The modest-sized grocery chain Wegmans bested Kroger, Publix, and Safeway to be crowned “Top Grocery Retailer” in a Market Force consumer survey—based on 6,000 consumer responses. In a recent Chief Marketer article,“Why Wegmans Is Tops,” marketers can see the drivers behind Wegman’s success.
So how did a 75 store grocery chain based in Rochester New York with outlets in New York, Pennsylvania, New Jersey, Virginia and Maryland top the bigger chains?
Consumers gave high marks for:
• Convenient locations
• Strong pricing
• Accuracy in pricing and tag systems
• Excellent assortments
• High-quality meats and produce
• Polite staff
• Quick checkout
• Cleanliness
These are the things we might expect in a highly-rated grocery chain, but effective merchandising and promotions were also cited as influential. In fact, “70% of trial was driven by merchandising or some kind of promotion in-store . . . People bought something that they hadn’t counted on buying,” according to Market Force CMO Janet Eden-Harris.
At a time when retailing is clearly in transition, Market Force’s survey reinforced the importance of appealing end cap displays, signage and shelf talkers, coupon,s and special promotions–especially in the food business. In fact, a combination of coupons, special promotions, and in-store sampling continue to drive sales.
This is proof again that whatever business we’re in, we don’t have to be the biggest to be the best. We just have to be hungrier and do things better than our competitors. That takes commitment from the top down. It takes an engaged staff and pride in the company brand. It takes a lot of hard work.
But it buys an incredible amount of customer loyalty—and how much does that mean these days?
Questions:
• Which retailer—independent, small chain or large—would you nominate as being “best”?
• What does it do that no other retailer does as well?
• When other retailers offer lower prices for a time, do you still decide to shop in your favorite store due to your overall feeling about it? How loyal are you?
I’d love to get your feedback.
Tags: customer experience, Marketing
You know I had to weigh in on any post on Wegmans, Ted! I’ve gabbled on enough about them in comments on your posts before!
The main thing I’ve noticed about the Wegmans promotional strategy was their effectiveness at capturing interest in a new location so long before opening. About nine months before, they send a letter to nearby households announcing that they are hiring for a new store in the area. Then the store opens and they send out three months worth of week-to-week valuable coupons (nearly always something free). It encourages shoppers to come every week, cementing their market share. Of course, it doesn’t hurt that they staff the new store with veteran employees–the best of the best–for those first few months. By that time, they’re labeled “best” in the consumer’s mind and I assume it would take quite a bit to dislodge that perception once it’s there.
Thanks for the heads up on their recent win. They deserve it.
Hi Alison,
Thanks for sharing your observations with us. You’ve pointed to more reasons Wegman’s is so admired among retailers. A strong strategy and forward thinking can be put into place by any business. Wegman’s approach before opening new outlets should serve as an example for other retailers. There are no shortcuts to building customer loyalty. Consistently high levels of customer service and working at making improvements every day takes hard work and commitment. . .but look at the payoff. I appreciate your input, Alison. Good stuff.
Ted:
Hah! Market Force didnt mention the new “pub” in Wegman’s?
http://lairigmarketing.typepad.com/lairig_marketing/2010/03/never-grocery-shop-while-hungry-or-drunk.html
I give them credit for innovation, tho not sure pushing a cart around the store is enough to work up a thirst for a tall frosty cold one!
Cheers,
kevin
Hi Kevin,
Cool idea! Thanks for sharing this with us. Loved your comment too, BTW. Cheers back at you!
Wegmans has elevated grocery purchasing and meal preparation to an artform. Walking into one of their stores, especially the new ones, is walking into an experience.
Their strategy is to engage all of the senses and create a memorable experience, and they’ve done an excellent job at creating just that.
They recreated the intimate and nostalgic shopping experience found throughout the cobblestone street specialty shoppes of Europe.
And, no I don’t work for Wegmans, just glad I live a mile away from one!
Andre
Exactly, Andre. Wegman’s has achieved an important marketing goal: they have elevated food shopping to a great customer experience. Hence, their success. I think you’ve hit on something important here: Wegman’s has many specialty offerings from organics and natural foods to gourmet and international selections plus the expected general fare, of course. That makes the store similar to a grouping of specialty shops under one roof. Thanks for weighing in, Andre. Sharp comments. I enjoyed reading them.
I agree with Andre…what an amazing store. Went to Wegman’s for the first time while visiting in Virginia. Need to bring one to eastern NY. Would love to have one nearby.
Susan
Hi Susan,
Thanks for weighing in with your comments. I urge you to go to the Wegman’s web site and check out their locations. Being Rochester based, they’re likely to open more stores in NY state. BTW: love our Wegman’s in the NJ area where I live.
[...] and Safeway—to be named tops in its industry in a major consumer survey. The recognition caused one marketing expert to note that “you don’t have to be the biggest to be the [...]
[...] and Safeway—to be named tops in its industry in a major consumer survey. The recognition caused one marketing expert to note that “you don’t have to be the biggest to be the [...]