Wegman's (sales, to buy, organic)

[PacoMartin]

It's my understanding that the average Wegman's grocery store has $70 million in revenue versus a nationwide average for grocery stores closer to $16 million.

Predictions are generally high for growth in prepared food all across the industry, as supermarkets successfully compete with fast food, and "fast casual" restaurants for consumers.

I understand that when these Wegmans were built in the Lehigh Valley (about 12 years ago) there was widespread predictions that many of the local grocers would close. Since that doesn't seem to have happened, I must assume that they are making most of their business from money that would have otherwise been spent in local restaurants.

Does anyone have any idea what percentage of their sales are in prepared foods, and beverages like beer?

[toobusytoday]

I remember reading a long time ago that the avg. profit margin for grocery stores is something like 1 - 1 1/2%. I'm guessing that the mark-up for those prepared meals is a lot more. I think people buy more convenience foods (like rotisserie chicken) then they ever did, and I think people go out more. Personally, I used to buy rotisserie chickens occasionally but for the last two years, it's been our Monday night dinner. When chicken is on sale the savings of cooked and uncooked is minimal. Wegmans changed the game in this area forcing the other grocery chains to also offer to-go meals, and better cheeses and meats. I think it's a good competition.

I go to Wegman's pretty often after church and the prepared food area is always jam packed - but then again, so are the parking lots at the local not-quite-fast-food restaurants. The Weis-Kings closest to the Tilghman Ave. Wegman's is also very busy, but not so much in the prepared food section.

[PacoMartin]

Originally Posted by toobusytoday

I remember reading a long time ago that the avg. profit margin for grocery stores is something like 1 - 1 1/2%.

I think that was true 30 years ago when grocery stores were much smaller and concentrated on essentials. Today you are just as likely to drive to a grocery store for pizza or fried chicken as you are to go to Pizza Hut or KFC.

A few chains that were once doing very well (like Quiznos) are going belly up, partly because of competition with supermarkets.

[Rachel125]

Wegman's stores aren't in my region, but I first went to one in Syracuse three years ago, and more recently in the fall when I was in the Lehigh Valley area. I was quite impressed with both stores and look forward to shopping there. If their prepared foods are both tasty and reasonably healthy, I can imagine they might provide dinner once a week.

Speaking of restaurants, is there a good mix of local/chain restaurants there?

[KristyLiz]

Wegmans has the best produce, meat, fish and bakery! None of the supermarkets can compare. There is a reason I go there at 6 a.m. to do my holiday dinner shopping. Their carry out is awesome too. In addition, they have excellent customer service - free babysitting, carry out service, etc. - which is important to a lot of people.

[alexiskai]

I've been impressed by the selection and pricing of organic produce at the renovated Giant that just opened in Trexlertown. They also have a good organic private label that covers lots of stuff, including frozen veggies.