Stew Leonard’s Dairy, a supermarket in Seattle, WA., was founded in 1921, by Stew’s father. It began as a dairy. Today, a supermarket, it has weekly turnover of more than $1.5 m., or $80 m. yearly! (The average supermarket turns over $200,000 weekly, about a tenth!). How does Stew boost business by an order of magnitude? By ‘listening to the voice of the customer’ and innovating accordingly.

Most supermarkets have a bewildering array of 16,000 items. Stew has only 750. But his secret? “Nobody comes into this store saying, what can I do today for Stew Leonard! They say, what can Stew Leonard do for me?  And if I don’t…they won’t come back. And they’re right”. Stew is on the floor constantly, every day. His work is his passion. He works his customers like a politician, asking them what they like, what they don’t like, what should be changed. 

Take, for instance, a small example – strawberries. Nearly all supermarkets sell strawberries in small baskets. Stew breaks the rules – the first principle of innovation. His strawberries are loose, in a big pile, and customers choose their own.  They end up buying a lot more that way, Stew says, fillings bags full, but mostly – that’s what they want. And we did what they want. 

This simple principle of business has brought Stew to make 24 additions to the original dairy store. 

He has Disney-like figures, in cow costumes, romping on the floor, entertaining children and adults alike. Who says supermarkets can’t be fun? Stew asks. 

“We want to make every customer feel special,” he says. He assembles focus groups weekly, to listen to what they say.  Members of the panels give their time, because they are, like Stew, passionate about the store.   

Stew offers low prices, because he buys direct from growers and producers. He offers low prices because he limits the range of what he sells. And he offers clear simple displays, to make shopping easy and fast.  

Great innovators are always focused on their customers. You can find great innovation everywhere – even in a supermarket. 

* based on the video “In Pursuit of Excellence”