Family-Owned Grocery Retailer Nugget Markets' Store Operations and Work Culture


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Case Details:

Case Code : OPER071
Case Length : 17 Pages
Period : 2005-2008
Organization : Nugget Markets, Inc.
Pub Date : 2009
Teaching Note :Not Available
Countries : USA
Retail

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Nugget was founded in 1926 by the father and son duo of William and Mack Stille (Mack). The first Nugget store opened in Woodland, California.

Through the store, the Stilles pioneered many new concepts in the grocery industry in California. They were one of the first grocery stores to come up with modern ideas like refrigerated produce cases, checkouts with power conveyer belts, and a fresh indoor meat department...

Upscale Stores and High Quality Products

The Nugget stores were located in Sacramento, West Sacramento, Davis, Woodland, and Vacaville. The Food 4 Less stores were in Woodland, Cameron Park, and Vallejo. The store area ranged from 25,000 to 55,000 square feet. Each Nugget store employed about 140 people, while each Food 4 Less outlet employed about 100. Nugget supermarkets were chic with lively decor that was not generally found in a conventional supermarket...

Associates - More Than Employees

Associates were of prime importance to Nugget and the retailer was of the view that it was because of their friendly attitude that it was able to win over its guests, and carve a niche for itself in the highly competitive US retail industry. Talking about the importance of store associates, Eric said, "The focus on world-class service is the foundation of our company. We want to be known for having the best associates in town. Having a great-looking store and inexpensive prices is important, but it is our people who make us world-class."...

Work Culture at Nugget

The culture at Nugget revolved around creating a fun-filled environment, taking up challenges, and pursuing difficult goals. From the beginning, the retailer nurtured a family atmosphere where associates were encouraged to grow and have fun. Nugget created a culture that empowered employees and valued their opinions...

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