Roundy’s Supermarkets flourishing in Illinois and Wisconsin
Roundy’s Supermarkets flourishing in Illinois and Wisconsin
MILWAUKEE — “Consistency, quality and a wonderful eating experience” are the qualities demanded for retail stores united under Roundy’s Supermarkets Inc. Steve Jarzombek, vice president of produce, noted that eating habits of Americans are changing toward a healthier lifestyle. With that, retail produce departments with “great quality day in and day out” will benefit, he said. “It’s exciting to see people eating arugula, kale and herbs. It’s a really fun time in this industry.”
Jarzombek, who has been in the produce business for 40 years, noted that for his department “price is not our first consideration. Everyone wants to pay as little as they can. But price is not number one.”
Headquartered in Milwaukee, Roundy’s operates 149 stores in Illinois and Wisconsin. There are four banners: Mariano’s, Pick N Save, Copps and Metro Markets. Of the stores, 31 are upscale Mariano’s. Mariano’s is named for Bob Mariano, Roundy’s chief executive officer, who “wants people to enjoy great foods and great service,” Jarzombek said. The first Mariano’s opened five years ago. “It’s a terrific grocery store with an emphasis on fresh and perishables.”
Jarzombek said that chain stores did well in Chicago from the 1970s until around 2000. Jewel Foods and Dominick’s dominated the market. But after Safeway bought Dominick’s, its market share was lost, “which opened the door to a lot of independents,” he said.
Now, Chicago’s independent grocers are bustling. He said Chicago “has wonderful neighborhoods. It’s a melting pot for many different ethnic people. So, these folks really support and love to shop in small markets and buy a lot of perishables: meat, produce and seafood. These shops are very popular in the city, so they have thrived,” he said.
On the supply side, Roundy’s has very loyal suppliers in the produce industry. “We have very close relationships with really great growers and packers,” he said. About 75 percent of the firm’s purchases are direct from grower-shippers.
At the same time, Roundy’s supports dealers on the Chicago International Produce Market. There, distributors “have a lot of great relationships” with shippers “where we can buy from them and support them,” he said. “We need them for some of the relationships they have.” Located in the middle of the continent, far from many growing areas, “we won’t hit it perfect every day” and need a source like the Chicago market to fill in.
Justin Heffernan, director of produce procurement and merchandising, added that Roundy’s has a strong local program. This involves growers from Minnesota, Wisconsin, Illinois and Michigan.
“Local is important,” Jarzombek reiterated. “Everyone in this office knows our objective is to take care of the shoppers in the stores and the people growing close to the stores. Locally grown produce is good for the environment and the opportunity to provide fresher products to the consumer too.”
Roundy’s assures that local product is GAP certified.
“We are the only retailer in Wisconsin that buys through the Wisconsin Food Hub,” he said. “This will be our third season.”
Roundy’s has a warehouse in Oconomowoc, WI, which is about 30 miles west of scenic Milwaukee.