New grocery's aim: Better choices

Diane McGinley still can't believe the transformation of the former Econofoods supermarket in Hudson, Wis.

"I need to start wearing an evening gown to shop here, it's so nice," she said as she entered the remodeled store that now goes by the name Family Fresh Market.

After two years of planning, the first-of-its-kind Family Fresh Market opened its doors Friday with a new name and a new aim: to help shoppers make healthier and more nutritionally balanced choices.

Parent company Nash Finch, a $4.5 billion food distributor based in Edina, designed the new store with a meat and organic-produce section that is nearly twice as big as those at most supermarkets, and rivals the quality and selection of upscale grocers such as Byerly's or Kowalski's.

The middle of the store offers values that are on par with Wal-Mart and SuperTarget and often beat out grocers such as Cub and Rainbow, according to Nash Finch officials.

The strong push into organics and national foods is new for Nash Finch, which owns 59 supermarkets in nine mostly Midwestern states under the Econofoods, Sun Mart and Family Thrift Center names.

"In the past, you could be a conventional supermarket and do a little something for everybody," said Nash Finch spokesman Brian Numainville. "Today, you have to stand out and be a defined value for shoppers. This is the best evolution of the conventional supermarket."

Kiosks at the entrance and pharmacy offer a dozen pamphlets on such topics as heart health, poison prevention, food safety and helping kids enjoy fruits and vegetables.

The massive produce section touts more than 150 organic offerings. Nearby, some 2,500 natural and organic products, from pet food to fruit juices, are on display. On the door to the frozen-vegetable bin, a tip reads: "Fruits and vegetables. Strive for 5-9 servings daily!"

The same bright yellow label that shouts "low price" on a can of Kuner's Southwestern black beans also lists FDA-approved benefits: low fat, low cholesterol, high fiber and an short explanation of Omega 3 as a "good fat."

It's all part of a trademarked "Well Balanced" consumer education program that purposely avoids using the word "healthy." The idea of the Family Fresh Market, company officials say, is to appeal to consumers who are increasingly concerned with their health, their time, their pocketbooks and the environment.

"We're not labeling things as good or bad, we're just trying to give people more information so they can be better informed about their choices," said Heather Burnett, a health and wellness expert hired a year ago by Nash Finch to design the store's balanced concept.

Nash Finch is primarily a wholesale distributor to independent retailers and military bases. Retail grocery sales make up nearly 13 percent of the company's revenue, and same-store retail sales decreased slightly in the first quarter -- down 0.3 percent compared with the previous year. The stock, trading at about $36, is down from nearly $52 last July.

Nash Finch selected Hudson as the first site of a planned nationwide rollout of Family Fresh stores because of the size of the existing Econofoods and the area's demographics, said Mike Mills, the company's vice president of retail operations. Mills declined to offer specifics on the expansion, but said one store changeover already is in the works and three other sites are under consideration.

For now, the company isn't revealing how the new Family Fresh Market concept will play into its future mix of wholesale and retail operations. H-E-B Fresh Foods in Texas and Wegmans, headquartered in New York, are among the stores trying certain elements of the approach, but no one has put it together under one roof, said Nash Finch officials.

"Other companies are trying this, but we don't believe anyone has gone into the depth that we have," Mills said.

Nash Finch leaders believe Family Fresh will have an edge because of its storewide approach to consumer education, its competitive prices on staples and its large selection of fresh fruit, vegetables and meats.

Focus on perishables

Perishables make up 45 percent of the floor space at Family Fresh, compared with 20 to 25 percent at most supermarkets, Mills said.

Along with the new color scheme, larger produce section and consumer information, there are less noticeable changes, including smaller serving sizes on "grab-and-go" items and recycled packaging used with some floral arrangements.

A cart system known as Greenbox lets customers buy and reuse recycled plastic bins that sit in specially designed grocery carts. The carts themselves are said to last 10 years, rather than the typical five-year replacement cycle.

In coming months, a nutritionist will join the store staff to help answer questions and to work with local hospitals, health clubs and consumer groups.

Jeanne Riley, who shopped at the former Econofoods and also goes to Cub and Kowalski's, was thrilled to find Alvarado Street Bakery organic bread on her first visit to Family Fresh.

"I'm hooked," said Riley, who lives across the St. Croix River in Lakeland, Minn. "I will guarantee you, if this Fresh Market continues to keep the produce and natural-food selection looking as good as it looks now, I won't have to go to Cub anymore."

Jackie Crosby • 612-673-7335