If you thought the local grocery market was already saturated by Roundy’s Pick ‘n Save operation, Sendik’s, Sentry, Woodman’s, Piggly Wiggly, and a handful of locally-owned stores and neighborhood gems, think again. There is an aggressive newcomer to the supermarket landscape – Meijer – and it is a formidable foe.
Milwaukee area consumers have been anxious for newcomers that can bring competition to Roundy’s and its dominating market leadership in the area’s grocery segment. Furthermore, Meijer has an outstanding reputation for generating economic growth in the communities it enters, serving as a community advocate and charitable partner, offering good value on the merchandise it stocks, and demonstrating a commitment to locally-produced goods and services.
The bad news
Meijer is being met with some resistance in certain communities over zoning laws and ordinances. Some consumers may view this rather large box retailer as comparable to Walmart and Target, thus discouraging them from entering a Meijer to experience the difference. And the traditional grocery segment, in general, is under considerable threat from club stores, the value (dollar store) channel, and limited assortment retailers such as Aldi.
The reality
Meijer knows how to enter a market and gain popularity and favor among shoppers – it has done it in countless other geographic locations. Pick ‘n Save and Sentry, among others, will emphasize their local heritage and community focus. (Roundy’s Mariano operation has already invested heavily in an exclusive relationship with a local, low-impact farm in the Chicago area … perhaps additional relationships will emerge in the Milwaukee market.)
Whole Foods is opening its second location and it appears serious about the Milwaukee market. Fresh Thyme is coming to the area. Outpost, Health Hut, and other naturally-focused operations are surviving quite well. Not to mention club, dollar, and limited assortment stores that will surely continue to thrive … and, in fact, are accelerating their expansion throughout the greater Milwaukee area. I should also comment that even CVS and Walgreens see an upside to their growth in grocery and prepared foods within the Milwaukee area locations.
Welcome to the neighborhood, Meijer. Knowing a bit about its 77-year history and successes in other markets, I believe it will become a serious contender in the Milwaukee market.
Dave Wendland is vice president and ownership team member at Hamacher Resource Group Inc. in Waukesha. HRG is a research, marketing, and category management firm specializing in consumer health care at retail.
