Retail View: Haggen continues Vons, Albertsons conversions
Retail View: Haggen continues Vons, Albertsons conversions
Since February Haggen has converted about one-third of the Safeway and Albertsons stores it acquired in December to the Haggen brand.
There have been 22 conversions in California — including the first one in Carlsbad in San Diego County — 19 in Washington and 22 in Oregon. The company recently announced that it was slowing down its conversion schedule a bit to comply with local licensing and permitting regulations. Initially, the Northwest-based retailer had anticipated that it would complete the 146 conversions by June. The unprecedented 900 percent growth — going from 18 stores in Oregon and Washington to 164 and adding California, Arizona and Nevada to the mix — has seemingly gone quite well and is getting good reviews from industry members. The company has not reissued a revised conversion but it has around 85 more stores to convert. It spends about 40 hours on each conversion.
Haggen has developed a large network of local farmers to supply its stores with a fresh selection of seasonal produce.
Recently a couple of Haggen executives from the Southwest division, which is headquartered in Irvine, CA, answered some questions about the chain’s effort via an email exchange with The Produce News. Director of Communications Moran Golan said that with each conversion it is excited about the changes it is making to enhance each store, though she acknowledged that not everything can get done in such a short time. “There’s only so much we can accomplish in the 40 hours we’re closed,” she said. “We make certain immediate changes with our grand opening — branding and décor changes, as well as enhanced offerings in our fresh departments such as produce and meat/seafood. We also enhance the layout in the produce department, moving toward a more farmers’ market appeal. It will take time to completely infuse the store with the full Haggen experience. It’s a journey, as we like to say. Guests can expect to see continued improvements over the upcoming weeks, months and year.”
As the company converts stores, it is focusing on traditional local advertising to spread the word to the community. “This includes a weekly flier and direct mailers to ZIP codes near the store address,” she said. “As we gain a decent mass within a given county/geography, we will expand to channels such as radio and television. We do also have a presence in the social space with a Pacific Southwest-specific Facebook page and Instagram account.”
Golan explained Haggen’s execution and philosophy as being a full-line grocery store that caters to its “guests” and strives to provide one-stop shopping. “Our goal is to provide a unique, hassle-free shopping experience. We offer essential items our guests need, specialty items they want and local items that reflect the community — all at fair, competitive prices,” she said. “We like to think of ourselves as a full-line grocery store with a bias toward fresh, quality, organic, local and healthy-for-you options, so that guests can do all their shopping with us instead of traveling to multiple stores.”
The company is marketing itself as somewhere between conventional supermarkets and specialty stores. “Think of the conventional players — Albertsons, Ralphs, Vons, Stater Bros. — which do many things well, including providing national brands and essential items most all customers need or want,” said Golan. “Then think of the specialty players — Whole Foods, Sprouts, Bristol Farms, Gelsons — which provide more options like enhanced offerings, fresh, healthier choices, gluten-free, organic, local, etc. There’s a gap in between those bands or layers, if you will. That’s where Haggen is.”
Speaking specifically of produce, the communications director said, ”Produce is critically important to Haggen. We have developed and will continue to develop a large network of local farmers to supply our stores with the most abundant, fresh, nutrient-rich selection of seasonal produce. Farm-fresh produce is just one more way Haggen is committed to supporting our local communities.”
She added that the company works hard to source locally whenever possible. “That means stocking our produce department with the fruits and vegetables grown close to each of our neighborhood stores. We believe the stories of our local producers are an integral part of our brand.”
Chris Jacoby, director of produce for the Southwest division, said Haggen is using a two-tiered model to supply its stores with produce. “Our main produce partner is Charlie’s Produce, which recently expanded from the Northwest opening a new facility in Irwindale, CA. We also empower stores to purchase directly from local growers in their communities and are dedicating space in each produce section to highlight local growers and their farm-to-shelf fresh offerings.”
He said the “merchandising philosophy is to let our enhanced selection of farmer’s market fresh produce speak for itself, with an emphasis on offering more organic, premium and local produce options competitively priced across all categories.”
He added that Haggen is “expanding our offering of leafy, wet organic produce and adding big, center-section tables filled both front and back with organic fruits and vegetables.”
As far as considering online retailing or other sales concepts, Golan said, “We’re currently laser focused on converting stores and ensuring as smooth a transition as possible for our guests and store teams. In the future, we might explore different retail models but not in the immediate future.”