Monday, October 19, 2009

Wegmans the Righteous

In a review of a book by Ellen Shell, called 'Cheap', about the problems with stores like Wal-Mart and IKEA (yes, IKEA) that sell 'cheap' goods, including the destruction of the middle-class, I came upon this:
Still, she does cite one example of an organization that at least tries to
get it right: Wegmans, a chain of supermarkets with stores located mostly in the
suburbs of New York state, Pennsylvania, New Jersey, Virginia and Maryland,
offers its employees job-training programs, health insurance and retirement
benefits. The company operates on the supposition that if it treats its
employees respectfully, they'll be better prepared (and more willing) to serve
the needs of customers. The approach seems to work: Wegmans profits financially
by fostering and retaining customer loyalty, and its employee turnover rate is
low -- roughly 6 percent, measured against an industry-wide rate of more than 30
percent. The company also buys a large percentage of its produce from small,
local farmers, and has been doing so for 20 years.

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