Meijer tests new formats for its stores.(Brief Article) - The Food Institute Report

Meijer Inc. has aggressive remodeling projects planned for its 158 stores along with several new stores in the next few years. It is testing new grocery and general merchandise strategies at two stores near its Grand Rapids, MI headquarters, reported The Detroit Free Press (Feb. 24).

Meijer plans to open five stores this year and then start opening supercenters at a rate of eight per year.

The chain plans to compete with Wal-Mart on price, in some cases, and with offerings not typically found at a discount supercenter. Besides Wal-Mart, the company sees competitors in Kroger, Target, Kohl's, Whole Foods Market, Costco, Walgreen's and others.

The test stores are offering items like sushi, $120 bottles of wine, organic food, gourmet food to go and hand-painted chocolates. A drive-through pharmacy is also being tested and a pharmacy is placed, along with health and beauty products, at the entrance.

One Meijer pilot store is testing the grocery operation and the other is testing out the new general merchandise design. The supercenter plans to remodel up to 45 stores this year with the new concept, according to company spokesman John Zimmerman. Meijer competes head-on with 50 supercenters, most of them Wal-Marts. By 2007, Zimmerman projects the company will be competing with 350.