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By TUX TURKEL, Staff Writer Tuesday, February 20, 2007

Grocery shopping is a chore for many people; their priority is speed and price. Others see a trip to the supermarket as an experience.Ý

Tempting foods and recipes to ponder. Healthier ways to eat. Purchases that help form relationships between local growers and the community.Ý

It's likely that the thousands of people who mobbed the sneak preview tour and grand opening last week of the new Whole Foods Market in Portland fit into the latter category. These folks also are apt to eat in the store's trattoria or sushi bar, attend a cooking or nutrition class, or meet in the community room.

And people who spend more time at a grocery store -- who see it as a destination, not just a chore -- are likely to spend more money.

Cut through all the marketing speak about natural, organic and local, and that's the logic behind the retailing strategy unfolding in Portland's Bayside neighborhood. To succeed, Whole Foods Market has to wrestle food dollars from two savvy competitors in the area, Wild Oats Marketplace and a Hannaford supermarket.

Sales of natural and organic foods have been growing by double digits in recent years, reflecting public concerns over health and nutrition. But profit margins in food retailing remain thinner than a slice of prosciutto ham, only a penny on the dollar. What's more, while only 15 percent or so of shoppers are loyal to a single store, those customers generate between 55 percent and 75 percent of sales, according to a study cited by the Food Marketing Institute.

"Tours, demonstrations and cooking classes build relationships," said Bill Greer, a spokesman for the trade group. "That creates loyalty, which brings shoppers back as much as possible."

That's why relationship-building is so important to these three Portland supermarkets. By offering events and diversions, they hope to form enduring personal connections that translate into customer loyalty and time spent.

"It's about my third place," said David Lannon, regional president at Whole Foods Market. "There's home and work. So what's my third place?"

Whole Foods Market is the nation's largest retailer of natural and organic products. It opened a dozen new supermarkets last year in high-visibility, vibrant locations, according to corporate filings. Despite the company's scale, Whole Foods Market wants each store to feel like a local gathering spot -- a person's third place.

"It doesn't become a faceless retailer," Lannon said. "We actually know people by name."

Cultivating this intimacy takes many forms. Among the most popular are events that draw a diverse group of shoppers.Ý

Wild Oats Marketplace, the prime competitor for Whole Foods Market, is skilled at this technique.ÝWild Oats opened a 22,000-square-foot store on Marginal Way in 2002. In newspaper advertising, Wild Oats calls itself Portland's Community Market.Ý

A sampling of recent events includes: Singles night in the cafe; preparing healthy food for the Super Bowl; art opening and wine tasting; cooking with kids; check-in with a nutritionist about anti-aging supplements and special diets; heart-healthy cooking class, with a 10 percent off coupon for purchases.

"If we didn't have these events, Wild Oats would just be another supermarket," said Heather Musselman, a company spokeswoman.

Natural food stores put a premium on employee training. Their knowledge helps forge personal connections with customers eager for information on organic produce or lifestyle changes. The supermarket staff, then, becomes a source of health education for the parent whose child has a food allergy or the diabetic on a special diet.

"They're looking to us because we're the experts," Musselman said.

Whole Foods Market and Wild Oats have plenty of opportunities to hone their marketing messages about nutrition and wellness. Wild Oats estimates that it competes head-on with Whole Foods Market in 75 percent of the communities in which it's located.

A good example is Naples, Fla., an upscale resort community where a Whole Foods Market is under construction and Wild Oats just opened a 30,000-square-foot store. More than 2,000 people came to the Wild Oats grand opening, which included a charity cook-off with local chefs. The store has a sit-down sushi bar, and an indoor and outdoor cafe. Its holistic health center has more than 5,000 vitamins, supplements and remedies, a reflection of public interest in wellness and nutrition.

"This trend has breathed new life into the supermarket industry," said Caren Epstein, a spokeswoman for Hannaford.

Hannaford's flagship store on Forest Avenue has been expanding its natural and organic products. It had an organic store tour last month with a nutritionist, and conducted workshops on organic and vegetarian foods.

"It's all part of the shopping experience," Epstein said. "You want to give people reasons to come to your store and not rush through the experience."