March 8, 2007
Save Mart CEO Does It His Way
“You can’t go wrong doing something that makes you happy.”
In a nutshell, that is the personal and business philosophy of Bob Piccinini, CEO of Save Mart.
In an interview with the Manteca Bulletin, Mr. Piccinini expressed pride in his contrary approach to many of popularly accepted methods of running a retail business today.
“We had a former Payless Drug Store executive work for us for awhile who said it was that company’s position to always close their 10 percent lowest performing stores every year even if they were making a profit,” Mr. Piccinini said. “We’re not going to keep a store open that is losing us money but as long as we’re meeting customer needs and its profitable we’re going to get there.”
There’s no doubt in Mr. Piccinini’s mind that Save Mart is going to get there. The chain recently doubled in size with its acquisition of 130 Albertsons’ stores in northern California and northern Nevada. The company also took over two distribution centers and a division office as part of the deal.
Bigger doesn’t mean better and Mr. Piccinini is quick to point that out, even when it comes to competitors. He exhibits great pride in the professionalism of the 23,500 employees at the company and says he believes the talent level at Save Mart more than justifies the higher wages and level of benefits the company provides to its workers.
Mr. Piccinini, its clear, is doing what makes him happy.
Discussion Questions: Is Bob Piccinini’s philosophy the recipe for success in today’s marketplace or will he be faced with making the same changes (lower wages, cuts in benefits) that many others have turned to as a means of remaining competitive? What are the primary challenges and opportunities you see ahead for Mr. Piccinini and Save Mart?
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By walking the walk of the “Value Profit Chain” Mr. Piccinini will continue to lead his organization to great success. Save Mart has always shown that the they understand their customers’ needs and have sought to meet them. One such need is to shop where the employees exhibit a sense of being appreciated–that they are glad to be there. Kudos to Bob (and his management team) for always keeping that in mind and remembering that employee satisfaction leads to customer satisfaction, which in turn leads to stakeholder value.
Very interesting to learn a bit more about this piece of the aftermath of the Albertsons acquisition. Save Mart may find itself in an interesting strategic position once it completes the assimilation of the new stores and other assets. I’d like to ask Mr. Piccinini to elaborate about his plans for the Lucky brand name, since he’s obligated to take down the Albertsons signs fairly soon.
Now that he’s sitting at the helm of a $6 billion, privately held chain, he is officially a player. If the company is successful at propagating its culture of good will to the acquired stores, it may prove to be a formidable player indeed. Now some questions will arise regarding branding and other synergies. There may be pressure from the financiers to close redundant bits of the operation or trim head counts. Sounds like that’s the kind of action Mr. Piccinini will resist.
Bob Piccinini’s philosophy is an inspiration, and when you know the DNA of your company you can stay the course. Bob Piccinini “Does It His Way”…I view it as Effective Decisions. As we all know a decision is a judgment. It is a choice between alternatives. It is rarely a choice between right and wrong. It is, at best, a choice between “almost right and probably wrong,” but much more often a choice between two courses of action–neither of which is provably more nearly right than the other. Bob Piccinini has a vision and that comes from having great passion.
It is refreshing to see someone stay true to their values while facing the daily challenges of retail. Yes, Mr. Piccinini can have continued success with his contrary approach; however his ability to stay the course will no doubt be tested constantly. It is far easier to manage solely the numbers versus maintaining your consciousness and the numbers.
SM, it should be noted, is privately – and even more than that “family” – controlled, and likely has a certain amount of leeway publicly owned companies do not.
But we out here in the land of the stores-soon-to-be-formerly-known-as Albertsons are downright giddy w/hope and anticipation (not that Albertsons was anything but…um…swell, mind you). There’s even a rumor, inspired by the ownership mark on the ABC applications, that the “Lucky” moniker may be reappearing. Please, Bob, please !
The CEO’s most over-looked role is in setting the tone of the company culture. Bob Piccinini has laid out a very positive tone to his company’s culture, and with the rancorous battle between unions and Albertsons in particular in California, it will be interesting to see how long it takes for that tone to filter down to the stores – and its customers.
What a breath of fresh air. Or is it a new spin? Is this a new way of saying treat your employees and customers as you would want to be treated? Many CEOs spout words about looking out for the customer or the customer comes first; but how many actually follow through? If Mr. Piccinini follows through, he has a much greater chance of success.
We’re likely going to stimulate plenty of debate on this topic and it comes down to how each of us looks at life–and how our business philosophies fit into our life philosophies.
Although we see many unhappy people making cut throat business choices and doing very well, we also see happy people making high road business decisions doing well too. Personally, I subscribe to the belief that when you’re happy, love what you do and treat others with value and respect, it pays itself forward. People naturally want to be around you, do business with you and be loyal to you. I can’t say that I believe that this works in converse–at least in the long run.
There’s a book called “Secrets of a CEO Coach” that gets into this point in detail, as the author has seen this in the works for many years. He goes as far as to say that when you aren’t doing the right thing by your business and people, they’ll go out of their way to sabotage the company. But when you do, they are often very patient, forgiving and supportive.
As long as Mr. Piccinini is good to his people, I feel that he will be met with more support–even when he is forced to make hard business decisions that he might not like.
Most shoppers will tell you that what they want and need most is store personnel who are there to help and do so enthusiastically. The philosophy is not new. Just go into any Costco and review their track record on wages and benefits. They hire people that understand and embrace customer attention, and they pay and reward them based on how well they succeed.
Shoppers want attentive service and at times consultation, and the stores that meet those expectations will be rewarded with loyal shoppers. Price is always going to be a factor but “value” is a function of price over experience. You can only adjust price so much, but you can always enhance experience to maintain true consumer value.
Bob Piccinini’s philosophy makes huge sense when it’s applied properly. The “secret” that we have observed time and time again in retail is that if you take care of your people they will take care of the business. The most successful retailers know that this is true. Let’s see how it plays out in the Central Valley.
While it is difficult to accurately predict the future for Bob Piccinini and his company, I feel confident that Bob is a pretty astute competitor or he wouldn’t have the ability to double his size in one acquisition.
If Bob’s formula is one that values individuals and encourages their contributions and innovative thinking, then he is more likely to succeed in his expanded field of operations.
It appears that Bob recognizes that competing is more than just having competitive assortments and pricing. It is about building an organization that values its employees, customers and suppliers through engagement. While customer loyalty to a banner may be a distant dream, customer retention can be achieved through continually satisfying their needs.
Satisfying their needs goes beyond just product pricing and assortment and includes store design, product presentation, new product offering and many other dynamics of change. This can only be accomplished through a workforce that cares about their company, is challenged and encouraged to continually improve and is rewarded for their efforts both emotionally and monetarily.
It’s encouraging to read about entrepreneurs like Bob who understand the formula and are making it happen!
Bob Piccinini has a single recipe for success: Real Estate. More power to him. Like me, he’s not very good at picking racecars or wives. Unlike me, he’s a superb negotiator.
For those interested in “Negotiating 101,” you could learn a thing or one from Bob. He doesn’t immediately respond to offers or counteroffers, and most often doesn’t respond at all. That’s because he has the power of the wealth and holdings he inherited.
Psychologists tell us that children who inherit successful businesses tend to fail, and history proves them to be right. According to research, this is because successful retail businesses are almost always built by cold, dominant men. These same psychologists go on to suggest that cold/dominant men usually create warm/submissive children–totally unfit to run aggressive businesses.
If this is a rule, then Bob Piccinini broke it. He’s as cold/dominant as they come. His saving grace is that he recognizes the appropriate talent among subordinates who will keep the Save Mart ship sailing. But, he’s never competed in a major metropolitan area. This will be interesting.
Being a marketeer and a Bay Area resident, this is one of the most ludicrous endeavors I have seen in awhile. In the Lucky days, you either shopped at Lucky or Safeway for a reason that had nothing to do with the store name. The Lucky ‘three’s a crowd’ campaign was a farce and there were always long lines. The stores were dumpy. Safeway has simply outperformed on all fronts. The company would be better off figuring out what customers really want from their shopping experience and reinventing the grocery store experience.
Gary should not have kept his prices so high after the Albertsons purchase with a recession going on. Paying off the dept so fast and keeping the store prices high could prove very bad for Save Mart/Lucky’s, and a poor business plan will not help matters. Gary should start at the top and replace his acting president with someone from Costco or Whole Foods who could put the company back in the right direction.
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By walking the walk of the “Value Profit Chain” Mr. Piccinini will continue to lead his organization to great success. Save Mart has always shown that the they understand their customers’ needs and have sought to meet them. One such need is to shop where the employees exhibit a sense of being appreciated–that they are glad to be there. Kudos to Bob (and his management team) for always keeping that in mind and remembering that employee satisfaction leads to customer satisfaction, which in turn leads to stakeholder value.
Very interesting to learn a bit more about this piece of the aftermath of the Albertsons acquisition. Save Mart may find itself in an interesting strategic position once it completes the assimilation of the new stores and other assets. I’d like to ask Mr. Piccinini to elaborate about his plans for the Lucky brand name, since he’s obligated to take down the Albertsons signs fairly soon.
Now that he’s sitting at the helm of a $6 billion, privately held chain, he is officially a player. If the company is successful at propagating its culture of good will to the acquired stores, it may prove to be a formidable player indeed. Now some questions will arise regarding branding and other synergies. There may be pressure from the financiers to close redundant bits of the operation or trim head counts. Sounds like that’s the kind of action Mr. Piccinini will resist.
Bob Piccinini’s philosophy is an inspiration, and when you know the DNA of your company you can stay the course. Bob Piccinini “Does It His Way”…I view it as Effective Decisions. As we all know a decision is a judgment. It is a choice between alternatives. It is rarely a choice between right and wrong. It is, at best, a choice between “almost right and probably wrong,” but much more often a choice between two courses of action–neither of which is provably more nearly right than the other. Bob Piccinini has a vision and that comes from having great passion.
It is refreshing to see someone stay true to their values while facing the daily challenges of retail. Yes, Mr. Piccinini can have continued success with his contrary approach; however his ability to stay the course will no doubt be tested constantly. It is far easier to manage solely the numbers versus maintaining your consciousness and the numbers.
SM, it should be noted, is privately – and even more than that “family” – controlled, and likely has a certain amount of leeway publicly owned companies do not.
But we out here in the land of the stores-soon-to-be-formerly-known-as Albertsons are downright giddy w/hope and anticipation (not that Albertsons was anything but…um…swell, mind you). There’s even a rumor, inspired by the ownership mark on the ABC applications, that the “Lucky” moniker may be reappearing. Please, Bob, please !
The CEO’s most over-looked role is in setting the tone of the company culture. Bob Piccinini has laid out a very positive tone to his company’s culture, and with the rancorous battle between unions and Albertsons in particular in California, it will be interesting to see how long it takes for that tone to filter down to the stores – and its customers.
What a breath of fresh air. Or is it a new spin? Is this a new way of saying treat your employees and customers as you would want to be treated? Many CEOs spout words about looking out for the customer or the customer comes first; but how many actually follow through? If Mr. Piccinini follows through, he has a much greater chance of success.
We’re likely going to stimulate plenty of debate on this topic and it comes down to how each of us looks at life–and how our business philosophies fit into our life philosophies.
Although we see many unhappy people making cut throat business choices and doing very well, we also see happy people making high road business decisions doing well too. Personally, I subscribe to the belief that when you’re happy, love what you do and treat others with value and respect, it pays itself forward. People naturally want to be around you, do business with you and be loyal to you. I can’t say that I believe that this works in converse–at least in the long run.
There’s a book called “Secrets of a CEO Coach” that gets into this point in detail, as the author has seen this in the works for many years. He goes as far as to say that when you aren’t doing the right thing by your business and people, they’ll go out of their way to sabotage the company. But when you do, they are often very patient, forgiving and supportive.
As long as Mr. Piccinini is good to his people, I feel that he will be met with more support–even when he is forced to make hard business decisions that he might not like.
Most shoppers will tell you that what they want and need most is store personnel who are there to help and do so enthusiastically. The philosophy is not new. Just go into any Costco and review their track record on wages and benefits. They hire people that understand and embrace customer attention, and they pay and reward them based on how well they succeed.
Shoppers want attentive service and at times consultation, and the stores that meet those expectations will be rewarded with loyal shoppers. Price is always going to be a factor but “value” is a function of price over experience. You can only adjust price so much, but you can always enhance experience to maintain true consumer value.
Bob Piccinini’s philosophy makes huge sense when it’s applied properly. The “secret” that we have observed time and time again in retail is that if you take care of your people they will take care of the business. The most successful retailers know that this is true. Let’s see how it plays out in the Central Valley.
While it is difficult to accurately predict the future for Bob Piccinini and his company, I feel confident that Bob is a pretty astute competitor or he wouldn’t have the ability to double his size in one acquisition.
If Bob’s formula is one that values individuals and encourages their contributions and innovative thinking, then he is more likely to succeed in his expanded field of operations.
It appears that Bob recognizes that competing is more than just having competitive assortments and pricing. It is about building an organization that values its employees, customers and suppliers through engagement. While customer loyalty to a banner may be a distant dream, customer retention can be achieved through continually satisfying their needs.
Satisfying their needs goes beyond just product pricing and assortment and includes store design, product presentation, new product offering and many other dynamics of change. This can only be accomplished through a workforce that cares about their company, is challenged and encouraged to continually improve and is rewarded for their efforts both emotionally and monetarily.
It’s encouraging to read about entrepreneurs like Bob who understand the formula and are making it happen!
Bob Piccinini has a single recipe for success: Real Estate. More power to him. Like me, he’s not very good at picking racecars or wives. Unlike me, he’s a superb negotiator.
For those interested in “Negotiating 101,” you could learn a thing or one from Bob. He doesn’t immediately respond to offers or counteroffers, and most often doesn’t respond at all. That’s because he has the power of the wealth and holdings he inherited.
Psychologists tell us that children who inherit successful businesses tend to fail, and history proves them to be right. According to research, this is because successful retail businesses are almost always built by cold, dominant men. These same psychologists go on to suggest that cold/dominant men usually create warm/submissive children–totally unfit to run aggressive businesses.
If this is a rule, then Bob Piccinini broke it. He’s as cold/dominant as they come. His saving grace is that he recognizes the appropriate talent among subordinates who will keep the Save Mart ship sailing. But, he’s never competed in a major metropolitan area. This will be interesting.
Being a marketeer and a Bay Area resident, this is one of the most ludicrous endeavors I have seen in awhile. In the Lucky days, you either shopped at Lucky or Safeway for a reason that had nothing to do with the store name. The Lucky ‘three’s a crowd’ campaign was a farce and there were always long lines. The stores were dumpy. Safeway has simply outperformed on all fronts. The company would be better off figuring out what customers really want from their shopping experience and reinventing the grocery store experience.
Gary should not have kept his prices so high after the Albertsons purchase with a recession going on. Paying off the dept so fast and keeping the store prices high could prove very bad for Save Mart/Lucky’s, and a poor business plan will not help matters. Gary should start at the top and replace his acting president with someone from Costco or Whole Foods who could put the company back in the right direction.