Changes seem to be coming ever faster in the grocery industry; however, “we don’t change just for change’s sake,” asserts Rob McDougall, CEO of Encino, Calif.-based Gelson’s Markets, which operates 27 stores in Southern California. Gelson’s is rolling out a new store design that addresses the new needs of consumers while staying true to the roots of Gelson’s success.
“It’s always been about quality; it’s always been about service,” McDougall says. He notes, however, that consumers’ definition of service is quickly changing and doesn’t mean the same thing as it did even five years ago. “How do we meet that need?” he asks rhetorically. “How do we add more touchpoints to the store? How do we come up with concepts and ideas that create a social experience inside our stores?”
Much of the inspiration for Gelson’s new concept came from scouting trips that McDougall takes around the world, especially Europe. “The main reason I go to Europe is because my customers do,” he explains. “They like to spend time in Italy, France, Germany and London. And so we make sure we’re staying on top of whatever trends are there.” Gelson’s also worked with Los Angeles-based design firm Shook Kelley to develop a concept that represents the Southern California lifestyle, McDougall notes.
Redesign Highlights
New and remodeled stores — Gelson’s has opened two new stores and remodeled seven stores in the past two years — feature a bar that carries up to 20 craft beers and as many as 40 types of wine. The mix depends on location, McDougall observes, as the company found, for example, that the Long Beach store calls for a wine bar with some craft beer, while the Silver Lake store demands a craft beer bar that also carries some wine.
The bars additionally feature freshly prepared foods, from sushi made on site to a variety of tapas developed by Gelson’s executive chef. The burrata salad stands out, according to McDougall, because it introduces some customers to this mozzarella-like cheese, but Gelson’s version features arugula dressed with balsamic vinegar pearls instead of regular balsamic vinegar.
“It almost looks like a fine caviar,” he adds. “Customers are like, ‘Oh, this is great, but where can I get these [balsamic vinegar pearls]?’ You know what, you can get them in aisle five. That’s huge, because I want to help [customers] learn how to create these things as well. The more cool things we can come up with, it just helps a sale.”
McDougall notes that sales of the $20 bottles of balsamic vinegar pearls are up exponentially in the stores including a bar with the burrata salad on the menu.