Jerry LeClair, Giant Eagle, Inc.; Leslie Sarasin, FMI; Joe Sheetz, Inc., Meg Major, Progressive Grocer; and Hank Armour, NACS, participated in panel discussion about the future of the food industry during PFMA's Annual Conference in Bedford, Pennsylvania last month. Channel blurring, changing consumer tastes, government intervention and attracting quality associates are all factors driving the future of the food industry, according to industry leaders participating in a discussion during the Pennsylvania Food Merchants Association (PFMA) Annual Conference last month in Bedford, Pennsylvania.
Meg Major, chief content editor, Progressive Grocer, moderated the discussion by panelists Leslie Sarasin, president and CEO, Food Marketing Institute; Jerry LeClair, vice president, sales, marketing and merchandising, Giant Eagle, Inc.; Hank Armour, president and CEO, NACS; and Joe Sheetz, president and CEO of Sheetz, Inc.
LeClair provided an overview of Giant Eagle’s operations, which include 222 supermarkets in Pennsylvania, Maryland, Ohio and West Virginia; and 196 GetGo convenience stores. He reviewed the company’s multi-format business strategy, which includes traditional supermarkets, convenience stores, destination shopping/dining locations, Giant Eagle Express stores, which are smaller neighborhood grocery stores providing every day shopping needs and quick meal solutions; and non-banner business.
Sheetz also gave an overview of his company, which features 500 stores in six states, serving more than one million customers daily. The company operates two Sheetz Bros. Kitchens and Distribution Centers, located in Claysburg, Pennsylvania and Burlington, North Carolina. In addition, its CLI Transport delivers fuel from nine terminals located in Altoona, Gouldsboro, Harrisburg and Pittsburgh, PA; Fairfax, Roanoke and Richmond, VA; and Durham and Greensboro, NC, and from terminals at the Distribution Centers and Sheetz Bros. Kitchen.
Major posed questions to the panelists about significant developments in the food industry over the past 12 to 18 months; the changing roles of food retailers, innovations, technology, challenges and key growth areas.
According to Sarasin, the impact of the Food Nutrition and Education Act and other government requirements will continue to affect retailers. While restaurants are not subject to these same requirements, retailers will be required to comply.
“I think this intrusion by government into your businesses is not going to stop and it has created an important factor in the last couple of years,” she said. “If we’re going to have parity with the restaurants and we are substantially similar, than we need to be similar across the board.”
Armour said menu labeling legislation came from the local and state level. The NRA (National Restaurant Association) and the large national chains wanted one national standard, instead of differing regulations at the state and local level.
“The growth of state and local legislative activity is amazing,” said Armour. “The front line of defense on that has to be the state organizations. NACS is looking at resources we can bring to help state associations with research and messaging on local level issues.”
He offered the Sheetz restaurants as a good example. If they are a restaurant, they fully expect to comply with these regulations.
Joe Sheetz unveiled the company’s new concept Sheetz, which is a 15,500 square foot market and café on the campus of West Virginia University in Morgantown, West Virginia. The new store is located on the main level of campus apartments. It doesn’t offer fuel, but offers an expanded amount of grocery items.
Channel blurring is becoming more prevalent in the retail world as more non-traditional companies such as Amazon, big box stores, dollar stores, drug stores and other retailers start offering food.
“It presents an opportunity for us an as association and as an industry to have broader representation — anybody who sells food at retail,” noted Sarasin.
She described grocers as evolving into a curator role. Shoppers are placing a higher value on products and the overall shopping experience.
Personal beliefs, such as concern about the environment, particularly among women, are impacting where they shop and what they buy.
Consumers desire for healthier food choices is also changing stores, according to Hank Armour. He said convenience store operators are focusing on the word “choice” when discussing product offering.
It can be a fine line to walk as retailers want to keep other manufacturers happy, while providing healthier choices.
“Ten to 12 years ago people talked about eating healthy, but they ate unhealthy,” Joe Sheetz relayed. “I think they still eat unhealthy, but they eat healthy sometimes. I think you are seeing a change in our industry. It’s not that we think we can’t do it or we won’t make money doing it, the hardest thing in the industry is distribution. Those of us in the industry who do our own distribution have an advantage that we can make daily deliveries.”
Sheetz says they provide a much richer offer of salads and vegetables for their made-to-order foods and more fresh fruit, cut fruit and hummus in their ready-to-eat case.
According to LeClair, Giant Eagle is utilizing CRM (customer relationship marketing) programs to determine what its customers want, how they shop, how products should be positioned in the store and promotion frequency. In addition to its traditional supermarkets, the company offers its GetGo convenience stores, Market District/Express, a shopping/dining experience for food enthusiasts, and Giant Eagle Express, a store geared for fill-in shopping trips.
“We’re seeing some incredible results on some early categories that have gone through what we call ‘category factory’,” he said. “It’s going back to the customer to find out what they want. That’s something that will help us grow.”
The changing tastes of consumers are requiring both retailers to spend more money on research and development.
“It has reached a point where every six weeks we introduce a new food or drink item,” Sheez said. “It’s created a culture of innovation and total menu development.”
Sheetz employs three full time chefs at the Sheetz Brothers Kitchen and has partnered with Penn State University to help test new equipment.
Giant Eagle is tying its successful Fuelperks frequent shopper program to healthy food choices. Shoppers receive points for cents off their gasoline purchases.
Panelists also shared their challenges for the future.
Sheetz said the investment in new facilities requires scouting out the best locations.
“When you’re opening 30-40 stores, you can’t make a mistake,” he said. “Food offering is driving the store sizes larger. Our stores now require two to 2.5 acres to allow for preparation, refrigeration, restrooms and parking.”
LeClair expects finding top talent to continue to be a challenge for Giant Eagle.
“Finding good people is difficult,” he said. “Our teams are doing more with less. Millennials don’t want to work preparing fried chicken. They want to be the vice president.”
“Developing a differentiating ‘offer’ for associates is important,” noted Armour. “The complexity of the industry requires talent and investment in education programs.”
LeClair said time is just important as compensation.
“Show them an investment back in them,” he said. “Send them to educational programs. Let them see that you care and you want them to bring back information.”
Sheetz promotes 85 percent of its store managers from within the company. It also invests in leadership development. Since larger stores can employ up to 30 associates, leadership skills are essential.
Armour suggests looking at countries around the world for similar ideas and issues. While the lifecycle may be different, there are no unique issues, he said.
Meg Major, chief content editor, Progressive Grocer, moderated the discussion by panelists Leslie Sarasin, president and CEO, Food Marketing Institute; Jerry LeClair, vice president, sales, marketing and merchandising, Giant Eagle, Inc.; Hank Armour, president and CEO, NACS; and Joe Sheetz, president and CEO of Sheetz, Inc.
LeClair provided an overview of Giant Eagle’s operations, which include 222 supermarkets in Pennsylvania, Maryland, Ohio and West Virginia; and 196 GetGo convenience stores. He reviewed the company’s multi-format business strategy, which includes traditional supermarkets, convenience stores, destination shopping/dining locations, Giant Eagle Express stores, which are smaller neighborhood grocery stores providing every day shopping needs and quick meal solutions; and non-banner business.
Sheetz also gave an overview of his company, which features 500 stores in six states, serving more than one million customers daily. The company operates two Sheetz Bros. Kitchens and Distribution Centers, located in Claysburg, Pennsylvania and Burlington, North Carolina. In addition, its CLI Transport delivers fuel from nine terminals located in Altoona, Gouldsboro, Harrisburg and Pittsburgh, PA; Fairfax, Roanoke and Richmond, VA; and Durham and Greensboro, NC, and from terminals at the Distribution Centers and Sheetz Bros. Kitchen.
Major posed questions to the panelists about significant developments in the food industry over the past 12 to 18 months; the changing roles of food retailers, innovations, technology, challenges and key growth areas.
According to Sarasin, the impact of the Food Nutrition and Education Act and other government requirements will continue to affect retailers. While restaurants are not subject to these same requirements, retailers will be required to comply.
“I think this intrusion by government into your businesses is not going to stop and it has created an important factor in the last couple of years,” she said. “If we’re going to have parity with the restaurants and we are substantially similar, than we need to be similar across the board.”
Armour said menu labeling legislation came from the local and state level. The NRA (National Restaurant Association) and the large national chains wanted one national standard, instead of differing regulations at the state and local level.
“The growth of state and local legislative activity is amazing,” said Armour. “The front line of defense on that has to be the state organizations. NACS is looking at resources we can bring to help state associations with research and messaging on local level issues.”
He offered the Sheetz restaurants as a good example. If they are a restaurant, they fully expect to comply with these regulations.
Joe Sheetz unveiled the company’s new concept Sheetz, which is a 15,500 square foot market and café on the campus of West Virginia University in Morgantown, West Virginia. The new store is located on the main level of campus apartments. It doesn’t offer fuel, but offers an expanded amount of grocery items.
Channel blurring is becoming more prevalent in the retail world as more non-traditional companies such as Amazon, big box stores, dollar stores, drug stores and other retailers start offering food.
“It presents an opportunity for us an as association and as an industry to have broader representation — anybody who sells food at retail,” noted Sarasin.
She described grocers as evolving into a curator role. Shoppers are placing a higher value on products and the overall shopping experience.
Personal beliefs, such as concern about the environment, particularly among women, are impacting where they shop and what they buy.
Consumers desire for healthier food choices is also changing stores, according to Hank Armour. He said convenience store operators are focusing on the word “choice” when discussing product offering.
It can be a fine line to walk as retailers want to keep other manufacturers happy, while providing healthier choices.
“Ten to 12 years ago people talked about eating healthy, but they ate unhealthy,” Joe Sheetz relayed. “I think they still eat unhealthy, but they eat healthy sometimes. I think you are seeing a change in our industry. It’s not that we think we can’t do it or we won’t make money doing it, the hardest thing in the industry is distribution. Those of us in the industry who do our own distribution have an advantage that we can make daily deliveries.”
Sheetz says they provide a much richer offer of salads and vegetables for their made-to-order foods and more fresh fruit, cut fruit and hummus in their ready-to-eat case.
According to LeClair, Giant Eagle is utilizing CRM (customer relationship marketing) programs to determine what its customers want, how they shop, how products should be positioned in the store and promotion frequency. In addition to its traditional supermarkets, the company offers its GetGo convenience stores, Market District/Express, a shopping/dining experience for food enthusiasts, and Giant Eagle Express, a store geared for fill-in shopping trips.
“We’re seeing some incredible results on some early categories that have gone through what we call ‘category factory’,” he said. “It’s going back to the customer to find out what they want. That’s something that will help us grow.”
The changing tastes of consumers are requiring both retailers to spend more money on research and development.
“It has reached a point where every six weeks we introduce a new food or drink item,” Sheez said. “It’s created a culture of innovation and total menu development.”
Sheetz employs three full time chefs at the Sheetz Brothers Kitchen and has partnered with Penn State University to help test new equipment.
Giant Eagle is tying its successful Fuelperks frequent shopper program to healthy food choices. Shoppers receive points for cents off their gasoline purchases.
Panelists also shared their challenges for the future.
Sheetz said the investment in new facilities requires scouting out the best locations.
“When you’re opening 30-40 stores, you can’t make a mistake,” he said. “Food offering is driving the store sizes larger. Our stores now require two to 2.5 acres to allow for preparation, refrigeration, restrooms and parking.”
LeClair expects finding top talent to continue to be a challenge for Giant Eagle.
“Finding good people is difficult,” he said. “Our teams are doing more with less. Millennials don’t want to work preparing fried chicken. They want to be the vice president.”
“Developing a differentiating ‘offer’ for associates is important,” noted Armour. “The complexity of the industry requires talent and investment in education programs.”
LeClair said time is just important as compensation.
“Show them an investment back in them,” he said. “Send them to educational programs. Let them see that you care and you want them to bring back information.”
Sheetz promotes 85 percent of its store managers from within the company. It also invests in leadership development. Since larger stores can employ up to 30 associates, leadership skills are essential.
Armour suggests looking at countries around the world for similar ideas and issues. While the lifecycle may be different, there are no unique issues, he said.
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