Wegmans thrives on supermarket chic

CNY Business Journal (1996+), Jul 20, 2007 by Acton, Ryann

SYRACUSE - Wegmans Food Markets, Inc. didn't reinvent the wheel. It invented the wheel - staying competitive, relevant, and innovative since John Wegman founded the Rochester-based, family-owned supermarket chain in 1916.

Wegmans was one of the first supermarkets to use laser scanning to read UPC labels in 1974. The company added a 300-person cafeteria to its Rochester store in 1930. That concept is now better know today as the Market Cafe a gourmet to-go utopia of sushi, paninis, submarine sandwiches, salads, and pizza.

The supermarket powerhouse got its start as the Rochester Fruit & Vegetable Company, expanding into grocery and bakery items in 1921. By 1940, the store added meats, dairy products, and frozen food to its shelves. Wegmans opened its first Market Cafe in 1992. The following year, the company opened its first out-of-state store in Erie, Pa.

Wegmans operates 71 stores in Pennsylvania, New Jersey, Virginia, Maryland, and New York - including nine stores in Onondaga County and one in Cayuga County.

The company receives thousands of requests each year to build stores in communities, but only opens two or three each year. Future store locations include two in Pennsylvania, four in Virginia, and four in Maryland.

Today, Wegmans is more than just a place to buy milk and eggs - it's a one-stop shop for everyone from the culinarily challenged to the most discerning home chef.

The company's focus has shifted from merchandising to culinary education, says Shari Constantine, senior vice president of Wegmans' Syracuse division. Meal stations that teach customers cooking techniques and recipes have usurped the emphasis on product placement and large displays.

"That's where our business is now," Constantine says.

People cook differently now, says CindyDebbold, store manager at the John Glenn Wegmans at 7519 Oswego Road in the town of Clay. Mothers serving over-cooked meatloaf smothered in gravy is no longer the norm. Now they are savvier, Debbold says. Braising, blanching, and pan searing are no longer foreign concepts to them.

Busier schedules make it difficult to find time for squeezing in pan searing tuna and blanching green beans after a long day at the office. Wegmans is able to appeal to its busy customer base with its "make it and take it" concept, Constantine says. The model relies heavily upon its Menu Magazine, a seasonal recipe publication.

Recipes, such as braised barbeque pork spare ribs, grilled rosemary balsamic pork tenderloin, and cedar-plank salmon with brown sugar, are featured in Menu Magazine. Customers can either buy the ingredients (which are displayed together) to make the recipe at home, buy the meal pre-made in the cold case to re-heat later, or pick up the meal hot on their way home from work, Constantine explains.

"That is our vision for the future through the Menu Magazine," she says.

Wegmans is promoting the "make it and take it" concept through its magazine, in-store chefs, and employees, Constantine says. Meal stations located throughout the store feature chefs and employees teaching customers how to cook the recipes featured in the magazine. It also gives customers the opportunity to taste the recipe.

"It's an educational process. If [customers] want to learn how to cook, we show them how to cook," Debbold says.

The evolution from simply stocking groceries to providing prepared foods, recipes, and cooking education was not by accident. It was a carefully orchestrated progression by the Wegman family. Danny Wegman, CEO, and Colleen Wegman, president, are always evaluating the industry, staying two steps ahead of the competition.

"They are always asking, 'What does the consumer want? What are the trends?"' Constantine says.

Organic food is one of those trends. U.S. sales of organic food grew 16.2 percent to $ 13.8 billion in 2005, according to the Organic Trade Association's 2006 Manufacturer Survey. The Organic Trade Association is a Greenfield, Maine-based trade group with nearly 1,500 members that promotes the organic industry.

"Organics is one of the largest growing departments [at Wegmans]," Constantine says.

The customers want to eat healthier and are buying more organic items, she says.

The store's Nature's Marketplace boasts hundreds of all-natural and organic items such as granola, tea, chips, and juice. The produce section features about 300 fruits and vegetables daily and about 5 percent are organic.

Wegmans' sales of organic produce have increased 50 percent per year for the last five years. Organic-produce sales account for 10 percent of the DeWitt Wegmans store's produce sales - the highest out of all of the company's 71 locations.

As the company's focus and products evolve, so does the store's appearance. Bigger is, in fact, better at Wegmans.

In 1968, the company entered theSyracuse market with its 20,000-square-foot John Glenn store. In 1977, a new, 66,700-square-foot John Glenn store opened. Wegmans expanded the John Glenn store again in 2006, with a new 101,000-square-foot location adjacent to the old store. Wegmans wants to rent the empty building out, but there are no potential tenants at this time, Constantine says.