-By Russ Vernon, Chairman Emeritus, West Point Market, Inc.

As this column goes to press, the past year of business is put behind us and we face a new year and changes in the economy. Customers are focused on their pocketbooks; for most, it won't be business as usual. Tight credit, loss of wealth and consumer unrest will require businesses to reevaluate and redefine their place in the market. Free enterprise is unforgiving and it's not free. As I write this, our economy has tanked, consumer confidence is at a new low, the mortgage crisis is in full bloom, the dollar struggles and gasoline is $4.00 a gallon. We live in interesting times. In my opinion, the challenge for retailers is to stay relevant in an over-stored market with a plethora of shopping options. Price has no bottom, so how do you build loyalty? Some thoughts: What brings the customer back? What makes your store special? What are you famous for? How many ways are you different from the competition? Answers to those questions might be material open for discussion after Jan. 1, 2009.

Different is Better
What can be done? The following are my thoughts and opinions on inspiring loyalty and growing business in the years ahead. As we move toward the holidays, focus needs to remain on the customer, creating value, finding their needs and selling them what they want.

West Point Market celebrated 72 years of business this September. Through the decades, we've been agents of change as lifestyles have caused a shift in the needs and wants of our customers. Products we used to count on as exclusive or limited in distribution have gone to the chains at prices we cannot compete against. How have we countered the appearance in the marketplace of Big Box, Mass Market, Deep Discount, Category Killer stores? We have reinvented the way we do business. Over the years, we have had nine expansions and 24 remodels, staying fresh and relevant with new looks, new tastes, new products and services. We have looked at gaps in products and services in our market. We were first in our city with prepared foods, a bread program, oven-ready, table-ready and private-label products. A quality private-label program has been in place five years and immediately became a popular option for our customers and an exclusive for us, affording extra margin. In the early '60s, we were first in our city with French Brie and Boursin (selling for 98 cents each). More recently, artisan cheeses and chocolates have been introduced to our customers. Only 2 percent of our traditional, conventional grocery products (read yellow mustard and Heinz Ketchup) are stocked for the convenience of our customers. In its place are over 150 mustards not carried by our competition. Our bakery has developed Killer Brownies, Chocolate Raspberry Suicides, Peanut Butter Krazies, Walnut Nasties, Fudgy Dunkers, Cherry Bombs, Smoochies and Twisted Sisters. Competition cannot take our recipes or offer our private-label products. Think up ideas for your own signature products … a special recipe cheese spread?

Careful hiring practices, training and over-the-top customer service is a key competitive weapon, and sets us apart from our competition. Ceiling heights, lighting and color provide the "stage" for our products and services. Our shopping environment makes a statement, supports our commitment and underscores our passion for the products we sell. Our customers are not confused as to who we are and what we offer. We are a destination store, an important point in an over-stored market.

The specialty food business remains as exciting as ever and opportunity exists to lure customers away from your competitors, it can happen. Even though we have a Barnes & Noble and Borders within two miles of our store (doesn't everyone?), we stock over 100 titles of cookbooks. People who love to cook love to buy cookbooks. Want to know what your customers are thinking? Greet them at the door, talk with them in the store, and get to know who they are. Our Web site (www.westpointmarket.com) has been under construction for over 15 years and has grown to be our virtual store. We are a small independent, free-standing, privately held family business. Our city cannot handle another WPM, so our Web site is a way for us to reach Ogden, Utah, with our products.

The challenge will be to stay relevant. Sell on value; value is not the same as price. Value is the total shopping experience. Never in my 46 years of retailing specialty foods have I seen an economy lacking the consumer confidence I see today. How do retailers fight the price battle? Step back and take a fresh look at your business and become the only retailer, in the mind of the customer, who does what you do. In Dr. Gary Hamel's book, Competing for the Future, he states, "A company surrenders today's business when it gets smaller faster than it gets better. A company surrenders tomorrow's business when it gets better without getting different." To add a final thought … bigger isn't better, better is better.

If you would like to comment or send us your feedback, please send e-mail to russvernon@westpointmarket.com.