Schnucks 75th Anniversary Special

Theof theShelby R eport Midwest January 2014

1939

2014

Anheuser-Busch Congratulates Schnucks on their 75th Anniversary!

From a True Mom and Pop...

...to an Iconic Midwest Grocery Company

A Shelby Report Special Section

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Schnucks - Gearing Up for 75 More Years of Serving Customers Schnucks was founded as a true “Mom and Pop” in 1939. Anna Donovan “Mom” Schnuck and her husband, Edwin “Pop” Schnuck, from Irish and German immigrant families, respectively, dreamed of building a future for their children Edward, Donald and Annette.

All three children and Annette’s husband Ray Hanhardt were involved in the business in the early days.

Now its third generation – Schnuck siblings Craig, Scott, Terry, Mark, Todd and Nancy (Diemer), all children of Don and Doris Schnuck, along with their cousin, Stephanie, daughter of Edward and Marilyn Schnuck – is running the company. Like the generations before them, they are born risk takers.

Edwin “Pop” and Anna “Mom” Schnuck

Featured on the previous page – Top photo: Anna (Mom) and Edwin (Pop) Schnuck with Edward, Donald and Annette. Lower photo: The children of Don and Doris Schnuck, with the exception of Stephanie, who is the daughter of Edward and Marilyn Schnuck.

Front, from left, Nancy, Stephanie and Terry; and back, from left, Todd, Scott, Craig and Mark.

I

f there is an innovation to be applied, an idea to be explored or a trail to be blazed, the leaders of family-owned grocery company Schnuck Markets Inc. can be counted on to be the ones to apply, explore or blaze.

The family, now in its third generation, includes siblings Craig, Scott, Terry, Mark, Todd and Nancy, and their cousin, Stephanie. Like the generations before them, they are born risk takers.

Schnucks was founded as a true “Mom and Pop” in 1939. Anna “Mom” Donovan Schnuck and her husband, Edwin “Pop” Schnuck, from Irish and German immigrant families, respectively, dreamed of

time during the Depression. Pop had a hard time getting a job. They even moved the family to Chicago for a couple of years, around 1932-34. When they returned to St. Louis, Pop took a job with Swift and Co. Swift had a small meat packing plant in St. Louis and a larger one in East St. Louis.”

Edwin was assistant plant manager in St. Louis. When Swift consolidated in 1937, he ventured out on his own, selling meat to small corner shops.

“Pop knew the route,” said Craig. “He was familiar with the properties. Their first store was 1,000 s.f.—just barely large enough for a meat counter and a cooler.”

The Mom & Pop begins with a commitment to customers and community With the support of family and friends, the 1940s brought innovation and creativity as Anna set about advertising their offerings. The business model grew around their basic philosophies of operating with integrity, dedication to selling quality foods at prices people could afford and a commitment to customers and community. Extending store credit was just one of the ways Schnucks helped families in lean times. The combination of all of these things helped to ensure their success.

In 1947, the family chain grew to be called “Schnuck 7.”

“Pop helped Ed, Dad and Ray Hanhardt (Annette’s husband) find and finance their stores,” said Scott, current chairman and CEO of the company. “The seven stores advertised together, but were run separately.”

Eventually, Ray Hanhardt separated from the group.

“Pop, Ed and Don sold off four stores and combined their remaining stores,

building the momentum that led to the company that exists today,” Scott said.

Health problems forced Pop to scale Please see page 42

Ed and Don Schnuck

The first Schnucks store at 3968 Labadie in north St. Louis measured about 1,000 s.f. Anna Donovan “Mom” Schnucks’s confectionery had a back room big enough for a meat cooler, meat racks and meat scale for Edwin H. “Pop” Schnuck’s wholesale meat business.

building a future for their children Edward, Donald and Annette.

When a cousin announced that a “for rent” sign had gone up on a corner confectionery in north St. Louis, Mo., Anna saw a way to make that dream come true.

“Getting us started in the grocery business was my grandmother’s wish, that and having a store with a meat counter in it,” said Craig Schnuck, the eldest of Don and Doris Schnuck’s six children. Craig served as chairman and CEO for 17 years (1989-2006). “All Pop wanted to do was ensure he had enough money to support his family. My grandparents had a tough

It was a risky move, but Craig said, “For Mom and Pop, having stores with their name on it and having their own business was a source of great pride.”

Today, Schnucks employs about 15,000 teammates in 100 combination food and drug stores averaging 60,000 s.f. in size across five states.

In 2014, the company is celebrating its 75th year of serving customers. Those seven and a half decades each birthed major initiatives that helped make Schnucks the company it is today.

Pop Schnuck’s knowledge of meats from his years with Swift & Co. and then as the proprietor of his own wholesale meat business was helpful in establishing Schnucks as “meat masters.” Joe Vehlewald, left, and Bud Beckerle were among Schnucks’ early meat cutters. Homemade pork sausage and innovative meat cuts such as park steaks were introduced by Schnucks.

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ing with my Dad to the construction site when there were still concrete floors and exposed pipes,” Scott said. “We walked the store together and I listened as he talked to the contracting foreman. My dad had fine attention to detail and could do quite an inspection. I don’t remember a lot of what was said, but I remember I was proud that this was our store.”

The family quickly followed Dellwood with a store in Overland, Mo. It was about this time that the company, under Ed’s leadership, developed a focus on perishables.

That “remains a significant part of our company’s culture,” Craig said.

The Schnucks expressed their commitment to service by offering free grocery delivery, a tradition that began in the early 1940s and continued until mid-1963 at the 4356 Manchester store (pictured). Don Schnuck was at the wheel of the delivery truck for his store at Geraldine and Harney, purchased in November 1945.

back in the mid-1950s.

“That is when Ed really became a leader in terms of what was happening in the company,” Scott said. “My grandfather was involved, but by the late 50s and 60s, Ed was running things. It was an enthusiastic period of ‘Go! Go!’ We obviously benefited from the growth of suburbs and the new store opportunities that resulted.”

In 1952, the company became Schnuck Markets Inc. Schnuck brothers Edward and Donald emerged as natural leaders who could creatively find ways to remodel and build fixtures for properties. Finally, in 1955, the first store they built from the ground up opened in Dellwood, Mo. “I remember, at about 5 years old, rid-

Schnucks iconic soldier makes his debut As families were struggling to make

Don Schnuck with wife Doris and children Craig, Scott, Terry, Mark, Todd and Nancy.

Congratulations 75 Anniversary From Your Friends at:

ends meet, Don and Ed brought value to the forefront in the 1960s, and that was not all. At Schnucks, the 1960s was an era of pink stamps. The interiors of the stores were pink as well. It was the décor color of the times.

It also was the time of the company’s most aggressive advertising, which featured the legendary Schnucks soldier (who stood for “revolutionary low prices”). Today, the Schnucks soldier is one of the most recognized advertising symbols in the St. Louis area.

Don and Ed, who worked together for more than 40 years, collaborated on an open letter to customers that was printed in the St. Louis Post-Dispatch in 1960.

The brothers pledged that their stores would always strive to be the “Friendliest Stores in Town,” a concept that rallied the entire Schnucks team.

“My dad and uncle Ed were pure enPlease see page 44

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trepreneurs through the whole era of the 1960s,” Craig said. “Together, dad and Ed were really able to seize an opportunity. “I can’t give more credit to one or the other. The Venture store partnership with the May Co. (two distinctly separate retail operations, grocery and apparel, under one roof) is a great example of how they were always willing to experiment and look at where food retailing might be heading.

“As the president from 1961-1970, Ed had 15-20 people reporting directly to him and that proved unmanageable as the company grew,” Craig said. “When Dad became president in 1970, he restructured to create a series of vice presidents and different levels. This helped us manage through a period of great growth.”

It was that organizational structure that allowed the family to take on the Bettendorf-Rapp acquisition, which otherwise might not have been so successful, Craig said.

In the summer of 1970, as Craig prepared for his last year of graduate school at Cornell University, he was called upon to do the physical assessment of the sizes and conditions of the Bettendorf-Rapp stores.

“We had to take all 25 stores as part of the deal and add them to the 17 we already had. Integrating them successfully was a huge undertaking for a company of our size,” Craig said. “We later closed five stores and ended up with the 20 we wanted in the first place.”

The company more than doubled in size overnight.

Later, Craig would count this as one the first major initiatives he and his father worked on together.

“This was truly a ‘bet the company’ acquisition and probably the most significant acquisition in the entire history of Schnucks,” Craig said. “Dad and Uncle Ed felt that you had to continuously expand or you shrink.

There is no status quo. Grow or die!”

Schnucks partners with Walgreens The 1970s also heralded the combination food and drug format, which at Schnucks began as a partnership with Walgreens. Ed Schnuck had transitioned the chairman’s spot to brother Donald, launching an amazing tradition of succession planning.

Craig was brought into the corporate office as a systems engineer and worked out of a six-person cubicle. A short time later, he created the format for the combination food and drug stores Schnucks operates today.

“Skaggs and Albertson and Jewel-Osco were among the first combo-store ventures,” he said. “I saw opportu-

Back, from left, Todd Schnuck, Craig Schnuck, Scott Schnuck; front, from left, Mark Schnuck, Nancy Schnuck Diemer and Terry Schnuck

concept that allowed us to expand to Cape Girardeau and into Evansville. Ind., the following year,” Craig said.

“They’ve been great markets for us for 36 and 37 years, respectively.”

Younger brother Scott said their father had “great con-

One generation nudges the next along Indeed, it seemed that Donald and Doris Schnuck had set a plan in motion for their six children. They were encouraged to attend college and work outside the company before returning to Schnucks.

It was no coincidence that they each studied varied disciplines that would help ensure that the company stayed on course once they were all on board.

Don never pushed his children, but Scott says it was clear he had a plan.

“It was like an invisible hand gently guiding you to the place in the company where you could build your strengths and make the greatest contribution,” Scott said. “Dad told us, ‘Prepare yourselves as if the business is not going to be there.’ That meant pursuing a graduate degree and taking a first job outside the company. He provided us with pretty incredible training and experiences along the way.”

Some of those experiences included Don bringing his then-teenage sons Craig and Scott along to meetings with the leaders of the Food Marketing Institute (FMI).

New players emerge in the 1980s

The 1976 grand opening of the first Schnucks-Walgreens drew about 250 people. Ribbon cutters included, from left, a Cape Girardeau councilman, Cape Girardeau Mayor Howard C. Tooke, Miss America Dorothy Benham, Store Manager Dick Arneson, Walgreens VP Dick Drews, Schnucks EVP Craig Schnuck, Schucks President Donald Schuck and other Cape Girardeau council members.

nity there and was able to convince Dad and Ed it was a rapidly growing and very viable concept that we should pursue.

“Our first combination food and drug store was in Cape Girardeau, Mo., followed by our Bellefontaine store in St. Louis,” Craig said. “It was the combination store

fidence in Craig and moved him along quickly.

“It was fun working together. He was my boss and partner, but always, most importantly, my brother,” Scott said. “Over the years, I always admired Craig for his vision, business acumen and high standards for achieving profitability.”

Craig was named president and COO in 1984 at age 36 (he became president and CEO five years later) and he and Scott worked together fending off growing competition.

“The competitive landscape was fierce in the 80s,” Scott said. “Schnucks and Kroger engaged in strong price competition, fighting for a tight market on consumer food spending as new competition from mass merchants, especially Walmart, began to emerge.”

Don, who at the time headed up the industry relations committee of the Food Marketing Institute (FMI), was watching a new player emerge. One of the issues he brought before the group was the need to keep the playing field level so that traditional grocers could compete fairly with rising warehouse formats.

“Dad challenged suppliers he thought were offering unfair advantages to the larger retailers,” Scott said.

“This is a battle we still fight today.”

Younger brother Todd, having worked in investment Please see page 46

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banking, entered the company as treasurer in 1987. Scott was working on the marketing and merchandising side of the business by now and had begun to champion the process known today as category management, or vendor and product specialization. That laid the foundation the company would build on years later for wall-to-wall consumer events featuring authentic products sourced globally.

Company seeks fair play, diversity in the 1990s The patriarch wanted the family to remain close. The Schnucks coined the name “6S” for monthly meetings they still hold today. (It became 7S once Ed’s daughter Stephanie joined).

There are no titles during these meetings. Each person enters only as a family member to discuss company goals in a way that would preserve that which Don held most sacred: family harmony.

Craig rose to chairman and CEO in 1991 and Scott became president and COO. “About the time that Craig was taking over as CEO, Dad started the meetings as a way to communicate as a family,” Scott said. “It was Dad’s way of making sure everyone had a voice.”

The Schnuck family, hungry for a new challenge, carefully and artfully crafted an agreement to buy National Foods, a division of Loblaw. But some feared that following the sale Schnucks would have a monopoly in St. Louis. In 1995, Craig testified

before the Federal Trade Commission, successfully making a case to include supercenters in market share calculations as he fought to hold onto all the stores.

In retrospect, Don’s and then Craig’s predictions that supercenters would one day compete head-to-head with traditional grocery operations have proven true. Following the National Foods acquisition, Schnucks had a net gain of 26 stores after divesting 24 stores. The company ended the decade with 92 stores.

With every acquisition, Schnucks became stronger as its talent pool grew in experience and in diversity. Internally, Schnucks was known as a “family company and a company of families.” Employees have al-

ways been a priority and Don and Ed were known for recruiting top talent. Craig continued their practice of hiring and training the best.

“I wanted to get different voices, a variety of voices, into the decision-making process,” Craig said. “We were a white male organization like every other company of the time. I tried to make us something other than that, and so I looked for every opportunity to bring women and people of color into our business.”

The next major acquisition came in 2002, and this was an opportunity for which the family had been anxiously waiting.

The Seessel’s chain of 12 stores and six fuels centers came up

Craig Schnuck, Scott Schnuck and Todd Schnuck.

Schnucks opened its first Iowa store in 2005.

for sale in the Mid-South. Once an agreement was reached, Schnucks closed on, cleaned and converted all stores in a record 52 hours.

Although the company developed a loyal core of customers, sales began to wane in the face of growing competition in all formats. Nine years later, Schnucks would sell the Mid-South stores and expand in Rockford, Ill., a market the company had entered in 1998.

A new century brings new challenges Having been unionized in the 1950s, Schnucks operates both union and non-union stores. In 2003, Schnucks faced its first major breakdown in relations with its associates, members of UFCW Local 655. Discussions fell off, triggering a 25-day work stoppage, one of the region’s largest on record. The grocery strike also affected Dierbergs and Shop & Save. When it ended, both sides were satisfied. Union workers would continue to have “first-dollar” healthcare coverage (no deductibles), and the grocery companies had a new contract that didn’t cost any more than an earlier offer would have.

Schnucks then settled into a

period of stability with an eye toward growth and continuous improvement. Craig led the charge in the early 2000s as costs were cut and waste was eliminated in order to generate funds to pursue greater goals in customer service.

In 2006, Craig announced that after 17 years as CEO, he was turning the reins over to Scott.

It was a surprise, but those who had been with Schnucks the longest understood it was just the “Schnucks way” of ensuring the company kept moving forward.

Craig outlined in detail the succession plan that would unfold as Scott transitioned into his new position as chairman and CEO, and Todd to president and COO. The new chairman turned his focus on developing food expertise companywide. Scott challenged teammates (as they were now called) to continue learning all they could about the products they sold so that they could better serve customers. His mission was to create food experts in every area of the company, to turn wine enthusiasts into certified wine experts, cooks into chefs and florists into certified designers.

In 2009, Schnucks launched two innovative and vastly different store prototypes. The first was a 21,000-s.f. urban store in downtown St. Louis City and the second a 74,000-s.f. store in the St. Louis suburb of Des Peres. Both stores have approximately 5,000 s.f. on the mezzanine levels.

“The Culinaria and Des Peres concepts were created to be very different from those first stores in Dellwood and Overland,” Scott said. “And yet, they have a lot of the same elements that Dad was striving for when we walked that first construction site back in 1955.”

Not their grandparents’ grocery company anymore Under Scott’s leadership, the entire Schnucks team began a journey of reinvention in 2009.

Please see page 53

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FIRST GENERATION

–1960 Schnucks’ first Teamster of Local 688 works on the dock checking orders to ensure proper filling.

–1939 Edwin (Pop) and Anna (Mom) Schnuck open a corner confectionery at Warne and Labadie in north St. Louis.

It measures about 1,000 s.f. and has a back room big enough for a meat cooler, meat racks and a meat scale for Pop’s wholesale meat business.

1945

Pop Schnuck passes.

Ed Schnuck establishes his second store at 4147 W. Carter Ave. in north St. Louis in 1945 after leaving McDonnell Aircraft following the end of World War II.

–1940 The Schnucks convert their confectionery store into a self-service grocery store.

1951

SECOND GENERATION

1961–

The debut of the new 35,000-s.f. Gravois store is the biggest and best grand opening ever held in the city of St. Louis. Offering Schnucks’ first home center with drugs, cosmetics, records, toys, socks and party supplies, it also is equipped with Schnucks’ first floral department.

Schnucks runs a 12-page advertising insert in the St. Louis Post-Dispatch that includes a letter from Don and Ed emphasizing the home-owned nature of Schnucks. The same ad introduces customers to Schnucks’ slogan: “The Friendliest Stores in Town.”

–1943 Mom and Pop Schnucks’ son Edward (Ed) and his wife Bernice Meyer Schnuck open their fist store at the corner of Margaretta and Taylor.

–1945 Daughter Annette and husband Raymond Hanhardt take over Mom’s original store.

1963– Schnucks starts buying produce directly from California so customers have the option of buying fresh produce nearly every month of the year instead of just in the summer.

Ed Schnuck establishes his second store at 4147 W. Carter Ave. in north St. Louis in 1945 after leaving McDonnell Aircraft following the end of World War II.

Schnucks opens a 26,000-s.f. discount food store, Labor Discount, the day after closing its original flagship store on Manchester and Newstead.

Pop Schnuck purchases another store in north St. Louis near Walnut Park for his son Don, who soon will come home from the Navy.

1964– On Dec. 1, Schnucks opens its first two Food Town stores.

One is in Cool Valley and the other is in Sunset Hills.

–1946 Ed establishes two additional stores in north St. Louis at Carter and Harris and the other at Page Avenue and Temple.

In June, the company opens a 29,000-s.f. store in Crestwood.

Don comes home from the Navy and he and his wife Doris begin running the store Pop Schnuck bought for him.

1965– The company now has eight Schnucks stores and two Food Town stores.

1954

Pop Schnuck opens a 2,700-s.f. store, giving him the opportunity to move from the wholesale meat business into a bigger retail enterprise.

Anna (Mom) and Edwin (Pop) Schnuck visit the Dellwood store prior to its grand opening.

–1947 Schnucks opens another location, its seventh store in eight years. The family then begins advertising as the “Schnuck 7 Markets.”

1967– Schnucks opens its third Food Town store in the River Roads Shopping Center. Its fourth Food Town store opens at Cross Keys Shopping Center.

Schnucks opens its own warehouse under the name Schnuck Distributing Co. Inc. Schnucks opens its 28,000-s.f. Creve Coeur location, which is equipped with a restaurant.

–1948 Annette and Raymond Hanhardt sell the original Labadie and Warne store to focus more on their own larger store in north St. Louis.

Ed and Bernice sell their three stores as well. Ed goes to work with Pop Schnuck at the “big” Manchester location.

1968– Schnucks announces its discontinuation of trading stamps. One week later the company debuts its Schnucks soldier and “Revolutionary Low Prices” campaign in print, TV, radio, direct mail and billboards. The Schnucks soldier continues to be one of the most recognized corporate symbols in the St. Louis area.

1970 Schnucks celebrates the grand opening of its first Medi Mark The Family Pharmacy at the Hampton and Gravois store.

By the end of 1948, three stores remain: the 2,700-s.f. store owned by Pop and Ed Schnuck on Manchester; Don and Doris’ store at Geraldine and Harney in north St. Louis; and Annette and Ray Hanhardt’s north St. Louis store on Shreve.

There are three more Food Town store openings by the end of 1968. Schnucks now has seven Food Town Stores and nine Schnucks Supermarkets.

–1951 Pop, Ed and Don Schnuck join in a partnership to open their first jointly-owned store.

They open the Brentwood store with $1,800 cash on hand on June 18, 1951.

Schnucks opens new bakery at Bridgeton after outgrowing the Mrs. Alison’s Cookie Co. plant.

–1953 Pop, Ed and Don Schnuck incorporate as “Schnuck Giant Value Markets Inc.” out of concern that Schnucks was not a good commercial name for a grocery chain.

1970– Schnucks announces plans to open 12 new supermarkets in St. Louis and out-of-state areas over the next two years and to continue development of a 55-acre distribution complex in Bridgeton in north St. Louis County.

1971

–1954 As the number of customers grows, a 2,000-s.f. addition to the Brentwood store is needed.

Schnucks buys 25 Bettendorf-Rapp stores in St. Louis on Oct. 6, 1970. Ownership is effective Oct. 12, 1970, and the company more than doubles in size.

Remodeling of the Manchester store begins.

–1955 Schnucks opens two newly constructed stores under the Schnucks Giant Value Markets name: a 10,000-s.f. store at 9474 Lackland Rd. and a 17,000-s.f. store at Chambers Road and West Florissant in Dellwood, Mo. –Mid 1950s Local unions are formed and Schnucks becomes a union company.

–1957 Mom Schnuck passes.

–1958 Schnucks opens a 26,000-s.f. store at Florissant and Charbonier in north St. Louis County. It is the company’s biggest store to date. When opening this store, Schnucks drops its Schnuck Giant Value Markets name and becomes Schnucks.

–1959 Schnucks operates five stores and the number of associates employed by the company exceeds 200.

1969–

THIRD GENERATION 1970 Brothers Donald O. and Edward J. Schnuck lead the family’s acquisition of the Bettendorf-Rapp chain of stores.

1971– Schnucks becomes the first grocery retailer in the St. Louis area to provide unit pricing information to customers with new Tela-Price shelf tags.

Schnucks continues to grow outside St. Louis by opening Venture stores in Overland Park, Kan., Independence, Mo., and Peoria, Ill. The new Bridgeton center opens and includes a 170,000-s.f. grocery/GM warehouse and 1.74 million cubic foot refrigerated/frozen foods warehouse.

Craig Schnuck joins Schnucks full-time in June.

By the end of 1971, Schnucks has a total of 47 Schnucks, Food Town and Venture stores and employs more than 3,000 associates in six Midwestern cities.

1972– An electronic cash register is installed at the original Woods Mill store, and a second Medi Mark pharmacy opens.

UPC scannable barcodes are introduced.

1973–

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Schnucks now operates 13 stores under the Venture name: four in Kansas City, five in St. Louis, two in Metro East, one in Peoria and one in Springfield, Mo. –1974 Fire destroys the Hampton and Gravois store in St. Louis, but it will reopen in 1975.

Schnucks leases Kansas City Venture stores to other food operators.

–1975 Craig Schnuck is elected EVP.

1979

Scott Schnuck joins the company full-time as assistant sales manager.

–1976 Schnucks and Walgreens join forces in a partnership to open a store in Cape Girardeau.

1976

–1977 Schnucks opens the first of its own combination food and drug stores at Bellefontaine. The nearby Bissell Hills and Hathaway stores close.

Schnuck-Walgreens expands to Evansville, Ind., in November.

1983 Twenty-three soup and salad bars are installed in Schnucks stores.

–1979 Schnucks introduces the Nutri-Guide consumer information program to help customers identify fatmodified, calorie-controlled and sodium-restricted foods through color-coded shelf labels.

–1979 Ed Schnuck is honored with the St. Louis GlobeDemocrat’s Man of the Year award and then receives its Humanitarian Award in 1986. He was the only civic leader in St. Louis to ever receive both honors.

The company now has 52 supermarkets with four catalog showroom stores, a partnership with Walgreens, four super center stores and 5,400 associates.

Schnucks begins to close Show Case stores.

–1980 Three new super centers open, featuring the first installation of the UniCard check cashing approval system.

Training and development and personnel departments relocate to Manchester and Kingshighway in St. Louis, which also is home to a 43,000-s.f. frozen food warehouse.

Schnucks expands its Bridgeton warehouse from 170,000 s.f. to 288,000 s.f.

Schnucks becomes 100 percent owner of SchnuckWalgreens stores.

–1983 Schnucks opens a new 50,000-s.f. super center in the Harvester community. It features the company’s first soup and salad bar.

Schnucks expands into the Paducah and Bowling Green, Ky., markets Schnucks establishes new labels on more than 150 grocery items and soon will have more than 600 items.

–1984 Terry Schnuck joins Schnucks as chief legal counsel and secretary.

The company remodels 14 stores and extends hours at 11 stores to midnight.

Schnucks opens a super center in Fairview Heights, Ill., with the chain’s first video department and in-store bakery.

Company opens a store in O’Fallon, Mo., in April.

–1985 More than 100 Schnucks associates and managers work together to develop the company’s mission statement.

Mission Statement We are committed to excellence as an innovative retailer of quality foods, drugs, consumable products and services. We focus on providing value through quality, variety, service, competitive pricing and friendliness.

Our customers are our most important asset and must receive our total effort toward their satisfaction.

We must achieve profits above the industry average to maintain leadership and provide for future growth.

We shall employ and promote only the best people available, consistent with our organizational needs.

We expect all associates to be competent and customer oriented. We will identify and recognize superior performance and will promote from within whenever practical.

We will conduct our business by treating all customers, associates, suppliers and the community with honesty, fairness, respect and integrity.

Horizontal logo with gold drop and no gradation on red

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–1986 Schnucks buys eight of Kroger’s stores as Kroger exits the St. Louis market after 75 years.

Schnucks sells its Kansas City stores, but continues to grow in St. Louis and ends 1997 with 86 stores and more than 15,000 associates.

Schnucks introduces a Chef’s Express carryout department at its new Woods Mill store in Ballwin.

1998– Schnucks buys three Logli stores in Rockford, Ill. It maintains the Logli name.

–1987 Craig Schnuck recruits brother Todd to join company.

Schnucks opens its 90th store at City Plaza.

Edward J. Schnuck dies at age 71.

1999– The company opens Schnucks Express at Gravois in Affton. It offers the new electronic shelf tag technology that replaces paper labels.

Schnucks opens markets in southern Illinois and marks a milestone as for the first time it serves one million customers in a week.

In November, a new store opens in Peoria, Ill., introducing a new store format with more than 87,000 s.f.

–1988 Schnucks brings coupon printers to stores and places them in checkouts.

By end of year Schnucks has 92 stores and employs 17,000 associates.

The company opens its first freestanding video rental store at Mason and Olive.

2001– Schnucks establishes its food safety team with the hiring of Director of Food Safety Dianna Pasley, a former environmental health supervisor for Jefferson County, Mo.

1997

–1989 Schnucks opens Market-Grill at its Des Peres store.

Scott Schnuck, left, and Leonard Adewunmi of St. Louis Grocery Express deliver the first Schnucks Home Shopping Club order to the home of St. Louisan Robin Hubbard on June 18, 1997. Schnucks changed the name of its Internet shopping service from Schnucks Home Shopping Club to Schnucks Express Connection in 1998 to emphasize the time-saving benefits of shopping online.

The company announces plans to expand to central Illinois.

Self checkouts are first tested at the Dorsett store in St. Louis.

Schnucks also makes plans to build a new corporate office at Page and Lindbergh in St. Louis.

Schnucks earns recognition as “Company of the Year” by the United Food and Commercial Workers union.

Craig and Scott Schnuck become CEO and EVP, respectively.

2002–

Schnucks closes its Hampton Village and Beverly Hills stores in April.

Schnucks closes its Decatur, Ill., store.

The company opens a store in west Evansville. It is the third Indiana location Schnucks has opened.

Terry Schnuck resigns as secretary and general counsel to pursue a career in Broadway production.

2002

The company wraps up 1989 with 57 Schnucks locations, 31 of which are super centers. Schnucks now employs 12,000 associates.

In May, Schnucks expands into Wisconsin with the opening of the fifth Logli Supermarket in Janesville.

–1990 Schnucks opens stores in Bloomington and Champaign as well as four new stores in St. Louis.

Schnucks closes its 28,000-s.f. store in Highland, Ill. Schnucks teams with Jackie Joyner-Kersee to hold the first of many Get Fit With Five bridge runs across the Martin Luther King Jr. bridge.

The company moves into its new corporate offices.

Don Schnuck is honored as St. Louis’ Man of the Year.

Schnucks announces plans to build three new stores in the Mid-South division: Collierville, Stonebridge and a Germantown replacement in Tennessee.

–1991 Don Schnuck passes.

2003– President George W. Bush personally recognizes Schnucks Employment Supervisor Dezzie Houston for her efforts in the Missouri Mentoring Partnership.

Schnucks opens stores again in Kansas City.

–1992 The Schnucks-brand product line is expanded to 1,275 products.

The company opens four locations in Indiana and expands further in Kansas City.

–1993 A new 60,000-s.f. store in Ladue opens in a record 115 days.

2002 In June, Schnucks expands into Tennessee and Mississippi when the company acquires the 12-store Seessel’s division of supermarkets from Albertson’s Inc. of Boise, Idaho, creating the new Schnucks Mid-South division.

Schnucks closes its Riverdale store in Memphis.

Schnucks closes its Fenton, Mo., store.

After failing to reach an agreement with the landlord, Schnucks closes its Clayton, Mo. store. The store originally opened in 1953. Schnucks acquired it from Bettendorf-Rapp in 1970.

Schnucks’ Desoto, Mo., store is ravaged by a tornado and closes for 10 days.

–1994 DESCO (Don and Ed Schnuck Co.) is created. It provides development and contracting services. Mark Schnuck is named president.

Schnucks Mid-South division stores survive an outage that knocks out power at eight of 11 stores.

Schnucks, Dierbergs and Shop ‘n Save survive a 25-day work stoppage by the United Food and Commercial Workers Local 655.

–1995 Schnucks buys National Tea Co.’s grocery store operations. It is the largest supermarket acquisition of 1995. The company grows from 64 stores to 113.

2004– In January, Schnucks announces the building of its first Iowa store. It will be in Bettendorf (one of the Quad Cities) and open in early 2005.

Schnucks converts to computerized checkouts.

One-hour photos are added to 23 stores as well as cellular phone and pager branches.

Schnucks closes the Delmar/Kingshighway store in north St. Louis.

By end of year, the company employs 17,800 associates.

Schnucks opens its Lake Saint Louis, Mo., store.

–1996 Schnucks sells 23 stores to Family Co. of America, reducing the company to 90 stores with 16,505 associates.

Schnucks opens a store in Collierville, Tenn.

Loughborough and Florissant pharmacies receive certification from the American Diabetes Association.

Nancy Schnuck Diemer joins the company as director of community affairs.

Schnucks announces the closure of its East St. Louis, Ill., store, but an agreement eventually is reached in September 2005 to keep it open for the community.

Schnucks completes facility upgrades and equipment changes totaling $2.3 million at its new 88,000-s.f.

Nancy Ann Bakery Plant.

Schnucks opens its Stonebridge store in Memphis, Tenn.

The company begins upgrading its computers to prevent Y2K problems.

Schnucks opens a Germantown, Tenn., replacement store.

The company debuts www.schnucks.com.

–1997 Schnucks begins offering online shopping complete with delivery. It is the area’s first full-scope, Internetbased grocery shopping service.

Schnucks Mid-States Dairy receives top honors at both the Missouri and Illinois state fairs, including “Best of Show” at the Missouri fair for Schnucks Fat Free Cottage Cheese.

2005

2005– On May 24, the company opens Schnucks Bettendorf Marketplace, its first store in Iowa.

On April 5, Schnucks opens Schnucks Cottleville Marketplace, a more customer friendly and modernized variation of the company’s now famous Marketplace design. The 63,000-s.f. store features a brand new décor package.

Schnucks closes its last Station restaurant when the

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Collinsville store is remodeled.

Schnucks reaches a partnership with U.S. Bank that makes it the exclusive banking partner for Schnucks stores in the St. Louis area.

2007

Schnucks opens its Bridgeton, Mo., consolidation store (Carrollton and Breckenridge).

The company’s 63,000-s.f. Twin Oaks, Mo., replacement store opens featuring the first Kaldi’s Coffee inside a Schnucks as well as the first Sandwich Express made-to-order gourmet sandwich bar.

–2006 This is a year for leadership transitions. As of February, Scott is president and CEO, Todd is EVP and Craig is chairman of the executive committee.

On Nov. 6, Scott becomes chairman and CEO, Todd becomes president and Craig remains chairman of the executive committee.

A series of severe thunderstorms ravage the St. Louis area, knocking out power at many stores and the distribution center.

A seafood clerk at the Stonebridge store goes on a vicious rampage, stabbing several associates.

Schnucks launches its e-scrip community card.

Schnucks opens a Loughborough replacement store in St. Louis.

Schnucks opens its Westfall Plaza consolidation store in St. Louis (Dellwood and Jennings).

Schnucks partners with instaClinic for four in-store clinics at Mid Rivers in St. Peters, Mo., Butler Hill and Lindell in St. Louis and Alton, Ill.. The clinics are not successful and quickly close.

–2007 Schnucks begins offering Full Circle natural and organic private brands.

The Food Marketing Institute presents the Sidney R. Raab Award to Craig Schnuck. The honor recognizes his supermarket industry leadership in technology, industry relations, diversity and community service.

Schnucks establishes its Food Education and Culinary Arts department with the hiring of Director Kathy Gottsacker.

Schnucks holds its first Produce University session.

The company opens stores in Normal, Savoy and DeKalb, Ill. Schnucks introduces reusable bags.

Schnucks stores launch the first “Paint the Stores Pink” event in honor of October as National Breast Cancer Awareness Month.

Schnucks launches the Schnucks Cooks and Meal Creations concepts.

–2008 The Schnuck family is recognized by the St. Louis Regional Commerce and Growth Associates with the “Right Arm of St. Louis” award for outstanding community leadership.

A replacement store opens in Waterloo.

A fire closes the company’s Washington, Mo., store for two weeks.

Schnucks opens two new restaurant style concepts at the remodeled Woods Mill store.

Schnucks Pharmacies launch 30-day generic prescriptions for $4 and 90-day generics for $10.

Schnucks acquires stores in O’Fallon, Mo., and Bethalto, Ill., from the Homer Group, bringing the total number of Metro East stores to 14.

Schnucks opens a Newburgh, Ind., replacement store.

–2009 Schnucks receives the prestigious Black Pearl Award for food safety from the International Association for Food Protection.

EyeSite kiosks are placed in 30 St. Louis-area Schnucks stores.

–2010 The Schnuck family receives the “Citizen of the Year Award,” which is sponsored by the St. Louis PostDispatch. It is the first time the award has been given to a family.

Schnucks Pharmacies now offer free prenatal vitamins.

–2011 Schnucks launches its Peace of Mind Quality campaign highlighting the quality of products offered by Schnucks. This marks the company’s entry into social media, which includes the Qualityville game.

On July 28, the Sangamon store has to close its doors

2007 2007 Schnucks launches the “10,000 Lower Prices” campaign.

Schnucks Pharmacies launch a free prescription antibiotic program.

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because of asbestos discovered in floor tile glue. The store is closed for just more than four weeks for the abatement process and reopens on Aug. 27. After reopening, Sangamon County issues a proclamation commending Schnucks for the quick response and for taking care of customers and teammates during the process.

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2009 Schnucks opens two new concept stores within a month of each other. The first opens on Aug. 11. It is the 21,000-s.f.

Culinaria—A Schnucks Market in downtown St. Louis. The store features a 5,000-s.f. mezzanine with wine bar and seating area.

On Sept. 2, Schnucks announces the sale of nine of 12 supermarkets and eight fuel centers in its Mid-South division to Kroger. The three remaining stores are closed. This marks the company’s exit from the MidSouth market after nine years.

On Sept. 21, Schnucks acquires seven Hilander stores in the Rockford, Ill., area from The Kroger Co., bringing the total number of stores in the area to 11 (four Logli). In 2013, all stores were converted to the Schnucks banner.

An E. coli outbreak sickens dozens. After an investigation, the CDC concludes the cause of the outbreak was Romaine lettuce from food and salad bars at Schnucks and other retailers.

–2012 On April 18, Schnucks announces two more locations in Springfield, Ill. On May 26, Schnucks closes the Main Street Hilander in Rockford, Ill. On Nov. 1, Schnucks opens the Kehrs Mill store in Ballwin, Mo. It is the company’s second store in the west St. Louis County suburb.

–2013 A cyber attack against Schnucks causes as many as 2.4 million customer credit/debit card numbers to be compromised. Seventy-nine locations (77 stores and two specialty pharmacies) are affected by the cyber attack.

2009 On Sept. 15, the company’s new 74,000-s.f. flagship Des Peres store opens. It features the company’s first Schnucks Cooks cooking school.

2011 Des Peres Cake Decorator Jodi Schweiss wins first prize at the International Dairy, Deli and Bakery Association’s annual cake decorating challenge.

2011 Scott and Craig Schnuck

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A new mission and vision was created in order to help demonstrate the type of company Schnucks wanted to be for its customers, teammates and community. The company took its “Game” (as it was called) to a whole new level as it became focused on ways to differentiate Schnucks from the competition.

Its mission was and is to create spectacular in-store shopping experiences designed to give customers no reason to shop anywhere else.

No longer content at just being the “Friendliest Stores in Town,” the company’s renewed “Commitment to Greatness” now pervades the management ranks and Scott and Todd are taking it companywide.

“Rising to Greatness” turned out to be a type of battle cry for the company when, in 2013, customer credit and debit cards were compromised as Schnucks was rocked by a cyber-attack, a new-age challenge now threatening every merchant.

The Schnucks were among the first group of grocers facing the realization that the very technology that had allowed the grocery industry to grow by leaps and bounds had suddenly turned on them.

The company hired one of the nation’s top forensic teams and set about quickly finding and containing the threat. Customers remained loyal and supportive, yet another reminder of just how many families have come to rely on Schnucks.

As the Schnucks team prepares to celebrate 75 years of serving customers, company leaders are the first to admit this is not their grandparents’ grocery company anymore. As customers’ wants, needs and expectations change, Schnuck leaders acknowledge that they must continue to reinvent their company in order to stay relevant and steps ahead of competitors on all fronts.

Craig, still active in his retirement, considers reinvention the start of a movement that will carry the company into its next 75 years.

“It’s a credit to Scott that we are positioned for potential growth and for the future,” Craig said. “We understand the bigger picture instead of focusing on the past. The past is past; some of it we can be proud of and some of it we can’t. We can build on the strong parts because we choose to keep making things happen.”

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