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Thanks to Wegmans consumer- centric philosophy, the family-owned chain remains a shopper favorite.

Consistently named one of America’s favorite supermarkets, Rochester, N.Y.-based Wegmans inspires what some have called “cult-like” loyalty among its customers. Clearly, they’ve spread the word. The company says it received 7,500 requests last year from consumers asking for a store in their town. For those lucky enough to get one, well, some 3,000 “Wegmaniacs” lined up outside the chain’s first North Carolina location in Raleigh last fall waiting for the doors to open at 7 a.m.

What makes Wegmans so special? Industry insiders say it all starts with the 104-year-old company’s laser-focus on customer service. From engaging with shoppers and helping them find specific items to making recommendations and customizing orders, “Store associates do an excellent job making sure customers feel appreciated,” says Art Suriano, CEO of the TSI Company, New York. “I’ve patronized several different Wegmans, and the experience is almost always the same,” he adds, crediting the company’s best-in-class hiring and training practices. For example, although it means higher payroll costs, Wegmans employs more full-time associates than its competitors, giving it a more established, knowledgeable staff that’s invested in the chain’s success. But Suriano says the customer-centric attitude comes straight from the top where the grandson of founder John Wegman along with his daughters still run the company, making it a bit of an anomaly in the industry.

“They’re very hands on,” says Steven Robins, managing partner/principal of the New England Consulting Group, Westport, Conn. In fact, he adds, regular shoppers at store No. 1 in Pittsford, N.Y., are likely to have crossed paths with company chairman Danny or CEO Colleen. “They work really hard to understand their customer base and what they want, which is reflected not just in the company’s commitment to customer service but in everything from the assortments to the quality of Wegmans private brands.”

A SHOPPING ‘EXPERIENCE’

Available for pickup or delivery, Wegmans Meals 2GO provide an alternative to self-serve hot and cold bars shuttered during the pandemic.

Most of the chain’s 101 stores run from 75,000 to 140,000 square feet and carry 50,000 to 70,000 products (versus 40,000 in an average supermarket), including more than 4,000 organic items, making it the go-to supermarket for hard-to-find specialty products. As a result, says Suriano, “Customers have an opportunity to not just shop but to explore.” No, Wegmans isn’t always the first choice for quick, in-and-out visits, but shoppers with time to browse can sample new products, take in a cooking demonstration, grab lunch or enjoy a drink and live music at The Pub. It’s definitely more of an “experience” than a routine trip to the supermarket.

Like many chains, however, Wegmans cut back SKU counts as much as 40% at the height of the pandemic. The variety is coming back, but some reports claim leaders are rethinking the need for such broad assortments in the future.

Often on the leading edge of health and wellness trends, Wegmans features a separate Nature’s Marketplace store-within-a-store for natural and organic, vegetarian and gluten-free items, making it very popular among those with special dietary needs. It also highlights unique products in other areas of the store. In the yogurt set, for example, there’s a large section dedicated to plant-based and other specialty varieties.

But industry observers say it’s not just the products Wegmans offers, it’s how it merchandises them. For example, stores often pull together all the ingredients consumers need to create a particular dish in a single display, whether in conjunction with a cooking demo or not.

Wegmans also offers a wide selection of well-regarded own brand products – not just me-too items in high-volume categories but unique, on-trend foods in emerging better-for-you and on-the-go segments, says Tory Gundelach, senior vp, retail insights, at London-based Kantar Consulting. In addition, “They’ve invested heavily in family-size packages, which proved especially popular during the pandemic,” she says. Unlike other conventional supermarkets, she adds, Wegmans has the space to accommodate big packs and its more affluent shoppers can afford to stock up.

Beyond stellar customer service and broad assortments, Wegmans is famous for its foodservice offerings. From heat-and- eat prepared meals and store-made sushi and sandwiches to self-serve hot bars and sit-down restaurants, it continues to go after a bigger share of stomach. At the height of the pandemic, however, the chain was forced to eliminate many of those offerings. Some are back, but the on-site restaurants that represented approximately 10% of Wegmans sales remain shuttered, samples are nowhere to be found and self-serve sections have either been placed behind glass or filled with grab-and-go packs.

However, says Gundelach, Wegmans was one of the first to move foodservice into the digital space with its Wegmans Meals 2GO app, putting it light years ahead of competitors when COVID-19 struck. Customers can pick up their order in-store or curbside or have it delivered, thanks to the chain’s partnership with Door Dash, she explains. It’s too early to tell whether in-store foodservice options will be forever changed by the pandemic, adds Gundelach, “but moving early to digitize the trend bodes really well for Wegmans’ future.”

Industry observers also congratulate the chain for well-timed improvements to its website and mobile app (unveiled at the beginning of the year) that were designed to make online shopping easier and more personalized.

EXPANSION CONTINUES IN 2020

Already a priority for the chain, private label family packs have been especially popular among shoppers stocking up during quarantine.

Known for slow, steady expansion to contiguous states, Wegmans is going ahead with plans to open three new stores this year, including a second North Carolina location – though the splashy grand opening events that brought large crowds have been suspended for now. The retailer has also announced 11 other new stores in Delaware, Maryland, New Jersey, Virginia, North Carolina and Washington, D.C., though no opening dates have been revealed.

As the chain continues to expand south, “Everyone is interested in the showdown between Wegmans and Publix,” says Gundelach. “They’re starting to get a long way from home, so it will be interesting to see how Wegmans will maintain its strong regional identity but still be relevant in new markets.”

Suriano, for one, is confident it will rise to the challenge. “I see Wegmans’ success continuing with more locations, more new products and an expansion of services.” He adds, “No one knows what the ‘new normal’ will be, but I see Wegmans as a stable and reliable company that will continue to move forward and grow with future generations of the Wegman family leading the charge.”

CLASH OF THE TITANS

In its monthly consumer survey, Worthington, Ohio-based Prosper Insights & Analytics (goprosper.com) asks consumers why they choose to buy their groceries at a particular store. Our chart compares responses from those who shop most often at Wegmans against those who shop at Publix, another highly regarded regional chain that’s expanding in the mid-Atlantic, setting up an epic showdown.

Blue highlighted numbers show where Wegmans scored higher than average; yellow highlighted numbers show where it also scored higher than Publix. The survey was taken in August 2019 before the coronavirus made e-commerce capabilities a key driver of store choice, hence the relatively low importance assigned to those services by consumers.

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