Aiming for the hearts of Midwesterners

At the same time, Meijer is facing a showdown ith Target. Meijer has opened a dozen units in the Chicago market, 10 of them in the western and northern suburbs and two near suburban Gary, Ind., and it has done so in the face of a significant expansion of SuperTargets in the same localities. SuperTarget also operates about a dozen supercenters in Chicagoland.

But Meijer continues to expand. This year, it is opening five stores, the same number it debuted in 2006. Of the five, three are in Michigan and one, in Allen Park, Mich., has been developed to be healthier to the environment.

Not that sustainability is a new thought to Meijer. The company has been adding environmental features to its stores for years, and with good reason, said spokeswoman Stacie Behler. “So much that is environmental is cost reduction,” she pointed out. “When you are the biggest energy user in a state, a lower-energy light bulb makes a difference.”

Thus, Meijer has been adding high efficiency lighting based on T-8 technology to deliver a smaller electric bill. It also has instituted practices such as capturing heat from refrigeration compressors to preheat water in store systems and installing state-of-the-art fuel containment and monitoring systems in its gas stations.

The Allen Park Meijer, though, is considered an “enhanced” unit and will qualify for LEED certification. It will look and feel like other new stores, Meijer insists, but will carry energy efficient fixtures and building systems to a higher level, incorporating sustainable building components such as recycled materials and locally manufactured products. It also will feature indoor air quality monitoring. The building will test water reduction equipment and fixtures, low emission paints, adhesives and flooring, a white reflective roof and high efficiency heating/air conditioning equipment.

In addition, the Meijer site will incorporate sustainable landscaping, bioswales, prairie grass, green screens, bike paths, storm water retention and reuse design concepts, as well as a 40-plus acre recreational/interpretive center and walking paths.

The Allen Park Meijer debuts May 16. Elsewhere in Michigan, a standard supercenter in Lennox Township unlocks the doors on Aug. 14. The first of the new units to open this year was in DeWitt, a suburb of Lansing. The 210,000-square-foot store is the eighth in the metropolitan area and bowed in mid-April.

Two of the five new Meijer supercenters are opening outside of Michigan. One is bowing in Colraine, Ohio, near Cincinnati, on Aug. 16, the other in Oswego, Ill., in the far western suburbs of Chicago, on May 9.

The competition between Meijer and SuperTarget in the Chicago suburbs may be particularly telling, as both concepts focus on working/middle class as well as more affluent consumers by targeting lifestyle elements, through, for example, carefully crafted wine programs and superior private label operations.

For Meijer, private label represents a chance to differentiate and excel. The retailer traditionally has provided better quality own brands throughout the store in apparel, home, hardlines and consumables.

Meijer also has offered national brands that haven’t traditionally been placed in the discount store sector, such as Carhartt in apparel. In food, Meijer has merchandised upscale national brands with increasingly upscale perishables and its higher-end private labels to provide customers with some unique propositions. For example, Meijer has developed a robust selection of gourmet prepared food items and convenience meals that it places adjacent to complementary service and frozen food operations in sophisticated configurations. Within that context, it introduced an up-market private label, Meijer Gold, which it cross-merchandises with gourmet national brands and wine. It also has developed an own-brand line that reflects its home state with products including white rocking chairs and peanut brittle inspired by the famous Grand Hotel on Mackinac Island.

Recently, Meijer launched its own organic private label. The Meijer Organics line offers everything from ice cream and kosher pickles to mine-strone soup and spinach and feta pizza. During a March 11 launch, 140 Meijer Organics items reached store shelves, with another 35 or so coming down the pipeline by year-end. Meijer Organics are positioned as a wholesome alternative for customers who are health conscious and environmentally aware, the company stated.

Every item sold under the Meijer Organics name will carry USDA organic certification, and all Meijer Organics are free of growth hormones, antibiotics, conventional pesticides, fertilizers made with synthetic ingredients, bioengineering or ionizing radiation.

“This is a very important move for us as more shoppers are demanding organic foods,” said Ralph Fischer, Meijer group vp, at the time of the launch. “Meijer Organics embodies the best sourcing practices from around the globe, and will adhere to the strictest of standards to ensure that every one of our products is USDA certified.”

Consistent with its past approach, Meijer will continue to offer national-brand organic foods on its shelves as well but, naturally, prices for Meijer Organics products are set to be noticeably lower than that of the national brands.

“The Meijer Organics program represents our commitment to healthy living as the foundation for an individual wellness platform. These are all delicious, healthy alternatives for our customers and their families,” said Shari Steinbach, Meijer dietitian and Healthy Living advisor.

Helping consumers with health issues has become another critical Meijer focus. Meijer has launched a free prescription drug program focusing on medicines most often prescribed for children, including a range of antibiotics, in a no-fee-attached deal available to all.

Enticing consumers for more occasions is important for Meijer. The company tends to draw more than its fair share of stock-up shoppers. Indeed, a Cannon-dale Associates study said it had one of the highest incidents of replenishment shopping of any major retailer at 67%. The good news is that Meijer consumers are there to buy big, the bad news is that the company is drawing less than its share of shoppers who are dropping in because they want to take advantage of unique product offerings. Convenience products, trendy private labels and new health services should prompt more consumers to check out Meijer.