Running Head: RETAILER REVIEW – Meijer, Inc.
Retailer Review – Meijer, Inc.
Michelle Balcerzak
Carthage College
1
Running Head: RETAILER REVIEW – Meijer, Inc.
2
NAME OF RETAILER
Meijer, Inc.
2929 Walker Rd NW
Grand Rapids, Michigan 49544-9424
United States
“DEMOGRAPHICS”
Meijer owns and operates a large chain of superstores and grocery stores in the
Midwestern United States, employing approximately 65,000 people. The company sells the
majority of its products through its physical stores and also through online retailing. Meijer
primarily operates in five states in the US, including Illinois, Indiana, Kentucky, Michigan, and
Ohio. The company has over 200 retail stores and carries food and non-food items, and provides
various services. Meijer, Inc. operates 177 gas stations, six C-Stops, two car wash facilities, four
distribution facility complexes and two manufacturing facilities. Meijer has accrued
$9,801,300,000 in sales from 2013, but is not a publically traded company.
The company carries a variety of world brands and also has private label products. Meijer
offers an assortment of groceries, fresh fruits and vegetables, hair care, household products,
health and beauty care products, pharmaceutical items, electronics appliances, skin care, sports
goods, jewelry, personal care, fitness equipment, and other related accessories. The products
offered by Meijer include infant and toddler products, such as baby clothing, feeding necessities,
furniture, health and safety items, and toys; clothing and accessories for both men and women;
and crafts and art supplies, such as craft books, scrapbooks and school supplies. Under
electronics items category, it sells digital camcorders, iPods, printers, scanners, TVs, and
computers. It also markets its private label products under brands such as Meijer Organics,
Meijer Gold, Meijer Naturals, Meijer Ecowise, Meijer Elements and Meijer MealBox.
Running Head: RETAILER REVIEW – Meijer, Inc.
3
KEY COMPETITORS
The key competitors of Meijer, Inc. are Target Corporation, Wal-Mart Stores, Inc. and
The Kroger Company. Target Corporation had revenue of $73,301,000,000 at the beginning of
February 2013. The company has over 1,778 stores in 49 states and the District of Columbia
under the Target and SuperTarget brands. It operates in three segments: U.S. Retail, U.S. Credit
Card, and Canadian. The company sells apparel, home furnishings, electronics, toys, food and
pet supplies, and other items. It operates Target.com, an online store. Wal-Mart Stores had net
sales of $469,162,000,000 in US dollars at the end of January 2013. Wal-Mart is an operator of
retail stores in various formats. The company has three business segments: Walmart US,
Walmart International, and Sam's Club. Its products include grocery items, entertainment
products, apparel, and more. The company's brands include Great Value, Hometrends, Faded
Glory, among others. It operates retail stores in 50 states in the US and Puerto Rico. The Kroger
Company ended February 2013 with $96,751,000,000 in revenue. The Kroger Company operates
as a retailer in the US and also manufactures and processes food products for sale in its
supermarkets. It offers a range of products including apparel, home fashion and furnishings,
electronics, automotive products, and jewelry. The company operates natural food and organic
sections, pharmacies, general merchandise, pet centers, and more. It has 2,424 supermarkets and
multi-department stores.
SWOT ANALYSIS
To review the SWOT Analysis for all of these companies, refer to Appendix A.
BRIEF HISTORY OF THE COMPANY
Meijer, Inc. was founded in 1934 in Greenville, Michigan by Hendrik and Fred Meijer.
This company still sells both grocery and department store items. Stores have expanded to
Running Head: RETAILER REVIEW – Meijer, Inc.
4
include fresh produce and meat departments, as well as pharmacies, electronics departments,
garden centers and clothing apparel departments. Meijer is still family owned and its
headquarters are in Grand Rapids, MI. About half the stores are located in Michigan, while the
rest are spread across Illinois, Indiana, Kentucky, and Ohio. The supercenter carries over
150,000 items, and the stores are usually open 24 hours a day. The company's business strategy
is based upon its four core values, which include: Customer Centered Approach, offering a
compelling combination of value and convenience for its customers; Competitive Spirit, aiming
at winning its customers' heart, mind and loyalty; Freshness, offering fresh products and services
to meet its customers' needs; Familyness, incorporating a tradition of community spirit in its
operations.
WHERE THEY ARE NOW
Meijer has been in the news for positives and negatives, giving a very mixed review to its
customers and competitors. In October of 2013, Meijer faced two recalls on products. The
superstores sold two products that were part of the salad recall: Reser's Deviled Egg Potato Salad
and its own Markets of Meijer Broccoli Crunch Slaw, which contained a dressing that was on the
recall list. Wal-Mart also had a few products recalled and the company pulled the items off the
shelf and blocked the check-outs. In the second recall, Kraft had to pull back multiple varieties of
Kraft and Polly-O String Cheese and String Cheese Twists because of "premature spoilage,"
according to the FDA. This recall affected approximately 735,000 cases that were shipped to
customers nationwide (Fisher). In November of 2013, about 1,300 American Boy and Girl infant
sandals were recalled because the top strap on the sandal was able to be pulled loose from the
shoe and posed a choking hazard to children (Gale). Meijer has, however, taken a proactive step
in combating the flu season in the Midwest by offering free flu and strep testing.
Running Head: RETAILER REVIEW – Meijer, Inc.
5
Meijer has recently added a new product to the personal care item repertoire. In February
2014, men's grooming line, HYD For Men, will stock its premier product, Razor Shield, in 183
Meijer stores (Douglas). Razor Shield helps create a liquid barrier to protect razor blades and
skin from the corrosive chemical reactions they are exposed to during shaving and everyday use.
HYD For Men CEO and Founder Adam Berk said, “Like the Meijer shopper, HYD For Men
strives for authenticity. Men know that they can depend on Meijer for all of their grooming needs
and with Razor Shield, HYD For Men is thrilled to now have the opportunity to join the Meijer
shopper's repertoire” (Douglas). In addition to new products, Meijer Inc. is expecting to open its
first Milwaukee-area combined supermarket and discount stores in 2015. Meijer doesn't
currently own any stores in Wisconsin, but is working to obtain approvals from various
communities for stores in Sussex, Grafton Oak Creek and Wauwatosa (Daykin). On November
7, 2013, Meijer opened a supercenter in Danville, Ill., which marks the completion of six new
stores that the company added to the Midwest. There are 22 Meijer stores located throughout
Illinois and the latest addition in Danville is part of a $200 million investment that also included
six new Meijer supercenters, extensive remodel projects for five additional stores in Michigan
and Illinois, and a new distribution complex in Pleasant Prairie, Wisconsin (Guglielmi).
In Appendix B, the top grocery stores of 2012 are shown based on sales in billions of
dollars. Wal-Mart, Kroger, and Target are the first three respectively, and Meijer comes in tenth
place of this list. In Appendix C, the lists of top grocery stores in Detroit-Warren-Livonia,
Michigan in 2011 were Kroger at 26.00%, Meijer at 22.00% and Wal-Mart at 12.00%. This trend
shows a loyalty to the Michigan-based Meijer retailer. The Other category is at 31.00%, but can
include other retail and grocery chains. In Appendix D, Wal-Mart, Target, and Meijer, Inc. are
all compared by revenue accrued over a period spanning 1990-2012.
Running Head: RETAILER REVIEW – Meijer, Inc.
6
FUTURE OUTLOOK
Among the largest world economies, the grocery retailing industry remained extremely
competitive, barely profitable, and dominated by a few multibillion-dollar companies in their
respective national markets. Grocery stores compete with each other, but also compete with
restaurants and food vendors for a share of the customers’ budget. In the 2000s, the global
recession helped some retailers because consumers went out less. In spite of the recession, these
grocery retailers tried to experiment with home delivery of groceries, specifically marketing the
service to busy professionals or senior citizens. Several larger grocery chains have included
customer conveniences like in-store pharmacies and mini banking centers. In Appedix E, the
typical U.S. supermarket obtains its sales volume different categories of products. For example,
26.35% percent from shelf-stable food items as compared to 14.58% from meat, fish, and poultry
(Gale).
The demographics can determine the success of a store, the main ones being demand
fluctuation, disposable income, consumer confidence, competition, local demographics, and
location. All of these variables determine the success of Meijer because the company must
carefully plan and research before building a store. Another important aspect of the grocery
industry is advanced technology. Meijer requires this technology for a host of logistical
concerns, including inventory tracking and ordering systems, the frequent customer discount
programs, and transportation management.
While Meijer is not the highest ranking grocery retailer, the prospect of expansion keeps
the company in the running with its competitors. Meijer, Inc. plans for a westward expansion and
this vision is what will drive the company’s sales in future years. Expanding into other states
accesses the local community, gives a new chain to shop at, and challenges other businesses to
Running Head: RETAILER REVIEW – Meijer, Inc.
7
compete. Meijer has the right ideas, now the company faces the challenge of putting all the
pieces in place.
Running Head: RETAILER REVIEW – Meijer, Inc.
Appendix A
Meijer, Inc.
Target Corporation
8
Running Head: RETAILER REVIEW – Meijer, Inc.
Wal-Mart Stores, Inc.
Kroger Co.
9
Running Head: RETAILER REVIEW – Meijer, Inc.
Appendix B
Top Grocery Stores, 2012
Firms are ranked by sales in billions of dollars.
$
Wal-Mart
274.90
Kroger
85.80
Target
71.90
Safeway
37.50
Publix
27.40
AholdUSA Inc.
25.80
AB Acquisition L.L.C. 19.60
H-E-B GroceryCo.
19.40
Delhaize America Inc. 18.70
Meijer
14.50
WakefernFood Corp.
13.60
Whole Foods
11.30
Bi-LoHolding
10.30
Trader Joe's
10.30
Giant Eagle Inc.
9.90
10
Running Head: RETAILER REVIEW – Meijer, Inc.
Appendix C
Top Grocery Stores in Detroit-Warren-Livonia, MI, 2011
Market shares are shown based on volume.
%
Kroger
26.00
Meijer
22.00
Wal-Mart 12.00
Costco
9.00
Other
31.00
Appendix D
11
Running Head: RETAILER REVIEW – Meijer, Inc.
Appendix E
12
Running Head: RETAILER REVIEW – Meijer, Inc.
13
Bibliography
Business Source Premier. (2014). Meijer, Inc. SWOT Analysis. Retrieved from
http://web.ebscohost.com/Legacy/Views/static/html/Error.htm?aspxerrorpath=/ehost/pdfv
iewer/pdfv
Daykin, Tom. (2014). Meijer Plans to Open First Area Stores in 2015. Retrieved from
http://www.jsonline.com/business/meijer-plans-to-open-first-area-stores-in-2015b9981925z1-220770401.html
Douglas, Adam. "HYD For Men Now Sold At Meijer Stores Throughout The Midwest." PR
Newswire. N.p., 13 Jan. 2014. Web. 22 Jan. 2014.
Fisher, Mark. "Recalls Affect Local Grocers; Salads, Kraft String Cheese Pose Problems.
Products Pulled from Shelves; Customer Notification Underway." Dayton Daily News 29
Oct. 2013, LOCAL & STATE ed., B1 sec.: n. pag. Print.
Gale Business Insights: Essentials. (2014). Grocery Stores. Retrieved from
http://bi.galegroup.com/essentials/article/GALE%7CI2501600096/0548c0dbad7e1f57c9c
9791f5667afb3?u=waicugbf_carthg
Gale Business Insights: Essentials. (2014). US: Girl's sandals recalled over choking hazard.
Retrieved from
http://bi.galegroup.com/essentials/article/GALE%7CA350663696/c395b7bfe930c902080
5f0e1efd62a12?u=waicugbf_carthg
Guglielmi, Frank. (2014). Meijer Opens New Supercenter in Danville. Retrieved from
http://www.prnewswire.com/news-releases/meijer-opens-new-supercenter-in-danville230804541.html
LexisNexis (2014). Kroger Co. Retrieved from
Running Head: RETAILER REVIEW – Meijer, Inc.
14
http://www.lexisnexis.com/hottopics/lnacademic/?
LexisNexis (2014). Meijer, Inc. Retrieved from
http://www.lexisnexis.com/hottopics/lnacademic/?
LexisNexis (2014). Target Corporation. Retrieved from
http://www.lexisnexis.com/hottopics/lnacademic/?
LexisNexis (2014). Wal-Mart Stores, Inc. Retrieved from
http://www.lexisnexis.com/hottopics/lnacademic/?
"Top Grocery Stores, 2012." Market Share Reporter. Ed. Robert S. Lazich. 2015 ed. Detroit:
Gale, 2015. Business Insights: Essentials. Web. 22 Jan. 2014. Retrieved from
http://bi.galegroup.com/essentials/article/GALE%7CI2502047522/435aa08d17dba56855
22d327c6f33972?u=waicugbf_carthg
"Top Grocery Stores in Detroit-Warren-Livonia, MI, 2011." Market Share Reporter. Ed. Robert
S. Lazich. 2014 ed. Detroit: Gale, 2014. Business Insights: Essentials. Web. 22 Jan. 2014.
http://bi.galegroup.com/essentials/article/GALE%7CI2502046538/9abd98ca1dc399a2aa0
cc8cd67faae3e?u=waicugbf_carthg