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Meijer

Type	Private
Founded	Greenville, Michigan (1934)
Headquarters	Walker, Michigan, U.S.
Key people	Hendrik Meijer, Founder Fred Meijer, Chairman Emeritus Hank Meijer, CEO, Co-Chair Doug Meijer, Co-Chair Mark Murray, President
Industry	Retail (Grocery & Discount)
Products	Groceries, clothing, footwear, gasoline, bedding, furniture, jewelry, health and beauty products, electronics, housewares and pet supplies
Employees	60,000
Website	www.meijer.com

Meijer (pronounced /ˈmaɪ.ər/) is a regional American hypermarket chain based in Walker, Michigan. Founded in 1934 as a supermarket chain, Meijer is credited with pioneering the modern supercenter concept in 1962.^[1] About half of the company's 190 locations are located in Michigan, with additional locations in Illinois, Indiana, Ohio, and Kentucky. The chain was ranked No. 18 on Forbes's 2008 list of "America's Largest Private Companies"^[2] and 19 in Fortune's 2008 "The 35 largest U.S. private companies". ^[3] Supermarket News ranked Meijer No. 12 in the 2007 "Top 75 North American Food Retailers" based on 2006 fiscal year estimated sales of $13.2 billion.^[4] Based on 2005 revenue, Meijer is the twenty-fifth largest retailer in the United States.^[5]

[edit] History

A Meijer in Midland, Michigan.

Meijer was founded as Meijer's in Greenville, Michigan by Hendrik Meijer, a Dutch immigrant. Meijer was a local barber who decided to enter the grocery business when hard times came during the Great Depression. His first employees included his son, Frederik Meijer, then a 14-year-old grocery bagger, who would later become the chairman of the company. The current co-chairmen, brothers Hank and Doug Meijer, are Hendrik's grandsons. After 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.^{[citation needed]}

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 Thrifty Acres store at the corner of 28th Street and Kalamazoo in Grand Rapids, which is still in operation today. At a size of 180,000 square feet (17,000 m²),^[6] it combined grocery shopping and department store shopping in a single large store. Meijer trademarked the phrase "One Stop Shopping". The store was built with six-inch (152 mm) -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.^{[citation needed]}

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 1985 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.^[7]

Meijer's former logo, used until 1990-2007.

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,^[8] 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". ^[9] Continuing cutbacks in 2006, the company outsourced eighty-one information technology positions to India.^[10]

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".^[11] 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. In april of 2003, Meijer selected DeVito/Verdi, an advertising agency in New York to handle its $25 million account. ^[12]

In July 2007, Meijer announced to the local Michigan press it would be "restructuring" its Team Leader management positions in all 181 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.^[13] 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 stated the cuts were made as Meijer "tries to compete with the world's largest corporation, Wal-Mart".^[14][15]

[edit] Operations

Meijer stores are classified as supercenters or hypermarkets; such as groceries and department store goods are carried in the same store. Many stores also feature a Meijer-branded gas station and convenience store in front. Several Meijer locations feature alternative fuels such as E85, biodiesel, and compressed natural gas.

Most Meijer stores are open 24 hours a day, 364 days a year, closing only at 7 p.m. on Christmas Eve, and reopening around 6 a.m. on December 26. Closing on Christmas Day has been in effect since December 24, 1988.^{[citation needed]}

[edit] Other Meijer concepts

In addition to the original Meijer supermarkets and hypermarkets, Meijer has tried many other retail concepts over the years. These concepts included:

• Spaar: In 1980, Meijer converted two former supermarket locations in Grand Rapids to a discount drugstore concept titled Spaar, from the Dutch word for "save". The Spaar stores were sold to Pontiac, Michigan-based Perry Drug Stores by the mid-1980s, as a decision had been made to focus entirely on Meijer's hypermarket concept.^[16]

• Meijer Square: Meijer Square was a traditional discount department store, lacking a full grocery section. Starting in 1981, Meijer Square consisted of fourteen test locations in Michigan and Ohio, mostly converted from other discount retailers.^[16] The Ohio locations were sold to Zayre and Hills in 1986, although the Michigan locations remained open into the early 1990s. The Meijer name would not be found in Cincinnati again until 1996, after both Hills and Ames had closed all of their Ohio stores.^[17]

• Copper Rivet, Sagebrush and Tansy: Meijer started these three specialty clothing stores in the 1980s as means of selling popular brand-name clothing. Copper Rivet sold Levi's jeans, Sagebrush sold casual wear, and Tansy sold women's clothing. All three chains usually operated in front of existing Meijer stores or in local shopping centers. These clothing chains were dissolved in the 1980s as brand-name clothing became more readily available at competing retailers. Sagebrush, which at its peak comprised seventy-one stores,^[18] was sold off in 1988, while Copper Rivet and Tansy stores were closed as their leases expired.^[16]

• SourceClub: SourceClub was a warehouse club concept attempted by Meijer in 1992. The concept proved unsuccessful and all SourceClub stores were closed in 1994. The location in Fraser, Michigan was converted to a regular Meijer store, while the rest were sold off.^[16] SourceClub failed due to increasing competition from similar warehouse clubs, such as Sam's Club and Costco.^[16]

• Meijer C-Stop: Meijer convenience stores and filling stations in areas where there is no attached store. Unlike past concepts, most of these are still in operation, including some locations that are present without a larger Meijer big-box store nearby.

• ChicagoLand: Concept created for the Chicago area expansion. The stores will be more focused on grocery and pharmacy; the new, smaller stores will be in the suburbs around Chicago, IL.^[19]

[edit] Employee Benefits

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Those who were hired prior to 1984 are still employed under a non-expiring contract. This contract has top wages higher than other employees and team members on the pre-1984 contract are currently making up to around $16.50/hour. Raises are given as team members hit certain work-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 after 1985 start at minimum wage and receive a raise every 700 hours respective to their department’s pay level.

Non-union workers (Illinois, Indiana, and Traverse City, MI) 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 13 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.

[edit] Marketing and sponsorship

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[edit] Meijer Community Rewards

The Meijer Community Rewards program allows customers who make purchases with cash, debit card or a Meijer Credit Card to designate groups such as schools, religious organizations or other non-profits to receive a portion of the total price paid at checkout.

Participants who sign up can choose up to three non-profit organizations participating in the program to receive the donations from their shopping trips. When a Meijer Rewards card is scanned at checkout or if a participating Meijer Credit Card is used to pay for the purchase, 0.5% of the transaction for cash or debit or 1% if paid with a Meijer Credit Card will be donated to the designated organizations.

[edit] Notable donations and actions

As a philanthropist, Fred Meijer's most significant contribution has been the land and sculpture collection for the 125-acre (0.51 km²) Frederik Meijer Gardens and Sculpture Park, a botanic garden and sculpture park in Grand Rapids, Michigan.

Meijer also donated land for a Grand Valley State University campus in Holland, Michigan approximately 30 minutes from downtown Grand Rapids, Michigan. ^[20]

In the mid-1980s, Meijer donated an undisclosed amount of money to GVSU towards the construction of new studios for the GVSU's Public Television Station, WGVU--which to this day continues to broadcast from "The Meijer Public Broadcast Center."

A section of the Berlin Wall stands in the Meijer Lobby of the Gerald R. Ford Museum in Grand Rapids, donated by Frederik Meijer on its 10th anniversary and dedicated by President Ford on September 6, 1991.^[21][22]

Meijer also made considerable donations which led to the creation of Spectrum Health's Fred and Lena Meijer Heart Center.

After the Hurricane Katrina disaster, Meijer dispatched company trucks to deliver food and bottled water among other necessities to relief centers in Mississippi before government aid began as well as donations from the company and its employees as well as customers who donated through the company website.

In July and August 2004, Fred Meijer personally offered a donation of $25 million and property which included a former golf course near Grand Rapids' East Beltline to fund a relocation and expansion of the historic John Ball Zoo. ^[23] However, voters voted against the proposal 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.^[24]

Meijer has been involved in sponsorship in the IRL series for several years. They currently are an associate sponsor on the #26 Andretti-Green Racing entry driven by Marco Andretti. They had a presence in NASCAR for awhile as well, sponsoring the Meijer 300 presented by Oreo at Kentucky Motor Speedway.

[edit] Meijer store design

Meijer Yellow "Pineapple" signature design of the 1994-1996 Meijer stores. The Yellow Pineapple housed seating for the cafe. Note translucent wall panels above yellow area, which is a translucent product similar to Kalwall.

Meijer stores are typically designed with the supermarket section to one side, and the general merchandise section to the other side. The chain's stores are almost always constructed from the ground up, with very few Meijer stores having been converted from other retailers. Exceptions include the Traverse City, Michigan and Sterling Heights, Michigan stores, both of which were former W.T. Grant stores, as well as the Fraser, Michigan location, which Meijer converted from its failed SourceClub concept.^[16]

Some stores built in the 1970s and 1980s included a balcony, containing service tenants such as a barber shop and nail salon. Until the late 1990s, McDonald's restaurants also operated inside Meijer stores, primarily in those with balconies; in addition, the first stores in the Detroit area featured a short-lived fast food concept called Thrifty's Kitchen. Most stores feature a sit-down café, while some also feature a Starbucks coffee shop.

Upon entering the 1990s Meijer developed new integrated prototypes for their rollouts. One example was the "whimsical" design prototype that was introduced with the 1994 expansion into Indiana. Different shapes and roofing designs created the facade of the building. Most notable was the yellow pineapple constructed out of yellow ceramic brick and glass blocks. The different shapes on the facade were to introduce Meijer to Indiana as a "store of discovery."

Also notable was the use of a large translucent wall above the grand concourse facing the registers. This allowed natural light to filter into the area above the registers without actual windows. Another feature of these stores was the introduction of a grey concrete panels, and silver framing on windows and doors. Former prototypes used a brownish simulated brick.

The Presidential prototype evolved out of the mid 1990's prototype. The logo was moved to the center of the building. Later Meijer stores of this design introduced the Meijer Fresh logo with the standard Meijer logo and a large cursive "Fresh" on the right of the Meijer name. These logos are currently being phased out with the lower case "meijer" (in red) with blue dots over the 'i' and 'j'.

[edit] "Hypermarket"

2008 Renovated Meijer Store at Store #50 Grand Rapids, MI Cascade store

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.^[25] The concept of a hypermarket has been credited to Europe, most often Carrefour.^[25] This may be attributed to Meijer being a regional chain, rather than expanding internationally, and using the term "supercenter" rather than "hypermarket", when they opened the first Thrifty Acres in 1962.^[26] Most United States "hypermarkets" are credited as starting at later dates.^[25] 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.^[7]

[edit] Controversies & Criticism

[edit] Acme Township

In February 2007, Meijer was involved in an effort to recall the elected officials of Acme Township in Grand Traverse County, due to the officials' reluctance to allow a new store along M-72 within the rural township. Meijer retained Seyferth, Spaulding & Tennyson, a Grand Rapids public relations firm, which helped orchestrate the recall effort. As of January 2008, a criminal investigation was currently underway by the Michigan State Police^[27] into the legality of the scheme.

Records indicate that PR firm retained by Meijer had arranged meeting with a small non-profit organization which favored the Meijer store, but had not yet formally taken a position on the recall. With the persuasion of the PR firm, the organization, known as the "Acme Taxpayers for Responsible Government," formed a recall committee and began to promote the recall election. Seyferth researched the plausibility of a recall, wrote justification for the recall and oversaw the agenda for the meeting with Acme Taxpayers.^[28] The PR firm revised the organization’s website, logo, devised talking points, campaign literature and wrote ghost letters to Traverse City newspapers. The recall committee did not disclose any of the PR firm’s assistance, or its affiliation with Meijer.

[edit] Treatment of LGBT community

In 2006, 2007, and again in 2008 Meijer scored a zero on the Human Rights Campaign Corporate Equality Index, which the HRC calls "a measure of how U.S. companies and businesses are treating gay, lesbian, bisexual and transgender employees, consumers and investors." Specifically, the HRC claims that Meijer does not offer "even minimal benefits or workplace protection for gay employees" and lists it as a consistently gay-unfriendly company. Many conservative groups view this as a positive sign that Meijer has not bowed to pressure from small special interest groups and has made a corporate decision to remain neutral on controversial political issues such as same-sex marriage. Meijer was one of only three companies out of over 500 graded to receive this extremely low score.^[29] Meijer's score improved on the 2009 index, after the company amended its non-discrimination policy to include sexual orientation, but its 15% score still stands in contrast to the much higher 2009 ratings of its other retail and grocery rivals, such as Macy's Inc. (100%), Sears/Kmart (100%), Whole Foods Market (90%), Target Corporation (100%), Kroger (75%) and Wal-Mart (40%).^[30]

* indicates lowest score received among companies that year.

[edit] References

[edit] External links

• Company website