Marsh Supermarkets Food First Marsh Supermarkets Celebrates 85 Years in Indiana While Extensively Remodeling Many Stores and Opening New Ones
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RETAIL r Marsh Supermarkets Food First Marsh Supermarkets celebrates 85 years in Indiana while extensively remodeling many stores and opening new ones. By Russ Gager company profile Marsh Supermarkets www.marsh.net Headquarters: Indianapolis Employees: 6,000 Specialty: Groceries David Kuncl, chief merchandising and marketing officer: “The customer seems more than willing to pay a premium for the convenience.” explains David Kuncl, Marsh Super- markets chief merchandising and marketing officer. Marsh Supermar- kets also operates pharmacies in 38 of its grocery stores. The company has been on an ag- gressive remodeling schedule for its stores during the last 16 months. It remodeled 18 stores in 2015 and is planning to remodel another 30 in 2016. How extensive the remodeling is varies. “It depends on the facility and the marketplace that it operates in,” Kuncl points out. “In some cases, it’s been fairly simple. It’s been dé- cor, a reset, some basic maintenance and refreshing of the facility. In oth- er cases, there have been structural changes and much more extensive movement within the store with new fixtures, new refrigerated cases and a >> Marsh Supermarkets has been on an aggressive remodeling schedule for its stores during the last 16 months. completely transformed experience.” A recent remodeling of the ith a virtual food fight new stores by the end of 2018 to add 25,000-square-foot New Palestine, occurring in India- to its current total of 72 stores in Indi- Ind., store was extensive. New ser- napolis’s oversatu- ana, three of which retain their origi- vice meat and seafood departments rated supermarket nal brand of O’Malia’s Food Markets. were added, along with hot foods and Wscene, Marsh Supermarkets is mov- “O’Malia’s is a brand many, many a pharmacy. Physical fixtures, the exit ing aggressively to stand out among people have fond memories of, and and the overall flow into the store, the mostly national competitors. The there are a number things we do a along with the location of the check- company is planning to open up to 13 little differently in those stores,” outs, were changed. 132 food & drink international • summer 2016 • www.fooddrink-magazine.com Marsh Supermarkets >> Marsh is participating in a pilot program for the ViVino app, which provides users with information about wine. “The customer experience is greatly depending on the store’s area, which improved from what was a pretty nice ranges from Indianapolis to small, ru- store when we started,” Kuncl declares. ral communities. In some cases, the “We think it is a very good example of age of the location or whether it was a convenient, modern grocery store acquired from another company de- that really fits people’s hectic lifestyles termined its size. by allowing them to get in and out ef- “There are a lot of stores we’ve ficiently– it still has full selections and owned for a long time, and so over everything you’d expect in a supermar- the history of the company there’s ket – but without necessarily having to been different prototypes and differ- traipse through a 200,000-square-foot ent thinking, and that’s reflected in box to get it.” The entire remodeling the variances that you see in the store was done without shutting the store base,” Kuncl says. down – most of the store was remod- Despite the differences in size, eled while it ordinarily is closed from many Marsh Supermarkets are getting midnight to 6 a.m. expanded fresh departments such as produce, meat, seafood and bakery. Big and Small “In produce, the primary focus has Marsh Supermarkets range in size been two-fold,” Kuncl says. “One is from 15,000 up to 90,000 square feet to continue to expand the amount of food & drink international • summer 2016 • www.fooddrink-magazine.com 133 RETAIL r Marsh Supermarkets >> Many Marsh Supermarkets are getting expanded fresh departments. The stores also are improving their deli items including salads, which are being improved. produce that we source locally, and the other part is what I call semi-prepared and prepared, mostly cut fruit and veg- etables. We have a very strong program in those areas.” Some customers are purchasing precut fruits both for the convenience and for portion control. “The customer seems 13 4 food & drink international • summer 2016 • www.fooddrink-magazine.com Marsh Supermarkets in this area that has a full selection of locally produced beef, pork and chicken. We have a whole line of Indiana- or Ohio- raised meat produced primarily on small family farms.” Meat isn’t the only department that sets Marsh Su- permarkets apart. Approximately half of Marsh Super- markets’ bakery departments fry their donuts fresh each morning. “It’s a pretty noticeable difference in the overall flavor profile,” Kuncl asserts. “It’s an indulgent item – it’s not health food, but few people are eating donuts because of the nutritional profile.” The bakery departments also are known for their cakes. “Our cakes have been part of a lot of family celebrations over the years,” Kuncl notes. “We’re very proud of our decorators and their skill and ability to create special cakes for special occasions.” Deli Developments Marsh Supermarkets is experimenting with the preparation and specifications for the fried and rotisserie chickens it produc- es in its deli departments. The company’s goal is to continue to improve the customer experience with fresher and health- more than willing to pay a premium for the convenience,” Kuncl observes. Marsh Supermarkets purchases some of the fruit already cut by the supplier, and other fruit is cut by Marsh employees. “We focus the store team on what we consider to be the higher, value-added components – the bigger trays and what I would call a little more custom work – whereas the things like chunked melons or chunked pineapple come in already prepared, and there is less skill involved and less work to it,” Kuncl explains. Certified Tender Beef Kuncl maintains that, to his knowledge, Marsh Supermarkets is one of only four retailers in the United States that sells beef certified “tender” by the United States Department of Agriculture. “It is a specific grade that undergoes a shear test on the product to determine how tender it is,” Kuncl says. “It goes through a unique process during the harvest- ing of the animal that ensures tenderness in the prime cuts.” That level of quality extends to other products in the meat department, all of which are cut in the store. “We offer a higher-grade product day-in and day-out than our compe- tition in this market,” Kuncl insists. “We’re the only retailer food & drink international • summer 2016 • www.fooddrink-magazine.com 135 RETAIL r Marsh Supermarkets no app, which provides smart phones “We have a whole line of Indiana- or and tablets with access to information and reviews about wine. Ohio-raised meat produced primarily All these efforts – the remodeling, expansion and technology – are con- on small family farms.” – David Kuncl tributing to Marsh Supermarkets’ con- tinuing success for the last 85 years, which Kuncl says will be celebrated ier preparations. It also cooks up Noble equipped with transmitters called bea- with customers and employees in Au- Roman’s pizza in many of its stores and cons to wirelessly send special offers gust. He attributes the company’s lon- is working with that company on hot and directly to customers’ smart phones gevity to its employees. refrigerated takeaway products. based on their location in the store. “We “We have a lot of very experienced, “Behind-the-glass” foods such as sal- were the first grocery chain in America highly caring associates who have ad bars and deli items including potato to be fully beaconized in all our stores,” spent a lot of time at the company,” and pasta salads are being improved to Kuncl maintains. Kuncl emphasizes. “We have multiple have cleaner labels while being health- At checkout, customized offers generations working for the company ier and tastier. Portion-controlled meals printed on receipts are targeted to and many employees are friends of (such as Blue Apron) that need minimal individual customers by technolo- friends. It’s been a pretty good place home preparation are being provided gy from a company called inStream. to work for a lot of people for a long by a local company, Fresh Artistry. Marsh Supermarkets also is partici- time. We are proud of the business we Marsh Supermarkets have also been pating in a pilot program for the ViVi- have built together.” 13 6 food & drink international • summer 2016 • www.fooddrink-magazine.com.