JERSEY CITY, N.J. -- What do you do if you're an Asian retailer with a new 138,000-square-foot store, and there aren't enough Asian products to fill it? For Lewis Wu, you go global.
Wu is president and chief executive officer of Foodmart International, a new store here that caters to Asians, Hispanics and Caucasians.
While the company owns another store -- which has operated in Manhattan for four years under the Dynasty banner -- this is its first foray into the large-format business. And the company may open a second large-size unit next year.
Foodmart International typifies one of the advantages of being an independent operator: creativity.
"With an independent like mine, you have much more flexibility than a chain does," Wu told SN. "We cater more to our customers' needs."
The building here, originally intended for a club store, was most recently occupied by Bradlee's. Foodmart International targeted the site because of its ample parking and proximity to Manhattan (Wu estimates that about half the cars in the parking lot are from New York).
When the company was first eying the site, it was confident the location was ideal. The building's size, however, was a different story. While Asian food is popular, Wu said, the store wouldn't be successful offering only Asian food.
"My background is in Asian groceries, but to make this place strictly Asian, we'd have to sell a lot of Asian products. There isn't that much business for Asian food," Wu said.
So instead, the retailer brought in foods to meet the demands of American and Hispanic customers. About 50% of shelf space is devoted to mainstream products, while another 35% is given to Asian and 15% to Hispanic items.
And in an effort to become even more global, Foodmart is resetting some of its shelves with Irish, German, Russian and Peruvian items.
Foodmart is actively getting the word out about its five-month-old store here.
"You Are About to Experience a Remarkable Food Store Unlike Any Other," a Foodmart brochure reads. "It's Actually a Food Complex Where American, Asian and Hispanic Cultures Come Together in Harmonious Splendor to Create the Ultimate Multi-Ethnic Shopping Facility." While products for all three groups are stocked under one roof, they are not integrated. To the left of the entrance, adjacent to a large produce department, is the Hispanic section, which is comprised of about four 72-foot-long dry grocery aisles. Next to Hispanic is a frozen-food department, followed by seven 72-foot-long Asian dry grocery aisles. American items occupy nine 72-foot-long aisles in the rear area of the store.
While there is only one frozen-food department, selections are segregated by ethnic category, so that Asian and Hispanic products are merchandised in their own sections.
The department consists of two 72-foot-long aisles, which flank five freestanding 19-foot by 6-foot cooler cases. Once again, the cases are organized by ethnic group. For instance, the Hispanic case offers selections such as frozen pork blood and yuca.
Mainstream American frozen-food selections are widely available, including better-for-you items. Signed Healthy Eating, the case holds brands such as Amy's, Wolfgang Puck and Cascadian Farm.
The store not only appeals to different cultures, but also various socioeconomic groups. On weekends, the aisles are filled with mostly mid- to upper-income shoppers. But at the first of each month, when food stamps are received, it's attractive to lower-income customers.
For this reason, it heavily promotes products included in the Women, Infant and Children program. For instance, "WIC Cereal" is included in the aisle sign over the cereal aisle, while "WIC Juice" is highlighted in the aisle sign for the juice department.
"We included WIC in the signage because we felt a lot of customers don't know which products are covered under WIC," said Wu.
The store also uses the BestYet private label to attract lower-income shoppers. During SN's visit, a huge soda display contained a variety of BestYet flavors.
"Dry grocery private label sells quite a lot on the first of the month," Wu said.
The store is set up to meet many different customer needs. It is open until 2 a.m., and offers a 5,000-square-foot liquor store. Forthcoming departments include a food court and 3,200-square-foot beauty salon, both of which will debut in about six months. Hair care is so popular with Asians that some women get their hair done every week.
As for other specialty departments, there's a covered 900-square-foot octagon-shaped tea kiosk that offers a mixture of American and Asian teas; a bulk candy section, which contains about 144 bins filled with candy that sells at $3.99 a pound; and a 60-foot-long Wall of Values, which is changed weekly.
When asked about the competition, Wu said he isn't concerned. While Foodmart is located adjacent to an A&P and three blocks away from a ShopRite, Wu said mainstream stores can't beat his prices.
Wu uses several wholesalers, including Fleming Cos., Oklahoma City, which includes the store in all promotions offered to the American Family group of retailers. Fleming's BestYet private-label brand is prevalent throughout the store.
