Company:
Headquarters:
Total Number of Employees:
Total Number of Rochester-based
Employees:
Net Sales and Revenues, 2005:
Chairman:
CEO:
Wegmans Food Markets Inc.
Rochester, New York
35,000 (approximate)
14,500 (approximate)
$3.8 billion
Robert Wegman
Danny Wegman
Rochester-based activities and developments:
Rochester-based Wegmans Food Markets’ philosophy is one of achieving incredible customer
service by first meeting the needs of its employees. With an approach like that, it’s no surprise
that in 2005 the grocery-store chain was ranked No. 1 on FORTUNE magazine’s annual ranking
of the “100 Best Companies to Work For.”
It was the eighth year the family-owned
company has been included in the
magazine’s ranking, and its first year
ranked as No. 1. This year, Wegmans
ranked No. 2 on the magazine’s list.
One of the largest private companies in
the United States, Wegmans had 2004
sales of $3.6 billion from 67 stores in
New York, Pennsylvania, New Jersey
and Virginia.
In 2005, sales were estimated to be $3.8
billion from 69 stores, including a new
store in Maryland and a second in
Virginia.
In 2004, sales at Wegmans totaled $3.6 billion
from 67 stores in four mid-Atlantic states.
Growth is decidedly and purposefully slow in order to allow adequate time for training each new
employee. Wegmans opens just two or three new stores each year, and one or two replacement
stores. Plans for 2006 call for three new stores: two more in New Jersey and one more in
Pennsylvania.
Its sales per square foot were an estimated 50 percent higher than the national average. In
addition, the eight percent turnover rate for full-time employees is well below the average rate of
19 percent industry average.
Wegmans began in 1915 as a mom-and-pop grocery store in Rochester. Brothers Walter and
John Wegman (chairman Robert Wegman's father and uncle) helped out in the family business.
Case study prepared by Greater Rochester Enterprise.
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In 1916, John opened the Rochester Fruit & Vegetable Co., and Walter joined him a year later.
By 1921, the two brothers bought the Seel Grocery Co., and expanded their operations to include
general groceries and bakery operations.
While a long history of accomplishment and tradition propels the company into the 21st century,
it’s the shopping experience that keeps customers coming back and motivates thousands of
others to ask Wegmans to open a store in their cities and towns.
The company has proved adept at battling the intractable problem facing grocery stores in this
country—that there's no compelling reason to shop there anymore. A tour of a typical Wegmans
store feels like strolling an open-air market, with large displays of fresh produce; artisan breads
and other baked goods; displays of fresh seafood, meat, deli products and imported cheeses;
international foods – plus all the usual foods and household items usually found in supermarkets.
Wegmans also offers “stores within a
store.” Many Wegmans stores have
Market Cafés, with take-out or in-store
dining and seating for 100 to upwards of
200; Pâtisserie - an authentic French pastry
shop created by a top Parisian pastry chef;
Nature's Marketplace, with natural foods,
supplements, herbal remedies, and foods
for special dietary needs; and
Complements, an upscale cookware,
tableware, and accessories department.
Wegmans offers “stores within a store,” including
Shoppers at Wegmans have more choices
the Market Café
than at other supermarket chains, with more
than 70,000 products, compared to an average of just over 40,000, according to the Food
Marketing Institute. Wegmans stores are also larger than most, measuring from 80,000 to
130,000 square feet in size.
Wegmans has won numerous awards and accolades over the years. In addition to the 2005
FORTUNE magazine honor, the store was also named the “Most Family-Friendly Supermarket
in America” by Child magazine in 2003.
The store ranked 31st on the 2004 Supermarket News list of the Top 75 Supermarkets based on
sales volume, ranking 7th among privately held U.S. supermarkets. It also ranks among the top
50 in Forbes magazine’s list of the largest private companies in the country.
One hallmark of the store’s success has been its early adoption of technology. Wegmans was one
of the first supermarkets to introduce laser bar-code scanning in 1974, and a "Shoppers Club"
electronic discount program as an alternative to coupon-clipping in the 1990s.
Case study prepared by Greater Rochester Enterprise.
For additional case studies, please visit www.RochesterBiz.com
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In addition, the store’s Web site helps customers save time and money by allowing shoppers to
browse weekly specials, search through a library of recipes, or look up nutritional information
for prepared foods.
Industry analyst Neil Stern, quoted in a 1994 front-page story about Wegmans in the Wall Street
Journal, said, “We consider them the best chain in the country, maybe in the world.”
Why Rochester
Wegmans is committed to the Rochester area, its home for 90 years. A recent and highly notable
example of this commitment is the recently-announced December 2005 donation of $8 million
by Robert Wegman to St. John Fisher College in Rochester to fund the Wegmans School of
Nursing. This donation is in addition to a $5 million donation, given by Wegman to the college
earlier in 2005, to open the Wegmans School of Pharmacy. The supermarket also is the name
sponsor of the annual Ladies Professional Golf Association tournament at Locust Hill Country
Club in Rochester.
Rumors abound that other chains would be interested in acquiring Wegmans, but Wegmans
doesn't see a need to make such a deal. The company has the capital it needs to expand, and it
has established a leadership succession plan by naming Colleen Wegman, daughter of CEO
Danny Wegman, president, and daughter Nicole Wegman, director of restaurant operations.
Rochester also is home to a highly innovated and talented workforce and as such, will continue
to remain the headquarters for the privately held, family-owned Wegmans.
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Case study prepared by Greater Rochester Enterprise.
For additional case studies, please visit www.RochesterBiz.com
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