|
Vitamin Retailer Magazine Retailer of the Year Award
| For
the first time, Vitamin Retailer has searched across the US to choose
a retail store that exemplifies the term “excellence.” To find the
one store that fits that criteria, the editorial staff polled prominent
industry members, associations, suppliers and distributors to ask
whom they thought deserved the title of Retailer of the Year. Taking
into consideration sales growth, how the store enhanced their product
mix, the knowledge of the staff, store appearance and if the retailer
makes a difference in its community, the responses were extraordinary—giving
the VR staff a real challenge narrowing it down to one. After reviewing
the suggested stores, it was agreed that LifeSource Natural Foods
went |
|
above and beyond all the criteria. The store has a focus
on supporting its customers’ healthy lifestyles as well as an environmental
conscious. LifeSource specializes in organic foods and locally grown
produce, and has a vegetarian deli with fresh foods made daily onsite.
Since opening in 1994, LifeSource has been proactive on issues of
sustainability—the store meets 100 percent of its electrical load
with clean wind power. The company also follows what it calls a “humanistic
approach” with employees, striving to pay a livable wage and encouraging
a work/life balance. It was these significant attributes that caught
the attention of VR and why LifeSource Natural Foods was chosen for
the honor of Retailer of the Year. |
LifeSource Natural Foods
2649 Commercial St. SE • Salem, OR 97302 • (503) 361-7973
Store Hours: Monday - Saturday 8 am-9 pm, Sunday 9 am-8 pm |
|
When visitors come to the LifeSource Natural Foods store, their
reaction is often “I want to work here,” said Jeff Watson, store
manager. “The atmosphere here is happy and healthy. It’s just an
energy in the store—it’s just a consistent dynamic.” That’s part
of owner Alex Beamer’s business plan: to keep the focus on a happy
staff, which, in turn, makes customers wanting to come back for
more. “I believe that by taking great care of my staff, my staff
will take great care of the customers and the customers will keep
coming back, which takes care of us.”
Happy Staffers
In fact, Beamer offers a long list of what he calls “Employee
Empowerment” issues the store incorporates into its everyday operations.
“Our humanistic approach is made up of many small things, not just
a few big ones,” Beamer noted. Some highlights include: • Flexible
business practices that honor employees’ special needs. • All employees
are hourly workers. Managers work only 40 hours per week, no more.
|
• Employees have a regular schedule that stays the
same week-to-week with two or three days off in a row.
• Optional 10-hour shifts, four days a week for full-time employees
to help reduce commuting costs.
• Full-time employees earn a “living wage” (i.e., hourly wage plus
quarterly profit sharing).
• Medical and dental insurance plan for full-time employees completely
paid for by the business.
• Generous retirement plan contributions on a yearly basis.
• Weekly staff person appreciation award. “It’s a good balance between
work and personal life,” said Watson. As manager, he works four 10-hour
days with three days off in a row. “Alex’s management style is unlike
anyone else’s I’ve seen. He shares his bottom line and runs |
 a
very transparent operation. From a
human standpoint, he’s a very goodhearted,
trusting and generous business
owner. As a person, Alex is very low key
and understated.”
Profit sharing is exceptionally good,
Watson added. Beamer has doubled
profit sharing for employees and gives
the maximum allowable in the employees’
401K. “His generosity is excellent,” |
|
 Watson
said. “The staff has full benefits and birthdays off. On July 4,
the staff takes the day off and goes whitewater rafting. We work
hard, but we have a good time doing it.”
For customers and the community, twice a year the store holds food
fairs with large tents set up in the parking lot. Food vendors are
invited to come and pass out sample products, and a band is hired
for entertainment. “We have a large barbecue and put out lots of
grilled organic veggies, and offer 10 percent off everything all
day,” Beamer said. Two to three thousand people will show up for
the events and stay for hours, he added.
Store Growth
Opened in 1994, the store started with about 5,000 square feet
and has more than doubled in size—growing to 10,700 square feet
with 65 employees. Each expansion was done by taking over neighboring
space in the strip mall where the store is located. It is the only
natural product store in Salem, OR, although the neighboring town
of Eugene has six natural product stores similar to LifeSource.
“Our specialty is the shopping environment we have created,” noted
Beamer. “Our store is beautiful, clean, well merchandised, abundantly
stocked and staffed by knowledgeable, friendly people that are there
solely to serve our customers.” Since opening, the store has maintained
approximately a 15 percent sales growth or greater per year and
sees about 900 customers a day. That customer base comes in an “extremely
wide range of ages, incomes, interests and education,” according
to Michael Proctor, nutrition/personal care manager. Several thousands
of those customers are considered “regulars.”
“I have worked in retail for most of the last 35 years and the diversity
of LifeSource customers is as great as in larger metropolitan area
stores,” Proctor said. “It’s too diverse to characterize simply,
but Salem does have a fairly high representation of senior citizens,
government employees and agriculturerelated industry, and this shows
up in our clientele.
 “In
my departments, including supplements, health and beauty aids, books
and periodicals, people come to us for honest information and empathetic
service. We have a reputation for finding hard-toget items and a
willingness to do special orders,” he added.
|
For All Shopping Needs
A great balance of products for all shopping needs is what Beamer
said helps draw customers to the store. When entering LifeSource,
customers walk directly into the organic produce aisle, which offers
as much local product as possible. “When we first opened LifeSource,
we were a vegetarian store except for some of the pet foods and
supplements we sold,” said Beamer. “This was based on my own personal
beliefs and predilections.” The deli department started out vegetarian
and has stayed that way, but over time, meat products were added
to satisfy customer needs. The deli kitchen and deli office occupy
about 600 square feet of the store and there is a small eating area
that’s about 131 square feet. “We try hard to run a profitable deli,”
Beamer said. “We work hard to keep our labor at 35 percent or sales
and our cost of goods at 30 percent of sales. These are common industry
standards, which can be a challenge to meet. We try to use as much
organic ingredients as we can and still stay in our cost of goods
goals.” Another big draw for customers is the store’s salad bar
and a separate hot entrée bar including hot soups and a bulk olive
bar, with items made fresh on-site daily. There is a multideck refrigerator
for grab-and-go items, such as sandwiches, dips and desserts, and
a bakery retail area with cookies, quick breads and muffins.
A Focus on Sustainability
LifeSource incorporates earth-friendly, sustainable practices
in many aspects of its operations. Beamer said promoting organic
and local products is probably one of their biggest actions. “Our
produce department is 99 percent organic and we feature organic
products throughout our store. I believe many of our natural product
lines support sustainability in their practices—household
|
Owner Alex Beamer riding in
his electric truck. |
 “The nutrition
department is committed to finding out what customers truly want
and need, which often takes a process to get through some layers
of confusion, beliefs or previous sales pitches,” Beamer added.
“When we find out what they want/need, we sell them the best item
to fulfill that and no more. We feel that by truly serving customers
well, they will come back time and time again, rather than going
for the quick buck at the onset.”
LifeSource Goals
Beamer said he is considering starting a second store in Salem,
but will only do this when they start to outgrow the current store.
“We are not in a hurry,” he added. “We have a well-balanced business
that runs smoothly and lets us live well-balanced lives. We find
our work to be fulfilling and stimulating.” Proctor said his goals
when he began working at LifeSource 12 years ago were to be able
to find the best products, keep them stocked and to offer customers
the kind of service that supported their ability to make their best
buying decisions. “My goals have not changed in these 12 years,
nor has the inviting atmosphere of the store, the receptive attitudes
of the management and the friendliness of the employees,” he said.
“Quite a lot has changed in the natural products business, however.
Product standards have become relaxed, selection has increased and
big stores are bigger while small independents are failing; mainstream
marketing is entrenched and the science of nutrition threatens to
outpace the art of it. I am proud to be part of a team of people
operating a business that has resisted most of these changes. The
result is a humanistic endeavor that helps all of us to thrive.
That is why I wake up each morning feeling excited about the work
I will do that day.”
|
|
paper products and household cleaners are good examples,” said
Beamer. The staff will reuse and recycle as much as possible; deli
and product waste goes to a composting program, cardboard boxes
often are given to local farmers and the staff is careful about
which chemicals are used in store operations. New bicycle racks
were recently placed in front of the store with parking for 14 bikes
to help promote staff and customers riding to the store. Customers
are encouraged to reuse their paper and plastic bags by giving a
discount for each bag reused and the store gives a discount for
customers reusing their own containers for bulk items. Additionally,
LifeSource owns a 100 percent electric pick-up truck that Beamer
drives everyday. For years the store has been using clean wind power
and has been at the 100 percent level for several years. “Before
that we used Green source power,” Beamer said. “These are options
offered by our local utility company.”
Technology and Education
LifeSource is definitely not stuck in the dark ages—it has embraced
technology and its customers have responded positively. The store
has produced a monthly newsletter with educational articles and
sales items since opening, mailing about 5,000 issues each month
and e-mailing to about 300 customers.
|
“We have worked to convert our readership from paper
to e-mail, but surprisingly the vast majority stick with paper,” Beamer
said. The store has had a website for years using the Living Naturally
template that is customized for LifeSource, and features Healthnotes,
a health, fitness and nutrition database. The company has also used
ECRS Catapult point-of-sale system for many years.“ It is a very good
system that allows us to know exactly what is happening with our products
and sales,” Beamer said. For employee education, Beamer added, LifeSource
staffers receive information from vendors but also research products
and health issues “far beyond the information vendors provide us,”
he said. “Vendor information is focused on helping the retailer achieve
good product sell-through. Our focus is to empower our customers to
make good buying decisions. This method works well for us along with
carrying the right products.” Staff members are given the opportunity
to study at the Bastyr Natural Food Education Program, and are paid
for completing the program. They are sent to seminars, natural food
trade shows, management trainings and supplement manufacturing facilities,
and educational articles are posted daily in staff diaries that they
are expected to read. |
|
