Meijer Grows Naturally But Adds New Stores, Too

(MoneyWatch)  Meijer keeps adding socially relevant new products and initiatives as a conspicuous element in a growth strategy that it is pursuing despite the recession and the company's heavy commitment to states, particularly its home state of Michigan, that have been among the hardest hit in the economic downturn.

Yesterday, the retailer introduced Meijer Naturals, a new 75-product line that ranges from snacks and sauces to desserts and beverages developed to address the concerns of consumers who want minimally processed foods containing no artificial ingredients. Unlike organics, natural products have no official standards that define exactly what they are, so Meijer determined to set its own using considerations that are widely accepted among consumers concerned about the wholesomeness of traditionally grown and manufactured food products. It developed the brand to forgo "food negatives" including artificial preservatives, Genetically Modified Organisms, high fructose corn syrup, artificial sweeteners, added hydrogenated oils or trans fats and artificial food colorings or flavorings. In researching the category, Meijer said it determined that products labeled as natural generated $22.3 billion in sales in 2008, up 10% from 2007 and 37% from 2004. The number three supercenter retailer, after Wal-Mart and Target, is going after a piece of that business by offering Meijer Naturals at prices pegged to come in at 10 to 15 percent less than comparable national brand products. The company introduced Naturals two years after it rolled out Meijer Organics, a product line it recently tied into an initiative it is pursuing with 4D Pharmacy Management Systems dubbed Be Well. That program allows companies using 4D's pharmacy benefits management services to offer employees a discount program at Meijer that includes 10 percent off organic and other designated healthful foods. Meijer Naturals are being considered for inclusion, said Meijer spokesperson Frank Guglielmi. The program also encourages those employees to take advantage of Meijer's free antibiotic drug initiative, one it expanded to include free pre-natal vitamins in May 2008.

In an efforts to address consumer environmental concerns, Meijer began generating electricity a week ago from wind turbines mounted on the roof of its Grand Rapids, Mich., headquarters even as it pursued plans to mount similar equipment on stores near Lake Michigan's windy shores.

Giving environmentally concerned and health-conscious consumers new reasons to shop existing stores is one way Meijer is trying to build its business, but it also is doing so the old-fashioned way by continuing to open locations including a store in Marion, Ind., scheduled to hold its grand opening on April 26. It will debut at the same times as a location in Gaylord, Mich., Guglielmi said, and both are part of this year's five-part roll of new stores ?€" a fairly typical annual number for Meijer recently ?€" that also includes openings in Cedar Spring and Hartland, Mich., and Delaware, Ohio.