Wegmans Food Markets, Inc., is one of the premier grocery chains in the United
States. Headquartered in Rochester, New York, Wegmans operates over 70 stores,
mainly in Rochester, Buffalo, and Syracuse. There are also a handful of stores
elsewhere in New York State and in New Jersey, Pennsylvania, and Virginia. The
company employs over 37,000 people, and has annual sales of over $3 billion.
Wegmans has a strong reputation for offering its customers high product quality and
excellent service. Through a combination of market research, trial and error, and
listening to its customers, Wegmans has evolved into a very successful organization. Its
sales per square foot are 50 ...view middle of the document...
In-store card shops cover over 1,000 square feet of floor space. The bulk foods
department provides customers with the opportunity to select the quantities they desire
from a vast array of foodstuffs and some non-food items such as birdseed and pet food.
Each store is a little different. Among the special features in some store are a dry
cleaning department, a wokery, and a salad bar. Some stores feature a Market Café
that has different food stations, each devoted to preparing and serving a certain type of
food. Many Wegmans stores offer ready-made sandwiches as well as made-toorder sandwiches. Some stores have a coffee shop section with tables and
chairs where shoppers can enjoy regular or specialty coffees and a variety of tempting
The company prides itself
on fresh produce. Produce
is replenishe as often as 12
times a day. The larger
stores have produce
sections that are four to five
times the size of a produce
section in an average
supermarket. Wegmans offers locally grown produce in season. Wegmans uses a “farm
to market” system whereby some local growers deliver their produce directly to
individual stores, bypassing the main warehouse. That reduces the company’s inventory
holding costs and gets the produce into the stores as quickly as possible. Growers may
use specially designed containers that go right onto the store floor instead of large bins.
This avoids the bruising that often occurs when fruits and vegetables are transferred
from bins to display shelves and the need to devote labor to transfer the produce to
Each department handles its own ordering. Although sales records are available
from records of items scanned at the checkouts, they are not used directly for
replenishing stock. Other factors—such as pricing, special promotions, and local
circumstances (e.g., festivals, weather conditions)—must all be taken into account.
However, for seasonal periods, such as holidays, managers often check scanner
records to learn what past demand was during a comparable period. The superstores
typically receive one truckload of goods per day from the main warehouse. During peak
periods, a store may receive two truckloads from the main warehouse. The
short lead time greatly reduces the length of time an item might be out of stock,
unless the main warehouse is also out of stock. The company exercises strict control
over suppliers, insisting on product quality and on-time deliveries.
Wegmans uses a companywide system to keep track of inventory. Departments
take a monthly inventory count to verify the amount shown in the companywide system.
Departments receive a periodic report indicating how many days...