![]() ![]() ![]() ![]() They know it, I know it and even the customers know it, and that's why we call ourselves the Stater Bros. “I never found a company or investment group where I felt comfortable putting the future of the Stater Bros. Stater has managed to remain independent throughout most of its 75-year history, turning back offers to merge with or be acquired by other companies, Brown acknowledged. We are particularly interested in looking at opportunities where people are underserved.” Independent Culture “As opportunities to grow present themselves - including potential acquisitions - we will take advantage of them. “Right now our primary goal is serving customers at the stores we have, and while that's a powerful motive, it's not a reason to approve new stores,” Brown said. He said he anticipates additional long-term growth within the chain's core area, as well as further expansion into San Diego, Orange County and the eastern fringes of Los Angeles County.īut that growth will come slowly, he added, with just two replacement stores opened last year, two more set to open next month and three additional replacement stores scheduled to open next year. The economy in the Inland Empire has strengthened a bit, with more housing starts under way, “which means the potential for new customers to move into the area,” Brown said, and slightly lower unemployment, “which means more people going back to work and being able to afford more groceries.” “In fact, there are 10 locations I would build on tomorrow if the economy was stronger.” “We've had opportunities over the years to expand to Arizona, Nevada, New Mexico and Northern California, but we've always felt there were plenty of opportunities right here where we are. “I like music, and there's a song in ‘The Music Man’ that says ‘you gotta know the territory,’ and we know this territory,” Brown explained. Of the chain's 167 stores, 99 are in the San Bernardino-Riverside County area of Southern California known as the Inland Empire. “We would have been in serious trouble without the efficiencies it's created.”Īnniversary-themed promotions, featuring up to 10 items a week priced at 75 cents, have given Stater sales momentum, he said, with volume expected to grow approximately 6% to $3.8 billion for the fiscal year ending in late September and because of the distribution efficiencies, he said he expects earnings to increase. “Someone must have been looking out for us because the timing was perfect - the distribution center came on line just as the economy hit the pits,” he said. The opening of a 2.5 million-square-foot distribution center in 2008 - replacing 11 separate warehouses - has made the low-pricing stance easier to maintain, Brown noted. One industry source said Stater keeps prices “within 10% or less” of Wal-Mart. And as a private company we're able to take less without having to worry about Wall Street pounding on our door.” ![]() “Of course, that approach has affected earnings, but it speaks very loudly about our commitment to customers. “We get calls and letters every week thanking us for holding the line on prices, and we intend to continue to do that. “We've dragged our feet on raising prices when our costs go up, and our customers know we're sharing the tough times with them,” he said. “That was their dream, and those were their values, and they stayed true to them as long as they operated the stores,” he told SN. That approach appears to be paying off for the San Bernardino, Calif.-based chain, with sales at its 167 stores continuing to increase, customer counts climbing and earnings likely to see an upswing this year after two years of declines.įor Jack Brown, the chain's chairman and chief executive officer, Stater is simply following the principles on which its founders, twins Leo and Cleo Stater, built the company - low prices, quality merchandise, good service and convenient locations. Markets believes in sticking with the girl it brung to the dance, metaphorically speaking - maintaining the values going forward that made it possible to reach the 75th anniversary it's celebrating this year.Īccording to Stater's way of thinking, maintaining its low-price position will enable it to boost sales and retain customer loyalty during the tough economic times to ensure a more profitable future. ![]()
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