Content area
Full text
Consumers love Raley's. Here's why.
WHEN PUBLIX SHOWED UP AT THE top of the list of supermarket chains rated as shopper favorites in a recent Consumer Reports survey, most trade observers weren't surprised. After all, Publix stores are well-known for their customer service and friendly atmosphere. But some were taken aback to see Raley's tied at the top of the list. They shouldn't have been surprised, though, since Raley's has long been a dominant player in its home market of Sacramento, Calif.
The survey results help confirm that the company is on its way to achieving its primary aim. "Our goal is to be the best grocery company in the world," says Michael Teel, Raley's president, who is also the grandson of company founder Tom Raley. "That doesn't necessarily mean the biggest, but it does mean the best."
What do shoppers like best about the chain's stores? According to the report, Raley's was given top marks for cleanliness, courtesy and for its produce departments. It also received high marks for checkout speed and its meat, deli and bakery departments, as well as for having specials in stock.
Clearly, the formula is working. The chain's 86 stores, which include 17 Bel Air Markets, grab about one-quarter of the overall Sacramento market, and as much as 40% of the Sacramento MSA.
The chain's successful formula is being put to the test at the new Raley's flagship store in Loomis, Calif. According to Teel, the store is the culmination of years of a strategy that has seen Raley's grow from a single grocery store in 1935 to the dominant grocery chain in Northern California.
At the heart of that strategy today is a keen attention to demographics and the creation of specialized destination departments. For instance, the natural foods destination section is three rows deep, and the "Pampered Pet" department sells horse products, as well as dog and cat paraphernalia. The creation of the stores-within-thestore, says Teel, was done to help the area's time-pressed consumers move through the store more quickly.
Also key to the focus on customer service is the full wall of service, beginning with the in-store cafe and ending with the meat department, which includes a butcher behind the counter taking orders. Among...