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STEW LEONARD, JR. TELLS 1,900 FOOD INDUSTRY EXECUTIVES TO "LISTEN TO CUSTOMERS" AT NATIONAL SUPERMARKET CONVENTION

 

Stew Leonard, Jr., President and CEO of Stew Leonard's, holds up one the store's trademark grocery bags before entering Chicago's McCormick Place Convention Center's Grand Ballroom.
CHICAGO, Ill., May 10, 2002 - What are the five issues that food retailers know are important to their industry, yet seldom seem to do well? Stew Leonard, Jr., President and CEO of Stew Leonard's, tackled this topic, speaking on Monday to a full house of 1,900 global food retailers in the Grand Ballroom of Chicago's McCormick Place Convention Center during the Food Marketing Institute's (FMI) 2002 Supermarket Industry Convention & Educational Exposition. The annual meeting held from May 5 - 7, is the largest, most comprehensive event of its kind in the world, attended by an estimated 28,000 people in the food industry. As part of a panel that also included the Presidents of Spartan and Harris Teeter supermarkets, Stew Leonard, Jr. outlined the five key strategies that are central to the continued success of his family-owned grocery stores in Norwalk and Danbury, Conn. and Yonkers, New York, founded by his father in 1969. First and foremost is:

  • Love your customers. Stew Leonard's is recognized throughout the world as a leader in customer service. The guiding principle to the store's passionate approach to customer service boils down to two rules: "Rule No. 1 -- The Customer is Always Right. Rule No. 2 - If the Customer is Ever Wrong, Re-Read Rule No. 1." This principle is so essential to the foundation of the company that it is etched in a three-ton granite rock at each store's entrance. Stew explained that reading customer's daily suggestions and holding customer focus groups, helps the store keep their fingers on the pulse of the customer and continue to exceed their expectations.

    "We strive every day to create happy customers, to make them feel welcome in our stores and do everything in our power to exceed their expectations," said Stew. "To do this, we really listen to and love our customers."
  • Team Members. Stew Leonard's recently earned a No. 22 debut ranking on FORTUNE magazine's "100 Best Companies to Work For in America" list. The reason is largely due to another overriding philosophy of the store -- "Take good care of your people and they in turn will take good care of your customers."

    Stew Leonard's offers competitive pay and benefits, and places a strong emphasis on daily communication to their employees. The store also has an aggressive training program. Ninety percent of the managers have been promoted from within. As a result, Stew Leonard's has a very low employee turnover rate compared to the industry average
  • Freshness/Quality. Unlike traditional grocery stores that sell an average 30,000 items, each Stew Leonard's store carries only 1,500 items, chosen specifically for their freshness, quality and value. "I like to think of Stew Leonard's as a 'super Farmer's Market' - a cross between a traditional supermarket and a farmer's market," said Stew, Jr. He cited the in-store dairy plant and bakery, fresh mozzarella making station and the cut to order meat department as examples of Stew Leonard's 'show-and-sell' philosophy.
  • New Ideas Change. One of Stew's favorite quotes is, "The BIG don't eat the small. The FAST eat the slow." He is a proponent of the "one idea" and challenges his employees to find the "one idea", even if it may seem small, which can have a big impact on the business.
  • Great Suppliers. Stew is a huge advocate of partnering with suppliers. In fact, Stew Leonard's has had some of the same suppliers for 30 years. "We buy direct from our suppliers, cutting out the middleman or distributor. This not only passes on cost-savings to the consumer, but also creates partnerships that generate excitement in-store," said Stew, Jr.
Stew Leonard's "plain talk" style, coupled with his interjection of personal stories and humor, added some levity to a very serious topic. The supermarket industry has recently seen a slip in customers shopping at "traditional" grocery stores in favor of "super centers" and club stores. Offering consumers unique reasons to shop in their stores, combined with "above and beyond" customer service, has been a key ingredient to Stew Leonard's success, despite this industry trend.

About Stew Leonard's
Stew Leonard's began as a small dairy store founded in 1969 with just seven employees. Today, Stew Leonard's is still family-owned and operated, but has grown to become the "Disneyland of Dairy Stores" with nearly 2,000 employees and annual sales of more than $260 million. The company has received worldwide acclaim for excellence in customer service and quality and is renown for offering farm fresh foods at a great value, along with unsurpassed customer service. Unlike traditional grocery stores that sell an average 30,000 items, each Stew Leonard's store carries only 1,500 items, chosen specifically for their freshness, quality and value. Today, over 250,000 shoppers visit Stew Leonard's each week - some from as far as 50 miles away.