GRAND RAPIDS, MI — If you combined Trader Joe's and Whole Foods, the result would be something that resembles a Fresh Thyme Farmers Market.
Chief executive Chris Sherrell likes to think his new Midwest chain of natural organics speciality stores offers the organic produce selection of the upscale Whole Foods and a unique line of products similar to Trader Joe's.
“The concept behind Fresh Thyme is reaching out and bringing the natural organic lifestyle to the masses, and not making it this huge national chain that is really intimidating to shop at and really expensive,” said Sherrell, who spoke to MLive and The Grand Rapids Press earlier this year.
With a major investment from Meijer Inc., Fresh Thyme stores are starting to populate Midwest communities. The first of seven locations planned for Michigan will open next year in East Lansing near the Michigan State University campus.
The privately owned Midwest supercenter chain’s major stake in the start up hasn’t stopped Fresh Thyme from announcing plans last week to build a store in Meijer headquarter's backyard.
Grocery giant SpartanNash, also headquartered in the Grand Rapids area, will likely feel the competition as well.
Fresh Thyme's first Grand Rapids' location will go up in a development that will replace former Michigan Athletic Club, at 2500 Burton St. SE. That will put the store across the street from Breton Village, which is anchored by a D&W Fresh Market, SpartanNash's upscale and best-performing store banner.
Here are five things to know about Fresh Thyme.
1. Fresh Thyme is new, but the retailer's CEO is a veteran in the growing natural foods grocery industry. Sherrell worked for the Colorado-based Wild Oats for nearly a decade before leading the Arizona-based Sunflower Farmers Market for nine years. The latter, says Sherrell, was described as a "Trader Joe's that grafted on fresh produce and meats."
Wild Oats was bought by rival Whole Foods in 2007, and Sunflower Farmers Market merged with Sprouts Farmers Markets in 2012.
Sherell started Fresh Thyme in 2012, and debuted the chain in the Chicago suburb of Mount Prospect in April. By year’s end, there will be nine stores in the Midwest.
The company is currently headquartered in Phoenix, but is planning to relocate to the Chicago suburbs where Fresh Thyme plans to put up the biggest concentration of stores.
2. Fresh Thyme's CEO doesn't mind the comparison to Whole Foods or Trader Joe's. Although Fresh Thyme is designed to more closely resemble Trader Joe's when it comes to prices.
“Trader Joe's is a great concept. We love the format,” said Sherrell. “We do have some similar traits.”
He adds that some shoppers will also see similarities with Whole Foods.
"We do sell natural organic products but we're quite a bit different," Sherrell said.
At 28,000 square feet, Fresh Thyme stores are 30 to 60 percent smaller than a traditional Whole Foods store, while they are two to three times larger than Trader Joe’s locations.
Sherrell describes Fresh Thyme as a full-service grocery store with an assortment of national and organic products, with a focus on the perishable side of the business. More than half the store’s real estate is used to display fresh produce, meats and seafood.
“Produce is in the middle of the store,” Sherrell said. “Our center store is actually fresh, where the traditional center store is general merchandise products.”
Each store will feature:
• More than 400 bins of natural and organic bulk items and small batches of locally roasted premium coffee beans.
• A butcher shop that will make all-natural handmade sausage daily.
• Specialty items such as gluten-free and dairy-free products.
• A full dairy section, carrying primarily local Midwest items.
• Fresh Thyme Kitchen featuring healthy prepared salads and meals as well as a full salad bar, made-to-order sandwiches and a bakery featuring artisan breads.
• Hops & Grapes department with an expansive selection of wine and local craft beers
• A health care section with 7,000 varieties of vitamins, supplements and natural body care products
3. Fresh Thyme plans to open more than 60 stores in the Midwest by 2020.
Nearly 20 of the locations will be in the densely-populated Chicago area. Plans calls for opening stores in Illinois, Indiana, Wisconsin, Ohio, Michigan, Minnesota and Missouri over the next two years.
“We have huge plans all over the Midwest,” Sherrell said.
In Michigan, the chain plans to open at least four stores in the Metro Detroit area, and one store each in Kalamazoo, Lansing and Grand Rapids.
4. Locations are tied to real estate opportunities and targeted markets.
"When you want to open 60 to 70 stores in six or seven years, you have to have enough runway that when those sites become available, you grab them," Sherrell said. "That's why we are pretty spread out."
While selecting store locations can depend on availability and price, Sherrell knows where his customer base is located throughout the Midwest. His team took 20 years of customer data, came up with target customer profiles and laid it over the Midwest, creating hot spots where they would like to see stores go up.
“We are looking for that progressive lifestyle,” said Sherrell. “People who are active, healthy, looking to change their lifestyle from eating processed foods and fat ... we are a perfect kind of gateway to that healthier lifestyle."
5. Fresh Thyme isn't afraid to compete with its major investor.
"They are a major investor but they are just an investor," said Sherrell. "Unfortunately the story isn't any juicier than that."
Meijer’s investment comes with seats on the private company’s board of directors. Sherrell declined to disclose which or how many Meijer executives are the on board.
“They aren’t bringing Meijer grocery advice to the table, they are bringing advice from their investment perspective,” Sherrell said.
His connections with the company’s leadership paved the way for the larger Walker-based retailer to invest in his concept of a Midwest organics chain.
"Naturally, they are in the grocery space but we're a different concept," said Sherrell. "It was a good investment for them."
Sherrell acknowledges Fresh Thyme will compete with Meijer and other retailers for sales.
“I don’t think of them as a threat,” said Sherrell. “We would naturally trade some customers in certain areas. But for the most part, our customer is middle America. They are probably shopping at their primary grocery store like a Meijer, and they are sharing that experience with a Fresh Thyme.”
Sherrell thinks the retailers can coexist, but he acknowledges that he is looking to see how the first stores compete against Meijer.
Like a Whole Foods or Trader Joe's, Fresh Thyme is expected to draw from a much larger drive time or ring around a store than a traditional supermarket might pull from because the store is a specialty shop.
Fresh Thyme was designed to be a full-service grocery store, but Sherrell expects it will likely be one of several stops for an average shopper.
Shandra Martinez covers business for MLive/The Grand Rapids Press. Email her or follow her on Twitter @shandramartinez.