Progressive Grocer - January/February 2009 - (Page 40)

NEWSMAKERS Left to right: Fresh & Easy misses; Giant Eagle experiments; A&P diversifies; Hannaford recovers. Retail Giant Eagle, Inc. AFTER carefully orchestrating concepts geared to foodies, drivers looking for gasoline discounts, and convenienceoriented shoppers in search of quick and easy pop-ins, Pittsburgh-based Giant Eagle is discreetly tipping its talons into yet another market—that of discount foods, with the new Valu King format in suburban Cleveland, Ohio. The privately held chain already runs 157 corporate stores,with another 69 independently owned and operated franchises, plus 120 fuel and c-stores throughout western Pennsylvania, Ohio, north central West Virginia, and Maryland. According to its front office, Giant Eagle will take an arm’s-length approach to this latest concept, with no fuelperks! discounts and no advantage card incentives included in the Valu King offering.Valu King’s autonomous management team says it will closely monitor the inaugural store’s progress to determine future directions as demand dictates. Meanwhile Giant Eagle continues to introduce new twists on its popular fuelperks! gasoline discount rewards program, including a move in Columbus, Ohio to transpose the loyalty program with grocery discounts for those who buy gas at the chain’s companion Get Go cstore outlets. The chain says a further expansion of the foodperks! test might come next. Its first-ever LEED Gold award in the “New Construction” category, for a supermarket in northeast Columbus, has also spurred Giant Eagle to keep its environmentally friendly store design a top priority.—M.M. of its tried-and-true fresh stores,now showcasing a European market design, continue to roll out.—B.G. is in sync with consumer shifts occurring.”—D.G.F. Hannaford Supermarkets BOUNCING BACK from a near-disastrous computer data breach in March 2008 that compromised thousands of customer credit and debit card numbers, Scarborough, Maine-based Hannaford is resolutely looking ahead. The grocer faced the problem head-on, first by creating bag-stuffers apologizing to its shoppers, and then unveiling its intention to roll out sophisticated firewall technology over the next 18 months. Meanwhile the chain is dealing in a similarly forthright manner with the recent announcement that it is asking for voluntary resignations at its corporate headquarters, with the aim of restructuring the business for greater cost-effectiveness. On the unequivocally positive side, Hannaford’s acclaimed “Guiding Stars” nutrition rating system continues to flourish:The program is not only in place at the grocer and its fellow Delhaize America banners, but is also now broadening its reach to include Delhaize locations in Europe, as well as such partners outside the grocery channel as schools, health care providers, restaurants, and regional and national food manufacturers.—B.G. Hy-Vee, Inc. AS ONE of the most progressive grocers in the nation, West Des Moines, Iowa-based Hy-Vee, Inc. is gearing up to unveil a long-awaited smaller store concept, called Heartland Pantry, that will feature roughly 20,000 square feet. The 225-store chain’s choice of the Heartland Pantry name harkens back to its now defunct c-store operation in Iowa, which it divested in 1999. Larger than a c-store but smaller than Hy-Vee’s flagship metro stores, the format will adopt a limited-assortment merchandising approach.“There is a value in developing a smaller store model with a limited assortment of merchandise,” says Ric Jergens, c.e.o. of the well-respected employee-owned chain. “It was important to us to come up with a format that would be intriguing, practical, and successful.We think we’ve found one.” At the other end of the spectrum, the chain is also keeping the wheels spinning on a larger store blueprint that features attached wine and spirits shops, ample eat-in and takeout dining options, drive-up pharmacies, digital photo labs, gourmet salads, club rooms for classes and meetings, and in-store dietitians.—M.M. The Kroger Co. AGAINST a backdrop of what will likely rate among the most challenging cycles in the history of modern supermarket retailing, The Kroger Co.’s exemplary performance in 2008 is the benchmark by which all other supermarket chains will be judged in 2009. PROGRESSIVE GROCER’S 2008 Retailer of the Year is wisely using its healthy cash stream to leverage capital investments, debt reduction,and dividend payments.Indeed,its flush cap ex purse, excluding acquisitions, totaled $604 million in its most recent third quarter,which resulted in 14 new,expanded, or relocated stores and 55 remodels. In the near term, the chain expects to open,expand,or relocate approximately 60 stores and complete between 165 and 180 store remodels during fiscal 2008.But it’s the company’s much-touted “Customer 1st”game plan that that will optimize the talents and commitment of its base of over 320,000 associates.—M.M. H.E. Butt Grocery Co. SAN ANTONIO-BASED H.E. Butt Grocery Co. recently opened its “greenest” store, the chain’s first but not last to be LEED certified. Alon Market, a 128,000-square-foot new store format in San Antonio, featuring the chain’s largest selection of kosher food and elements of HEB’s upscale Central Market and HEB Plus! big-box concepts,has debuted. A mammoth HEB Plus! opened in the chain’s hometown in November. At 178,500 square feet, this next-generation store is designed to compete with big-box stores. The Texan grocer appears to have a handle on the economy for 2009, when it comes to serving shoppers. HEB offers meals for under $10 aimed at consumers who, in a good economy, ate out more often. “HEB is well positioned for today’s economy because of their very strong price positioning,” says Neil Stern, partner at Chicago-based McMillan/Doolittle. “They should gain share as customers look to more value alternatives. We also see them emphasizing their private label more, which A H E A D O F W H AT ’ S N E X T Great Atlantic & Pacific Tea Co. EXCITING new store formats continued to be the name of the game for A&P last year—and should be this year, too. In addition to its Pathmark Sav-A-Center Price Impact format, which debuted last year in New Jersey and the Philadelphia area and was described by A&P president and c.e.o. Eric Claus as “a template for a massive Pathmark refresh between now and the end of 2009,” the company also opened its first Best Cellars wine store and revealed additional plans for standalone units and branded grocery aisles. Also on tap for this year, according to Hans Heer, general manager of A&P’s upscale The Food Emporium banner and an s.v.p. at Montvale, N.J.-based A&P, is a standalone version of The Food Emporium’s popular “Food to Go” prepared food concept. While dreaming up new formats, however, the company hasn’t neglected to tweak its older ones:New iterations 40 • Progressive Grocer • January/February 2009 Meijer, Inc. WITH THE majority of its 185 stores situated in one of the hardest-hit economic regions of the country, supercenter pioneer Meijer, Inc. is going to great lengths not only to help shoppers stretch their dollars, but also to keep them loyal and engaged. Its highly visible pricedrop program, overlaid atop its weekly specials that regularly target staples, aptly reinforces the Grand Rapids, Mich.-based retailer’s aggressive promotional mindset. www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - January/February 2009

Progressive Grocer - January/February 2009
Front End: Aldi’s Private Label Showing its Fitness
Nielsen’s Shelf Stoppers/Spotlight: Prepared Foods-DryMixes/Rice Mixes
Market Snapshot: Minneapolis-St. Paul, Minn.
Outstanding Independents Awards: Up with People
Current Events: Retail Newsmakers
Contents
Lempert Report: The Phoenix Format Face-Off
Independents Report: Making your Workplace Family-Friendly
Multicultural Marketing: Where there’s Mystery, there’s Margin
Wake-Up Call: New Habits Die Hard
Beverage Alcohol: Wine 101
Soft Drinks: Creating a Buzz
Whole Grains: The Brown Version
Packaging: The Whole Package
Meat: Master Beef Backer
Pet Care: Financing Fido
Executive Insight Series: Technology and the Independent Grocer: Eye of the Gale
Equipment Case Studies: Food. Service. Equipment
Financial Insights: What the Yield Curve Shows
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - January/February 2009