Guest Opinion: Did Ukrops bungle the media storm?
July 31, 2009 by Bill Farrar
The views expressed in Guest Opinions represent those of the author only and no BizSense nor BizSense reporters in any way.
Strongly embracing a well-thought-out set of values is essential to the success of any business or organization.
Writing them – and even living by them day-to-day – is the first and easiest step. Being faithful to stated values when push comes to shove is far more difficult, and true colors often are revealed when such values are kicked to the curb.
When news broke in mid-July that Richmond’s iconic grocery store chain, Ukrop’s Super Markets Inc., was shopping for a possible buyer, the loudest reactions seemed to fall in one of two categories: “Oh, no!” or “Excellent!”
Many who had the former response associate Ukrop’s with fresh prepared meals, overall store appearance and the “let-me-take-you-to-it” approach and sense of pride that made the company a national model for customer service and places to work.
Many also reacted with anxiety because of the company’s deep philanthropy and support for several popular, long-standing events. Do you like your Monument Avenue 10K? Your Christmas parade? The Golden Gift program that has distributed $12 million to local nonprofits? Thank Ukrop’s.
Through consistent demonstration of its values in the areas of customer service and community relations, Ukrop’s embedded itself in Richmond’s collective psyche.
But while Ukrop’s brand loyalty might extend to the salad bar and the bagger who rolls overfilled carts to the parking lot, it doesn’t appear to run so deep when it comes to identifying with Ukrop’s as an entity or watching our wallets. When the economy tanked, Richmonders didn’t hesitate to take their business to Food Lion, because everyone knows its prices are lower, and now it’s No. 1 in the market. Hey, we’re not that loyal.
Even worse, some area residents actually took enjoyment in the news of a possible sale because of another set of company values that is just as well known if not so loudly trumpeted. Brothers Jim and Bobby Ukrop have over the years held firm on policies such as remaining closed on Sundays and not selling alcohol.
Although that is their prerogative, basing corporate values on religious or moral principles can have disadvantages. They can alienate customers with different beliefs in an increasingly diverse community. In fact, in an age when one can buy a bottle of 151-proof liquor at a state-run liquor store in Virginia on a Sunday, some of Ukrop’s policies have been characterized as puritanical and overbearing.
Deserved or not, the perception exists even in parts of Richmond’s white establishment that the Ukrop family runs Richmond, or thinks it does. For all of their good deeds, the Ukrops are to some the direct embodiment of a restrained, square and outright backward attitude that for decades has held Richmond back from being all it could be.
Regardless of individual emotional reactions, the impact of any sale on the community would be dramatic. The chain employs almost 3,400 people in the Richmond area. It has 28 stores, just three of which are outside the Richmond region. That is no small chunk of anchor commercial real estate space, which in turn represents a tidy sum of local tax revenue. Not to mention no more white house rolls.
The Richmond community first got wind of all this July 14, when online grocery trade publication Food World reported that Ukrop’s had floated a prospectus – a detailed report on its assets and market share – to potential buyers. The local media and blogosphere went wild. Ukrop’s should have been prepared for this or possibly even announced it themselves. Rather, its owners seemed either caught off-guard or unable to be bothered with it.
In a postal letter to employees dated the next day, Ukrop’s president and chief executive dismissed news reports as “rumors, anonymous blog postings and industry chatter.” Hardly. The company put out a “for sale” sign. Subsequently, yes, rumor was rampant.
The Ukrops had an obligation to quickly explain the matter to the two main groups that supported it for 52 years – employees and customers. Instead, the company has declined comment to the media and been disingenuous with employees, whom they expect to continue to show up each day with a good attitude until they’re told not to.
In his letter, Bobby Ukrop went on to tell worried workers, “Anything I say at this point would just add fuel to the fire. For example, I could say that, yes, other companies are interested in buying Ukrop’s. But the truth is there have always been companies interested in buying us, so there’s nothing new here. So, I’m not going to comment on rumors because if I responded to each one, I wouldn’t have time to get much work done.”
I’m sorry, gentlemen, are we wasting your time with this? Listen, it isn’t all about you. It’s about your company values and the groups to whom you promised them.
Bill Farrar is a Richmond-based public relations professional and freelance writer. His e-mail is bill@killerpr.com.
Good article, but I believe that while the tradional media only got wind of this sale on the 14th of July, it had been out there for many days before.
It was certainly the stuff of blogs before that date and the excellent Jack Gravely had it on his radio show the previous Friday.
“It is almost always the cover-up rather than the event that causes trouble. ” Attributed to Howard Baker
Bill Clinton certainly demonstrated that.
And its part of human nature. I’ve seen the same problem in allegedly “progressive” institutions work its damage, circle round the wagons, keep out the troublemakers and deny deny deny.
I have no idea what to do about it.
Its so common that I find myself surprised now when people are OPEN and even admit to mistakes and take personal responsibility. I have tried being open and admitting mistakes and all it did was get me disposed of. Secrecy has taken over. MBAs are the way they are for good reasons. People are not interested in the truth, they are interested in feeling good. Period. (with *some* exceptions).
So I see why this happens , as the song says “from both sides now”.
I am reminded of Aesops Fable, The Scorpion and The Frog. The Scorpion doesn’t *set out* to do harm … he just DOES. And we all get to play both the scorpion and the frog during our lives. We don’t usually *mean* to. And that is why there is a free press and (allegedly) “Rule Of Law”.
I’d say our entire species or perhaps culture needs a “personality transplant” because ultimately we reward this kind of behavior (but also openly proclaims its bad).
On the other hand, this built in hypocrisy is GREAT THE FOR THE NEWS BUSINESS!
Gossip anyone ? Might be true ! (very often is).
By the way, folks, Bill Farrar is someone you should watch to read. His articles really hit the nail on the head, when he chooses to swing the hammer, that is.
So the bottom line is: Don’t count on the Ukrops, not because they’re evil, but because they are human. So gather your indignation and enjoy the high horse until its your ox getting gored. Then circle your wagons …
Somewhere in the battling memes and stories, the truth may fall out and righteousness might prevail once in a while.
Look carefully for it, it wont shine, it’ll be dirty, in the mud and never quite sure its a diamond until you’ve polished and cut it out of the clump of crud.
Thanks to Bill for alerting us that there is a crystal somewhere in that mud slide …
I’m sorry but this article is way harsh. Ukrops has been wonderful for our community. I’ll even admit that I also shop at Kroger but Ukrops is a store I’ll always be fond of and continue to go to for groceries. And the comment you made about basing their corporate values on religious/moral values — please stop bashing. I’m proud of a company that will stand it’s ground for it’s religious beliefs. This is a free country and thank God a businesses can choose not to open on Sundays or sell alcohol! Look how successful Ukrops has been without caving in on its own values. Selling any business is hard and I think Ukrops is handling it just fine. Stop criticizing Ukrops and look at all the good things this company has done instead.
In my opinion there are three reasons why Food Lion ascended to the #1 position in our market.
The first is that Food Lion remodeled most of their stores. From my previous experience in the retail world sales increase when stores are remodeled. Customers see a new face so to speak and non customers are curious to see what the “new” look store is all about.. Believe it or not sales very often increase during the remodel as well.
Secondly, Food Lion has almost twice the number of stores that Ukrop’s has. As a result it is more convenient to more people.
Finally, the fact that Food Lion sells beer and wine is obviously a difference maker. If you removed those sales and compared the two chains undoubtedly Ukrop’s would still be #1.
Ukrop’s decision to not be open on Sunday effectively sends their customers to their competition, Food Lion included. Jim and Bobby Ukrop know that but the decision to remain closed on Sunday is theirs to make. How many retailers do you know that would stick to their beliefs even if it costs them money?
Based on some of the earlier comments, you would think this whole matter was some sort of illegal scheme with the added scandal of a cover-up. Actually, it’s just another example of business leaders bungling the communication and public relations around an industry rumor.
Like them or hate them, the Ukrops have done nothing wrong here except what so many business leaders do when faced with a lot of chatter about the future of their enterprise: they retreated into public silence instead of engaging with the community, their customers, the news media and employees. There are ways to respond to rumors and media inquiries without really saying anything that might foul up any negotiations that might be underway. The Ukrops simply chose not to do that, I believe to their detriment.
But the real losers in this episode are the employees, whose (well-known) devotion to their company is met with a memo that essentially says get back to work. There are ways to redirect employees’ attention to the work at hand without causing even more unrest and the Ukrops simply didn’t choose those options.
From a PR and communication perspective, the leaders at Ukrop’s blew it. Whether their misstep translates into a real impact on their business remains to be seen.
For the last 10 years we have lived in Richmond, all we know is Ukrop’s is the key corporation and family repeatedly behind anything good that happens here — whether it is the folk festival, sports backer events, the new arts center, the salvation army, the chamber, the police athletic league, richmond public schools, and we can go on and on. I am sure this is an awkward time and what do you really say when everything is speculation at this point? All we have to say is thank goodness Ukrop’s has stepped up to the plate repeatedly for this city over the years when others have not….it would be frightful to think where we would be right now if it were not for them. Doug and Julie Ehlers
I can do the math, Foodlion moved ahead due to number of stores. With the amount of competition funny how you did not mention that the little guy, Ukrop’s, is still number two in one of the most competitive markets in the nation. That says a lot. The fact that Ukrop’s has deep rooted values, in a country where values are declining, I applaud. Customers can choose who they want to support and many customers support Ukrop’s Monday though Saturday and do allow them to close on Sundays. Remember they are still number 2 while being closed on Sundays and not selling alcohol. This is unheard of in the grocery industry. I do agree Richmond is changing. Have we ever thought that they may be looking to sell so that they can take care of the employees? If or when someone buys them they will need most if not all of the employees. Companies do not import 3,500 employees and if they do sell they still live in Richmond. Second guessing and beating up a company is a waste of time. Ukrop’s, while not perfect, has been good to Richmond and the community and I respect them for all that they have done. Let’s go back to watchin reality show where values stand tallest.
I think we should look at why Chic-Fila is closed on Sundays and does not sell alcohol, nation wide I believe?
As a northerner and a very recent transplant, to the Richmond area I confess to being a HUGE supporter of Ukrops. My value and belief system could not be more diametrically opposed to what I understand Ukrops to be. However, I admire, and support, a company that DOES abide by what they believe without allowing profit be their overriding decision maker. I am a far left liberal, I drink, I do not go to church. I have made a conscious decision to support Ukrops by making it “my” grocery store. I have adjusted for it being closed on Sunday’s (hey, I moved to this area to slow down a little – it doesn’t kill me to not have every convenience every moment I want it). I do not feel “put upon” by them running their business the way they see fit.
I admire the Ukrops’ for putting their money where their mouth is. They are amazingly supportive of their community. That is not a little thing. I come from an area where box/chain stores rule and locally owned business can barely stay in business. I think Richmond will lose something irreplaceable if Ukrops is sold. There is still such a thing as a heart in a community, and I come from communities where that no longer exists. Richmonders should be careful what they wish for, they may get it.
I have it on very good authority that it is Bobby who calls the shots and Ukrops and it is his policy to close on Sunday and not sell alcohol. I think it is foolish. If they sell out, then whoever comes behind them with certainly open Sunday and sell beer and wine. Where would his principles be then?
I admire what Ukrops does for Richmond. It will be a sad day when they are gone, just like it was a sad day when they closed my neighborhood store. I’m hoping they stick around and bring a Joe’s Market downtown.