Information AboutMeijer |
For the unrelated chain of hypermarkets that is owned by Kroger , see Fred Meyer .
Meijer ( in the United States. Top 100 Retailers: The Nation's Retail Power Players (PDF) , ''Stores'', July 2006. HISTORY Meijer was founded in 1934 as ''Meijer's Grocery'' in Greenville, Michigan by Hendrik Meijer,a Dutch immigrant. Meijer was a local barber who decided to enter grocery business when hard times came during the Great Depression . His first employees included his son, Fred Meijer , then a 14-year-old grocery bagger, who would later become the well-known chairman of the company. The current co-chairmen, brothers Hank and Doug Meijer, are Hendrik's grandsons. Studying trends in the grocery industry, Meijer was among the first to offer self-service shopping and shopping carts. He also worked hard to find and offer staple items, such as vinegar, at bargain prices. The Greenville store did well, and additional Meijer groceries were opened in Ionia and Cedar Springs . By 1960 the company had over two dozen stores located throughout West Michigan. In 1962, the modern format of Meijer was started, with the opening of the first ''Meijer's Thrifty Acres'' store (the first hypermarket in the US and the world) at the corner of 28th Street and Kalamazoo in Grand Rapids at size of 100,000 square feet'Dicount Merchandiser Magazine, July 1986 issue, page 61, info on first Thrifty Acres Store ' (still in operation today), combining grocery shopping and department store shopping in a single large store. Meijer trademarked the phrase "One Stop Shopping". This store was built with six-inch-thick floors, so that should the concept fail, the non-grocery half could be converted into an indoor car dealership. New stores were built in this same manner until the mid 1970s, when an architect mentioned the extra cost to management. The ''Thrifty Acres'' stores, now under the leadership of Fred Meijer, became a tremendous success and were renamed to simply ''Meijer'' in 1986. Meijer's stand-alone grocery operations continued until the early 1990s, as the larger stores became dominant. In 1995 it was reported in Forbes magazine that Wal-mart at the time had failed in what were then known as Hypermarkets because Sam Walton and company did not understand the grocery business. Walton launched the first Hypermart USA store in 1987, opening only four stores, the last in 1990. It was said that Meijer understood the food business was important and not something just attached to a discount store. The quality of the produce is very important, and that poor quality produce sold by Wal-mart was their main problem. By contrast surveys said then and now that Meijer ranks high on produce quality.' Forbes Magazine, February 13, 1995 issue, page 55, Squeezing the Tomatoes ' With the increasing dominance of Wal-Mart throughout the country during the 1990s and now into the Midwest, Meijer is facing the effects of an intensely competitive retail industry. In late 2003, the company laid off 350 people from the corporate offices, distribution centers and field offices; a few months later, in January 2004, Meijer laid off 1,896 employees and managerial staff 2, leading to speculation that the company was losing profitability and market share. A marketing professor, Dr. Ben Rudolph of Grand Valley State near Meijer's corporate headquarters, lambasted this move, saying they "apparently blinked" and that Meijer's "decision was driven by panic". He also asked "Will Meijer actually be able to succeed positioned directly against Wal-Mart? Of course not". 3 Continuing cutbacks in 2006, the company outsourced eighty-one information technology positions to India. 4 In early July 2007, Meijer announced to local Michigan press it would be "restructuring" its Team Leader management positions in all 179 or 180 stores, stating layoffs would be "minimal" and necessary "to handle more sophisticated products such as flat-screen TVs and high-priced wines". Their spokesperson also said the changes were "not about a labor reduction", but fitting people in the right role. No corporate staff or hourly workers were directly affected. 5 In August 2007, the complete "minimal" number of cuts were made public, and they totaled approximately 500 (12% of existing) managers. The 500 were given severance packages, while even more managers were transferred to other stores or "reassigned to different positions". As opposed to this not being about a labor reduction as said a month before, the Meijer spokesperson essentially stated the cuts were made as Meijer "tries to compete with the world's largest corporation, Wal-Mart". 6 7 In 2003, the company announced that all new Meijer stores would feature an entirely new format and company image, complete with a new logo intended to make the Meijer stores seem "friendly" and inviting. The midwestern company hired New York City's Rockwell Group to redesign all the existing stores and establish a design for new stores. The "new theatrics" for the then-seventy-one year-old company originally started as a "new product introduction program" until David Rockwell talked Hank and Fred Meijer into furthering Rockwell's services. Rockwell told the Meijers the new introduction program would "work only if it was part of a new overall creative foundation based on a fresher, younger approach, encompassing architecture, interior design, and graphic design". 8 Despite its recent cutbacks, Meijer has also been embarking on a new expansion plan that will increase its number of stores in Illinois, Michigan, and Ohio. OPERATIONS .]] incorporating the company's new store format and logo.]] Meijer primarily operates department stores under the "super" philosophy (also known as a Hypermarket ), which means that groceries and department store goods are carried in the same large stores. A typical Meijer superstore carries over 150,000 items. Many also feature a Filling Station , featuring pay-at-the-pump, with a mid-size convenience store; in most cases, these filling stations are located in front of the store itself. All filling stations now feature RFID technology for payment at the pump. Several Meijer locations feature alternative fuels such as E-85 , Biodiesel , and Compressed Natural Gas . A typical Meijer is open 24 hours a day, 364 days a year, and is closed on one day a year ( Christmas ). The stores usually close around 7 p.m. on Christmas Eve and reopen around 6 a.m. on December 26. Other Meijer concepts In the face of competition, Meijer tried many other retail concepts over the years. These concepts included:
Working at Meijer The average Meijer store employs over 400 people. Few Meijer stores are non-union operated: less than ten as of December 2006. Meijer Employees are given a 15 minute paid break, an unpaid 30 minute lunch for shifts over 5 1/4 hours, and a second paid break for shifts over 6 1/2 hours. Wage rates vary by market. There are a small number of hourly employees who are able to make more than their set top rate because of their longevity. Those who were hired prior to 1984 are still employed under a non-expiring contract. This contract has top wages of higher than other employees and are currently making up to around $16.50/hour. Raises are given as team members hit certain hour and time quotas. For team members hired before 1984 a raise is received every 11 months for full-time workers and every 15 months for part-time. Team members hired between 1985 and 2003 employees receive a raise for 700 hours worked until they have reached the top compensation on their contract. Team members hired after the ratification of the current contract in 2003 receive a raise for every 1000 hours worked. Team members who have reached the top wages for either contract only receive a raise when the contract is renegotiated. Non-union workers (Illinois, Indiana, and Kentucky) also receive extra bonuses after 90 days of work. The most notable of these bonuses are known as 'issue-free hourly incentives'. These incentives are given every 4 weeks to employees whose store has surpassed the projected earnings quota. The amount received in this bonus is reflected by the percentage the store (or unit) has surpassed the quota, by its ranking in the consumer ratings system know as 'Meijer e-panel', and by the number of hours worked by the employee in that period. This means that the employee could make almost a full paycheck extra depending on the performance of the store. Hierarchy of management includes Team Leaders, Area Team Leaders, Line Team Leaders and a Store Director, in that order. A typical Meijer store will employ 2-4 Team Leaders, 20-25 Area Team Leaders, and four Line Team Leaders. Line Team Leaders and experienced Area Team Leaders are also responsible for acting as a Store Director in Charge. Management at Meijer is non-union. There are, however, a few positions that contain supervisory functions with shift premiums. Guest Service Coordinators are part of the unionized workforce (where applicable) and assists a Guest Service Team Leader with customer service functions. Alleged Bias In 2006, Meijer scored a zero on the (80%), Sears / Kmart (100%), Target Corporation (80%), and Wal-Mart (65%). PHILANTHROPY Community Rewards allows customers to determine where Meijer's donations go. Customers sign up and choose up to three non-profit organizations. When a card is scanned, those organizations receive credit for the purchase. The website says the amount donated to these organizations is at least 5% of net profits and are distributed based on the number of credits each organization receives. As a philanthropist, Fred Meijer's most significant contribution has been the land and sculpture collection for the 125-acre Frederik Meijer Gardens And Sculpture Park , a botanic garden and sculpture park in Grand Rapids, Michigan . He also gave money for abortions in china. Meijer also donated land for a --which to this day continues to broadcast from "The Meijer Public Broadcast Center." Other donations helped create Spectrum Health's Fred and Lena Meijer Heart Center. Meijer's donations to Hurricane Katrina disaster relief included food and water, which arrived on the store's trucks at relief centers in Mississippi before government aid, as well as money given from both the company itself and its customers, who donated through the company's website. In 2004, Fred Meijer offered to donate $1 million and a former golf course near Grand Rapids' East Beltline in order to fund a relocation and expansion of the historic John Ball Zoo. (The zoo is nestled between residential neighborhoods and I-96 on Grand Rapids' northwest side.) The proposal was turned down by voters and Meijer retracted the offer. Recently, the Meijer Foundation announced plans to donate $1 million to Michigan 's White Pine Trail State Park , raising the total donations from $2.1 to $3.1 million. The donation carried a stipulation that the state must name the trail the "Fred Meijer White Pine Trail". The state Parks Department initially turned down the donation, but the decision created a controversy over naming rights for private donations to public parks. Grand Rapids' downtown Civic Theatre, now renamed the Meijer Majestic Theatre, had a $10 million renovation, thanks in large part to donations by Fred Meijer, as well as Civic Action, a Grand Rapids-based community improvement organization. The name Meijer Majestic Theatre reflects both the original name of the 103 year old theatre as well as Fred Meijer's philanthropy. In 2006, Meijer donated money to Calvin College in Grand Rapids, Michigan, in order to create the paid position called the Frederik Meijer Chair of Dutch Language and Culture. Previously there was a chair but it was unpaid. It is currently held by Dr. Henk Aay, and its purpose is to promote interest in the Netherlands and Michigan's Dutch cultural heritage. Frederik Meijer Chair of Dutch Language and Culture Calvin College 2006 MEIJER STORE DESIGN Meijer stores are typically designed with the grocery section to one side, and the department store section to the other side. With few exceptions, almost all Meijer stores have been built from scratch. The Traverse City, Michigan store and a former store in Sterlight Heights (which was relocated to a new store in 2002) were converted from W.T. Grant stores.. The Lincoln Park location was converted from a Super K. A location in Grand Rapids, Michigan was converted from Miracle Mart, and the store in Fraser, Michigan was converted from Meijer's failed "SourceClub" warehouse concept. Furthermore, most of the Meijer Square stores were converted from other retailers. INTERIOR DESIGN FEATURES As can be observed from any visit to Meijer, newer Meijer stores have high white exposed structure ceilings while older Meijer stores have a lower drop ceiling. Many of these older stores are currently being remodeled to open up the ceilings to provide an open airy feel. Throughout the 1980's to early 2000's Meijer stores instituted many different lighting types from HID over the main sales areas, to fluorescent parabolics over the clothing areas to speciality lighting in the produce/bakery/deli area. Due to extensive cost cutting measures in the early 2000's and increasing pressure from Wal-Mart, Meijer has drastically cut its lighting budget and has replaced all speciality lighting and HID lighting with simple fluorescent fixtures, similar to Wal-Mart. Meijer has drastically rearranged the entire layout of the store. A big change has consisted of moving the pharmacies from the rear of the stores near grocery to the front of the stores, opposite the side of produce. Graphics have also been streamlined to a "light blue/dark blue" and white color scheme. The word Fresh has also been dropped from the Meijer name, and replaced with the slogan "Higher Standards, Lower Prices." Some Meijer stores in the 1960's-1980s were built with a balcony containing service tenants, such as a barber shop and nail salon, as well as a McDonald's restaurant. The first Detroit-area stores also featured a Fast Food concept called "Thrifty's Kitchen". Similarly, several locations now include Starbucks coffee shops. EXTERIOR DESIGN FEATURES Throughout the late 1980's to early 2000, Meijer stores heavily invested in unique exterior designs ranging from the "yellow pineapple concept" (Mishawaka, IN Grape Road store) to the "Presidential Series" (Grand Rapids, MI Knapps Corner store), to the "downtown facade" (Aurora, IL Route 59 store) concept showing a facade of small store fronts and a very large silver galvanized roof resembling a barn with the Meijer Fresh Logo on top. The latest Meijer stores such as the one in Holland, MI on U.S. 31 North have extensively streamlined their designs to be nothing more than a concrete panel box with blue canopies at each entry. All Meijer stores have been open 24 hours a day since March 7 , 1988 , only closing for Christmas Day. "HYPERMARKET" Meijer is credited with being the first "hypermarket" store in the United States, combining a multitude of merchandise under one roof, though rarely acknowledged as such. The concept of a hypermarket has been credited to Europe; either Meijer did not use the term, or it did not exist, when they opened the first Thrifty Acres in 1962.Discount Merchandiser Magazine, July 1986, History 1962 - Founding of Thrifty Acres and Kmart Most United States Hypermarkets are credited as starting at later dates. Meijer credits itself as a grocery chain, that added general merchandise to their grocery stores in 1962. The Meijers are very private people and would not talk to Forbes for a 1995 comparison to Hypermart USA and Kmart 's American Fare failed hypermarket concepts.' Forbes Magazine, February 13, 1995 issue, page 55, Squeezing the Tomatoes ' REFERENCES EXTERNAL LINKS |
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