The Shelby Report of the Southwest salutes
2023 Southwest Retailer of the Year Company’s culture sparks further growth with recent acquisitions Harps Food Stores had “a bunch of irons in the fire in 2023,” according to Chairman and CEO Kim Eskew. Those “irons” are among the reasons the Springdale, Arkansas-based company has been named The Shelby Report of the Southwest’s 2023 Retailer of the Year. Harps added 34 net new locations and moved into two additional states through recent acquisitions. Eskew said about 40 stores were acquired, with some closed and others consolidated. “After the smoke cleared, we had 34 additional locations.” Harps has more than doubled in size since 2019, primarily through acquisitions. “I think every grocer knows that sometimes making the acquisition is the easy part,” Eskew said. “What you do once you’ve acquired the stores is the hard part. That’s bringing those folks into your culture and getting them to adopt that culture and to change their operation to conform to the way that you do business. And that’s hard.” In fiscal year 2023, Harps expanded its footprint into southwestern Mississippi and central Louisiana through an acquisition of The Markets locations at the end of 2022. It also acquired Beachler’s Hometown Market in Prague, Oklahoma, in March 2023, and Janise’s Supermarket in Sunset, Louisiana, in July 2023. Harps operates 147 stores in six states. It is the largest employee-owned company in Arkansas, with more than 7,200 associates. J. Max Van Hoose, president of Harps, said the acquisitions were an important step in the company’s growth. “Onboarding that group, new states, the strain on your team for having stores that far away in terms of getting everything up and going impacts everyone,” he said. “Kudos to our group for their efforts in that.” As Harps had acquired some stores prior to the most recent acquisitions, it had some experience of what to do to bring the new employees on board. “If you look at our leadership group, there’s people in that group that have been part of an acquisition … so we have that story,” Van Hoose said. “Not to say that it’s always super smooth.”
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David Ganoung, SVP and chief marketing officer for Harps, is very familiar with Harps’ growth through acquisition. He was part of one in 1995. He had been working for Bentonville, Arkansas-based Philips Food for Less when it was bought by Walmart at the time the retail giant was first getting into the grocery business. When Walmart achieved enough grocery volume that it was transitioning to supercenters, it sold the standalone Food for Less to Harps in 1995. “I’ve been here ever since. The crazy part is my original hire date. I started in ‘83 as a carry out with the Philips company. I’ve never left, but I’ve been bought and sold – like a side of beef,” Ganoung said with a laugh. He added that Harps has a “family feel” for its associates. However, maintaining that has been a challenge as the company has continued to grow. Van Hoose said it is a change in culture for the new employees and may be a change in operations. Customers also are affected. “It might take a little while for everybody to get on board. I would say that what has made it work is that historically, we have some experience with it, we have people that have gone through it. The other thing is that we are intentional. We come in and do some training meetings, do questions and answers,” he said, adding that the Harps HR team offers regular leadership training. “As part of that, you have people coming in and just introduce themselves and what [they] do, here’s the resources we have, please call me, we’re open book, we’re open door. Unfortunately, there’s not just a super recipe, and we have certainly tripped over ourselves occasionally. We just try to work on that.” Presenting a new challenge is the fact many of the recent acquisitions are eight-plus hours from the corporate office in Springdale. For those employees to feel they are a part of the Harps family “takes a lot of effort from a lot of people,” according to Eskew. During the acquisition process, he said Harps had nearly 100 team members traveling to those stores, working with the employees, “training, educating and hopefully building
relationships so that they felt connected to what seems like to them this huge company that they were now a part of.” These team members often spend months away from their families. “Everybody knows, this is what we have to do in order to grow the value of our company, and everybody wins … It’s a great team, great people,” Eskew said. “And really, I think a lot of our camaraderie grows when we just take this team of people some 500 miles away, and we’re working hard to bring this new group of people in our company.” Eskew said the only way to make them feel a part of the Harps family was to spend time with them. He and his wife, Karen, took a week every month for six months and spent time in those stores. Meetings were held with the management team, and Eskew spoke at each one. “We just went into every store and would spend time talking to employees, one by one,” he said. The goal was to get to know them and have them get to know him and other Harps team members. Eskew said they wanted their new employees to feel that joining Harps will be the best thing that’s ever happened to them. “Building trust is really important. That’s the only way we know how to do it, is you’ve got to really know us.” Eskew said sharing his story is a way to build that trust. “I started with Harps in 1977 at the lowest level, so I’ve been where they are. I always tell folks, you see me now and you think, well, I’m the CEO of this big company. And I said, but think of the poorest person you know today, from a small town in Northeast Arkansas. That was me. I was nobody. Nobody knew me. And I was just a student at the University of Arkansas, working a part-time job in a store in Springdale, Arkansas, because they had an ad in the newspaper that they were looking for somebody. And now I’m the chairman and CEO of that company. “And believe me, if I can do that, then the next chairman or a future chairman or CEO could be one of the people in this room. Because we’re that kind of a company. And I remember when I became CEO, and I was going around the stores for the first time after that, I would have people say, ‘We are so thrilled Please see page 16
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