Banking On The Pig

2/1/2012

Saluting PG's

2012 Outstanding Independent:

PIGGLY WIGGLY CAROLINA CO.

Nothing could be finer than to honor Piggly Wiggly Carolina Co. as PC's 2012 Outstanding Self-supplied Independent Retailer.

Steeped in tradition with a keen eye on the future, Piggly Wiggly Carolina Co., in much the same way as its hometown of Charleston, S.C., is a charming, unique, unpretentious breath of fresh air, with an instantly recognizable banner that's become synonymous with "supermarket" in the Deep South.

Relishing its roots as a Southern retailing icon that run as deep as the stately oak trees that dot the landscape in the heart of its native South Carolina Lowcountry and embodied by its warm, hospitable employee-owner hosts, the 97-store regional grocery organization is moving a brand that's stood the test of time — and that boasts being "Local Since Forever," as its recent billboard campaign aptly affirms — in bold and exciting new directions.

For these and many other compelling reasons detailed herein, Progressive Grocer proudly salutes Piggly Wiggly Carolina Co. with its 2012 Outstanding Self-supplied Independent Retailer Award.

As the largest employee-owned, privately held retail company in the Palmetto State, Piggly Wiggly Carolina's 5,685 people who work throughout its stores (of which 70 are corporately owned and the remainder independently owned and operated), distribution centers, corporate offices and subsidiary companies throughout South Carolina and southeastern Georgia "are a truly special group," declares David Schools, president and CEO, noting the countless associates who have spent upwards of 35 years with the company.

While the longevity of its people is "incredibly gratifying," Schools says the close-knit culture is rounded out nicely by new external talent brought into the fold as the next generation of employee-owners, who collectively support the ongoing efforts to take the company to the next level.

"We're a small company, but that smallness allows us to be flexible, and we are open to everybody's ideas, which is something that's served us well since the beginning," Schools says, recalling "Mr. Newton's central idea, which was to concentrate on retail development that allows people to run their own business and see what happens. It's a philosophy that still holds today."

Pig Newtons

"Mr. Newton" is Piggly Wiggly Carolina's founder, Joseph T. Newton, whose legacy began in 1947 as a staunch advocate of national brands, fair prices and bend-over-backward friendly service that mirrored his ardent appreciation for employees, store operators and community generosity. Newton's son-in-law and David's father, Burt Schools, joined the business in 1958, followed four years later by his son, Joseph T. "Buzzy" Newton III, both of whom worked in various areas, learning the business from the bottom up.

Having taken the reins as the third generation of family leaders in 2007, David Schools candidly considers himself to be "one the luckiest guys in the world," despite his earlier fleeting desire to pursue a different career path. But 28 richly rewarding years later, Schools says it was the dedicated people — particularly those in the warehouse, with whom he worked during college — that led him to the correct answers to the heartfelt questions he asked himself as he pondered his options: "What more could I want from a place to build a career? Why would I try to do something else when this feels so right?"

Schools subsequently entered the management training program and has gratefully counted his blessings ever since. "From both a personal and professional perspective, it's been a wonderful experience," he says, reflecting on the gifts of "working with both my dad and my grandfather, as well as with people who started the company on the ground floor," including the company's first truck driver.

Schools further marvels at the countless opportunities that "The Pig," as it is affectionately known, affords to thousands of people to make a living and contribute to their communities as part of an industry that does so many great things, especially feeding families.

The Pen is Mightier

Families are most certainly a crucial element in Piggly Wiggly Carolina's DNA. Indeed, in its 65th year, the family-oriented employee-owners radiate an unrivaled level of fun that defines The Pig's distinct Southern flair. What's more, The Pig has developed a fiercely loyal family of customers throughout its "pig-turesque" core operating area that spans its native historical hometown, to renowned golf and beach destination communities, to numerous towns across South Carolina and southeastern Georgia.

"We've always been a laid-back, fun-loving company, and our customers enjoy being a part of the Piggly Wiggly family," Schools says, noting how fortunate the company feels, not only in regard to its faithful shoppers, but also in its folksy, welcoming brand, which extends beyond food into other noteworthy attributes such as vibrant community ties, wealth of in-store resources, and expanding in-store pharmacies and fuel centers. Whether popping in between stops at the beach, gym, work or school, "Our customers know they don't have to dress up to shop at The Pig; they can come as they are, because we are grateful to have the chance to welcome every customer, every day."

Make no mistake, though: Milking The Pig's warmth and whimsy is no substitute for competing aggressively. "Being friendly and outgoing is the basic cost of getting in the game," Schools asserts, citing "too many choices" and rightly high customer expectations "to put up with anything different.

We strive to be proactive and exceed expectations, by staying connected to our customers to ensure we're delivering" in the best ways possible.

"The crux of the Piggly Wiggly customer experience, however, is the flexibility that enables our store teams to do whatever it takes to continually raise the bar and reinforce a culture that reminds customers that it's their Pig," Schools continues, crediting the company's "innovative independent operators," which he says "play a huge role in our success, with a strong give and take of great ideas."

While no two stores in The Pig's pen are identical, Schools says, "We concentrate carefully on best serving specific areas with a Pig format that makes the most sense on a neighborhood-specific basis," be it a value-focused Price Wise, a traditional local neighborhood format or resort-focused store, or a high-end unit like the single-store Newton Farms concept in the upscale resort community of Kiawah Island, S.C., which PG will feature in its April 2012 issue. "Because of our relatively small distribution footprint, we can respond to shifting market demands fairly quickly," Schools says, readily acknowledging the ferocity of intense competition abounding in its trading areas.

Higher on the Hog

When discussing the profound economic challenges resulting from the economic downturn, Schools believes "we would have never come through it without the support of our loyal employees, whose experience and talent carried us through."

Robert Masche, chief supply chain officer, concurs: "Te economy has kept us on our toes to make sure that our products are in line with what our guests are looking for, while trying to make their lives easier as well."

Savvy merchandising has been instrumental in accomplishing that goal, says Masche, who, after joining Te Pig in 1976 out of college, made his way through the accounting, advertising, buying and merchandising ranks to his present post. "In our delis, for example, we’re seeing great success with a 'Come Home for Dinner' bundled meal program for $9.99 that's very popular and represents a great value because it addresses time constraints with a quick, wholesome meal."

Regardless of the uncertain economic state or the next competitor jockeying for market share, Schools is steadfast in his view that food retailing "is a good business to be in. Over the years," he explains, "we've come to learn that there isn't a whole lot we can do about what others are doing, other than to remain abreast and aware. Staying the course and sticking to what we do best is more of our mantra." And although "we strayed from that philosophy a little bit in the early part of this decade," he says, it was a short-lived yet well-learned lesson.

"Our goal is to stretch the brand to mean more today than it did yesterday, to stay with our core plan, to avoid being all things to all people. We try and keep a finger on the pulse of what really matters to people in our communities," which Schools says includes helping "the little guy as often as possible," with donations and related support for grass-roots organizations.

"We understand the competition, but we're confident in our people, and in the markets we serve, that we’re in a great place today, tomorrow and beyond."

The Pig Way

Aiming to deliver an excellent shopping experience with quality products at competitive prices, Piggly Wiggly Carolina Co. doesn't just consider customer service a part of its mission — it's the single most important ingredient that differentiates "The Pig," as it's affectionately known, from its competitors.

The impassioned approach to deliver exceptional guest service that reflects The Pig's culture, known as the "Pig Way," boils down to three elements: Put guests before duties, always apply the "Ten Foot" rule (when an associate is within 10 feet of a customer, make eye contact and extend a warm greeting), and always use the three simple tools as follows: offer a warm greeting, ask an engaging question and extend a warm closing.

Greenbax Keeps 'Em Coming Back

A vibrant part of Piggly Wiggly Carolina Co.'s strategy is its Greenbax customer rewards program, which is linked electronically to the Pig's Favorite Customer (PFC) shopper loyalty card. The card provides electronic rewards and discounts to shoppers every time they shop Piggly Wiggly and selected partner merchants.

Greenbax Enterprises began as a sister corporation to Piggly Wiggly Carolina in the 1950s. Given with purchases and eligible to be redeemed for discounts on groceries and merchandise, Greenbax discontinued the traditional paper stamps and began recording each customer's balance electronically on the PFC card. Shoppers can electronically redeem Greenbax at Piggly Wiggly stores, the Greenbax Online Catalog at www.Greenbax.net, or at other local partner businesses.

The Pig's Private Successes

Piggly Wiggly Carolina Co. has been on the cutting edge of industry innovation, with a vibrant, award-winning store-brand program that includes a full line of premium Newton Farms foods and a signature Pig Swig beer line, both of which debuted last year.

Expansion of the Newton Farms brand into a private label food offering emerged from the success of Piggly Wiggly Carolina's upscale Newton Farms store in the "pig-sure"-perfect resort town of Kiawah Island, S.C., which opened in 2005 and whose namesake was company founder Joseph T. Newton.

The Newton Farms line encompasses more than 100 products, explains Robert Masche, chief supply chain officer, including a handcrafted, multi-use Lowcountry sauce from Awendaw, S.C.; all-natural honeys produced by a local beekeeper in Orangeburg, S.C.; extra-virgin olive oil from California; competitively priced sweet treats; custom-blend condiments; and frozen pastas from Rio Bertolini's that are handmade in Charleston, S.C., by the chef who supplies many of that city's legendary restaurants.

The line has received such national acclaim as a Store Brand Achievement Award from Progressive Grocer's Store Brands for "Best New Product/ Line," as well as an American Graphic Design award from Graphic Design USA magazine, which chose the line from among more than 8,000 applicants.

Meanwhile, the company's exclusive and increasingly popular Pig Swig beer line, recognized as a "Certified South Carolina product," has captured a strong following among customers in short order, says Pig spokesman Christopher Ibsen.

Debuting in two varieties — Pig Tail Ale and Pig Pen Pilsner — last May, the line added a third brew for the holidays, Seven Swines 'a Swigging. Brewed locally by the Thomas Creek Brewery of Greenville, S.C., each variety retails in a 6-pack at an everyday price of $7.99.

Fitting with its iconic Pig media messages, Piggly Wiggly Carolina supports the new brews with a catchy advertising campaign that encourages drinkers to "get your swig on," while touting the ale as a way to "put some pink in your cheeks," alongside promotions for the pilsner as the "toast of the trough."

Piggly Wiggly Carolina's private label success story also extends to a six-varietal line of private label Grace Bridge wines. Made by Lodi, Calif.-based Brownstone Winery, the locally themed and highly popular vintages showcase a sepia-toned photo of Charleston's historically significant Grace Bridge.

Digital Pig

After offering online shopping in 10 stores for the past four years, Piggly Wiggly Carolina has expanded its "Click'n Shop" program to 26 more locations. The eCommerce platform, which includes digital circulars and online advertising, enables shoppers to buy groceries online and opt to pick up their purchases at the store or have them delivered. Shoppers can also access online circulars to view weekly sale items and then add them to their carts.

Distribution Centers Prominent in Pig's Performance

The talent of a highly dedicated team is unmistakable when touring Piggly Wiggly Carolina Co.'s distribution centers, one of which is in North Charleston, S.C., and houses fresh meat, produce, dairy and deli, and also serves as a central cross-dock hub in a 185,000-square-foot depot. Woody Arsenault and Danny Marcey oversee the full scope of distribution activities at the company's two facilities, including the grocer's main 625,000-square-foot facility in Jedburg, S.C., that distributes grocery, frozen, refrigerated and dry goods to stores throughout South Carolina and coastal Georgia.

Piggly Wiggly's distribution centers boast remarkably low turnover rates among employees, many of whom have been with The Pig's distribution team for decades. "We're all owners, and share in one another's success," says Aresenaut. "It's what motivates people to perform at a high level."

With a fleet of 65 trucks, Piggly Wiggly Carolina's Jed-berg DC is a hotbed of activity, where some 200 workers sort, stack, load and unload thousands of items daily in two shifts for distribution to Pig stores across South Carolina and eastern Georgia, notes Arsenaut, who began his 29-year career at

the company on the ground floor — literally — sweeping floors, then moving to order picking and eventually supervising alongside Marcey.

Technological efficiencies abound in all pockets of the floor, where forklifts are linked wirelessly to a terminal that displays instructions to drivers moving multiple-load pallets at record speed with precision accuracy.

Elsewhere on the floor, slow-moving items are picked from cases of goods from a computer-generated list to grab items from opened boxes and put them in special crates set to ship to designated stores. Three "cold rooms" of varying temperatures are yet another cool aspect of the Jedberg warehouse, which also features temperature-and product-specific loading docks.

Having invested in a motion-sensor, eco-friendly lighting system, the facility also houses an extensive recycling area for plastics and cardboard. It also annually donates hundreds of thousands of pounds of damaged but usable goods — such as a cereal box with a mashed corner (the cereal inside is still good) or a dented can of peas — to the Lowcountry Food Bank.

Meanwhile, out on the roads, driver safety is a foremost priority, according to Marcey, who notes the company's outstanding record and related driving awards that pit Piggly Wiggly Carolina's drivers against other fleet drivers from around the state.

Additionally, an on-site employee health care clinic overseen by a full-time nurse practitioner provides a full slate of medical care and treatment for employees, along with planning and administering wellness programs via health screenings, assessments, counseling, routine exams, flu shots and more.

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