DAVIS, Calif. – Nov. 30, 2009 – During a break in the hectic preparations for his new grocery store that will open early next year in the Westlake Plaza Shopping Center in Davis, DeLano Retail Partners President Dennis DeLano sat down for an interview on a wide range of topics, including the emerging store product line, “green” features, customer service and the response so far from the community.

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Davis Advocates for Neighborhood Groceries: What is the target date for opening?

Dennis DeLano: We had been shooting for December 19^th. We have changed that target date. We’re now looking at the second week of January. We tried not to admit it to ourselves that we were going to have to change the date. We were afraid the project would slow down. Farrokh (Hosseinyoun, the Westlake Plaza Shopping Center owner who has been directing the tenant improvements) has been diligent. He has people working, not around the clock, but every day. It’s his goal to turn the store over to us by that date. Unfortunately for us, we rely on a lot of vendor and broker support to get products on the shelves, and the last two weeks of the year is typically vacation time for the vendor and broker community, so we’re going to put a realistic date out there as the second week of January.

DANG: What are the grand opening plans?

DL: It is our intent to do a soft opening, get the kinks out, make sure the items are priced correctly, and then invite everyone out to see the new store. We’ve been exploring doing a wine-tasting, or a wine and beer tasting. We’ve even had suggestions of a concert in the parking lot and seeing if the other business owners in the center would like to be involved in something like that.

DANG: As you know, the DANG group has also offered to help with the grand opening and other events to publicize the new store in the neighborhood. Have you ever encountered community support for a store like there is here in West Davis?

DL: Never. When we first looked at the store, I came down one day and one of my fellow members at the CIGA (California Independent Grocers Association) came across the store and the sent the information to me and said, ‘Maybe you would be interested in this. They need a retailer.’ When I visited the area my first thought was, ‘What a great community, and it needs a store.’ I called Harley (DeLano, his father and business partner) and said, ‘You have to take a look at this.’ So, we drove around the community and thought, we don’t expect to be real busy, but we expect to be well-received because you need a retailer in the area. But the response that we got from the community was just over the top. We were so well-received, and we’re very, very lucky to have stumbled on this opportunity It’s our hope to do the right thing for the community, and I think we can do it. We’re good listeners, and really, our only goal is to give everyone what they want. It’s a small box, but there’s more than enough opportunities to give the community what it wants in the way of grocery selection.

DANG: How is the hiring going?

DL: The hiring is going real well. We have a lot of great applicants from the area. We’ve seen a lot of great personalities coming through the office here (the grocery chain, which operates eight other stores in the San Francisco Bay area, relocated their corporate offices to the second floor of the Westlake Plaza Shopping Center). We’re very pleased with the turnout. I sat in on a few interviews this morning. There’s some great people, and a lot with retail knowledge.

DANG: Members of DANG conducted a survey of the community to see what they wanted in a local grocery store. Were the survey results helpful?

DL:  It was very helpful. It gave us a little direction. Some of the survey outcome we expected, and some surprised us.

DANG: How do you feel about the grocery store competition in and around Davis? How do you get people to change their shopping habits? The Westlake Plaza Shopping Center grocery store has been dark since 2006. People are obviously shopping elsewhere right now. A Target just opened in South Davis. There are reports that a Trader Joe’s could locate in downtown a year from now. How do you attract and retain loyal shoppers?

DL: As far as competition goes, at 12,000 items, I believe that we can cater to most needs for the community. We aren’t so bold as to think we’re going to be your only grocer. Let’s face it – changing shopping habits is very hard to do, so we’re relying on convenience as much as anything, plus customer service and selection. If you’re going to shop for paper products at a great value, like toilet paper and paper towels in a 12-pack, then we’re probably not going to meet that need for you. We’ll have four-packs and six-packs. But if you’re a stock-up shopper, you’ll probably shop at Wal-Mart, Target or Costco or one of the other major bulk retailers like that.

DANG: It sounds like you have a clear sense of mission. If you try to be all things to all people, it is a recipe for failure. But if you know your sense of space in the marketplace, and you do that very well, you will succeed.

DL: Exactly. We’re going to be convenient. We’re going to be open when you want us to be open. We’re going to have all the items that we think you would need or expect from a convenient retailer, and we’re going to have them at a good value. For those times when you don’t want to fight the traffic (at some other area stores) we’re going to be there for you, and we’re gong to have everything that we think you want. And if you don’t find it, please ask, because we can get it. If we have the ability to get it, we will.

DANG: I understand there were many survey comments about beer and wine selection. What will Westlake IGA Market shoppers have to look forward to?

DL: We’re going to have 24-feet of shelf space devoted to wine, plus cursory displays around the store, so it’s going to have a pretty decent wine selection. We’re going to have a nice beer set, cold beer set, with a lot of your specialty, micro-brews. And we will have a small liquor set. I think people will be pleased with our selection.

DANG: The survey also included comments about locally-produced and organic produce, high-quality meat and fish, which is of interest to many Davis residents. How will your product line reflect that?

DL: We have the ability to carry just about anything. We have a great seafood purveyor, Pucci Seafood. They’ve been around for a long time. They have a processing plant in Hayward and boats that they contract with locally. As far as organics go, we think we’ll have Creekstone organics in the store, but we’re still dealing with specifics that we’ll need, and we’ll have conventional and choice beef in the store. As far as pork goes, we buy the majority of our pork from a pork wholesaler, and the majority of that pork is Farmer John pork. We believe that Farmer John is as good as it gets. We can get the Nieman pork for those that want it, for a different price, of course.

DANG: How do you feel about the Davis Food Co-op? They briefly considered opening a satellite store at the Westlake Plaza Shopping Center, and many Co-op members live west of Highway 113.

DL: They are a commanding presence. We will have a small bulk-food presence. With the exception of some of the holistic items, the medicinal items, we’ll certainly offer what we consider the best movers. And if they aren’t the best movers here, we can fine-tune that. We do a great job with organic produce. We have a great organic purveyor, as well as some of the local purveyors out here in the Capay Valley that we hope to do monthly features with. We think it would be fun to say that, if this particular grower has items coming into season, and he’s looking for a retailer, then we’d love to feature him in the market, and bring him in and showcase him for a month. That’s the fun part of merchandising.

DANG: What about convenience offerings and ready-made offerings?

DL: We’ll have a service deli. The majority of our hot foods will be already packaged in a hot case.  We’ll make them and package them for retail sale to make them a quick, easy meal, as well as home-meal replacements that you can refrigerate and take out and microwave when you want. We’ll also have a great ice cream and frozen food selection.

DANG: You’ve no doubt heard the stories of the previous stores that have operated at Westlake Plaza. In recent years they were poorly run, had dreary produce and meat selections in a dingy setting. It’s no wonder they struggled financially. Your family has decades of grocery industry experience and has carved out a niche in the Bay Area with smaller, well-run and well-stocked stores.  How are you able to find success when you’re surrounded by gargantuan Big Box stores?

DL: In the grocery business, it’s not uncommon for 70 percent of your inventory, for the most part, to be dead merchandise. It doesn’t turn very quickly. This is an opportunity for us to take the top-moving items, cram them into a small box, and hopefully turn our merchandise, keep it fresh. We understand that the retailer that was here before us did not turn his merchandise very well.  So we’ve set this store to turn its merchandise, from the floorplan, to the size of the box, to the sets that we’ve chosen, the items that we’ve chosen. It will be fresh. That is how we can be competitive. We’re not over-spaced. We’re not overpriced, because we don’t have the shrinkage a typical grocery store generates. What we’ve done with the planning of this store is try not to get our egos involved, with the layouts and fixtures and so forth. It’s easy to spend $10 million on a grocery store if you do it to please your ego. We did it this way because it makes sense. These are the size of the sets that makes sense. These are the itemizations that make sense. We need to break even in a store like this. We’re not out to get rich. It’s a family store. It will employ some people from the area, and part of my family, and hopefully we’ll be proud of the job we do.

DANG: Davis prides itself on being on the forefront of environmentally sensitive development and lifestyle choices. I understand your grocery store will boast some cutting-edge ‘green’ technology and practices.

DL: We’re using bright tile on the floor to brighten the store without using excess lighting. We put in a state-of-the-art refrigeration system. It’s only been put into a few grocery stores, from what I’m told. I’m not a refrigeration guy, but it’s one of the coolest refrigeration racks I’ve ever seen. The refrigeration company is very proud of it. It’s their intention to show this refrigeration system off to other potential retailers. We’re told it uses about half the amount of electricity that conventional systems used in our other stores. I guess the proof is in the pudding. We’ll wait and see when that thing gets fired up.

DANG: What about bags? At a recent community meeting you provided attendees with attractive cloth bags that are reusable. But not everyone has their own cloth bag. How will people get their groceries home?

DL: We talked about paper bags vs. plastic bags. And, frankly, we really don’t know what is the right thing for the environment. We’re burning down forests like they are going out of style. The traditional plastic bag is also a concern. If we can get people to reuse their bags that would be ideal. We’re introducing a new bag that we have put in a few of our other stores to see how the community reacts to it. It’s a 2.25 mil. reusable plastic bag. We’re giving these away because you can fold them up and put them in your pocket. You can carry four or five bags in your pocket. We think they are great. It’s been recycled once, and it can be recycled again.

DANG: At your other stores in the Bay Area your discount programs have proven to be popular. Will you have them in Davis?

DL: Yes. We offer a senior discount of 5 percent one day a week. We offer a discount to first-responders. It is our intention to offer discounts to students. I know what it’s like for my daughter, who is living on a budget. She’s going to school up north. We are currently researching the possibility of being included in the (UC Davis student) Aggie card program. Those are some of the offers we are working on right now.

DANG: What will be your approach to customer service?

DL: One of the beautiful things about opening a new store is the hiring process. We think that we’ve put together a group of personalities that are great. I’m pleased with how many have retail experience. We intend to put enough personnel on the floor at all times who can answer any questions, help people through the store, and make sure that they have a pleasant shopping experience. What we’ve told everyone is, never tell a customer no. If you don’t know, find someone else who does. If we don’t carry it, don’t tell them we don’t have it, or we can’t get it. Send them to the store director. The store director is the only person who can tell the customer we can’t get something. We’re hoping that if any issues arise, we will have enough personnel to handle it and have the people with the right answers. If a customer wants something, we’ll do our best to get it. You won’t find $100 jars of caviar on our shelves, but if you want a product, we’ll do what we can to get it for you.

Westlake IGA Market by the numbers:

Total store square footage:

11,500 (approx.)

Employees expected at opening:

40-50

Items the store will carry:

12,000 to 13,000