Wegmans

Wegmans Food Markets, Inc.

Type	Private Family business
Industry	Grocery
Founded	1916 (1916) (as Rochester Fruit and Vegetable Company) Rochester, New York, U.S.
Founder	John Wegman Walter Wegman
Headquarters	Rochester, New York, U.S.
Number of locations	92 stores (2016)[1]
Area served	Mid-Atlantic states, New England
Key people	Danny Wegman, Chairman and CEO Colleen Wegman, President
Revenue	$7 billion (2013)[2][3][4]
Owner	Danny Wegman
Number of employees	58,000+ (2013)
Website	www.wegmans.com

Wegmans Food Markets, Inc. is a privately held American regional supermarket chain headquartered in Gates, New York, near Rochester.^[5][6] Wegmans has 92 stores^[1] in the mid-Atlantic and New England regions, in New York, Pennsylvania, New Jersey, Maryland, Massachusetts, and Virginia. Founded in 1916 in Rochester, Wegmans has appeared on Fortune's annual "100 Best Companies to Work For" list since the list first appeared in 1998, and has ranked among the top 10 for eight consecutive years.^[7] Food Network recognized it with its award for Best Grocery Store in 2007,^[8] and Consumer Reports ranked it the top large U.S. grocery chain in 2012^[9] and in 2014.^[10] It was also profiled as part of "Here Are The Jobs" segment on MSNBC's PoliticsNation on July 6, 2012.^[11]

History

Map of Wegmans stores

Wegmans is a privately owned company, founded in 1916 by John and Walter Wegman as the Rochester Fruit and Vegetable Company. Wegmans is headquartered in the Rochester suburb of Gates. Danny Wegman is the CEO. His daughter, Colleen Wegman, is president; his other daughter, Nicole Wegman, is vice-president of restaurant operations. His father, Robert, who died in 2006, was chairman. Robert was the son of co-founder Walter Wegman. During his life, Robert Wegman was a pioneer in the retail food business, as well as a generous donor to educational institutions and other charities.^[12][13]

In 1968, the chain expanded beyond the Rochester area, with a store in Syracuse,^[14] and again in 1977 with its first Buffalo store.^[14] The first store outside New York opened in 1993 in Erie, Pennsylvania,^[14] and the expansion continued into New Jersey in 1999,^[14] Virginia in 2004, and Maryland in 2005.^[14][15] As a part of the company's continued expansion efforts, Wegmans opened its fifth Maryland location in Columbia on June 17, 2012.^[16] Its sixth Maryland location opened in Crofton on October 28, 2012, followed by a Germantown location on September 15, 2013.^[17] Wegmans opened a store at the Montgomery Mall in North Wales, Pennsylvania, on November 3, 2013, the first store to be part of a shopping mall since the closing of the Midtown Plaza store in Rochester.^[18][19]

Wegmans, having long planned to expand into New England,^[20][21] opened their first store in that region in Northborough, Massachusetts, on October 16, 2011.^[22][23] 2014 saw Wegmans opening two more Massachusetts stores, in Newton on April 27,^[24] and in Burlington on October 26.^[25] Its fourth Massachusetts store opened in Westwood on October 11, 2015.^[26] The eighth Maryland store opened in Owings Mills, Maryland in September 2016.^[27] The newest location is in Charlottesville, Virginia, which opened in November 2016. Six more locations are scheduled to open in Hanover Township, New Jersey, in summer 2017, Medford, Massachusetts, in fall 2017, Montvale, New Jersey, in fall 2017, Chantilly, Virginia, in 2018, Lancaster, Pennsylvania, in 2018,^[28] and Natick, Massachusetts, in 2018. Six other locations are currently in the works, including one in Brooklyn, New York, the chain's first location in New York City, with opening dates yet to be determined, Tysons Corner, Virginia, and the first four North Carolina locations, which are in Cary, Chapel Hill, Raleigh, and West Cary.^[29][30]

Wegmans offers a pick-up service called "Personal Shopping" at its Pittsford location in Rochester, New York, and at its location in Bridgewater, NJ. While there are currently no plans to offer a home delivery service, Wegmans has stated "You can be assured that we're always looking for new ways to make Wegmans a great place to shop and save. So it's not to say that we would never again consider home delivery, it's just not planned for the foreseeable future." ^[31]

On January 30, 2016, Wegmans celebrated its 100th anniversary.^[32]

Operations

A modern Wegmans storefront circa 2010. This Wegmans is in Lanham (a Washington suburb) (referred to as the "Woodmore" store), the second Wegmans in Maryland

Exterior of a typical Wegmans, in the style common in the late 1990s; in Amherst, New York at the "Alberta Drive" location.

A Wegmans store in Manalapan, New Jersey

In 2009, Wegmans ranked 29th on the Supermarket News list of the Top 75 North American Food Retailers based on sales volume,^[33] up from number 32 on the 2007 Supermarket News list,^[3] and 7th among privately held U.S. supermarkets. In 2009 Stores Magazine showed it to be the 74th-largest retailer in the United States with estimated revenues of $4.67 billion^[34] As of 2006, it was the 66th largest privately held company, as determined by Forbes.^[35] On Forbes's 2005 list, Wegmans ranked 54th.^[36]

Most of Wegmans' newer stores are of the "superstore" or "megamarket" type, with a large area, a variety of foods aimed at an upscale clientele, and in many stores, Market Café in-store dining areas. Wegmans used to own and operate Tastings, a restaurant at its Pittsford, New York, store that offered patrons three distinct eating areas. Tastings has closed, replaced with The Food Bar, a 'seafood shack'-styled restaurant in the same space, and is now The Burger Bar, which serves hamburgers. Next Door Bar and Grill, a stand-alone restaurant operated by Wegmans, opened across the street from the Pittsford store.

In January 2007, Wegmans announced two business ventures: (1) opening a 19,000 sq ft (1,800 m²) liquor store in Pittsford (adding to its two existing wine centers, in Virginia and New Jersey); and (2) the creation of a $28 million "Culinary Innovation Center" (in Chili, New York), a corporate research and development facility that will house a new central kitchen (replacing some of the operations at its meat center).^[37] The liquor store opened in April 2008 as Century Pittsford Wines. It is not owned by the company, but independently owned directly by a member of the Wegman family due to New York liquor laws. The store is 45,000 sq ft (4,200 m²).^[38][39] This business model has been replicated at three other New York Wegmans locations in Buffalo, DeWitt and Johnson City. Ownership of each liquor store is held by different members of the Wegman family due to New York State regulations prohibiting individuals from owning multiple liquor stores.^[40]

In November 2010, Walgreens filed a trademark infringement lawsuit against Wegmans, claiming the "W" in the Wegman's logo is too similar to Walgreens'.^[41] The lawsuit was settled in April 2011, with Wegmans agreeing to discontinue use of its "W" logo by June 2012, although the supermarket retains the right to use the “Wegmans” name in script.^[42] According to Jo Natale, Wegmans director of media relations, “The cost of making relatively minor changes to a limited number of products was much less than the cost of litigating this case to the end.”^[43]

Chase-Pitkin Home and Garden Centers

Wegmans was the parent company of Chase-Pitkin, a regional home improvement retailer. On October 4, 2005, Wegmans announced that it would close all Chase-Pitkin stores by early 2006^[44] and focus on its supermarket operations. The decision to exit the home improvement business was reportedly due to the increasing dominance of national chains such as Lowe's and The Home Depot.^[44] Chase-Pitkin stores closed individually at various points throughout March 2006.

Discontinuation of tobacco products

In January 2008, Wegmans announced that it would no longer sell tobacco products because of their negative effects on human health and the environment^[45] and would offer smoking cessation programs to all employees.^[46] The decision drew praise from the American Lung Association of New York State, which presented Wegmans with the "Lung Champion Award".^[46]

Wegmans brand

Wegmans began branding its products in 1979, offering basic commodities with a lower price than the national brands. The "Wegmans" brand has gradually expanded. In 1992, it began a line of health products, "Food You Feel Good About". The next sub-brand to be launched was "Italian Classics". In 1995, Wegmans introduced its imported pastas, canned tomatoes, and olive oils. Many of the products are from Italy. In 2002, Wegmans launched a line of organic products. Wegmans "six dollar meals" are now one of its most popular items in the prepared foods section.

The Wegmans brand has been used extensively in the American sitcom The Office; the program is set in the city of Scranton, Pennsylvania, which does have a Wegmans store, despite being filmed in suburban Los Angeles.^[47][48]

References

Further reading

• Wegman's footprint in Pennsylvania ~ Kostelni, Natalie (25 July 2014). "Wegmans leases land in Chadds Ford, plans 140,000-square-foot store". Phila. Bus. J. 

External links

• Official website
• Wegmans official blog
• Wegmans on Twitter
• Biography of Robert Wegman