On a Lucky's streak: Lucky's Market enlivens the Ann Arbor, Mich. food scene by emphasizing the freshness and uniqueness of its products and offering a one-of-a-kind shopping experience. (2024)

FEBRUARY 25, 2015 WAS ANN ARBOR'S LUCKY DAY.

That is the date the doors officially flung open at Lucky'sMarket changing the way residents of the Michigan college town shop forgroceries.

"We've been called the lovechild of Trader Joe's andWhole Foods," says Bo Sharon, founder and CEO of Niwot, Colo.-basedLucky's Market.

"We cure our own bacon on-site in every store, we make our ownsausages, and all the deli foods are made on-site in every single storeas well," Sharon says. "Our differentiator is that there is nocommissary, no third-party product. That is rooted in our being. Aschefs, we believe there is a certain quality and the sense of theater,from the aromas and everything else. Good food is fresh food. That isthe best way to put it."

Take Lucky's Market's literally made-from-scratchstore-made pizza, for example. "The dough, the sauce, the sausageon top, are all made in-house," Sharon says. "So the craft ofmaking it is not only with the butcher, but also our chefs."

Even local pizzerias cannot top that.

"We have a store in Columbus, Ohio, which is arguably acollege town studded with pizza places everywhere--and we won the BestPizza in Columbus Award," Sharon says.

A former child actor (Richie Cunningham Jr. on Happy Days), Sharongrew up to become an award-winning professional chef and establishedLucky's Market in 2003 in Boulder, Colo., with his wife Trish, whomhe met in culinary school. "The Lucky's Market name is just areflection on our outlook on life," Sharon says. "Soundssilly, but my wife and I find ourselves blessed to be in the industryselling natural and organic foods."

From that single store in Boulder, Lucky's Market has been onone heck of a lucky streak. Today it operates 11 stores, with 17expected by yearend--and up to 50 by 2017.

Ann Arbor is the ninth store in the Lucky's Market portfolio.It is housed in a former Kroger, originally built as an A&P, whichclosed last summer when Kroger failed to renegotiate its lease.

Lucky's Market plans on being more successful than the formerneighborhood Kroger by emphasizing the freshness and uniqueness of itsproducts and offering a one-of-a-kind shopping experience that promisesto ingrain itself into the Ann Arbor community, say store officials.

"It is a great food culture town," Jim Mick, Ann Arborstore director, says of the bustling small city, home to the Universityof Michigan. "College towns, resort towns and food culture townsare really the kind of scope we look at as a demographic [whenexpanding]."

Capitalizing on that great food culture meant totally gutting theold Kroger; even the floor was stripped down to the dirt to beretrenched for new refrigerated and freezer cases. "We completelyreformatted the entire store. Nothing is as it was," Mick says.Only two things remain from the Kroger days--the loading dock out backand the bakery oven because it was too big to move.

Although a chain, Lucky's Market merchandises each store as ifit were an independent, unique to its community. The Ann Arbor store ison S. Industrial Highway, a street lined with small factories andwarehouses a couple of blocks away and across the railroad tracks fromState Street, the main drag leading from 1-94 to the heart of downtown.The location makes it hard to draw in passing traffic.

Although it prints a weekly circular--distributed from clip stripsthroughout the store for shopper convenience--Lucky's Market hasbeen building its business through more unconventional means ofadvertising.

"We do a lot of volunteering in the community and that getsour name out there," Mick says. "All of our team members getpaid up to 32 hours per year to volunteer in the community."

"Our strategy is more social media, grass roots, word ofmouth," says Adrienne Sigeti, marketing manager of the Ann Arborstore.

And bus routes too.

"S. Industrial Highway is also the home the Ann Arbor TransitAuthority," Sigeti notes. "The main terminal is here and weget every single bus driver. They do a lot of shopping. They did a lotof shopping here when it was Kroger. It was their lunch stop. When wehave a good sale the bus drivers tell their passengers about it,"she says.

"We are clearly different from Kroger," Mick says."We have organic and natural lines of products first and foremost.Everything in our deli is made right in our kitchen. There is no dumpingsalads out of a Cryovac bag and passing them off as homemade. We smokeour own bacon and luncheon meats here. The bacon is outstanding. Thereare no nitrates. It is smoked right in the meat department and customerscan see the smoker and hanging slabs of bacon."

Even though it is being smoked in the back, shoppers can oftensmell the bacon's intoxicating aroma upon entering the store.However, their first sight is the admittedly small floral departmentleading into produce.

Two glass garage doors allow natural sunlight to stream into theproduce department.

"When summertime hits, those garage doors out front will beopen and it will bring a fresh farmers market feel to the store,"Mick says. "We've already had the doors opened twice and itjust gives the store an entirely different feel."

Produce is merchandised from quaint wooden bins and traditional wetracks lining the wall. Above one wall, signage on stained Beetle KillPine paneling proclaims "Food Glorious Food," "LocalMichigan," "Grown Here Not Flown Here" and other adagesto drive home the message that Lucky's Market is a step aboveconventional retailers. "About half of our wet rack isorganic," Mick says. "That is a big draw for us. About 30-40%of the produce that we sell is organic."

In-house cut fruits and vegetables--each tray and container adornedwith a strategically placed trademark red and white cursive"L" reminiscent of the monogram out of Laverne &Shirley--are fast sellers. But even brisker sellers are thestore-squeezed juices, merchandised out of old-fashioned crushed-icefilled washtubs.

Prepared at a station in the middle of the selling floor, theselection includes orange, carrot, carrot/kale/ginger, Pineapple SunriseSmoothie, Green Power Smoothie, Strawberry Fresca, Raspberry BananaSmoothie and lemonade. A smaller tub contains half-gallon jugs forsampling, aided by a stack of little paper cups.

"We played with the lemonade recipe a little bit, just so itdidn't have too much sugar," Mick says. "It is kind ofacidic. You can taste the sugar but it is not overpoweringly sweet. Likeall of our juices, we take the lemons right from our producedepartment."

To the left of produce is a massive bulk foods department. "Weprobably have the largest bulk food selection of any grocery store inthe metro Detroit area," Mick says of the four-aisle departmentcontaining several unusual offerings like grind-your-own peanut buttermachines and stainless steel urns filled with local Michigan honey,organic apple cider vinegar and maple syrup.

While most of the bulk items are merchandised in the traditionalwooden barrels and gravity-fed chutes, eye-catching wood and Plexiglastables, reminiscent of jewelry store counters, house fast-movers, likecandies, nuts and trail mix.

The build-your-own trail mix ($6.99-pound) table includes MilkChocolate Sundrops (generic M&M'S), Greek yogurt pretzel nibs,raw sunflower seeds, sweet banana chips, walnut halves and pieces,Thompson raisins, dark chocolate espresso beans, roasted and saltedpeanuts, dried cranberries, roasted and salted pepitas, raw almonds andyogurt raisins.

"The college kids really like the make-your-own trailmix," says Nicole Phillips, bulk manager. "It is definitelyone of my top sellers."

Many of those college kids are probably counting down the daysuntil they turn 21 so they can shop Lucky's Market's extensivewine and beer department. "We have a huge wine and beerdepartment," Mick says. "We have 855 different SKUs of beer,making us the largest beer shop in Ann Arbor for sure."

Many of them are available in the 6er Mixer, orBuild-Your-Own-Six-Pack set. Lots of supermarkets offer abuild-your-own-six-pack program today, but Lucky's Market'sspans an entire aisle--some 90 linear feet. "It is just such agreat variety," Sigeti says. "You can get a can of this, abottle of that."

The beers have several different price points so cashiers scan eachcan or bottle individually at the register, Sigeti notes.

Once Lucky's Market gets its approval for its Sip & ShopLicense, shoppers will be able to enjoy a glass of beer or wine whilethey shop and purchase a Lucky Jugs growler of beer to take home.

Nestled between the beer department and dairy is Lucky'sMarket's grocery department, offering a combination of local,organic/natural items and national brands.

"We have some conventional products, like Hellmann's anda few Coca-Cola products," Mick says. "It is on a very limitedbasis and those types of items are never advertised or on sale.We'll have three or four Campbell's Soups, just the basictraditional ones. We don't want to chase that customer away. Ifthey have a recipe calling for Campbell's Cream of Mushroom soup,there is no substitution for that, so we have it. We don't want toalienate the customer who wants to buy their Coca-Cola either," hesays.

Local grocery products are prominently featured on the shelves andend caps. "We try to populate our stores with a minimum of 10%local product," Sharon says.

Local items include Brown Wood Farms Cherry Butter, Cherry StopBrand Cherry Rhubarb Jam, Esch Road jellies and salsa, Gluten-FreeSensations Pancake and Waffle Mix and Tall Paul's Pickles.

"We like to call all of Michigan local," says Mick."Many of these companies are in Traverse City, about 300 milesaway."

"But there are many local producers right here in Ann Arbor,Dexter and Ypsilanti that we carry," Sigeti adds. "Gettinglocal businesses retail ready and in our stores and on our shelves ishugely important to us. We care so much about the communities we comeinto and working with people who are just starting to sell things."

NEVER EVER MEATS

Marked by an Art Deco-style black and white sign, the servicemeat/seafood case is located in the back of the store. In addition tothe store-smoked bacon, another key differentiator of Lucky'sMarket is that all meats are proclaimed as Never Ever.

"Our meats are Never Ever treated with hormones orantibiotics," Sigeti says. "They are naturally and humanelyraised."

The store-made sausages, especially the beer brats, have developeda very strong following among Ann Arborites.

"Our beer brats are made with Ypsi Gypsi beer from the ArborBrewing Co. here in town and have a very strong beer flavor,"Sigeti says.

Across from the meat/seafood counter a large cheese island featuresa wide array of private label cheeses.

Across the way, team members are busy slicing-to-order Lucky'sMarket's famous smoked in-house luncheon meats, including roastbeef, pastrami and several varieties of ham and turkey.

In the adjacent service counter, round butcher block wheels arepiled high with grilled salmon fillets, twice baked potatoes andprepared chicken breasts. Next to them, white platters and dishesshowcase entrees like turkey meatloaf with chipotle BBQ sauce and honeySriracha flank steak, plus salads, like Lucky's CracklingCauliflower Salad, Lucky's Pesto Penne Pasta, Kale and AlmondBrussels Sprouts Slaw and Roasted Beet, Walnut and Arugula Salad.

"Our kitchen staff does a phenomenal job," Mick says."They make restaurant-quality food. You can just look at it andtell that it is going to eat well."

Made In-House Rotisserie Chickens, "So delicious your kneesmight buckle," are merchandised from a separate self-service islandadjacent to the salad bar ($6.99-pound) where all of the accoutrements,including dressings and croutons, are made in-house.

NATURAL LIVING

In the front of the store is the large Natural Living health andbeauty care department, marked by lighter stained Beetle Kill Pinepaneling.

"Natural Living is really neat because while the Whole Bodydepartment at Whole Foods has all of these organic items, theydon't have the things that people are necessarily looking for butwe carry, like Turns, Pepto Bismol, Arm & Hammer toothpaste andBand-Aids [brand bandages]," says Sigeti. "If you are cominginto a store like this for the first time, it is easy to be put off andnot be able to find what you are looking for. Having these brands makespeople feel comfortable, and since we have it right next to a naturaland organic product they can comparison shop and see why they mightprefer a natural and organic brand."

There is a large assortment of vitamins and supplements and proteinpowders to compete against GNC, as well as locally made soaps and bodycremes.

"The good thing about having local producers for these kindsof items is that it is easy to get them to come in and explain it,"Sigeti says. "They are the most passionate people to talk abouttheir products."

Or they could ask department manager Sean Laydean, who isknowledgeable on many topics, including the extensive essential oilsset, which features two national brands and private label, merchandisedin little cobalt blue glass vials.

"We have some essential oils that are more medicinal and somethat are calming, like lavender and chamomile," Laydean says.Lucky's Market also sells electric diffusers, sort of like ahumidifier, to disperse the oils. "In the store we usually run acombination of orange and peppermint because it is soothing," hesays.

And a soothed shopper is a happy shopper, which may explain thelack of complaints found in the Penny for Your Thoughts comment cardboxes scattered about the store.

"Penny for Your Thoughts is a suggestion box with commentcards for items they'd like to see us carry, things we can dobetter, etc.," Sigeti says. "I go through them every week witha big spread sheet and go over them with the department managers."

Some shoppers mistake the little boxes for wishing wells.

"I found a quarter in one," Mick says. It was probablyfrom a customer wishing Lucky's Market would move closer to them.

For additional exclusive photos of Lucky's Market please visitwww.groceryheadquarters.com

The CompetitorsNumber of competitorswithin a 5-mile radius ofAnn Arbor, Mich.WHOLE FOODS 2PLUM MARKET 1BUSCH'S 1HILLER'S MARKET 1TRADER JOE'S 1Store StatsGRAND OPENING DATE February 25,2015TOTAL STORE AREA 30,096 square feetSELLING AREA 26,096 square feetNUMBER OF SKUs 20,000NUMBER OF CHECKOUTS 7NUMBER OF AISLES 7NUMBER OF EMPLOYEES 140WEEKLY SALES $45,000STORE HOURS 7 AM-10 PM, DailyWHOLESALER UNFI, Providence, R.I.; Wolverine Packing Co., Detroit (Meats), many othersARCHITECT Tom Gentry Aia, Albuquerque, N.M.Price Check LUCKY'SITEM MARKET PLUM BUSCH'SAsparagus (lb.) $2.99 $3.99 $3.99Bananas (lb.) 59-cents 69-cents 59-centsGala apples (lb.) 99-cents $2.99 * $2.29Hass avocados 99-cents 2/$5.00 4/$5.00Organic celery $1.99 99-cents 2/$4.00Iceberg lettuce $1.49 $3.99 * $1.79Gurnsey Farms ice cream $5.99 $5.99 $5.99 (1.5QT)Van's waffles (9-oz.) 2/$5.00 $2.50 ([dagger]) $3.99Saffron Road Moroccan $4.99 9 $6.99 Lamb Stew (11-oz.)Horizon Butter (1-lb.) $579 9 $7.99Egg-Lands Best Eggs $2.99 $3.29 $3.29 (dozen--large)Noosa Yogurt (8-oz.) $1.79 $1.89 ([dagger]) $2.69 ([dagger])Simply Orange orange $3.99 $4.79 $4.79 juice (59-oz.)Chicken Drumsticks (lb.) $1.79 $2.99 $1.99Beef Chuck Roast (lb.) $5.99 $8.99 $5.99Walleye (lb.) $16.99 $15.99 $18.99Sockeye Salmon (lb.) $15.99 $17.99 $14.99Arbor Brewing Co. $8.99 $10.99 $10.99 beer (6-pack)Lakewood Carrot $5.99 $649 $6.99 Juice (QT)Coca-Cola (12-pack $5.99 $6.99 3/$14.00 cans)Perrier (25.3-oz.) $2.19 $1.50 ([dagger]) $2.19Pirate's Booty (4-oz.) $3.29 $2.50 ([dagger]) $2.59Near East Cous Cous $2.29 $2.19 ([dagger]) $2.79 (10-oz.)Hellmann's mayonnaise $4,99 $6.79 $549 (30-oz.)Newman's Own pasta $3.69 $3.00 ([dagger]) $3.49 sauce (24-oz.)TOTAL $115.26 $133.70 $128.79* Organic ([dagger]) SaleSales BreakdownGrocery 37%Produce 21%Food Service 17%Meat/Seafood 13%Natural Living 5.5%Beer/Wine 6.5%Note: Table made from pie chart.