With more than 800 manufacturers, brokers and distributors “attending” virtually, Weis Markets held its annual vendor meeting on September 30. Four Weis executives – COO Kurt Schertle; SVP-merchandising & marketing Bob Gleeson; VP-advertising & marketing Ron Bonacci; and director of grocery Brian Bosworth – detailed the retailer’s priorities for 2022 while also reflecting on the progress it made this year which proved to be challenging primarily because of lingering COVID concerns.
In assessing some key changes that have occurred from last year’s vendor meeting (which was also held virtually), Schertle noted that there’s been a noticeable shift in customer store visits which have increased significantly since vaccines first became available earlier this year.
“Thus far we have vaccinated nearly a quarter of a million people,” the 49-year-old executive stated. “That has certainly contributed to people returning to shop in our stores. However, I also believe there are other factors that have kept our business strong including our long-term vision which has made us a more efficient and productive company that offers a strong combination of value, service and quality.
Schertle added that owning much of its real estate, both stores and its distribution center, has created a more secure and flexible environment for the regional chain. He also announced that Weis will begin an expanded relationship with C&S Wholesale Grocers as it moves forward with its own plan to add more supply chain capabilities.
In an interview after the meeting, Schertle said “Weis is planning large scale enhancements to its own distribution capabilities.” He mentioned that could include upgrades to the existing 1.4 million sq. ft. “full-line” DC in Milton, PA and/or new square footage within its current trade area.  He emphasized that Weis is “firmly committed to remaining self-supplied over the long-term.”
In closing, the 13-year Weis veteran, who previously served in executive roles at Shoppers Food and Supervalu, thanked the vendors for their role in helping Weis grow. He pointed to an unprecedented seven-year run of financial success where comparable store sales declined only twice during a stretch that covered 30 operating quarters. In one of those quarters (Q2 in 2018), the 0.3 percent dip was caused by a shift in Easter weeks; the other quarter occurred during its most recent operating period (Q2) this year. Schertle said that 5.16 percent drop could be entirely attributed to matching last year’s numbers during the height of COVID.
He felt confident that comp store sales would be positive when the full 2021 results are announced.
Brian Bosworth, who oversees grocery merchandising for Weis, reviewed the regional chain’s new 2022 Joint Business Plan which is designed to “allow us to collaborate and drive alignment of our key objectives to meet and exceed our targeted goals.” The former A&P veteran, who joined Weis 10 years ago, touted the success of its Trade Rate Program (TRP), which began this year, noting that the program has created the simplicity and efficiencies Weis had hoped for.
TRP costs include advertising fees, scan handling fees, store ship recap, electronic media redemptions and new store opening bills. Those that fall outside the TRP include supply chain/logistics fees and charges, swell & reclaim, cash discounts, charity event monies and in-store-execution. Areas such as slotting and volume incentives are determined on a case-by-case basis.
Among the other boiler plate issues that Bosworth addressed were category reviews, category resets and Weis’ center store display plan strategy.
“We continue to make progress in tightening our systems which has made us more efficient and has led to better communications with our vendors. That is helping us achieve our objective of enhancing the customer experience,” Bosworth proclaimed.
Ron Bonacci addressed a wide range of marketing issues including Weis’ huge growth in e-commerce sales (up 17.7 percent) over the past year. Using a combination of curbside pickup locations (188 stores), Shipt home delivery (linked to 177 stores) and its new delivery relationship with DoorDash (173 stores recently were added). Bonacci said that Weis has made huge strides in improving its total e-commerce and digital offerings to its customers.
Weis is also in the process of “refreshing” its circular to create a consistent identity for communications in print, digital and other media. And Bonacci reiterated something Schertle touched on earlier: that the company will not be producing circulars on a weekly basis all the time.
The former United Supermarkets and Food City marketing executive also told vendors that Weis is committed to its Loyalty Card program and has expanded its relationship with analytics firm Symphony AI to offer more detailed data to enhance the supplier-consumer relationship in a program called Category Management Suite. Other topics that Bonacci addressed were details about two of its newer marketing partners – Sunoco and DoorDash – as well as updates about Weis’ strategic personalization effort, its cause marketing program and its enhanced sports marketing packages.
The last speaker of the day was Bob Gleeson, who joined Weis in June 2019 as VP-fresh merchandising and was promoted to his current role as chief merchant in March 2021. Gleeson told the audience of the company’s efforts to expand its in-store Meal Centers, of which 30 have been added this year with more to come in 2022. He noted that the improved Meal Center rollout proved to be a big winner during COVID.
In some cases, Meal Centers have replaced salad bars, which disappeared during the height of the pandemic and have never reappeared in some stores.
The former Shoppers president also noted Weis’ effort to upgrade its produce department with its new “Market Produce” design which will be expanded to 20-25 stores next year. Other growth departments that are also being upgraded include natural/organics and adult beverages.
Gleeson also noted Weis’ growing market share in private label which surpassed $1 billion in sales in 2021 and is projected to grow even more this year.
The veteran merchant also noted the supply chain challenges that Weis (as well as all food retailers) faces. He stated that in some cases, dealing with supply shortages is even more challenging than in the early months of the pandemic in 2020.
Gleeson said he is working closely with his merchandising team to remove system inefficiencies and make it easier to get product to Weis’ distribution center and stores. He said Weis is actively engaged in finding direct shipment opportunities from its manufacturers, increasing its use of backhauls and asking manufacturers to create pallet configurations that are more efficient.
Gleeson noted, “We are currently in the midst of a company transformation and our results indicate that we’re making progress. I am asking our vendor friends to bring us your ideas and offer us your best deals. I think our market share growth is indicative that we are deserving of your investment in us.”
