Supermarket conglomerate Heritage Grocers Group blazes path to success using dedicated fiber connectivity

Customer Spotlight

The supermarket industry is super-challenging. The average profit margin is estimated at 1% to 3%, leaving retail entrepreneurs little room for error.

At Heritage Grocers Group, innovation has been at the heart of their success, particularly around technology. From faster-moving self-checkout lines to more precise inventory tracking to facilitating shopping via mobile devices, this retail conglomerate is committed to changing how the grocery business operates.

“We see ourselves as a differentiator in our market on leveraging technology,” says Prabash Coswatte, Chief Operating Officer, Heritage Grocers Group. “Specifically having Spectrum Enterprise fiber connectivity in place is key for us. It’s not a secret sauce. It’s something that can help us move forward.”

Heritage Grocers Group comprises three distinct supermarket chains which operate in different sections of the country: Cardenas Markets in California, Arizona and Nevada; El Rancho Supermercado in Texas; and Tony’s Fresh Market in Illinois. Every one of the 115 stores under their umbrella utilizes Spectrum Enterprise connectivity. This ensures robust bandwidth is available at each location 24/7/365, backed by a service-level agreement.

With this connectivity, the stores fulfill the diverse expectations of each chain’s unique customer base. Constant supplies of fresh produce from around the world are shipped in and then stocked on shelves in a manner that efficiently tracks inventory. Purchasing data is tracked, alerting store managers of the need to restock while better capturing buying behavior.

“Uptime is critical for our store operators,” Coswatte says. “That means having a network that is always up and running.”

The stores have been further modernized with customer-facing conveniences. There are kiosks in stores for wiring money to family and friends, as well as kitchens where meals are prepared for sit-down meals. Third-party delivery services are available to dispatch goods to customers shopping from home.

The results not only satisfy consumers, but please employees, too. Many tasks that once required long hours of legwork and poring over receipts are now accomplished with the tap of a button.

Coswatte is pleased with the results of fiber connectivity for Heritage Grocers Group, not just with customer engagement but also maintaining high rates of job satisfaction. The grocery business is being challenged nationwide by worker shortages, he says, and needs to step up its retention rates to realize the best value from its people.

“Technology makes work easier for employees,” he explains. “If we can also help them work more efficiently, then it’s both a happier place for them to work and more productive, too.”

Just as important to Heritage Grocers Group in a macro sense is scalability, the ability to quickly extend their business by acquiring new locations. This is a core element of the aggressive expansion model they have been pursuing for the last three years, which Coswatte expects to continue well into the future.

To maintain centralized control of their growing number of stores, and adjust bandwidth deployments to individual locations as needed, each of the three chains under Heritage Grocers Group operates its own Managed Network Edge platform. This gives them operational independence to manage individual chains as unique entities, while maintaining cohesion among their groups of stores.

Coswatte sees fiber connectivity integrated under a managed network as vital to realizing both immediate and long-term objectives. He calls Managed Network Edge “one pane of glass that’s always easy to operate.” He is pleased by its many features, including a Cisco Meraki managed firewall that secures network operations from cyberattack.

“Today I don’t need to worry about the latest vulnerability,” he says. “I can rely on Spectrum Enterprise to provide that assurance for me and the company.” Another concern of his which has been alleviated is individual store operators setting up their own configurations. Managed Network Edge creates a single, centralized firewall for the entire network.

In addition to facilitating the installation of over 100 fiber circuits, Spectrum Enterprise set up Wireless Internet service for Heritage Grocers Group, to backup and augment existing connectivity as needed to specific locations.

Supermarkets continue to be challenged to do more while simultaneously reining in costs. For this reason, Coswatte sees bandwidth demand only growing in years to come. Heritage Grocers Group also has a mission to redefine the grocery business around more personalized service and convenience. Having a network that is always up and running is critical to this end. So is having a technology partner like Spectrum Enterprise who understands the needs of his business and is committed to its success.

“Our business is not technology,” Coswatte notes. “Technology is a layer that supports our success.”

Read the case study to find out more about our successful partnership with Heritage Grocers Group.