Ted, being in Southern (and Northern) CA, I've been in quite a few of these remodeled and new concept stores. They're going very upscale. I wonder however if they are leaving a bit of market share on the table for discount grocers like Foods4Less or similar chains.

Ted,

This post points to important changes in the marketplace, where competing on products and services are not the best way to attract and keep customers. We want more!

Stop & Shop and Shaws figured that out some years ago, when they began opening the "super" stores.

Paul,

You may be right. However, with Wal-Mart's superstores and a host of other competitors at the discount end, Safeway may have decided it couldn't/wouldn't compete there. Sometimes retailers have to leave some volume behind, especially at lower, razor-sharp margins--can't be all things to all people.

The other factor is that there are more profits to be made in proliferal, upscale sections in grocery stores, than there is in center store offerings. Since "natural" and "gourmet" foods are now "lifestyle choices", Safeway may have decided to set its sights higher. . .Operations like Wegman's here in the East can be used as an already successful blueprint for supermarket chains that would like to integrate more lifestyle departments into their stores.

Thanks for your great insight, Paul. I appreciate it.

Lewis,

I believe you're right. But I also think no single operation in the East has done this as well as Wegman's has. They've positioned themselves to take on specialty gourmet and natural product stores, as well as the mainstream supermarkets and enjoyed tremendous success doing it. They're quite unique, and still privately owned and family operated. In this day of conglomerately owned supermarket chains, it just goes to show you what can be done with the right management group and strategy in place. Thanks for adding a strong point to the conversation, Lewis.

Ted,

I'm not familiar with Wegman's. Are they located in New England? Conn.?

Lewis,

Wegman's is based in upstate New York, and they have stores down here in New Jersey where I live, too. They're moving southward, but I'm not sure whether they have any stores in CT or not. It's a good idea to check out their web site to find out where their stores are.

Wegman's has two locations in Virginia and is opening a third less than a mile from my office in the next few months.

The big grocery chain news here in the mid-Atlantic last year was the split of Food Lion's existing stores into the softly lit, expanded organic section-sporting "Bloom" and the charging for bags, expanded economy packaging section, discount "Bottom Dollar Foods" depending on neighborhood demographics. Food Lion was meeting no one's needs whereas the new concepts are totally tailored to their audiences. I'm not sure if their numbers have improved, but they've definitely added staff at my neighborhood's location.

Thanks for the information, Alison. I knew from hearsay that Wegman's was expanding into the mid-Atlantic states as well as other Northeast locations. Love getting the take on this retailer from consumers who have actually experienced their stores.

I don't think Food Lion has been doing that well across the south for quite some time now. They've closed quite a number of their stores. Seems like Publix has given them a run for their money. Expect Wegman's to tweak their assortments and respond to customers' needs. They excel at that, Alison. Thanks for writing. I appreciate your comments.

In southern California we have 'Pavilions', a Kroger banner, which has a great layout. When in N.Carolina in 04, I visited a nicer outfit called 'Harris Teeter' whose departments were even more inviting and upscale.
A real pleasant shopping experience.

Thanks for your input, Mario. Harris Teeter is a respected food retailer and another good example of one that appeals to consumers' lifestyle choices. We're not familiar with Pavilions on this side of the country, but it sounds like another nice food shopping option.

The large supermarket chains should probably take heed of these trends and address their assortments and layouts, also. The addition better quality, more health conscious, freshly prepared convenience foods is important, too. Thanks for adding some additional, strong lifestyle oriented food shopping experiences to the list, Mario. I appreciate your input.

Isn't "lifestyle" merely a euphemism for "social class" in a country that's uncomfortable acknowledging class distinctions? I suspect this food retail development is yet another way what were once "mass market" products are dividing along class lines. Coffee, for example, used to be something everyone got from a local diner or luncheonette. Now you have a blue-collar option (Dunkin Donuts) vs. a white-collar option (Starbucks). Previously big newspaper cities are now reduced to two competing papers along similar lines. (In Boston, it's the Herald vs. the Globe.) It seems that the once democratic supermarket is following on the same path. WalMart will lead food retailers into a low-margin, high-volume option for the working and lower middle-classes, while Whole Foods and its ilk will sell high-margin, lower-volume fancy foodstuffs for the college-educated market that insists on organic kohlrabi and local goat cheeses.

Jonathan,

A heavy dose of skepticism is always expected when we assess the marketing ploys of large players in every category. In some cases, the "lifestyle" concept in food marketing can mean a trading up for more affluent consumers and wannabees. (It seems today's consumers aspire to more upscale lifestyle products) In others, lifestyle refers to other marketplace trends. There is no doubt, for example, that consumers are seeking healthier food choices. Natural and organic food sales have been growing at about 20% per annum and the mainstream food business remains flat. Consumers are asking for more locally grown produce based on quality and environmental considerations.
Demand for better-tasting, healthier prepared foods will drive new deli selections. Consumers who are more cosmopolitan demand more international and gourmet food choices. All good reasons why supermarket chains are increasingly experimenting with "hybridizing" their assortments. Not to mention the marketshare they continue to lose to smaller, more niche food merchandisers. This trend shows no signs of abating; in fact, it seems to be accelerating.

Thanks for adding to the conversation and for making some substantive points, Jonathan. I appreciate it.

Ted,

Not to labor the point, but...

Is the demand for higher-end goods consistent across all demographics? I suspect not. Case in point: A Whole Foods (healthy/gourmet/"organic") supermarket opened a few years ago in Woburn, MA, on the border of a very upscale town, Winchester. It seems to be doing well. But Whole Foods recently acquired a Wild Oats store on Rt. 1 in Saugus that they shut down last month: Saugus and its local environs are much more blue-collar. I think retailers are going to be very sensitive to demographics as they develop these newer, "lifestyle" stores.

Jonathan,

You are quite right. As to the example you've cited, though, after acquiring Wild Oats, Whole Foods planned on closing some sub-performing stores. I suspect this was a matter of not having a more upscale lifestyle store in the right area, rather than that of having the wrong mix of product. . .if you see what I mean. Every retailer, food or non-food, has to open outlets where their consumers are.

Thanks for adding a lot to this conversation, Jonathan. Good stuff.

I found this article interesting because I noted recently that I felt Safeway would soon fall in the growing chasm between quantity and price (ie. Wal-Mart) vs. customer service, lifestyle and community. That is, until I read this :)

In Canada, Sobeys (sobeys.com) is making an obvious lifestyle and customer service play, which seems to be working. From the perspective of someone who is happy to pay more to avoid waiting in line for 15 minutes at Wal-Mart, they appear to be intentionally keeping stores (and checkout lines) smaller in order to retain a "community" feel, as well as organizing the floor according to lifestyles (ex: organic, vegetarian, seafood, international) over general product categories, with a wider selection of niche foods. The employees bag your groceries, take them to your car, and generally don't seem miserable.

I visited one of the Wegman's in Virginia early last year - and was very underwhelmed. Yes, there were a lot of choices, but I was really annoyed by details such as one section for organic dairy products, and another for the less environmentally sound choices. The Pentagon City (Northern VA) Harris Teeters likewise didn't particularly impress me. I'd rather go to one of the local Whole Foods, with occasional stops at Trader Joe's and Safeway. And don't forget the Farmers' Markets. Next time I'm in the DC area I'm going to check out Healthways, a family-owned chain of 11 stores specializing in organic products. It looks to be the equivalent of my regular grocery store in the SF Bay Area: the Alameda Natural Grocery. This grocery is housed in a large brick building that used to be an auto dealership along with a fishmonger, butcher (organic and free-range meats), wine and cheese shop, bakery, caterer / deli, sushi bar, Chinese restaurant, housewares store, and cafe. Who needs the big Trader Joe's or lifestyle Safeway a mile down the street? Especially when you can make a monthly pilgrimage to produce mecca: Berkeley Bowl. (Berkeley: home of Alice Waters)

Hi Robert,

I've heard and read good things about Sobey's over the past couple of years. Being a Canadian food retailer, I am not personally familiar with Sobey's. Thanks for bringing this into the conversation and letting Daily Fix readers know about another lifestyle oriented food merchandiser in North America. I appreciate it, Robert.

Penelope,

Someone else from Virginia wasn't overly impressed by a Wegman's store near them, either. I'm wondering whether this is a case of newer outlets in the Mid-Atlantic being the furthest from the corporate HQ in Rochester, New York. It might take some time, Penelope, but I think Wegman's will get it together in Virginia as they go along. In the meantime, you've cited some other great options you have for food shopping. And, yes, these operations definitely cater to consumers' lifestyle choices. Thanks for adding some real depth to this discussion. I appreciate it.