sales staff. They simply couldn't compete, or didn't do what was necessary to be effective competitors!
Wegman's is admired for being able to adeptly merchandise mainstream grocery brands, gourmet and international foods as well as natural products. Kudos to them for doing such an excellent job!
Posted by: Claire Ratushny | 05.17.07
Richard,
You are so so right.
I too visited that department store while in Japan as well as Japanese retailers in Manhattan.It was an "experience". The Japanese knew all about the value of internal branding and customer service long before these buzz words were buzz words. I rank food shopping as the number 1 worst chore. Search for food. Put food in cart. Take out of cart for cashier. Put back in cart. Take out of cart into car. UGH! There must be a better way!
Posted by: Susan Mira | 05.17.07
Thanks for adding some additional insights into Wegmans, Richard and Claire.
Susan: many people feel as you do. Especially these days when time is so tight. I'm not sure where you live but you might want to find out if your local supermarkets offer an Internet shop-at-home service. For example, Stop & Shop's Peapod site allows shoppers to place orders and have them delivered to their homes at their convenience. Might be worth looking into--my understanding is that Peapod took a while to take off, but it's become an integral part of S&S's business. Consumers seem to be willing to pay a premium price for the service since their time is perhaps worth even more than the cost of joining the Internet shopping service.
Posted by: Ted Mininni | 05.17.07
Ted, very good article, i would like to put it into my page, can I ??
Posted by: kredyt mieszkaniowy | 10.07.08
Wegmans' success starts at the top. The family is deeply committed to their employees and customers' well being. The culture rewards good people and encourages exceptional customer service. It is a pleasure to be in their stores. The Wegmans' organization should be a case study for every service business. Its no wonder they were vote the #1 place to work in America!
Posted by: Dan | 12.26.08
"The Wegmans' organization should be a case study for every service business." Agreed, Dan. Wegman's may not be the largest supermarket chain, but it is one of the best managed, strongest food retailers in the country. How many times can customers truly say, as you did: "It is a pleasure to be in their stores"?
Thanks for weighing in with your observations, Dan. Much appreciated.
Posted by: Ted Mininni | 12.29.08