Wegmans Food Markets is a Rochester, NY-based grocery chain that has built its wealth on the loyal following of their consumers. Now they will be expanding again with a new location in Lancaster County, PA. The move will put a location closer to those in York County as well, though the chain says they have no plans to put a store in York.
The Lancaster location is tentatively scheduled to open sometime in 2018 and will be on Harrisburg Pike east of Route 30 at The Crossings at Conestoga Creek. Currently, the closest location for those in the area is in Mechanicsburg, north of Lancaster and York, or they can go south to Hunt Valley.
The Wegmans announcement has been one of many regional locations expanding in the area. Whole Foods Market, Giant Food Stores, and Weis Markets will also be opening locations in and around Lancaster.
Wegmans has expanded rather steadily over the last decade thanks to a huge, loyal following. They are just one example of how a dedicated consumer base can take a small local chain and help it grow.
In fact, research shows that if a business builds loyalty with just 5% more consumers, they profit 25 to 100% per consumer. That can be huge in terms of profit margins and expansion plans, and Wegmans has harnessed that power. The family-owned chain has 87 stores in Maryland, Massachusetts, New Jersey, New York, Pennsylvania, and Virginia.
Jeremy Diamond, a food retailing expert, believes their loyal following has to do with the fact that the chain offers numerous different items, with cheeses and international foods included, in addition to offering great prices and exceptional customer service.
“Wegmans has wrapped all those things up with the experience of shopping in their stores,” said Diamond, director of Diamond Marketing Group in Pikesville, Md.
Wegmans locations are also much larger than the average supermarket, said Jon Springer, retail editor at Supermarket News. In fact, Wegmans locations are about two or three times larger, standing at around 120,000 square feet. This allows them to draw in weekly consumers from a 10-mile radius, and occasional shoppers from up to 30 miles away.
The store has been so successful, in fact, that other grocers have been known to step up service in their own stores to compete when Wegmans opens a location near them. It can inspire other grocers to renovate their stores and even slash prices in an effort to retain their consumers.
In a recent press release, Wegmans explained that the actual opening date in Lancaster in 2018 will be dependent on obtaining approvals. Hiring for full-time positions at the store will begin nine to 12 months before the opening date. In total, they will hire between 500 and 550 full- and part-time employees.
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