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Doug Schmidt, Erickson’s Thriftway managing partner, stands with two longtime employees, head checker Debbie Huber, left, and assistant manager Marlena Lohman in the market’s Bend store Thursday. Huber, Schmidt and Lohman have worked at the store for 32, 29 and 28 years, respectively.
Andy Tullis / The Bulletin
A grocery chain with local roots
The first of the Erickson’s stores was established in 1915
By Andrew Moore / The Bulletin
Published: February 10. 2009 4:00AM PSTDoug Schmidt is the managing partner of the Erickson’s Thriftway grocery store chain in Central Oregon, a chain that traces its roots back to its first store opening in downtown Bend in 1915.
Though the four-store chain is no longer owned by the original Erickson family, Schmidt sees to it that the name still stands for service.
“There have been lots of changes in the supermarket business, but it’s no different from other businesses: Take care of your customers and your customers take care of you,” said Schmidt.
The grocery business isn’t easy. Schmidt said stores, including his, operate on profit margins of less than a penny for every dollar of revenue.
As a result, customer service goes a long way to ensure a store’s profitability, he said. Schmidt said his stores go out of their way to provide service and that’s one reason the chain has been able to stay competitive in Central Oregon despite the presence of larger chains such as Safeway, Fred Meyer and Albertsons.
Schmidt said the chain also places a lot of pride in its local ownership. The chain is based here but is a member and part-owner of Portland-based Thriftway Stores Inc., a supermarket advertising co-operative that serves member stores in Oregon and Washington.
The local Erickson’s chain formerly belonged to the Sentry advertising group but discontinued its affiliation more than two years ago, Schmidt said.
Erickson’s stores are generally smaller than supermarkets such as Safeway, said Schmidt. The Bend store, at 725 N.E. Greenwood Ave., is roughly 20,000 square feet, compared with supermarkets that can be 50,000 square feet and larger. But Erickson’s still offers a full-service shopping experience, Schmidt said.
“Everyone thinks smaller stores have higher prices, but that’s not the truth,” said Schmidt, who’s been with the company for 29 years. “Our business is up over last year and being locally owned, we know lots of customers by name, and people like to be recognized. We’ve been in Bend a long time and we plan to stay a lot longer.”
Schmidt said the current recession is translating into more grocery sales as shoppers curtail restaurant visits. That doesn’t mean more income, though, due to higher fuel surcharges imposed by some providers, he said, adding that the business has to watch every penny.
“The national margin in this industry is less than a cent on the dollar, so to have a penny profit business you have to manage carefully,” Schmidt said.
The chain is helped by its relationship with Thriftway, which works with Unified Grocers, a Commerce, Calif.-based cooperative of independent grocery stores, to help determine grocery items to put on sale and advertise.
Schmidt answered additional questions about his business via e-mail:
Q: You said there’s a perception that smaller stores charge higher prices. Why do you believe that’s not the case?
A: I think there’s a perception that smaller stores like ours don’t get the same deals that big stores get, (but) we buy from Unified Grocers and they have $4.1 billion in sales. They supply stores in Oregon, Washington and California.
Q: How has the economic downturn affected Erickson’s Thriftway?
A: It’s somewhat changed our customers’ buying habits. Today they are looking for more bargains.
We’ve expanded the number of coupon items we run in our ad (and) we’ve come out with a new (sales) program called “Big savings, great value!,” which we offer for four weeks at a time. It has given us a nice lift in our sales.
Q: What is something Central Oregonians might not know about Erickson’s?
A: That we are locally owned and operated. Erickson’s (in Bend) has been in the present location (at 725 N.E. Greenwood Ave.) since 1955.
Our profits stay in this community, they don’t go back east to a big corporate office. Our store isn’t 50,000 square feet — it’s about 20,000 square feet — so it is easy to get in and out when you shop.
Q: Does the company have any expansion plans in the next five years?
A: We don’t have any expansion plans at this time. Unless the right opportunity comes along, we are happy running our stores in Bend, Madras, Prineville and Burns.
Q: How does Erickson’s stay competitive in the face of competition from large corporate chains?
A: First, we buy from Unified Grocers, which has the buying power of the chains.
Second, we belong to the Thriftway advertising group, a group of aggressive grocers that put out weekly advertisements that invite customers to our stores.
Third, we have … fast, friendly help that will take care of their needs. There is no waiting in long lines at Erickson’s.
Fourth, we (have) an in-store bakery, service deli, a meat department that will cut meat to the size or quantity that you need and fresh produce with great prices.
Andrew Moore can be reached at 541-617-7820 or amoore@bendbulletin.com.
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