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Value Chain Analysis Case Study

Case Title:

Wegmans: The US Retailer's Success Formula

Publication Year : 2005

Authors: Dakshi Mohanty, T. Phani Madhav

Industry: Retailing


Case Code: VCA0008

Teaching Note: Not Available

Structured Assignment: Not Available

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Started as the Rochester Fruit & Vegetable Company in 1916 by two brothers, Walter Wegman and John Wegman, Wegmans Food Markets transformed itself into one of the most admired in the US’ food business. The family-owned high-end grocery store chain with its unusual mantra ‘employees first, customers second’, topped Fortune magazine's annual list of ‘100 Best Companies to Work For 2005’. Many believed that, it was particularly remarkable for Wegmans to remain competitive in the supermarket industry, which was going through crises like labour strikes, consolidations, bankruptcies and increasing pressure to cut costs.

Pedagogical Objectives:

  • To discuss the initiatives taken by Wegmans to become one of the most admired retailers in the food business in the US
  • To understand the unique business model of the company that centred on worker and customer relations

Keywords : Wegmans Food Markets; Robert B Wegman; Daniel R Wegman; Rochester Fruit & Vegetable Company; Employment policies; Growth Strategies Case Study; Health care benefits for employees; Employee scholarship programme; Customer service; Supply chain management; Continuous replenishment programme; Everyday low-pricing programme; ‘Consistent low prices’ strategy; Private label products; ‘Food you feel good about’; Colleen Wegman


  • Introduction
  • Wegmans: The Family-Owned Grocery Store Chain
  • The Success Formula

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