Real Estate Community Fondly Remembers Retail Pioneer Fred Meijer

by admin

Liz Burlingame

For all of his financial success, philanthropist and billionaire grocery magnate Frederik Meijer insisted on simple living. He drove an old car and he and his wife, Lena, lived in the modest Grand Rapids home they built in 1957.

“He was down-to-earth and very approachable,” says Earl Clements, a principal at the Grand Rapids office of Colliers International, who first befriended Meijer in the 1980s. “And it was never 'Mr. Meijer.' He said, 'Call me Fred.'”

Meijer, the founder and chairman emeritus of Meijer Inc. super center chain, died Nov. 25 in Grand Rapids. He was 91.

Meijer's rise in the retail world began simply enough in Greenville, Mich. At 14, Meijer was a grocery bagger for his Dutch immigrant father Hendrik's store. Hendrik was a barber by trade, but opened his first store in 1934 in the grip of the Great Depression. In 1962, the Meijers' opened their first department store called Thrifty Acres. They were pioneers of the one-stop-shopping concept later replicated by Wal-Mart founder Sam Walton.

The stores were renamed Meijer in 1984 and the company became one of the largest family-owned retail businesses. Today, Meijer stores have expanded throughout the Midwest, with about 200 stores spread across five states and approximately 60,000 employees.

The Grand Rapids, Mich.-based company has annual sales of an estimated $15 billion. Forbes magazine listed Meijer as the nation's 15th largest private company ranked by revenue in 2010.

“Fred Meijer was a legend in his own time,” says Jeff Thompson, president of Birmingham, Mich.-based developer Robert A. Aikens & Associates. “He is someone who changed the future of the retail industry and whose vision shaped the way people stock their shelves and live their lives.”

In 1990, Meijer put the corporation into trust for his three sons — Hank, Doug and Mark — and future generations. He continued his involvement with the company as chairman emeritus and frequently visited stores, handing out Purple Cow ice cream coupons or rolling up his sleeves to bag groceries when the lines were long.

David Long, a senior associate with CBRE's Detroit office, says Meijer never lost touch with the customers. Long attended several Meijer store openings in the 1980s, when he worked for a video supply company. A grand opening in Dayton drew more than 10,000 early morning shoppers, and Meijer was “helping people get their shopping carts at 6 a.m.,” he recalled.

“The [Meijer] policy is to take care of people and he really lived that everyday,” says Long.
Long, who today assists the Meijer company with site selection for new stores, says the family has a unique approach to real estate. Meijer was one of the first retailers to have a philosophy of owning all its store properties, as well as owning corporate offices, distribution centers and trucks.

“Because they own their stores, they actually put more money into the cost of the store than a publicly traded company,” he says. “It's a little bit of a higher-quality build-out, and when you walk into the store you can see they are very well maintained.”

When the company selects a site, there's also an emphasis on the long-term outlook. The retailer rarely closes a store, unless it's part of a relocation. “Their strategy is to put the store where it works now and in the current growth pattern,” says Long.

Throughout his life, Meijer stayed on the cutting-edge of what is new in the grocery business. The retailer was one of the first grocery chains to focus on health food products, by including more organic items. The company also offers competitive pricing on produce and sources much of it locally, says Long.

Beyond his influence on the business world, Meijer will be remembered for his philanthropic efforts, says Clements. He focused mostly on his home city of Grand Rapids, donating millions of dollars to local care centers and hospitals.

In 1995, the Frederik Meijer Gardens & Sculpture Park, a 132-acre botanical garden, opened to the public in Grand Rapids, fulfilling a dream of the grocery pioneer. The garden features more than 100 works, including those from Meijer's personal collection.

Meijer left substantial endowments for Meijer gardens and his other charitable causes. “I miss Fred, and I think all of Michigan misses Fred, especially west Michigan,” says Clements. “But I have a good feeling because Fred left Meijer Inc. and his gift of philanthropy in the hands of three very good people, and those are his three sons.”

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