2021 URM 100th Anniversary

In this special section, The Shelby Report celebrates the 100th anniversary of Washington-based URM, one of the largest privately owned companies in the Pacific Northwest.

From its humble beginnings in 1921, the company has grown to include more than 120 member-owners, representing hundreds of grocery stores.

URM is proud of the close relationship with its member-owners, partnering in areas ranging from customer service and retail sales and services to procurement, accounting, insurance and information technology.

In the pages that follow, we explore these successful relationships and the company’s rich tradition, culture and history.

100 years of URM, a successful and vibrant, privately held cooperative Shareholders, employees, vendors hailed for hard work

In 1921, a group of retail grocers founded a wholesale cooperative called United Retail Merchants, which later became known as URM Stores Inc.

URM today is among the largest privately owned companies in the Pacific Northwest –and one of the top 10 privately owned employers in Washington state – with annual revenue of more than $1.4 billion from wholesale and retail operations.

Service is provided to 126 member-owners, representing 236 grocery stores, including 28 company-owned stores, as well as more than 1,000 restaurants, convenience stores and other institutional customers. Despite the trend toward consolidation in the food industry, URM remains independent and locally owned.

“Enjoying 100 years as a successful and growing company serving its member-owners is an accomplishment worth celebrating,” CEO Ray Sprinkle wrote in the company’s centennial celebration. “On Feb. 4, 1921, five independent grocery store owners met to form a corporation, United Retail Merchant Stores that would later become URM Stores Inc.

“Each retailer put up $500, so the company began with $2,500 worth of capital investment. Adjusted for inflation, that is equivalent to about $36,000 today. By joining forces to form the cooperative, these five grocers intended to fight the ‘corporate chains’ by increasing their buying power – the very premise that we operate under today.

“We celebrate the 100th anniversary of our company to recognize the vision and hard work of four generations, who built one of the largest privately owned companies in the Pacific Northwest, and to reaffirm our present-day commitment to the same mission and devoted focus, assuring our future success.

“During this centennial celebration, we want to recognize our shareholders, employees and vendors, past and present. After all, it is through their dedication and hard work that URM is what it is today – a successful and vibrant, privately held cooperative.”

Sprinkle has seen many changes while leading the company, from the consolidation of the cooperatives across the country, to the recent labor shortages throughout the supply chain. Still, URM continues to develop and expand its technology at notable speeds.

Sprinkle told The Shelby Report that the implementation of their ERP system to keep retail and URM viable is the first goal that comes to mind.

“I’m extremely proud of the entire organization, as the last three years we have experienced double-digit growth that has touched every department within the company,” Sprinkle said. “We have found a way to take on new customers with minimal impact on our legacy customers.”

– Eric Pereira with The Shelby Report contributed to this article.

Through the years

1921: URM Stores Inc. began when five retailers banded together to form the corporation under the laws of the state of Washington.

1950s and 1960s: URM started operating a group of small regional distribution centers called Cash & Carry Stores.

1959: URM Development Corp. was established as a finance company to assist member-owners in obtaining the capital required to grow their businesses.

1960: URM moved into its present Spokane location at N. 7511 Freya, constructing a 333,000 square-foot warehouse and office.

1968: The Western Family trademark was introduced, representing a complete line of exclusive brands.

1975: A warehouse expansion was completed, bringing it to 483,000 square feet. The warehouse includes truck service and repair facilities built during this expansion.

1976: URM established its Foodservice/Convenience Store Departments.

1979: URM Insurance Agency was established to provide low-cost business insurance coverage tailored to the needs of the grocery industry.

1984: URM formed a real estate holding company called R.S.M. Inc., which acquires and leases supermarket properties to member-owners. URM purchased Rosauers Supermarkets from its founders, Mert and Jessie Rosauer. The present URM corporate office facility was built.

1986: URM purchased Peirone Produce Co., which supplies URM member-owners the freshest produce in the market.

1990: URM sold its interest in Rosauers Supermarkets to the Rosauers employees under an employee stock ownership plan.

1999: URM formed Premier Brokerage Co. to assist member-owners in complex real estate transactions.

2000: URM successfully bid against competitors and was able to reacquire Rosauers Supermarkets, which today is a wholly owned subsidiary of URM Stores.

2015: Another warehouse expansion was completed, bringing the total square footage to about 685,000.

– Courtesy of URM

Super 1 Foods Inc.

Ron McIntire, owner/president and longtime URM board member

16 stores across Idaho and Montana

How long have you been a memberowner of URM Stores?

50 years

What do you enjoy the most about working with URM Stores?

URM has all the people we need to help us be successful. They have all it takes from ground up build to opening, planning, advertising and all.

Share an example(s) of when URM Stores proved to be of great help to your store?

The store development department takes care of equipment orders and stays with us till it’s installed, then also helps with shelf allocations and opening orders.

What do you think separates URM Stores from other wholesalers?

As a co-op we are able to receive purchase rebates that really boost our profits!

What are you looking forward to in your partnership with URM Stores? We are planning to build more stores, and they are there to help us.

Does your store carry the Food Club private-label brand and, if so, what has the shopper response been to these items? We carry a full line of the Food Club brand and they are great quality, and we have had really good response from our customers.

At a glance

The following tenets continue to guide URM:

◆ Find, retain and engage the highest caliber employees, encouraging their contribution and development, to ensure growth and profitability.

◆ Leverage the strength of the cooperative model and its consolidated synergies.

◆ Increase their member-owners’ market share and profitability.

◆ Rapidly respond to the needs of our retailers.

◆ Remain fiscally responsible across every endeavor.

Circa 1908: The Manito Grocery

1926: Headquarters, Pacific Avenue

1951: Headquarters, Jackson

approach keeps member-owners

by Eric Pereira / content creator

When Jon Roman, VP of retail sales and market development, started working at URM Stores 29 years ago, current CEO Ray Sprinkle’s predecessor made something abundantly clear.

“Dean Sonnenberg, who had just become a VP at the time, hired me,” Roman explained. “Early on he told me, ‘If a member-owners calls looking for me, come and find me, even if I am in a meeting. They take precedent over anything I am doing’, the core of that really has not changed.

“When you call our customer service department, you talk to a person that is sitting about 10 feet from the transportation department and will do everything they can to solve your problem or help you. When you call, text or e-mail one of our employees, you get a response.

It took me awhile to realize that is not how all other companies operate, it is the only world I have known…that’s how we roll.”

said. “Each of our member owners are unique to their market; our job is to understand their needs and help them grow and be successful.”

When asked what separates URM Stores from other wholesalers and retailers, Roman’s short answer was “we care.”

“From our buyers, who take their service level very seriously, to our drivers who have a 99 percent on time delivery (within a 30-minute window), we care and want to do our best,” he said. “Our jobs only exist because we have stores that are successful, our job is to support their endeavors and help them grow and be successful.”

Roman noted that URM has added about 60 stores in the last three and a half years.

“My folks have worked with them from the first day they joined our co-op, helping them understand ordering, delivery and our programs. That has created a special bond. I like to think we are all a family,” he said. “We treat our customers like we treat one another, we support, respect and help each other, hopefully having a little fun along the way.”

Jeffry Philipps is the retiring CEO of Rosauers Supermarkets, one of URM’s subsidiaries. He commented on the company operating under a philosophy of “memberowners first.”

URM is a retailer-owned business. This means the shareholders are all retail grocers who are customers of URM, as well as its member-owners. This dual relationship forges a tight bond. URM is committed to partnering with memberowners in many areas, including: customer service; retail sales and services; procurement; accounting; insurance; store development; advertising; and information technology.

“My goal – and the goal of the people that work in my department – is not necessarily to increase our sales, it is to help our members increase their sales and profits,” Roman

Roman added that their customers all have different needs, for which URM will work to get the solutions.

“I guess it is human nature, but we all seem to gravitate to who we like, to get our questions answered,” he said. “All employees at URM work in customers service. If you call, they may not have the answer, but they will find someone who can get it for you.

“Like many of my co-workers, I have been fortunate to have worked with several generations of member owners, watching them grow sales, build or buy new stores. It is very rewarding to be part of their success.”

Town and Country Markets

Bill Weymer, president and CEO

Store locations throughout the greater Seattle/Kitsap County area

How long have you been a member-owner of URM Stores?

Several years

Describe that relationship.

We joined URM after our previous wholesaler could not be reliable any longer.

What do you enjoy the most about working with URM Stores?

“There have been a number of operating changes, internal efficiencies and expansion decisions that have solidified URM’s pledge to return more patronage dollars to the pockets of its members,” Philipps said. “Profits from fully owned subsidiaries are now distributed to members and practices like fuel hedging have created significant cost savings.

“Warehouse efficiencies have reduced costs. Expansion has allowed us to leverage fixed expense, and new investments in technology will set the stage for additional decision making and retail customer engagement. URM continues to look forward.”

URM is a high-quality service organization that is reliable and follows through on their promises.

Share an example(s) of when URM Stores proved to be of great help to your store?

When our existing wholesaler was unable to reliably supply product, URM immediately stepped in and fulfilled our product needs with consistently high service levels.

What do you think separates URM Stores from other wholesalers? There is a different level of service when you work with a cooperative versus a public or privately owned wholesaler. They truly treat us like owners.

What are you looking forward to in your partnership with URM Stores? Continued reliable service and to meet our product selection needs as things change. Reliable supply for independent grocers will be essential for our long-term success.

Does your store carry the Food Club private-label brand and, if so, what has the shopper response been to these items? Yes, and they sell well.

‘We care’

coming first Company finds it ‘rewarding to be part of their success’

Jon Roman

Hank’s Harvest Foods

Hank and Judy Konrad, owners Twisp, Washington

How long have you been a member-owner of URM Stores?

Judy and I have been an member-owner for over 45 years now.

Describe that relationship.

During that time, we have often felt welcome, supported, and as though our input was valued.

What do you enjoy most about working with URM Stores?

URM has been here for us through thick and thin.

Share an example(s) of when URM Stores proved to be of great help to your store?

One example of that would be their support during our devasting fire disasters. They have stepped forward and helped without question supplying us with product that was desperately needed. The entire community was able to benefit from URM’s speedy response and willingness to work with us

What do you think separates URM Stores from other wholesalers?

One thing that truly separates URM from other wholesales is that we are memberowners, not just customers. We are all in this together.

What are you looking forward to in your partnership with URM Stores?

Judy and I are looking forward to the continuation of mutual respect that is so important in this world today.

Does your store carry the Food Club private-label brand and, if so, what has the shopper response been to these items?

We currently carry the Food Club exclusive brands in our store and feel the product is good quality. Our shoppers were slow at first to warm up to them, as is to be expected with any new item, but they are on board now. Some of the labels were not as eye catching as name brand ones, but the product has proved itself in quality.

Kirby Co

Owners: David Kirby, Dave Coulter and Brian Brame. Responses provided by Kirby. Seven locations across Oregon and Washington

How long have you been a member-owner of URM Stores?

We joined in 2013.

Describe that relationship.

I consider URM to be our partner. They provide the basic needs within our four walls. They do it efficiently, on time, and with consistency.

What do you enjoy most about working with URM Stores?

I said they are our partners, yet their culture makes it clear that “they” work for the “store” owners. They work for many owners, and yet bend over backwards to assist each of us.

Share an example(s) of when URM Stores proved to be of great help to your store? Store development and store planning. They have worked closely with us through several store remodels and upgrades. Accounting, we utilize their accounting department to track quarterly profit and loss statements, and we utilize them for store payroll.

This past year was challenging to say the least. URM did a fabulous job of securing commodities that were tough secure during the pandemic. We had merchandise on our shelves.

What do you think separates URM Stores from other wholesalers?

I absolutely love the co-op business model. URM works tirelessly to keep expenses down and rebates up. Where other suppliers pass their profits onto their shareholders, URM passes its profits onto its shareholders – the store owners.

What are you looking forward to in your partnership with URM Stores?

Continued success and growth.

Does your store carry the Food Club private-label brand and, if so, what has the shopper response been to these items?

I was very apprehensive when we learned of the demise of our long-carried exclusive brand, Western Family. In most respects, I think we have upgraded our exclusive brands position.

The diversity of the label lines, Food Club, TopCare, Simply Done, Crav’n, etc., have focused in on different categories within the store. These lines have given our customers comparable quality products at a lower cost. Our margins have also improved while providing even more value to our customers.

Lep-re-kon Harvest Foods

Joe Montemayor, president

Locations: Connell, Mattawa, Moses Lake, Othello, Prosser and Zillah, all in Washington

How long have you been a member-owner of URM Stores?

Since the early 1980s.

Describe that relationship.

Very personable. There are many departments throughout URM yet they all make you feel as if you’re their only customer.

What do you enjoy most about working with URM Stores?

They are great to work with and are always very responsive to our needs. We have never felt alone when dealing with issues or problems that have arised.

Share an example(s) of when URM Stores proved to be of great help to your store? They have continually helped us in the development/construction of new stores and growth in our company. The most recent example is our store that we opened in September 2020 in Prosser, WA.

What do you think separates URM Stores from other wholesalers?

I don’t know. Never once have felt the need to search for a different wholesaler.

What are you looking forward to in your partnership with URM Stores?

The same great service they have always provided.

Does your store carry the Food Club private-label brand and, if so, what has the shopper response been to these items?

We do carry Food Club. Customers have adapted well from the transition of Western Family to Food Club. Food Club has a lot of great products.

Rosauers salutes Philipps, welcomes Rigsbee

Outgoing CEO has steered growth, helped build culture

by Eric Pereira / content creator

As retiring CEO Jeffry Philipps reflects on his successful tenure at Rosauers Supermarkets, he’s proud to see how much his team has accomplished.

“When he joined the company, he faced underperforming stores, stores needing updated and morale issues,” said URM Stores CEO Ray Sprinkle. “During his 21-year tenure, sales have grown almost 65 percent.”

Sprinkle added that the company has grown through acquisitions, remodels, store construction and new merchandising concepts.

Rosauers, headquartered in Spokane, operates 22 stores in the Washington, Montana, Idaho and Oregon. It is a wholly-owned subsidiary of URM Stores.

“We’ve grown sales to over half a billion [dollars] while meeting or exceeding profitability goals,” said Philipps, a 49-year veteran of the industry has been at the helm of Rosauers since 2000.

“We have remodeled all stores and expanded into new markets, adding five new stores and three fuel centers. We’ve added social media marketing and an online presence and implemented numerous new marketing promotions.

“I’m also proud of the culture we’ve built that values our vendor relationships, recognizes employees and their contributions, creates a great work and shopping environment and honors our commitment to invest in the communities we serve.”

Philipps, whose retirement will be effective Aug. 13, has seen a constant supportive and mutually respectful relationship between URM as a wholesaler and Rosauers as a retailer.

“That has allowed for a good flow of feedback and a better understanding of the separate challenges that impact us as a total company,” he said. “Operating autonomously, but collaboratively has created a better understanding of the bigger challenges we face as an organization and allowed for better enterprise-wide decision making.”

Philipps sees the company in safe hands with incoming CEO Cliff Rigsbee, who comes from the Hawaiian Springs water company, where he was the CEO and chief marketing officer.

Rigsbee joined Hawaiian Springs after a 29-year career with the Albertsons Cos. He served most recently as the SVP of merchandising and marketing for the Northern California Division of Safeway.

“While there is a good, solid foundation and culture in place at Rosauers, a fresh perspective will stimulate new thinking to generate additional success,” Philipps said. “Our industry continues to shift with evolving customer demands and new technology solutions. Cliff is prepared to take on those and other challenges. And under his leadership, I’m confident the best days of the company are still to come.”

Rigsbee expressed gratitude for the opportunity and transition.

“Working with Jeff these past weeks have given me a glimpse of how Rosauers has been so successful the last two decades,” he said. “Not only through his business acumen and direction but through the sense of belonging he instills by knowing each of our 2,300 employees by name and truly caring for them and their families.

“While Jeff will truly be missed by the Rosauers organization, we are happy he will be able to take more time with his family while continuing to be a huge presence in the community.”

Jon Roman, VP of retail sales and market development at URM Stores, said he thinks “the world of Jeff.”

“I have the upmost respect for what he has built at Rosauers, his relationship with his employees is sacred, something that I have always admired and strived for in my own career,” he said. “I wish him nothing but the best in his retirement.”

Rigsbee marvels at what he described as the awesome depth of tenure and pride of the Rosauers team.

“That translates into a great atmosphere of doing what is right for our store team, our customers, and the communities we serve,” he said. “From our scratch bakery to our expansive natural foods selection in Huckleberry’s, Rosauers has always been committed to freshness and quality.”

Cliff Rigsbee

Jeff Philipps

Ray Sprinkle

Hilltop Red Apple Market

Leonard Rose, owner and managing member

Seattle, Washington

How long have you been a member-owner of URM Stores?

We have been a member-owner of URM since July 2020. We originally joined the co-op in September 2018 as we were having supply issues with our then wholesaler. The URM staff led by Jon Roman was attentive to our needs and we learned at that time what a value that relationship was.

After a six-month trial period, we opted to stay with the other retailer as we were not ready for the full transition that included re-tagging our store. A little over a year had past and we realized the value we had in being an owner member. We chose to make the change and with the help of the URM staff, we began the process. Describe that relationship.

Our current relationship with URM is utilization of them as our main supplier. They provide us all the commodities needed to operate our 20,000-square-foot grocery store. They keep us running efficiently with their timeliness of delivery and the open and honest communication of any shortfalls. This allows us to purchase from other suppliers if needed. We are able to schedule our employees to efficiently work the loads because their trucks arrive on time. This is very cost effective for us. We also have utilized them in the running of our back-end computer systems and pricing and are able to stay on top of much of this due to the great team they have in IT.

What do you enjoy most about working with URM Stores?

One of the best things about working with URM is their ability to provide for our needs. They are receptive to our requests and the needs of the independent grocer. They have people in the field calling on us regularly and are always available to answer questions. The departments they have can provide virtually anything that is needed by a retailer.

Share an example(s) of when URM Stores proved to be of great help to your store?

They were helpful during the pandemic and provided help to all of their members in the provisioning of needed products. We re-tagged the store during COVID and the team was here every day to ensure a successful transition.

After having a bad experience with a failing supplier, URM treated us well and patiently. They have been available to help out and have different departments to aid us in the day-to-day running of our store. They are involved and invested in our successes and as a co-op, meeting all of our needs.

What do you think separates URM Stores from other wholesalers?

I think what separates URM from other wholesalers is the success of the co-op comes from the success of their member owners. They truly believe that and ensure that we have the tools to be successful.

What are you looking forward to in your partnership with URM Stores?

We look forward to business expansion, growth in product lines and being current with the ever-changing marketplace.

Does your store carry the Food Club private-label brand and, if so, what has the shopper response been to these items?

The Food Club label has been met with positive response and we see it being comparable in sales to national brands. Customers seem to like the products and we have heard nothing negative to date.