Sendik’s aims to maintain quality, expand quantity
The grocery store industry is no place for the faint of heart. The profit margins are razor thin, the competition is fierce and one poorly selected store location can be catastrophic.
Those challenges are enough to keep Ted Balistreri attentive. And humble.
As one of the family co-owners of Sendik’s Food Markets, Balistreri likes to soak in the “vibe” of each of his stores.
“Are the customers happy? Are the employees happy? Are they enjoying it?” he said while assessing the user experience recently at the Sendik’s store in West Milwaukee on Miller Park Way.
Sendik’s does not compete with the large chains on the lowest prices or largest selections.
Instead, its value propositions are quality and service. Think carpeted aisles, upscale deli dishes, the freshest produce and thick, red bags.
“We serve Wisconsin ‘foodies.’ I think they’re a core audience for us. People who are interested in foods are very much our customers,” Balistreri said. “It’s quality and freshness, and we wrap it in a bow of customer service.”
By the end of the year, Sendik’s will be operating 15 supermarkets and three Fresh2GO upscale convenience stores in southeastern Wisconsin, with nearly 2,000 employees.
That’s a long way from 2004, when the company operated just one store, and light years away from the business that Balistreri’s grandfather started with one produce cart in 1926.
“We have a firm belief that you’re either growing or falling backwards,” Balistreri said.
The new challenge for Balistreri and his management team: How do you increase your quantity so dramatically without sacrificing the quality that has become your signature in a competitive marketplace?
That was Balistreri’s homework assignment for this week’s column. Here are his core strategies for maintaining quality in a growing company:
Stick to the mission. “Ensure each associate understands our unique place in the market and is committed to offering the best grocery shopping experience, period.”
Rely on your people. “Attract good ones, develop them, retain them.” The company pays for health care benefits for its employees — a rarity in the retail business.
The food must taste great in every department at every location. “We’re in the food business, and it should be delicious every time you shop.”
Serve the neighborhood. “While there are core things we do that are key to our brand (make homemade deli salads), we have to serve the neighborhood. That means selections vary by store because every area is unique. For instance, we know we’re going to sell a lot more Polish sausage on the south side of Milwaukee than the north side.”
Make a difference in people’s lives. “Great benefits for our associates. A welcoming store for our guests. Supporting and donating to civic causes in our community. Each betters the place we call home.”
Innovate. “Take a risk, be creative, be on or ahead of the trend. At one point, we only sold produce, but we had to adapt. Change comes faster, and how you react to it is critical.”
Listen. “By their actions, customers tell us what they want and need. Whether it’s data or a one-to-one conversation, we have to meet their shopping needs.”
Steve Jagler is the business editor of the Milwaukee Journal Sentinel. C-Level stands for high-ranking executives, typically those with “chief” in their titles. Send C-Level column ideas to him at steve.jagler@journalsentinel.com.