From The March 2002 Issue of Natural Grocery Buyer

Wild Harvest: Wild Success

Shaw's gains ground with store-within-store merchandising format

Joseph P. Lewandowski

Shaw's Supermarkets, founded more than 140 years ago in 1860, is the second-oldest supermarket chain in the country behind A&P. Although the company operates mainstream stores, it's not old-fashioned in its approach to merchandising natural foods and products.

Recognizing the growing awareness of natural products among customers, Shaw's is moving aggressively with its store-within-a-store concept. During the last three years, Shaw's built 90 Wild Harvest sections within its 185 stores located throughout New England. Eventually all company stores will be home to Wild Harvest departments.

"It's very, very successful," says Bernard Rogan, company spokesman. "As we build new Wild Harvest sections, they have a habit of gaining another aisle."

Shaw's has long been the major player in the New England grocery business and produces more than $4.2 billion in revenue every year. Three years ago, the company bought Star Market, a smaller chain that operated 44 upscale stores in the Boston area. Star had initiated the store-within-a-store concept for health foods and natural products and also built four free-standing Wild Harvest locations.

When Shaw executives looked at the ledger, they saw that the in-store Wild Harvest sections were very profitable. That was not the case with the free-standing stores, so those were sold to other grocers. Shaw's then moved quickly to expand the in-store Wild Harvest concept.

One of the reasons Shaw's bought Star Market was to move into the natural products area, Rogan says. "That was one of the attractions of the acquisition. We recognized that natural products were growing and moving more into the mainstream. It was an area where we had no presence. Our timing was good."

In the average 65,000-square-foot Shaw's store, about 5,000 square feet are allotted to Wild Harvest. The section is defined with a slightly raised wood-plank floor, different colored shelving and distinct signage. Wild Harvest sections are built adjacent to the produce departments so shoppers can move easily from buying fruits and vegetables—including organics—to the naturals department. Integrating the distinct section isn't difficult, nor does it cause any operational problems.

"It's easy for customers to identify and provides a new destination within the store," Rogan says. "Wild Harvest provides a more interesting shopping experience. It gives people something different from just walking up one aisle and down another."

The section provides a complete offering of products, including packaged goods, soy and rice milks, frozen foods, bulk bins, supplements, homeopathic items, body care products and energy bars. Shaw's stocks about 1,000 different items from more than 250 manufacturers. The company is also developing its own Wild Harvest brand.

Grouping all the natural products together produces a synergistic effect, Rogan says. "When [natural] products are spread throughout the store, people just walk right by them. By placing the products together, customers seem to be more willing to take a look at them and try out new things."

Not included are free-range meat products—those are integrated in the traditional meat department.

The majority of Wild Harvest customers are baby boomers, many older than 50, who are intent on buying products that promote good health. But Wild Harvest also is attracting another group—shoppers who would probably never go to a "health food" store.

"This gives people who would be hesitant to go to a free-standing store access to products that they might not see otherwise."

In each store, a few employees are assigned to the section and answer customer questions. At the corporate office, three buyers and four assistants are dedicated exclusively to purchasing natural products and ethnic foods for the department.

For promotion, Shaw's includes Wild Harvest in its regular weekly advertising—5 million flyers inserted into newspapers throughout the region. Shaw's also distributes a special newsletter in the Wild Harvest section.

During 2002, Shaw's plans to build another 95 Wild Harvest sections in its stores. And the store-within-a-store concept has been so successful that the company is developing prototypes for other specialties. For example, it's experimenting with a cooking section that will include utensils, equipment and baking ingredients.

"We can't be just a traditional store. Customers' demand for variety is growing, and with Wild Harvest we're attracting new customers," Rogan says. "The trend is also helping to broaden the market for manufacturers."

Shaw's Supermarkets
Based in West Bridgewater, Mass.
$4.2 billion in total revenue
185 stores in Massachusetts, Vermont, Rhode Island, New Hampshire, Maine and Connecticut
Store names: Shaw's Supermarkets, Star Market
Grouping all the natural products together produces a synergistic effect.

Joseph P. Lewandowski is a free-lance writer based in Fort Collins, Colo. He can be reached at mcski@frii.com.