By John Karolefski
Through special arrangement, what follows is an excerpt of a current story from Grocery Headquarters magazine, presented here for discussion.
Bashas' Family of Stores in Arizona is celebrating its 75th anniversary of surviving as the likes of Wal-Mart, Kroger, Safeway, Costco, Trader Joe's, Whole Foods and Walgreens have opened stores throughout the state.
Today, Bashas' is the seventh-largest employer in Arizona and its 700,000-square-foot distribution center supplies the company's 157 stores, as well as 18 IGAs.
Mike Proulx, president and COO of Bashas' Family of Stores, sees being a family-owned business as an advantage. "Our decision-makers are right here. This is our home. That allows us to know our environment and to make decisions quicker than maybe the other formidable competitors."
This grass-roots way of thinking has spawned four distinct store formats: Bashas', Food City, AJ's Fine Foods and Diné Markets. Each serves a specific slice of Arizona's diverse demographic with a blend of cutting-edge micro-merchandising and old-fashioned customer service.
The 74 conventional food and drug stores bear the banner of Bashas' Supermarkets. Shoppers are drawn to the stores largely for their fresh produce, scratch bakeries and full-service butcher shops.
Many offer pharmacies, childcare services, ATMs, banks and in-store health screenings. The chain's successful HealthStyles program relies on the latest screening and diagnostic equipment. The wide variety of services the program provides to local neighborhoods includes blood panels; hearing and vision testing; mobile on-site mammography units; screenings for diabetes, bone density, thyroid and prostate cancer; and immunizations for flu and pneumonia.
Food City is a chain offering an EDLP format and catering to Mexican-American shoppers. Operated separately from the rest of Bashas', the banner boasts its own distribution system, assortments, pricing and community programs.
The 11 AJ's cater to shoppers with discriminating tastes for gourmet and specialty fare with the panache of high-end customer service.
The assortment of departments includes a Butcher's Corner offering exotic meats such as venison and ostrich, as well as prime rib and all-natural chicken; Seafood Grotto, with a world-class selection delivered fresh daily; Farmer's Market, including Asian, Latin and European items among the extensive variety of fresh fruits and vegetables; Wine Cellar, staffed by cellar masters to make recommendations; Boulangerie, presenting signature fruit tarts, tiramisu and truffles, cannolis and croissants; and the Bistro, serving such items as Beef Wellington, pork tenderloin and grilled salmon with mango salsa, as well as gourmet sandwiches and specialty pizza for takeout.
Bashas' operates seven Diné (pronounced dee-NEH) Markets on the Navajo Nation reservation and three other stores on the Apache and Tohono O'odham reservations bear the Bashas' banner. All the locations are similar to the chain's conventional stores but include products and packages that the community is looking for, like mutton, wool, leather pouches and 25-pound bags of Blue Bird flour for fry bread, a Navajo staple.
Bashas' holds down the No. 4 position in the state with a market share of 18 percent, right behind Safeway with 19 percent. Kroger is No. 1 with a 24 percent share and Wal-Mart is second with 22 percent.
"We've been successful in holding on and growing our share over the years with our niche marketing and our focus on the customers who we serve neighborhood by neighborhood," said Mr. Proulx.
That's the formula that led to the creation of a new format opening in Tucson next month. Ike's Farmer's Market will combine the best aspects of such natural food operators as Whole Foods, Trader Joe's and Wild Oats. The 26,000 square-foot prototype will highlight organic produce, natural foods, and nutritional supplements for health-minded consumers.
Discussion Questions: What is your assessment of Bashas' Family of Stores and the relative strength/weakness of its banners? Do you think they are making good use of their "grass roots" advantage?