Meijer

For the unrelated chain of hypermarkets that is owned by Kroger, see Fred Meyer.

Meijer

Meijer
Company type	Private company
Industry	Retail (Grocery & Discount)
Founded	1934 (Greenville, MI)
Headquarters	Grand Rapids, Michigan
Key people	Fred Meijer, Chairman Hank Meijer, Co-CEO Paul Boyer, Co-CEO Mark Murray, President (as of August 1, 2006)
Products	Groceries, clothing, footwear, gasoline, bedding, furniture, jewelry, health and beauty products, electronics, housewares and pet supplies
Revenue	$13.2 billion USD (2005)
Number of employees	65,000
Website	www.meijer.com

Meijer (Dutch, pronounced MY-er, IPA: ['maɪ ɹ]) is a regional American hypermarket that was founded in 1934. About half of Meijer's 176 locations are located in Michigan and others are located across Illinois, Indiana, Ohio, and Kentucky. Meijer is based in Grand Rapids, Michigan, and was ranked No. 10 on Forbes' "America's Largest Private Companies" in 2005. Supermarket News ranked Meijer No. 12 in the 2007 "Top 75 North American Food Retailers" based on 2006 fiscal year estimated sales of $13.2 billion. Based on 2005 revenue, Meijer is the twenty-fifth largest retailer in the United States.

History

Meijer was founded in 1934 as Meijer's Grocery in Greenville, Michigan by Hendrik Meijer, the son of a Dutch immigrant. Meijer was a local barber who decided to invest in the grocery business. His employees included his son, Fred Meijer, then a 14-year-old grocery bagger, who would later become the well-known chairman of the company. The current co-chairmen, brothers Hank and Doug Meijer are Hendrik's grandsons.

The store slowly grew, and by 1960 had over two dozen stores (primarily near Grand Rapids, Michigan). In 1962, the modern format of Meijer was started, with the opening of the first Meijer's Thrifty Acres store (the first hypermarket in the US) at the corner of 28th Street and Kalamazoo in Grand Rapids at size of 100,000 square feet (still in operation today), combining grocery shopping and department store shopping in a single large store. Meijer copyrighted the phrase "One Stop Shopping".

The Thrifty Acres stores, now under the leadership of Fred Meijer, became a tremendous success and were renamed to simply Meijer in 1986 Meijer's stand-alone grocery operations continued until the early 1990s, as the larger stores became dominant. In 1995 it was reported in Forbes magazine that Wal-mart at the time had failed in what were then known as hypermarkets because Sam Walton and company did not understand the grocery business. Walton launched the first Hypermart USA store in 1987, opening only four stores, the last in 1990. It was said that Meijer understood the food business was important and not something just attached to a discount store. The quality of the produce is very important, and that poor quality produce sold by Wal-mart was their main problem. By contrast surveys said then and now that Meijer ranks high on produce quality.

With the increasing dominance of Wal-Mart throughout the country during the 1990s and now into the Midwest, Meijer is facing the effects of an intensely competitive retail industry. In 2003, the company was forced to lay off several thousand employees and managerial staff, leading to speculation that the company was losing profitability and market share. That year, the company announced that all new Meijer stores would feature an entirely new format and company image, complete with a new logo intended to make the Meijer stores seem "friendly" and inviting. Meijer has also embarked on a new expansion plan that will increase its number of stores in Illinois, Michigan, and Ohio. Retail analysts have also speculated that Meijer could expand into neighboring states within a decade.

Operations

A Meijer in Midland, Michigan.

A Meijer in Rolling Meadows, Illinois incorporating the company's new store format and logo.

Meijer primarily operates department stores under the "super center" philosophy (also known as a hypermarket), which means that groceries and department store goods are carried in the same large stores. A typical Meijer superstore carries over 150,000 items. Many also feature a filling station, featuring pay-at-the-pump, with a mid-size convenience store; in most cases, these filling stations are located in front of the store itself. All filling stations now feature RFID technology for payment at the pump. Several Meijer locations feature alternative fuels such as E-85, biodiesel, and compressed natural gas.

A typical Meijer is open 24 hours a day, 364 days a year, and is closed on one day a year (Christmas). The stores usually close around 7 p.m. on Christmas Eve and reopen around 6 a.m. on December 26.

Other Meijer concepts

In the face of competition, Meijer tried many other retail concepts over the years. These concepts included:

• Spaar: In 1980, Meijer converted two former supermarket locations in Grand Rapids, Michigan to a discount drugstore chain known as Spaar (Dutch for "save"). The Spaar stores were sold to Perry Drugs by the mid 1980s, as Meijer decided that focusing on its larger stores was of higher importance.

• Meijer Square: This concept was a traditional discount department store, lacking a grocery section. Starting in 1981, Meijer Square consisted of 14 test locations. These stores included several in Ohio (eight of which were former Twin Fair locations), as well as a former Zody's in Essexville, Michigan and a former Turn Style in Kalamazoo, Michigan. The Ohio locations were sold to Zayre by 1986 (and, in turn, to Ames and Hills), although the Michigan stores remained open into the mid-1990s. The Meijer name would not be found in Cincinnati again until the early 1990s, after Hills and Ames left the Ohio market.

• Copper Rivet, Sagebrush, Tansy: Meijer started these three specialty clothing stores in the 1980s as means of selling popular brand-name clothing. Copper Rivet sold Levi's jeans; Sagebrush sold casual wear; and Tansy sold women's clothing. These specialty stores usually operated in front of existing Meijer stores, although some locations were located in strip malls not near Meijer stores. At least one Sagebrush store was located in an enclosed mall. These stores were closed in the late 1980s and early 1990s as their leases expired, and as brand-name clothing became more available at other, more popular stores. The Sagebrush chain was sold in 1988.

• SourceClub: A warehouse club operation (similar to Sam's Club or Costco), SourceClub opened in 1992. The SourceClub concept failed and its stores closed by 1994; one location (in Fraser, Michigan) was converted to a regular Meijer store. The stores failed due to increasing competition from Sam's Club, Costco, and the now-defunct Pace Warehouse.

Working at Meijer

The average Meijer store employs over 400 people. Few Meijer stores are non-union operated: less than ten as of December 2006. Meijer Employees are given a 15 minute paid break, an unpaid 30 minute lunch for shifts over 5 1/4 hours, and a second paid break for shifts over 6 1/2 hours. Wage rates vary by market. There are a small number of hourly employees who are able to make more than their set top rate because of their longevity. Those who were hired prior to 1984 are still employed under a non-expiring contract. This contract has top wages of higher than other employees and are currently making up to around $16.50/hour.

Raises are given as team members hit certain hour and time quotas. For team members hired before 1984 a raise is received every 11 months for full-time workers and every 15 months for part-time. Team members hired between 1985 and 2003 employees receive a raise for 700 hours worked until they have reached the top compensation on their contract. Team members hired after the ratification of the current contract in 2003 receive a raise for every 1000 hours worked. Team members who have reached the top wages for either contract only receive a raise when the contract is renegotiated.

Non-union workers (Illinois, Indiana, and Kentucky) also receive extra bonuses after 90 days of work. The most notable of these bonuses are known as 'issue-free hourly incentives'. These incentives are given every 4 weeks to employees whose store has surpassed the projected earnings quota. The amount received in this bonus is reflected by the percentage the store (or unit) has surpassed the quota, by its ranking in the consumer ratings system know as 'Meijer e-panel', and by the number of hours worked by the employee in that period. This means that the employee could make almost a full paycheck extra depending on the performance of the store.

Hierarchy of management includes Team Leaders, Area Team Leaders, Line Team Leaders and a Store Director, in that order. A typical Meijer store will employ 15-25 Team Leaders, 8-12 Area Team Leaders, and four Line Team Leaders. Line Team Leaders and experienced Area Team Leaders are also responsible for acting as a Store Director in Charge. Management at Meijer is non-union. There are, however, a few positions that contain supervisory functions with shift premiums. Guest Service Coordinators are part of the unionized workforce (where applicable) and assists a Guest Service Team Leader with customer service functions.

Alleged bias

In 2006, Meijer scored a zero on the Human Rights Campaign Corporate Equality Index. Specifically, the HRC claims that Meijer does not offer "even minimal benefits or workplace protection for gay employees". Meijer's ranking stands in contrast to its bigger retail competitors as such: Federated Department Stores (80%), Sears/Kmart (100%), Target Corporation (80%), and Wal-Mart (65%).

Philanthropy

Community Rewards allows customers to determine where Meijer's donations go. Customers sign up and choose up to three non-profit organizations. When a card is scanned, those organizations receive credit for the purchase. The website says the amount donated to these organizations is at least 5% of net profits and are distributed based on the number of credits each organization receives.

As a philanthropist, Fred Meijer's most significant contribution has been the land and sculpture collection for the 125-acre Frederik Meijer Gardens and Sculpture Park, a botanic garden and sculpture park in Grand Rapids, Michigan.

Meijer also donated land for a Grand Valley State University campus in Holland, Michigan approximately 30 minutes from downtown Grand Rapids, Michigan.[1]. Meijer, Inc. also donated an undisclosed amount of money to GVSU in the mid 1980s for construction of new studios for GVSU's Public Television Station, WGVU-which to this day continues to broadcast from "The Meijer Public Broadcast Center."

Other donations helped create Spectrum Health's Fred and Lena Meijer Heart Center.

Meijer's donations to Hurricane Katrina disaster relief included food and water, which arrived on the store's trucks at relief centers in Mississippi before government aid, as well as money given from both the company itself and its customers, who donated through the company's website.

In 2004, Fred Meijer offered to donate $1 million and a former golf course near Grand Rapids' East Beltline in order to fund a relocation and expansion of the historic John Ball Zoo. (The zoo is nestled between residential neighborhoods and I-96 on Grand Rapids' northwest side.) The proposal was turned down by voters and Meijer retracted the offer.

Recently, the Meijer Foundation announced plans to donate $1 million to Michigan's White Pine Trail State Park, raising the total donations from $2.1 to $3.1 million. The donation carried a stipulation that the state must name the trail the "Fred Meijer White Pine Trail". The state Parks Department initally turned down the donation, but the decision created a controversy over naming rights for private donations to public parks.

Grand Rapids' downtown Civic Theatre, now renamed the Meijer Majestic Theatre, had a $10 million renovation, thanks in large part to donations by Fred Meijer, as well as Civic Action, a Grand Rapids-based community improvement organization. The name Meijer Majestic Theatre reflects both the original name of the 103 year old theatre as well as Fred Meijer's philanthropy.

In 2006, Meijer donated money to Calvin College in Grand Rapids, Michigan, in order to create the paid position called the Frederik Meijer Chair of Dutch Language and Culture. Previously there was a chair but it was unpaid. It is currently held by Dr. Henk Aay, and its purpose is to promote interest in the Netherlands and Michigan's Dutch cultural heritage.

Trivia

Meijer, Knapps Corner, Grand Rapids, MI.

• Despite the similar name and store concept, there is no relationship between Fred Meijer and the similarly named Fred Meyer stores (now a division of Kroger) of the Western United States.

• Almost all Meijer stores are built from scratch; however, the locations in Traverse City, Michigan and Sterling Heights, Michigan were converted from W. T. Grant stores. A location in Grand Rapids, Michigan was converted from Miracle Mart. Also, one Detroit, Michigan location was converted from Meijer's failed "SourceClub" concept. Furthermore, most of the Meijer Square stores (see above) were converted from other retailers.

• The Traverse City, Michigan location is the only non-union store operated in Michigan.

• Some Meijer stores, including two in Flint, Michigan, one in Ypsilanti, Michigan, three in Grand Rapids, Michigan, one in Jenison, Michigan, one in Okemos, Michigan, and one in Portage, Michigan, were built with a balcony containing service tenants, such as a barber shop and nail salon. New store designs have brought tenant space down to the ground floor.

• Many stores once contained a full-service McDonald's restaurant (although currently, none feature McDonald's). The first Detroit-area stores featured a fast food concept called "Thrifty's Kitchen". Similarly, several locations now include Starbucks coffee shops.

• All Meijer stores have been open 24 hours since March 7, 1988. These hours of operation make Meijer popular among college students.

• The first "Thrifty Acres" store, on 28th Street in Grand Rapids, was built with extra-thick floors, so that should the concept fail, the store could be converted into an indoor car dealership. New "Thrifty Acres" stores were built in this same manner until the mid 1970s.

• Meijer is credited with being the first "hypermarket" store in the United States, combining a multitude of merchandise under one roof, though rarely acknowledged as such. The concept of a hypermarket has been credited to Europe; either Meijer did not use the term, or it did not exist, when they opened the first Thrifty Acres in 1962. Most United States Hypermarkets are credited as starting at later dates. Meijer credits itself as a grocery chain, that added general merchandise to their grocery stores in 1962. The Meijers are very private people and would not talk to Forbes for a 1995 comparison to Hypermart USA and Kmart's American Fare failed hypermarket concepts.

External links

• Company website