How is Meijer thriving in Detroit when Target/WM can't keep urban stores open?

[Romr123]

Just had a leisurely shopping trip at the Meijer 8 Mile store in Detroit (which has now been open 10 years). As I've observed over the years, this store (which was a relatively subtle revision of their more typical suburban locations...single entry, 6a-11p hours, about 160k sqft which is down about 40k from the usual) has been pretty successful all along.

You don't feel you're "taking your life in your hands" shopping, and the quality of perishables (service deli/bakery/meat/fish) is entirely respectable. They sell liquor (and not just MD2020--- high-end ($90/bottle bourbon/scotch). They use the locked bottle tops for liquor (but have standard shelving/displays/aisles and don't have an otherwise segregated liquor department). Shelves for other merchandise are open just as normal (laundry detergent/HABA/... are not locked up). Produce includes specialty items (dragonfruit/rambutan/...) and is well stocked and rotated.

I get that it would be politically ugly to close the store (Kroger got run out of Detroit with shrink after putting in a store 20 years ago on the east side) but it feels like a successful and perfectly chill environment (there are way worse independent store in the area). We live nearby in a wealthy inner-ring suburb, and have multiple Meijer stores reasonably close, but in no way do I avoid this store (consensus on neighborhood Facebook is largely positiive, a few nay-sayers but overall fine and it's a reasonable answer when people ask "where can I find XXX in the area"). TBH I'm far more avoidant of the nearby Kroger (Ferndale or Hazel Park) stores

[storewanderer]

Meijer Stores are bright, orderly, and well spaced. In other words they can have clear camera coverage.

I suspect they dedicate more resources to effective merchandise theft prevention activities.

Also some Meijer have the bathrooms in the foyer between the two sets of doors which shuts down merchandise theft in the bathroom since the bathroom is 20 steps past the security sensor out the door.

[howardebucee]

Just had a leisurely shopping trip at the Meijer 8 Mile store in Detroit (which has now been open 10 years). As I've observed over the years, this store (which was a relatively subtle revision of their more typical suburban locations...single entry, 6a-11p hours, about 160k sqft which is down about 40k from the usual) has been pretty successful all along.

You don't feel you're "taking your life in your hands" shopping, and the quality of perishables (service deli/bakery/meat/fish) is entirely respectable. They sell liquor (and not just MD2020--- high-end ($90/bottle bourbon/scotch). They use the locked bottle tops for liquor (but have standard shelving/displays/aisles and don't have an otherwise segregated liquor department). Shelves for other merchandise are open just as normal (laundry detergent/HABA/... are not locked up). Produce includes specialty items (dragonfruit/rambutan/...) and is well stocked and rotated.

I get that it would be politically ugly to close the store (Kroger got run out of Detroit with shrink after putting in a store 20 years ago on the east side) but it feels like a successful and perfectly chill environment (there are way worse independent store in the area). We live nearby in a wealthy inner-ring suburb, and have multiple Meijer stores reasonably close, but in no way do I avoid this store (consensus on neighborhood Facebook is largely positiive, a few nay-sayers but overall fine and it's a reasonable answer when people ask "where can I find XXX in the area"). TBH I'm far more avoidant of the nearby Kroger (Ferndale or Hazel Park) stores

It's a big assumption to assume Meijer's Detroit stores are successful.

Thry may do large volumes in terms of sales, but that doesn't mean they're not losing money. Target ran their stores at Bel-Air Centre, Eastland and Northland which were constantly packed and also had similar layouts/inventory as their suburban counterparts despite them being massive loss leaders due to shrinkage.

I wouldn't be surprised if part of it is that Meijer's willing to absorb their losses at the Detroit stores since they're easily made up by the sheer volume their other Metro Detroit stores produce. But also, bear in mind Meijer *IS* a private company that doesn't have to answer to shareholders. I'm sure the Meijer family sees running these stores in the retail desert that is Detroit proper as a bit of altruism and keeping them open is their way of giving back to the community they grew up in (native Michiganders helping other Michiganders).

BTW, the poster above me painted a rather rosy picture of Meijer's operations, Yeah, the stores may *LOOK* pretty and I'm sure Michigan residents go out of their way to shop ther because they're supporting a local compamy.

In reality, they're not all that great. Meijer is notoriously bad about running their stores on skeleton crews,, such as rarely (if ever) opening any checkout lines or only staffing the Deli/Bakery counters with 1-2 people. They're also still struggling mightily with their distribution network & keeping their stores restocked, frequently having a ton of empty shelf space and having eliminated many of its store brands. They're also treat their employees horribly, paying then considerably less than both Walmart & Target (their starting wage is only $12/hr vs $15/hr at Walmart & Target). Their counterparts in other regions (Wegmans, Publix, Hy-Vee and H-E-B) are much more well-run.

[Romr123]

Thanks for that. That does track with the "feeling" of spaciousness in that store (wide aisles are especially noticeable) yet, as mentioned, the store in no way feels oppressive or bothersome.

[veteran+]

Just had a leisurely shopping trip at the Meijer 8 Mile store in Detroit (which has now been open 10 years). As I've observed over the years, this store (which was a relatively subtle revision of their more typical suburban locations...single entry, 6a-11p hours, about 160k sqft which is down about 40k from the usual) has been pretty successful all along.

You don't feel you're "taking your life in your hands" shopping, and the quality of perishables (service deli/bakery/meat/fish) is entirely respectable. They sell liquor (and not just MD2020--- high-end ($90/bottle bourbon/scotch). They use the locked bottle tops for liquor (but have standard shelving/displays/aisles and don't have an otherwise segregated liquor department). Shelves for other merchandise are open just as normal (laundry detergent/HABA/... are not locked up). Produce includes specialty items (dragonfruit/rambutan/...) and is well stocked and rotated.

I get that it would be politically ugly to close the store (Kroger got run out of Detroit with shrink after putting in a store 20 years ago on the east side) but it feels like a successful and perfectly chill environment (there are way worse independent store in the area). We live nearby in a wealthy inner-ring suburb, and have multiple Meijer stores reasonably close, but in no way do I avoid this store (consensus on neighborhood Facebook is largely positiive, a few nay-sayers but overall fine and it's a reasonable answer when people ask "where can I find XXX in the area"). TBH I'm far more avoidant of the nearby Kroger (Ferndale or Hazel Park) stores

Great observations!

This is exactly what I am always trying to communicate. If a company really wants to operate in a challenging neighborhood, they can. They just have to be very smart and have completed deep analysis and invest the money to make it happen. From store design to employee training, from security measures to even what corner the store is located (including egress, ingress, parking lot design and more) is what it takes.

Cutting payroll is not the solution. It makes things worse.

[buckguy]

Just had a leisurely shopping trip at the Meijer 8 Mile store in Detroit (which has now been open 10 years). As I've observed over the years, this store (which was a relatively subtle revision of their more typical suburban locations...single entry, 6a-11p hours, about 160k sqft which is down about 40k from the usual) has been pretty successful all along.

You don't feel you're "taking your life in your hands" shopping, and the quality of perishables (service deli/bakery/meat/fish) is entirely respectable. They sell liquor (and not just MD2020--- high-end ($90/bottle bourbon/scotch). They use the locked bottle tops for liquor (but have standard shelving/displays/aisles and don't have an otherwise segregated liquor department). Shelves for other merchandise are open just as normal (laundry detergent/HABA/... are not locked up). Produce includes specialty items (dragonfruit/rambutan/...) and is well stocked and rotated.

I get that it would be politically ugly to close the store (Kroger got run out of Detroit with shrink after putting in a store 20 years ago on the east side) but it feels like a successful and perfectly chill environment (there are way worse independent store in the area). We live nearby in a wealthy inner-ring suburb, and have multiple Meijer stores reasonably close, but in no way do I avoid this store (consensus on neighborhood Facebook is largely positiive, a few nay-sayers but overall fine and it's a reasonable answer when people ask "where can I find XXX in the area"). TBH I'm far more avoidant of the nearby Kroger (Ferndale or Hazel Park) stores

Great observations!

This is exactly what I am always trying to communicate. If a company really wants to operate in a challenging neighborhood, they can. They just have to be very smart and have completed deep analysis and invest the money to make it happen. From store design to employee training, from security measures to even what corner the store is located (including egress, ingress, parking lot design and more) is what it takes.

Cutting payroll is not the solution. It makes things worse.

They seem to have enough confidence that they're soon opening a store next to the Cleveland Clinic campus, which probably involves more risk.

[BatteryMill]

My only prediction is more obvious, Meijer is Michigan-based and has been in the Detroit area for much of its existence, therefore they understand the city and can adapt to marketing well.

[Bagels]

We’ve discussed this before — the stores were built with theft determent in mind. The store has a single entrance adjacent to the LP & managers’ offices. In most Meijer, LP is required to meet certain goals to maintain their jobs but in Detroit they were offered financial incentives.

The food section was placed in the middle of the store which allowed the departments to go along the perimeter, which meant anyone stealing would have to cut through the food and out the door. This also allowed them to close off the departments but keep the food open. At one time the store was known for keeping the departments closed and high dollar merchandise under lock and key, but backlash reversed these policies.

The stores are regularly patrolled by Detroit Police, which has a substation adjacent to the gas station.

The store also opened with limited hours and did not carry the more premium food products other stores normally would. I recall there being a couple packs of chicken breasts but tons of thighs. Guess it’s catering to the local demo.

Meijer wouldn’t have opened two more stores if the fist wasn’t profitable. It’s not a generous company.

[ClownLoach]

We’ve discussed this before — the stores were built with theft determent in mind. The store has a single entrance adjacent to the LP & managers’ offices. In most Meijer, LP is required to meet certain goals to maintain their jobs but in Detroit they were offered financial incentives.

The food section was placed in the middle of the store which allowed the departments to go along the perimeter, which meant anyone stealing would have to cut through the food and out the door. This also allowed them to close off the departments but keep the food open. At one time the store was known for keeping the departments closed and high dollar merchandise under lock and key, but backlash reversed these policies.

The stores are regularly patrolled by Detroit Police, which has a substation adjacent to the gas station.

The store also opened with limited hours and did not carry the more premium food products other stores normally would. I recall there being a couple packs of chicken breasts but tons of thighs. Guess it’s catering to the local demo.

Meijer wouldn’t have opened two more stores if the fist wasn’t profitable. It’s not a generous company.

It's all about relationship building, and when you're a local company it's much easier to make the calls to remind how much you pay into the taxpayer coffers and how many voting employees you have at headquarters. Hence the law enforcement and whoever else will bend over backwards to help you when they don't have enough resources to go around and the national guys get the short end of the stick. It's one of the reasons why all of these mega mergers don't help, if the corporate office in Ohio calls the LAPD and asks for help they couldn't care less. Government does understand the nature of local jobs, local operators and tends to be more protective of them hoping for support in return. This is how for example Stater Bros. has literally hundreds of officials at the State, County, and Local levels that show up to every Grand Opening because they're invested in the success of this local company. Costco opened a new store and only the Mayor showed up, supposedly an Aide from the local State Assembly members office visited but that was it. Same county and I'm very sure Costco sent invites to everyone. And the Costco probably will deliver 20X more revenue. But it's not a local company so the politicians aren't interested.

[buckguy]

My only prediction is more obvious, Meijer is Michigan-based and has been in the Detroit area for much of its existence, therefore they understand the city and can adapt to marketing well.

Kroger has run inner city stores for decades in other cities. It reflects more on their regional management.