Open Writing

My first recollection of a supermarket is the ASDA store that opened in my home town of Sheffield, England in the early 1970’s. It was in a factory-like building with inadequate lighting and a total absence of anything that would have made the experience exciting, or even pleasing.

The parking lot angled so steeply that you had to hang on the cart until you’d put the purchases in your car, and once released it would immediately roll to the lowest point and join all the other carts after it had bounced off a few cars and other shoppers. In the winter time the parking lot was always iced over, presenting a real challenge in getting to and from your car. The goods were displayed in the shipping boxes they came in, stacked on steel shelving.

But pleased people were, and excited; believing no doubt that they were getting real bargains. I don’t recall whether they were or not, but I suspect not.

For me, the whole concept of the supermarket of those days was offensive. Gone was the personal attention; the pleasure of watching the bacon being sliced just the way you wanted it, the convenience of being able to buy just as much or as little flour, sugar, cheese or any other loose commodity as you needed, and not what pre-packaging dictated.

Gone was the convenience of being able to purchase everything on your list without as much as leaving the counter; as was the luxury of having your purchases carried out to your car.

Supermarkets have of course come a long way since then, and in recent times the US stores are trying very hard to recreate the experience people of my generation miss so badly. They’re not doing it willingly, but simply in response to competition. All it takes is for one supermarket chain to be responsive to customer desires, and sooner or later all the rest climb aboard.

But there’s just so much they can do to make shoppers feel comfortable and satisfied in a 3 or 4 acre store, with sodium lights so bright you can see an ant at 20 feet, and air conditioning that leaves you with a headache and a streaming nose. Some chains are building even larger stores and have added such categories as clothing and furniture, camping gear, electronics and hardware.

But also there is a trend towards smaller operations with much more of the feel of an old time grocery and produce store. There are three main contenders, and whilst they would have you believe they are small and homey companies, their sales are in the billions of dollars annually.

Beginning in 1984, Whole Foods Market began its expansion out of Austin, Texas, first to Houston and Dallas, and then into New Orleans with the purchase of Whole Food Company in 1988. In 1989, they expanded to the West Coast with a store in Palo Alto, California. Much of the expansion since then has been by acquisition.

Whole Food Company opened its doors in New Orleans in October 1974, and by 1978, the store (only 1100 square feet) was doing more than $1 million per year. The company emphasizes natural foods and organically grown meat and produce, while at the same time offering customers non-organic choices at lower prices. The stores tend to be located in up-scale neighborhoods, and prices are higher than the average supermarket. A friend joked that when Whole Foods opened its store in Milford, Connecticut, she presented them with her pay check.

A competitor, The Fresh Market, Inc. founded in 1981 and headquartered in Greensboro, North Carolina, operates as a specialty grocery retailer. The company offers various perishable product categories, including meat, seafood, produce, deli, bakery, floral, sushi, prepared foods, and non-perishable product categories, such as traditional grocery and dairy products.

In general it appeals to middle and upper income shoppers with epicurean tastes. It also offers specialty foods, which include bulk coffee and candy, and beer and wine. As of March 20, 2012, it operated 115 stores.

"Trader Joe's" came on the scene in 1967, in Pasadena, California. They are not a “full service” operation and place emphasis on good quality packaged meat and produce. If you want regular cereals for example you won’t find them on their shelves, but you will find exotic meals in a box, special cheeses and breads. They also have a line of inexpensive, but palatable wines.

Supermarket News estimates that Trader Joe's total sales for 2009 were $8 billion, and has sales estimated to be $1,750 in merchandise sales per square foot annually, more than double the sales generated by Whole Foods Market.

So, are these new style stores likely to be the wave of the future? Unfortunately I doubt it. They are unable to compete with the established supermarkets for the staples, and the supermarkets are in a strong position to compete with them for a more discerning customer base. Their distribution systems are vast, and their management structures are tried and true, so like it or not, they’ll be around longer than me.

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