May 1, 2023
Photo: Stew Leonard’s
What Is Stew Leonard’s Legacy In Grocery?
Stew Leonard, who passed away last week at 93, could be the father of experiential grocery retailing.
Inspired by family vacations to Disneyland and Las Vegas, Mr. Leonard opened his first eponymous store in Connecticut focused on fresh dairy in 1969 and began installing animatronic entertainment in the late 1970s, according to eater.com.
A 1983 New York Times article described the chain as the “Disneyland of Dairy Stores” while stating of Mr. Leonard, “His show-business approach includes a stadium-size electronic billboard on Route 1, which flashes daily specials; dozens of cuddly farm animals that wander in a minizoo in the parking lot; a plastic farmer and his cow that sing duets near the produce bin; a wishing well; balloons for children; a ‘sheriff’ who heads the security force, and colorful plastic shopping bags.”
The stores also feature one-way, zig-zagging aisles (similar to IKEA) that let customers tour the musical performances in each food section while picking up free samples.
Stew Leonard’s, which has seven stores across Connecticut, New York and New Jersey, is also known for its emphasis on fresh food and customer service. The chain’s customer service policy mantra is “Rule 1: The customer is always right. Rule 2: If the customer is ever wrong, reread Rule 1.”
Mr. Leonard earned various accolades including the 1986 Presidential Award for Entrepreneurial Excellence from then-President Ronald Reagan. He retired around 1990 but remained chairman emeritus.
Mr. Leonard’s career is also a cautionary tale as he pled guilty in 1993 to tax evasion and served nearly four years in federal prison. In an interview with The New York Times, Stew Leonard Jr., current CEO, described the fraud as “more of a small business entrepreneurial mistake” and said his father had since spent time lecturing retailers about such temptations.
News of Mr. Leonard’s death led to an outpouring of condolences from state and local officials.
“Stew founded an iconic Connecticut business that is more than a grocery store – it’s a place where thousands of families have created memories over several generations,” Connecticut Governor Ned Lamont tweeted.
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Discussion Questions
DISCUSSION QUESTIONS: What were Stew Leonard’s contributions to grocery retailing? Does his customer service policy still work in 2023?
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My wife and I shop there almost every weekend as we find it more pleasant than shopping in the city. His stores are wonderful and his staff are always really nice and very helpful. Many store operators can learn a thing or two from Stew and his family.
There is a reason his stores are popular and it’s not only the staff but the fresh produce and excellent meat and fish, at prices that are generally much better than any competitor with the same level of quality. Stew may have made a few mistakes along the way but was a legend over the long term.
Retail is theater, and Stew put on a show every day. Who would want to go to a traditional grocery store every day if they had a Stew Leonard’s as a better choice? Stew understood that customers like theater and the value of hooking them at an early age. The entertainment factor has always been off the charts, and the food is excellent as well.
Stew Leonard’s other contribution to retail might have been inspiring the whole loss prevention thing—on behalf of the IRS, anyway. You know, if the IRS knows I have five checkout lanes, maybe that sixth register can be our little secret. Another example of Leonard thinking outside the box that, unfortunately for him, put him in one for almost four years.
Retail used to be theater (thank you, Marvin Traub and Stanley Marcus) but the bean counters have won. When did you last walk away genuinely impressed with any retail shopping experience?
You had to admire the focus to steal $17 million one dollar at a time over ten years…But as a retailer I found visiting the store of little use. Entertaining, absolutely. But what I could observe and duplicate on our own, far less. The air curtain entry ways, use of skylights, and heated floors were far more useful than singing bananas.
Stew Leonard paved the roads of successful practices and merchandising brilliance which many grocers smartly copied. His strategies will last a long time and will influence grocery retail for years.
Simple: offer good value and make it fun! But the retailer has to be committed to the concept, not just emulate Stew’s. As an aside, in true Disneyland fashion, at the flagship store in Norwalk, CT Stew’s makes the customers traverse the entire store just like in a Disneyland waiting line. Instead of making waiting seem to go faster, Stew’s exposes the customer to all its offerings. Not your grandmother’s supermarket.
Despite his serious legal issue, Stew will be held in high esteem not only by the industry but, more importantly, by his customers. He loved his customers as well as his staff. Unlike food retail, even today, Stew made shopping fun. He left many clues for his success. His best legacy is those retailers who copied and applied many of his innovative concepts.
There is no reason to believe his customer service policy with some modification could not work today. The modification is that sometimes customers are wrong and it denigrates staff if the staff perspective is not considered.
We shopped at the original Stew Leonard’s while living down the street. It was the only grocery store that the kids wanted to go to, even when we didn’t need to. The trip was always concluded with an ice cream cone. While the selection was slim, it was basic–and the prices were the best by far.
Stew’s legacy will always be: “Rule 1: The customer is always right. Rule 2: If the customer is ever wrong, reread Rule 1.” Too many operators today haven’t read Rule 1.
I remember touring Stew Leonard’s original location in the late ’70s. The chairman of the c-store company I worked for had arranged for us to tour the store and meet Mr. Leonard. We were developing a headquarters in a structure that had a silo on the side facing Route 91. West. Based on that visit we incorporated windows so customers could see into our dairy plant. I remember asking Mr. Leonard why he didn’t sell cigarettes. He said cigarettes are bad for you. it took me several years before I took his advice.
I must confess a fondness for Stew Sr. He once sent me a letter letting me know that, even though he was still incarcerated, he regularly read my articles. People will credit him with a lot of things, but to me his major contributions were a relentless commitment to the customer, really demonstrating the power of authentic differentiation, practicing fearless retailing that — very profitably — flew in the face of institutional wisdom, and conclusively proving that inventory did not have to be exhaustive to be attractive to shoppers. The rest of it — the animatronics, the big rock, the tour buses, the shopping bag photos from all over the world, etc., wouldn’t have happened unless Stew hadn’t dared to be different in an industry that prizes conformity and measures risk in increments. He was a rebel, and a damn good one at that. I hope he will be remembered for that more than the talking cows.
Having grown up in grocery retail, Stew Leonard’s was/is the gold standard in product innovation, store theater, store flow and exceptional customer service. You see a lot of these elements being adopted by other grocery retailers which means that Stew Leonard’s must be doing something right.
I’m sad to hear the news about Stew Leonard. I met Mr. Leonard several times when we were hired to speak at the same events. He was an early adopter of experiential retail. I loved his customer-focused attitude and the two rules that were etched into a stone in front of his store:
Rule #1 — The Customer is Always Right
Rule #2 — If the Customer is Ever Wrong, Re-Read Rule #1.
I have my take on “The Customer Is Always Right” saying, but making it the cornerstone (no pun intended) of the store’s philosophy sets the tone for what’s expected for both employees and customers.
Another icon in the retail world is smiling at us from above.
Stew was someone who did things differently. You only had to walk into one of his stores to see this. All of the basics of grocery retailing were adhered to, but on top of that he added a generous sprinkling of magic that customers loved. Going to a Stew Leonard’s is an experience — and this was implemented by Stew long before “experiential retail” became a buzzword. He leaves many legacies, but one of them is the idea that retail should not be bland or boring!
We had heard over and over about Stu Leonard’s so one day we drove two+ hours to see it. It was everything the hype claimed it was. Entertaining, sure, but it also featured a voluminous assortment of products. But if you want proof that providing a great user experience in groceries can work in other markets look at Jungle Jim’s International Market in Fairfield, Ohio. Supplements, cigars, food and spices from around the world (and organized as such), beer & wine, even a cooking school. Here is the website: https://junglejims.com/
I’ve written a few articles about Stew Leonard’s during my career, including a long profile titled “Why be Like Everyone Else?” about 10 years ago. Stew’s also topped my “25 Stores to See Before you Die” list published about six years ago. The company was always great to work with and extremely fun to research. As others have mentioned, there were the legal issues that slightly impacted Stew Sr.’s legacy, but it hasn’t tarnished the company’s reputation at all. When I start the Supermarket Hall of Fame, he’ll be an inaugural member.
I’m not sure whether I’m just having a cynical Monday, or those polled had a collective bout of nostalgia, but I’m having a hard time imagining this succeeding today (actually it’s kind of hard to think it ever succeeded…I’d love to see the financials).
We’ve seen here on RW over the years a number of these one-of-kind retailers, and while the world was no doubt a better place for their existence, the phrase suggests limitations in what they can “teach us”; except, of course, for “give people what they want”…which is always the most important lesson.
Mr Leonard had a store at the right place (in/out of the NW suburbs of NYC on the interstates), right time (the shift outward), and some great ideas to making the store a destination. All of which attracted Tom Peters and other thought leaders to extoll the future of retail… well maybe not. We will never know since his “minor financial indiscretion” of shipping at least $17 million of unaccounted cash in suitcases to St Martins resulted in a stay in federal penitentiary (44 months) with a fine of $900k. (details worth a read here: https://law.justia.com/cases/federal/appellate-courts/F3/37/32/509304/) Local retailers passed the company by at speed for shopper engagement and experience if not entertainment. It could of been a great company.
Stew Leonard’s definitely gave other independent grocers more confidence in taking risks when it came to merchandising, branding, and having fun.
Maybe his most important and lasting contribution is showing everyone what it takes to be customer-centric, always seeing things from the shoppers vantage point.
In the late 90’s as part of my orientation trip to Daymon Worldwide, we toured the local store and several leading retailers in the area. I agree with many of the contributors that spoke about entertainment at retail as a legacy. I would also add that Stew Leonard’s achieved a premium feel at a fair price because most of its items were their own brands. They were perhaps the most successful grocer ( along with Trader Joe’s) to elevate the private brands and be less reliant on national brands to drive traffic.
Mr. Leonard will be remembered for making shopping for food fun! As to his customer service legacy, as long as you don’t let your customers “take advantage” of the fact that you think they are always right, his legacy for customer service will remain legendary.
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My wife and I shop there almost every weekend as we find it more pleasant than shopping in the city. His stores are wonderful and his staff are always really nice and very helpful. Many store operators can learn a thing or two from Stew and his family.
There is a reason his stores are popular and it’s not only the staff but the fresh produce and excellent meat and fish, at prices that are generally much better than any competitor with the same level of quality. Stew may have made a few mistakes along the way but was a legend over the long term.
Retail is theater, and Stew put on a show every day. Who would want to go to a traditional grocery store every day if they had a Stew Leonard’s as a better choice? Stew understood that customers like theater and the value of hooking them at an early age. The entertainment factor has always been off the charts, and the food is excellent as well.
Stew Leonard’s other contribution to retail might have been inspiring the whole loss prevention thing—on behalf of the IRS, anyway. You know, if the IRS knows I have five checkout lanes, maybe that sixth register can be our little secret. Another example of Leonard thinking outside the box that, unfortunately for him, put him in one for almost four years.
Retail used to be theater (thank you, Marvin Traub and Stanley Marcus) but the bean counters have won. When did you last walk away genuinely impressed with any retail shopping experience?
You had to admire the focus to steal $17 million one dollar at a time over ten years…But as a retailer I found visiting the store of little use. Entertaining, absolutely. But what I could observe and duplicate on our own, far less. The air curtain entry ways, use of skylights, and heated floors were far more useful than singing bananas.
Stew Leonard paved the roads of successful practices and merchandising brilliance which many grocers smartly copied. His strategies will last a long time and will influence grocery retail for years.
Simple: offer good value and make it fun! But the retailer has to be committed to the concept, not just emulate Stew’s. As an aside, in true Disneyland fashion, at the flagship store in Norwalk, CT Stew’s makes the customers traverse the entire store just like in a Disneyland waiting line. Instead of making waiting seem to go faster, Stew’s exposes the customer to all its offerings. Not your grandmother’s supermarket.
Despite his serious legal issue, Stew will be held in high esteem not only by the industry but, more importantly, by his customers. He loved his customers as well as his staff. Unlike food retail, even today, Stew made shopping fun. He left many clues for his success. His best legacy is those retailers who copied and applied many of his innovative concepts.
There is no reason to believe his customer service policy with some modification could not work today. The modification is that sometimes customers are wrong and it denigrates staff if the staff perspective is not considered.
We shopped at the original Stew Leonard’s while living down the street. It was the only grocery store that the kids wanted to go to, even when we didn’t need to. The trip was always concluded with an ice cream cone. While the selection was slim, it was basic–and the prices were the best by far.
Stew’s legacy will always be: “Rule 1: The customer is always right. Rule 2: If the customer is ever wrong, reread Rule 1.” Too many operators today haven’t read Rule 1.
I remember touring Stew Leonard’s original location in the late ’70s. The chairman of the c-store company I worked for had arranged for us to tour the store and meet Mr. Leonard. We were developing a headquarters in a structure that had a silo on the side facing Route 91. West. Based on that visit we incorporated windows so customers could see into our dairy plant. I remember asking Mr. Leonard why he didn’t sell cigarettes. He said cigarettes are bad for you. it took me several years before I took his advice.
I must confess a fondness for Stew Sr. He once sent me a letter letting me know that, even though he was still incarcerated, he regularly read my articles. People will credit him with a lot of things, but to me his major contributions were a relentless commitment to the customer, really demonstrating the power of authentic differentiation, practicing fearless retailing that — very profitably — flew in the face of institutional wisdom, and conclusively proving that inventory did not have to be exhaustive to be attractive to shoppers. The rest of it — the animatronics, the big rock, the tour buses, the shopping bag photos from all over the world, etc., wouldn’t have happened unless Stew hadn’t dared to be different in an industry that prizes conformity and measures risk in increments. He was a rebel, and a damn good one at that. I hope he will be remembered for that more than the talking cows.
Having grown up in grocery retail, Stew Leonard’s was/is the gold standard in product innovation, store theater, store flow and exceptional customer service. You see a lot of these elements being adopted by other grocery retailers which means that Stew Leonard’s must be doing something right.
I’m sad to hear the news about Stew Leonard. I met Mr. Leonard several times when we were hired to speak at the same events. He was an early adopter of experiential retail. I loved his customer-focused attitude and the two rules that were etched into a stone in front of his store:
Rule #1 — The Customer is Always Right
Rule #2 — If the Customer is Ever Wrong, Re-Read Rule #1.
I have my take on “The Customer Is Always Right” saying, but making it the cornerstone (no pun intended) of the store’s philosophy sets the tone for what’s expected for both employees and customers.
Another icon in the retail world is smiling at us from above.
Stew was someone who did things differently. You only had to walk into one of his stores to see this. All of the basics of grocery retailing were adhered to, but on top of that he added a generous sprinkling of magic that customers loved. Going to a Stew Leonard’s is an experience — and this was implemented by Stew long before “experiential retail” became a buzzword. He leaves many legacies, but one of them is the idea that retail should not be bland or boring!
We had heard over and over about Stu Leonard’s so one day we drove two+ hours to see it. It was everything the hype claimed it was. Entertaining, sure, but it also featured a voluminous assortment of products. But if you want proof that providing a great user experience in groceries can work in other markets look at Jungle Jim’s International Market in Fairfield, Ohio. Supplements, cigars, food and spices from around the world (and organized as such), beer & wine, even a cooking school. Here is the website: https://junglejims.com/
I’ve written a few articles about Stew Leonard’s during my career, including a long profile titled “Why be Like Everyone Else?” about 10 years ago. Stew’s also topped my “25 Stores to See Before you Die” list published about six years ago. The company was always great to work with and extremely fun to research. As others have mentioned, there were the legal issues that slightly impacted Stew Sr.’s legacy, but it hasn’t tarnished the company’s reputation at all. When I start the Supermarket Hall of Fame, he’ll be an inaugural member.
I’m not sure whether I’m just having a cynical Monday, or those polled had a collective bout of nostalgia, but I’m having a hard time imagining this succeeding today (actually it’s kind of hard to think it ever succeeded…I’d love to see the financials).
We’ve seen here on RW over the years a number of these one-of-kind retailers, and while the world was no doubt a better place for their existence, the phrase suggests limitations in what they can “teach us”; except, of course, for “give people what they want”…which is always the most important lesson.
Mr Leonard had a store at the right place (in/out of the NW suburbs of NYC on the interstates), right time (the shift outward), and some great ideas to making the store a destination. All of which attracted Tom Peters and other thought leaders to extoll the future of retail… well maybe not. We will never know since his “minor financial indiscretion” of shipping at least $17 million of unaccounted cash in suitcases to St Martins resulted in a stay in federal penitentiary (44 months) with a fine of $900k. (details worth a read here: https://law.justia.com/cases/federal/appellate-courts/F3/37/32/509304/) Local retailers passed the company by at speed for shopper engagement and experience if not entertainment. It could of been a great company.
Stew Leonard’s definitely gave other independent grocers more confidence in taking risks when it came to merchandising, branding, and having fun.
Maybe his most important and lasting contribution is showing everyone what it takes to be customer-centric, always seeing things from the shoppers vantage point.
In the late 90’s as part of my orientation trip to Daymon Worldwide, we toured the local store and several leading retailers in the area. I agree with many of the contributors that spoke about entertainment at retail as a legacy. I would also add that Stew Leonard’s achieved a premium feel at a fair price because most of its items were their own brands. They were perhaps the most successful grocer ( along with Trader Joe’s) to elevate the private brands and be less reliant on national brands to drive traffic.
Mr. Leonard will be remembered for making shopping for food fun! As to his customer service legacy, as long as you don’t let your customers “take advantage” of the fact that you think they are always right, his legacy for customer service will remain legendary.