Progressive Grocer

DEC 2016

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Feature 2016 Store Design Review PG: What key elements were crucial to this store design? Ian McLeod, president/CEO, Southeastern Grocers: We aspire to demonstrate our capability to step-change the brand and establish contemporary concepts, reflecting the expecta- tions of today's customer. Central to our philosophy is that upon the moment our customer enters the store, there should be a sense of arrival, highlighted by a sense of freshness and space. Our customers are engaged by a store that is bright and open, and has a strong emphasis on fresh food. at sense of space is equally important, in that our customers are able appreciate the scale of the store and see from the front to the back of the store the moment they walk in. e first impression in the store is complemented by an opening vision of stunning fresh produce, enhanced by the merchandising of fresh green vegetables on a bed of ice. Not only does the ice facilitate hydration of the product, but it's also aesthetically appealing — that balance to form and function is key. With our Baymeadows store, we intended to create the first impression as a stark contrast to previous iterations of store design, color contrast, brightness, and impact of departmental signage. As one example, the 6-foot letters above each department help them stand out in a notable way to the customer from the moment they walk in. PG: What goals did you wish to achieve with this store? McLeod: Our goals were to meet the needs of the customer and concurrently differentiate ourselves through foods that aren't readily available in other traditional grocery stores. Our customers are increasingly health-conscious and have a growing preference to consume food that is more naturally developed, without preservatives or additives. To that end, we provide options that satisfy those needs. PG: What challenges were encountered, and how did you address them? McLeod: is concept puts a particular focus upon freshness and, as such, creates new operational opportunities, including potential increases in cost of labor if not managed carefully. We pay close attention to the economics of each concept and overall store productivity. We use the appropriate level of investment to match labor with customer service expectations. PG: What learnings did you take away from the execution of this store? McLeod: We learned the extent to which this innovative and new concept would resonate with our customer. e feedback has been extremely positive, and we'll continue to refine, learn and adapt as we land new concepts. We're encouraged by how we've implemented this concept, and we look forward to implementing our learnings in other markets, as we've done in markets such as Tampa, Fla., and Gastonia, N.C., earlier this year. PG: What factors are going to be most important in the design of future stores? McLeod: It's a very competitive environment across the United States and internationally, and that dynamic requires a per- petual commitment to learning and listening. No retailer can afford to be complacent, and we have to continue to embrace new ideas and concepts to meet evolving customer needs. Winn-Dixie 10915 Baymeadows Road Jacksonville, FL 32256 Grand opening: Feb. 4, 2016 Total square footage: 45,956 Selling area: 31,736 square feet SKUs: More than 40,000, including 4,000 natural and organic items; 450 fresh produce items; 260 beer varieties, including 150 craft brews; 1,000 wines; 350 artisan cheeses; and more than 100 local products Employees: 107 Checkouts: 10, plus two kiosks Hours: 7 a.m.-11 p.m. daily Designer: Southeastern Grocers 30 | Progressive Grocer | Ahead of What's Next | December 2016

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