Whole Foods and Trader Joe's capture most of the headlines, but there is another specialty grocer that has achieved some pretty impressive results, even if it has done so with much less fanfare.
The Fresh Market operates 70 stores in 17 states, now that it is opening its first Wisconsin location in the Milwaukee suburb of Brookfield. Founded in Greensboro, N.C. in 1982 by Ray Berry, a former vice president of Southland Corporation (7-Eleven), and his wife Beverly, The Fresh Market has combined a service atmosphere (all meat is sold by the piece at the fresh meat counter, for example) with the ambience of a European market. Classical music fills the air as the chain seeks to "slow down" consumers as they shop the store with its tile floors, antiques, and soft lighting. In addition to the meat counter, the 22,000-square-foot store offers a selection of 400 produce items, a fresh seafood counter, European-style deli, prepared foods, bakery and floral area.
With its Milwaukee–area opening, The Fresh Market will also find itself going up against a number of local specialty grocery stores (Grasch's, Sendik's and Brennan's) in addition to the national chains.
Jeff Jordan, director of new store operations for The Fresh Market, told the Milwaukee Journal Sentinel, "I think we're going to be more along the line of Grasch's. The atmosphere in the store is more service-oriented."
David Livingston, principal with DJL Research and a member of the RetailWire BrainTrust, made the point that the store is "designed for the consumer with the high disposable income," and, consequently, will face tough local competition from chains appealing to similar demographics. "I don't think this is going to be a slam dunk for them," he told the paper.
Discussion Questions: How do you explain the growth in fresh format stores such The Fresh Market? Is there that much affluence in the U.S. or is there a segment of the population that chooses to trade up when it comes to food? How big is the remaining market opportunity for upscale grocery store operators?