Honoring the Pacific Northwest`s premier independent pet

Transcription

JULY 2015
ON
THE MOST TRUSTED NAME IN THE PET INDUSTRY
B LIC A
TI
PET I
PU
’S
USTRY
ND
#
$15.00
Honoring
the Paciﬁc
Northwest’s
premier
independent
pet retail
chain.
2015
Retailer
of the
Year
07 Cover.indd 1
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COVERSTORY
Passion
A
for Pets
& People
Mud Bay’s focus on doing what is best not only
for pets, but also for its employees, has helped
it become the Pacific Northwest’s premier
independent pet retail chain. And Pet Business’
2015 Retailer of the Year.
BY SETH MENDELSON
126
M
ud Bay’s business plan is pretty simple. In fact, Lars Wulff,
co-CEO of the 33-unit Tumwater, Wash.-based pet store
chain, says it all comes down to three basic things.
The first is making sure the company’s stores, which are
located in Washington state and Oregon, offer merchandise that will
contribute to the health of dogs and cats. The second is that the experience of shopping in a Mud Bay store contributes to the happiness of
the pet owners, and the third is that the company operates in a way that
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INVESTING IN RETENTION
The old adage that a chain is only as strong as its
strengthening store operations and company culture,
learning, video instruction, in-store training and regular
Yamane has a unique insight into the day-to-day work
testing to reinforce each lesson over the span of an em-
life of Mud Bay’s store employees, as she spends several
ployee’s first year on the job. “We teach so many things,
weakest link is one that is not lost on the team at Mud
hours each week interacting with store staff in stores,
and there is so much knowledge that everyone has to
Bay. Understanding the vital role that its employees
at new store builds and relocations and during commu-
hold onto, it can’t be done in 30 days or in a quarter; it’s a
play in the success of the 33-store (and growing) pet
nity events. However, her mindset regarding the chain’s
constantly evolving process that will go from day one all
specialty retail chain, Mud Bay’s executives are commit-
employees is shared by the entire executive team, which
the way to day 365,” says Yamane.
ted to investing in their staff to ensure that every link in
found common inspiration in The Good Jobs Strategy, a
the company’s chain makes a solid contribution to the
book written in 2014 by MIT retail operations professor
employees. In addition to providing training on new prod-
strength of the whole.
Zeynep Ton.
ucts as they are added to store shelves—particularly in
Mud Bay’s training program is not limited to new
“In my 30-plus years in business, I have always
“The Good Jobs Strategy helped us align all of the
believed that people are the most important asset of a
different things we were trying to do to build a culture
program that is envisioned to include three to five topics
company,” says Tracy Yamane, Mud Bay’s chief operating
[among our employees],” says Yamane. “We believed
per month.
officer. “They are the ones on the front lines making a dif-
in ideas like you have to pay people more, you have to
ference by building relationships with our customers. We
create a career for them, you have to allow them to have
ees that are armed with the customer service skills and
may be a retailer, but our business is about relationships,
ownership in the business, and The Good Jobs Strategy
knowledge base necessary for forging customer relation-
and that includes the company’s relationship with the
kind of brought it all together. It gave us a roadmap for all
ships based on trust. “We pride ourselves on our product
staff. If they feel good about the organization and under-
of the things we were moving toward anyway, and it gave
knowledge,” says Sonja Birkel, central district manager.
stand that we are doing everything we can to make this
us a common language that allowed us to move forward
“And our employees focus on having solution-based
a long-term career for them, it pays dividends twofold.
faster.”
conversations with customers.”
the food category—employees take part in an ongoing
As a result, each Mud Bay store is staffed with employ-
It provides for long-term retention for the company, and
There are many facets to how Mud Bay invests in
that fosters long-term relationships—in some cases 15
its staff, but it all begins with new-employee training.
ers, who have become particularly important as the
to 20 or more years—with our customers.”
Aptly named “The First Year’s Journey,” the company
chain has experienced significant growth over the past
(continued on page 138)
several years. Given the
Joining the company in 2011 and tasked with
is expanding its training program to incorporate book
PETBUSINESS.COM — JULY 2015
Mud Bay’s training regimen also extends to manag-
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COVERSTORY
he—and all of Mud Bay’s 320 employees—are proud of.
The company has emerged as a major player in the Pacific Northwest, carving out a niche with customers who are looking for a more
pleasant, intimate and rewarding experience when shopping for their
pet needs, especially natural and solution-oriented products. Privately
owned, Mud Bay does not give out its financial data, other than to say
that sales have grown at an average annual rate of about 16 percent
over the past five years. For these reasons, Pet Business has selected
Mud Bay as its 2015 Retailer of the Year.
“I think it is fair to say that all of us—store staff and home office
alike—are obsessed with identifying dog and cat owners’ real needs
and coming up with solutions to their issues,” Lars says. “Our job is to
A FAMILY CELEBRATION
On Aug. 20, every Mud Bay location will be shuttered
for the day so that all 320 Mud Bay employees—affectionately called “Muddies”—can gather at Green River
Community College in Auburn, Wash., for the company’s
second-annual Mudstock celebration. An event that
combines elements of education, team building and fun,
Mudstock is a family reunion of sorts and serves as a great
example of the company’s focus on empowering and engaging
its staff to ultimately drive continued success for all.
“Everything about [Mudstock] is phenomenal,” says Maggie
Crawford, manager of Mud Bay’s Lake Oswego, Ore., location. “The
entire event is oriented toward staff empowerment and making
everyone feel like part of a big family. We have such amazing family
values in the store, and it is great to see that on a much broader level.”
This is a sentiment that is echoed by Marisa Doxey, manager of
Mud Bay’s Greenwood store in Seattle, who points to the opportunity
for networking with staff from every level of the organization as a major
highlight of the event. “What Mudstock does is it brings everybody
ing officer, has been critical to the company’s success. “So
together, so people who work in the stores and work in the [company
much of delivering the Mud Bay experience is founded on knowing
headquarters] get a chance to really interact and feel connected to one
how to help customers take better care of their pets,” he says.
another,” she says, noting that this includes the company’s executive team. “Anybody
The company’s vendor partners play a key role in the educational aspect of Mud-
can approach [the executive team] to present ideas or just get to know them a little
stock. More than 90 manufacturers send representatives to the event’s partner fair,
bit better.”
where staff members can get a hands-on education on a wide variety of pet products
In addition to comparing notes and taking part in team-building exercises with
and see the newest introductions to the market. “It is an outstanding opportunity to
other employees from throughout the organization, staff members also get a chance
meet with the manufacturers of products we deal with every day,” explains Crawford.
to listen to an executive presentation on the direction in which Mud Bay—an openbook company—is going.
Unsurprisingly, the employee empowerment at Mudstock goes a long way toward
making Mud Bay’s employees feel valued. “There are simply no words for how power-
On the education front, Mudstock taps into staff members’ competitive side with
fun contests that test staff on their knowledge of Mud Bay history, as well as the
science behind the many solution-oriented products that the chain sells in its stores.
ful it is in creating a sense of community,” says Doxey. “And it is so important to feel
connected and valued.”
“It makes it clear that you are not just a number, but part of a larger team,” agrees
“It helps us to understand dog and cat health, so we can help our customers,” says
Crawford, who notes that the positive impact is apparent on her store staff’s long bus
Doxey.
ride home from the event. “Everyone comes home so elated, and it is clear that Mud
This understanding at the store level, says Al Puntillo, Mud Bay’s chief merchandis-
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Bay has gained their long-term loyalty.”
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give dog and cat owners useful, accurate information and well-researched products that address their real needs.”
This is not your average pet store chain. From its earliest days as a one-store, 1,000-sq.-ft.
operation in Olympia, Mud Bay’s leaders have run the company according to their own beat.
Today, they are even taking steps to expand ownership to employees through an employee
stock ownership plan (ESOP), while still keeping the family involved both as operators and
as owners.
Mud Bay Timeline
1988
1993
1996
2000
2001
2002
Elsa Wulff buys “The
Grainery,” a combination
farm store and general
store located outside of
Olympia, Wash. Its two
employees sell everything from oysters and
cigarettes to horse feed.
Lars and Marisa Wulff
move back to Olympia
to join their mother Elsa
in making the store a
sustainable business
focused on healthy
foods for dogs and cats.
The business is renamed
Mud Bay Granary.
Mud Bay Granary has
greatly expanded its
offerings of healthy dog
and cat food and has
begun educating its staff
and customers on dog
and cat nutrition. The
company is profitable,
growing and employs
four full-time and 11
part-time staff.
With the financial help
and hard work of friends,
family and staff, Mud
Bay Granary takes over
the operation of eight
insolvent pet food stores
in the Seattle area. The
company has grown to
employ 65 people.
A hard year: Lots of work
and big losses as Mud
Bay’s staff works to turn
a successful one-store
company into a successful nine-store company.
Mud Bay become an
open-book company,
sharing financial data,
decisions and the fruits
of success with all of
the members of its staff.
Mud Bay launches a
program to provide free
food to people who adopt
dogs or cats from Puget
Sound-area animal
shelters.
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The Most Trusted Name in the Pet Industry
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Mud Bay is one of the largest and most respected retailers in the Pacific Northwest. They have a continual focus on nutrition and a determined spirit to provide the best solution for the pet parent. Mud Bay is admirable for the degree to which they take customer care seriously
and they differentiate themselves by going the extra mile, reading scientific studies, interviewing veterinary nutritionists, visiting the manufacturing facilities and collecting anecdotal data about how well a food feeds. Their focus is to serve the pet and their parents in a way that is
about teaching their consumers about good nutrition for their pets, not just selling pet food.
Wade Nilson, Vice President of Sales, Independent Sales Division, Natural Balance Pet Foods, Inc
2003
2004
2005
2006
2007-2008
2009-2010
Recognizing that it no
longer sells farm feed
(grain), the company’s
name is changed from
Mud Bay Granary to
simply Mud Bay.
Mud Bay opens a
distribution center in
Tumwater, Wash., to
expand its direct buying
of high-quality supplies
from small producers,
cottage industries and
socially responsible
manufacturers. The company opens its first new
store since its overnight
expansion in 2000. Now
there are 10 Mud Bays in
the Puget Sound area.
Mud Bay matches
customer donations
dollar-for-dollar to raise
more than $30,000 for
Gulf Coast Relief through
the American Society for
the Prevention of Cruelty
to Animals (ASPCA) and
the Humane Society of
the United States (HSUS).
The company opens its
12th and 13th stores.
The company sells a
piece of commercial real
estate and shares part
of the proceeds with its
135 staff members. Mud
Bay opens its 14th store
in the Admiral District of
West Seattle.
A nationwide pet food
recall brings hundreds
of dog and cat owners
into Mud Bay’s stores in
search of accurate information and healthy food.
After years of preparation, the company implements a new information
system.
Momentum slows as
Mud Bay begins the transition from a small business to a medium-sized
company. The chain
hires two outside executives. Mud Bay revamps
its store design. By the
end of 2010, Mud Bay
operates 20 locations.
petbusiness.com — july 2015
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Mud Bay is passionate about pets—you know that the minute you walk into their stores. The look
and design of their stores clearly communicate their niche in the marketplace. To help ensure their
customers have healthy pets, Mud Bay carries a full range of healthy food and supplements. The
pet supplies they stock are well-made and provide value.
Rick Foster, Vice President of Sales, Cardinal Pet Care
2012
2013
2014
2015
Mud Bay re-builds its executive team and focuses its
efforts on fixing things that
aren’t working. The company
has outgrown its home office,
so the office and distribution
center are relocated. By year’s
end, there are 23 Mud Bay
stores.
The entire company is
refocused on the “Mud Bay
Experience.” Tools are created
for helping customers transition
their animals to new foods. Mud
Bay researches, tests and trains
staff on using raw foods to
contribute to dog and cat health.
By year’s end, there are 26
Mud Bay stores. The company
begins making annual investments in higher staff wages and
stronger benefits.
Mud Bay celebrates its 25th
anniversary by closing all of
its stores for a day and bringing its entire staff together at
the Thurston County Fairgrounds for a day of learning
and fun. By year’s end, there
are 27 Mud Bays, including
the company’s first unit in
Oregon.
Sixty-seven members of Mud
Bay’s staff read and discuss
Zeynep Ton’s book The Good
Jobs Strategy. Informed by
the book, a mostly elected
group of 20 “Muddies” craft
a vision of the company that
they want to create together
by 2017. Mud Bay’s 25th
anniversary celebration
is such a success that the
company makes it an annual
event named Mudstock. By
year’s end, there are 32 Mud
Bay stores, including four in
Oregon.
The company is in the process
of developing and executing
an employee stock ownership
plan (ESOP), expanding medical insurance, implementing
stronger training programs
and engaging more staff involvement in decision-making.
By year’s end, Mud Bay plans
to have 37 stores.
Mud Bay Timeline
2011
Congratulations!
Pet Business 2014 Retailer of the Year
32001 – 32nd Avenue S, Suite 420 Federal Way, WA 98001 | P: 253.237.0400 | F: 253.874.5700 | www.animalsupply.com
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s
.
“We’ve always focused on building
a great company that is sustainable
and can go on without us,” says Marisa
Wulff, Mud Bay’s other co-CEO. “We
aren’t there yet, but together we’ve
made a lot of progress. We want the
entire team to carry it forward and
be rewarded for their efforts too. We
don’t look at Mud Bay’s staff as an expense line. We see them as the center
of the company.”
The company’s start may have
something to do with the attitude of
its five-person executive team, which
includes Lars and Marisa (brother and
sister), CFO Michael Becker, COO
Tracy L. Yamane and chief merchandising officer Al Puntillo.
Lars and Marisa’s mother and sister (Elsa and Yolanka) got the whole
Taking Ownership
Mud Bay will soon be getting some new, yet familiar, own-
and maybe even worry like owners. Thus, they will “share in the
wealth and share in the occasional sleepless nights,” he says.
That is not to say that the current ownership won’t retain a
ers—its employees. The retail chain is in the midst of instituting
fair share of both, though. “Most ESOPs are used to buy busi-
an employee stock ownership plan (ESOP), through which its
ness owners out completely,” says Lars. “They use it as an exit
staff will get a long-term stake in the company. It is all part of the
strategy, leaving with a big payday while leaving the company
prevailing culture of empowering and investing in employees
behind with a lot of debt.” This, he says, is not in the cards for Mud
that has become a hallmark of the Mud Bay retail model.
Bay. Its employee owners may one day hold a majority stake in
“We believe that being an owner-operator has helped make
the business, but Lars says that he expects his family to retain
our work for Mud Bay fulfilling, and we want all of Mud Bay’s staff
an ownership stake in perpetuity. And he expects that he and
to have the same experience,” says co-CEO Lars Wulff. “Sharing
his sister will continue to have significant roles in Mud Bay for
ownership with staff just seems fair—like the right thing to do.”
another 15 or 20 years.
Many of the details of Mud Bay’s transition to an ESOP com-
While the final arrangements are being made for instituting an
pany are still being hammered out, but what has been decided is
ESOP at Mud Bay—Becker describes the legal process of creating
that employee shares will be paid for out of the business’ annual
the plan as “walking a narrow road”—the short-term and long-
profits, with incremental shares being earned when the company
term goals of the move are clear. “It is important to us that Mud
exceeds its profit budget. Employees working 1,000 hours or
Bay feels like one team, and employee ownership helps remove
more annually will quality for the program, with a vesting sched-
the divides between owners and employees and between
ule still to be determined.
management and staff,” says Lars. “We think employers have
According to Michael Becker, chief financial officer for Mud Bay,
a responsibility to help long-term employees prepare for retire-
the move toward employee ownership is designed to allow the
ment. We want to create jobs that people can have for a lifetime,
company’s employees to build a meaningful ownership stake in
and we want to make sure that someone who has been working
Mud Bay over the course of a career in which they get to think, act
for Mud Bay for 25 years can retire someday.”
Congratulations to
Pet Business 2015 Retailer of the Year!
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thing going in 1988 when they purchased a
down-on-its-luck farm store in Olympia. Lars
joined the company in 1989, and Marisa
came aboard in 1993. Lars, Marisa and Elsa,
plus an ever-growing group of staff, developed a business model that grew sales out
of the run-down facility to more than $1,000
per square foot.
“It was addition by subtraction,” Marisa says.
“We phased out of categories like farm feed
and fencing that no longer made sense, and
we focused on offering our customers healthy
foods for their animals. Plus, we started to put
a big emphasis on educating our customers.
We were offering less but selling more.”
The company, according to its online history, also made the decision to focus on dogs
and cats—with some small-animal and bird
products in the mix—leaving the care of other
animals to the competition.
Mud Bay is a great retail partner that really has its finger on
the pulse of what’s important
and drives the independent
pet specialty market. They
excel in providing the best in
natural products and services
to meet the needs of all consumers and their four-legged
family members.
Louie Nasuta,
Northwest U.S. District Sales Manager,
CANIDAE Natural Pet Food Co.
CONGRATULATIONS
2015 PET BUSINESS MAGAZINE
RETAILER OF THE YEAR
Thank you for your partnership and support!
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But Mud Bay may have
stayed a one-store operation if not for a fateful
series of events. In 2000,
the Seattle-area’s largest
independent pet chain, Bosley’s Pet Food Marts, went
bankrupt and fell into the
hands of a financial receiver. “I had just climbed Mt. Rainier and
came back to the office and heard that
this business was available,” Lars says.
“They held an auction, we won and
bought the assets. Marisa and I hired
60 people and executed eight leases
in just 48 hours. That quickly, we went
from a profitable one-store operation
to an unprofitable nine-store business.”
It took two more years of hard work
to make the greatly expanded company
profitable again. “We
worked seven days a
week—I think Marisa
and I probably took just
six or seven days off in
those first two years.
We also had a lot of
help from our distributors, our staff and even
from Mud Bay alumni,” he adds. “We
had a lot to learn. We had to transition
full-line pet stores into natural dog and
cat stores. We had to transform an unhealthy culture into a healthy one. And
we had to learn the disciplines of multiunit retail.”
In 2004, Marisa opened Mud Bay’s
first distribution center, which was significantly expanded in 2007 to handle
the growing number of suppliers the
as Retailer of the Year. For a long time they have
provided consumers with a unique and interesting place to find the best products for their pets
and manufacturers with a strong and trustworthy
partner. The culture of Mud Bay is one of “true
believers”, people who are in this industry with
a passion beyond profit.
Living in Seattle right near their Capitol Hill
and Belltown locations, I personally see the appeal of their stores and the warm interaction of
their staff with consumers. Mud Bay represents a
lot of what is great about the Pacific Northwest,
and the Healthy Pet team is proud to call them
neighbors.
Samuel Cohen,
Vice President of Marketing & Sales, Healthy Pet
Mud Bay is truly deserving of being honored
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Meet the Executive Team
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Michael Becker, Tracy Yamane, Marisa Wulff, Elsa Wulff, Lars Wulff and Al Puntillo stand on the banks
of Mud Bay, one of the three southernmost arms of Puget Sound.
One Drink. One Snack.
Same Bottle.
Dual chambers hold 12 oz. of liquid
and 1.5 cups of kibble or treats.
Collapsible Companion Cup holds
8 oz. /1 cup.
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New Product Showcase,
2015 Global Pet Expo
www.popwareforpets.com
585 S. Royal Lane, Suite 200, Coppell TX 75019
800.527.5197
sales@dexas.com
While Mud Bay’s leaders overwhelmingly attribute the
company’s success to the commitment of its employees at
every organizational level, it has been a top-notch executive
team that has steered the company to where it is today. All
five members of the team are seasoned professionals with
complementary personalities, experience and skill sets; but
most importantly, they all understand and truly care about
their customers, their customers’ pets and Mud Bay’s staff.
Elsa Wulff,
Founder & President Emeritus
When Elsa Wulff was growing up in Holland, there wasn’t
a single animal in her family’s home. But soon after Elsa
moved to the Pacific Northwest with her husband Hans
and four children, a mixed-breed puppy and an orange
cat turned up at the family’s front door. In the years that
followed, horses, donkeys, an old army mule, goats,
a sheep, guinea pigs, a chinchilla, a hedgehog, ducks,
geese and chickens all joined the household. By 1988,
the former city girl had accumulated two decades’ of
experience in animal husbandry—experience she began
to share with others as the new owner of a small farm
store. Elsa retired in 2002, but her habit of empowering
with information is as much a part of Mud Bay today as
it was then.
Lars Wulff, Co-CEO
©2015 Popware For Pets™ is a trademark of Dexas International, Ltd.
USA & foreign patents pending.
Tritan™ is a trademark of Eastman Chemical Co.
136
Since his first day of work at the original Mud Bay store 26
years ago, Lars Wulff has filled practically every role—from
weekend store manager to director of IT and from vice president of store development to inventory lead. For the first two
decades, he led Mud Bay’s development of complete, holistic
solutions to cat and dog health and behavioral challenges,
but now the company has many “Muddies” with higher
levels of dog and cat expertise.
These days, Lars focuses on Mud Bay’s strategy, culture
and organizational evolution. He is particularly concerned
with the experiences Mud Bay staff create for dog and cat
owners, as well as the experiences Mud Bay creates for its
entire staff. Prior to joining Mud Bay permanently in 1993,
Lars worked on Congressional and U.S. Senate races as a
political consultant.
Marisa Wulff, Co-CEO & Vice President
of Store Development
In 1993, Marisa Wulff returned to Olympia, Wash., after
two years abroad. She went to work for Microsoft, and
started moonlighting at Mud Bay’s original store—writing
staff schedules, unpacking freight and keeping books. In the
years since, she has worked in and on most aspects of Mud
Bay, including category management, visual merchandising,
distribution, finance, accounting and business processes.
During the past five years, she has focused on
business and expansion strategy, site selection, lease
negotiation, category management and visual merchandising. Marisa is fascinated with creating retail stores
that are efficient for staff, appealing to customers and
uniquely Mud Bay. She is closely focused on continually
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improving the company’s use of space, its fixtures and
its approach to visual merchandising.
Michael Becker,
Chief Financial Officer
Michael Becker joined Mud Bay as the company’s first
chief financial officer a little more than four years ago. His
love of dogs and furry creatures made Mud Bay a natural fit.
Becker has been instrumental in the company’s
process overhaul and budgeting organization. His sense of
humor, patience and dedication to the overall accounting
processes are directly reflected in his strong work ethic
and desire to see his team succeed. Becker has continued
to develop and refine the successful financial platform Mud
Bay relies on as it continues to thrive and open new stores
in the Northwest. His calm approach, planning and logical
thinking have helped push Mud Bay to the forefront of the
pack in the retail pet industry.
Tracy Yamane,
Chief Operating Officer
Since joining Mud Bay as chief operating officer in 2011,
Tracy Yamane’s focus has been to increase the strength
of the chain’s store managers and their leadership teams
while enhancing the customer experience. As a result,
the “Mud Bay Experience” has become stronger and more
consistent then ever.
Yamane began a fun and character-building career in retail
as a drive-through order taker for Burger King. Fifteen years
later, she left Burger King as the director of operations managing 36 restaurants. In the years since, Yamane has served as
a regional director for Rent-A-Center, and as vice president of
operations and chief operating officer for Maxit Financial.
Al Puntillo, Chief Merchandising Officer
Al Puntillo officially became a part of the Mud Bay
family in 2013, after nearly 15 years of partnering with the
company on the manufacturing and distribution sides of its
business. Puntillo and his team, known as “The West Wing,”
oversee category management, pricing, replenishment,
marketing, and education/research.
Before joining Mud Bay, Puntillo worked for Animal Supply Company (ASC), where he became an expert at selling
sets of wild bird food and cat litter all over Washington. He
left ASC for a few years to attend Nutro University, where
he earned his regional managers degree, but returned in
2005 as the director of sales, where he helped the regional
distributor grow into a national powerhouse.
company does business with. In that year,
the company also started opening more
stores. Mud Bay began by taking over the
locations of pre-existing pet stores, but in
2005, it opened its first completely new locations. Then, in 2013, the company made
the jump to Portland, Ore., about 200 miles
south of its original territory in Washington’s Puget Sound area.
“We wanted to make this move for years,
but we were just not ready,” notes Lars. “Finally, we felt we had the confidence and
the leadership to make this work, and we
took the plunge.”
Marisa says that the company’s merchandising strategy sets it apart from
the competition. One will not see a lot of
traditional linear shelving at these stores.
“We merchandise with tables,” she says. “I
came upon a farm stand that used tables
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Mud Bay has been an excellent partner with WellPet and all our brands. Their
highly trained, professional staff always puts the health and wellbeing of pets
first. Mud Bay truly understands every product they sell in their stores; they only
recommend products their team would feed to their own pets. Their level of
integrity as it relates to trying new products before offering to their customers
is second to none. We couldn’t ask for a better partner. We’d like to congratulate Mud Bay on this honor, and thank them for many successful years of
partnership and look forward to more great years to come.
Monica Sami, Key Account Manager, WellPet
Investing in Retention (continued from page 127)
fact that the company plans on adding at least five to
seven store management positions each year for the
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prevailing trend among many businesses is by lowering
stream of good candidates to take on those posts—and
the threshold at which it offers medical benefits to
eventually move even further up through the organiza-
employees. Instead of requiring its staff to work 35 to 40
tion. As Marisa Wulff, co-CEO and vice president of store
hours per week in order to qualify for medical insurance,
development, notes, “The future leaders of Mud Bay are
Mud Bay begins offering it to employees who work just
working in our stores.”
30 hours per week. Of course, this approach may cost
Providing sound training is just one element in Mud
more in the short term, but Yamane says that it will pay
Bay’s strategy for creating good jobs for its employees.
off in the long run, as retaining happy, well-trained staff
The company is also fostering employee retention
is more effective than having to replace employees who
through other initiatives, many of which are driven—ei-
leave Mud Bay to seek better benefits somewhere else.
ther directly or indirectly—by “The Twenty.” This group is
138
egy revolves around fueling a sense of empowerment
tion, and many of the positions are filled by personnel
among its staff. Staff empowerment at Mud Bay takes
elected by their peers. The Twenty meets quarterly
many forms, from creating an elected strategic planning
to discuss and decide on a wide range of big-picture
team to building category expert teams made up mostly
issues, from strategic vision and Mud Bay leadership to
of store staff to asking the entire company to take a
annual planning and bonus programs.
hand in defining leadership at Mud Bay. The company
One example of the many ways in which Mud Bay is
has also built an intranet website, where they report
trying to improve working conditions for its employees
results, share news, celebrate each other’s successes
is by increasing the ratio of full-time to part-time posi-
and voice opinions on a wide range of topics.
“Giving everyone a voice is a huge part of what drives
looking to raise hours by creating more full-time jobs,”
our success,” says Al Puntillo, Mud Bay’s chief merchan-
says Yamane.
dising officer, noting that this level of empowerment is
key to keeping a neighborhood feel in the burgeoning
cent of Mud Bay’s store staff three and a half years ago,
chain. “Many of our customers think that they are shop-
Yamane reports that currently more 80 percent of store
ping with a single-store retailer,” he says. “We like that.”
employees are full-time. To achieve these significant
To Yamane, all of these initiatives add up to create
results, Mud Bay has gotten creative, even developing
the element that has been most important to Mud Bay’s
a floater program that enables employees to work in
success. “You have to have a strong culture,” she says.
multiple stores in order to increase their total Mud Bay
“Everyone has to see the big picture.”
The final piece of Mud Bay’s employee retention strat-
made up of a mix of staff from all levels of the organiza-
While full-time positions comprised just over fifty per-
BOOTH #3074
Another area in which Mud Bay is bucking the
foreseeable future, it must be able to produce a steady
tions. “While many businesses are cutting hours, we are
8 oz. bag | 40 ct. Individual Dispenser
hours to full-time levels.
PET1507_138r1
6/17/15 10:24 AM
to display its products and it reminded me
of how we used to merchandise in our original store. We decided to move to tables in
our stores, because it really emphasizes
the products and also takes us back to our
roots.”
Educating shoppers seems to be at the
forefront of all of Mud Bay’s efforts. For example, company-created brochures on such
subjects as skin allergies, urinary tract infections and ways to calm a dog’s stomach issues are available in every store. Signage also
helps to educate consumers, and the staff is
trained to make sure they have the answer
shoppers may need. “It is all about creating a
great experience for our customers,” Al adds.
“Our job is to provide knowledge and value,
not to try to sell dog and cat owners something they don’t really need or want. We want
our staff to be confident in our products and
Being associated with Mud
Bay is most certainly a feather
in Charming’s cap. People
know how discerning Mud
Bay is when selecting which
products make placement on
their shelves. It’s very rare that
we are asked by a customer
if safety magnets were used in
production, what is the rubber
composition of a toy or which
stitching technique was used on
a particular plush toy. Mud Bay
cares enough to ask about all of
these elements and more.
Nick Watts, Owner,
Charming Pet Products
PET1507_139r1
139
6/17/15 10:25 AM
CoverStory
Mud Bay is a perfect example of an intentional retailer. As an organization, they intentionally chose what they want to
sell and who they want to sell it to. Their thoughtful approach to selecting products and companies they want to partner
with, combined with their strong emphasis on education, has created a very effective and successful retail model.
Dana Singleton, Director of Sales, Northwest Naturals
focus on fulfilling customers’ real needs.”
Again, the store employees are vital to this effort.
Marisa notes that the needs of dogs and cats change
as they age, therefore making it that much more important that store staff know as much as possible
about products for animals of different ages. “Our job
is to help with solutions,” she says.
Interestingly, Mud Bay has built a loyal following without the assistance of much traditional advertising. The
company’s top executives make a big point of noting
that they rely on word-of-mouth advertising to attract
shoppers. At the same time, they admit that this puts
more pressure on making sure that everything is near
perfect at the stores. “We need dog and cat owners to
leave our stores after their first visit thinking, ‘Wow, that’s
Mud Bay and Animal Supply have been
partners since both companies started in the
1980s. A winning team is the result of a
consistent stubborn strategy. Lars and Marisa
have been consistently stubborn in leading
Mud Bay from a small feed store in Olympia,
Wash., to this award as the best retailer in the
USA. They have pioneered the “healthy pet”
category with the utmost respect for the pet in
every endeavor. They are very deserving of
this award, as is the entire team at Mud Bay.
We congratulate Mud Bay on their success
and look forward to many more years of
growth and partnership.
Jeff Sutherland, President - Western Region,
Animal Supply Company
140
PET1507_140r1
6/17/15 1:50 PM
an amazing store,’” Lars notes.
The company partners with shelters
and veterinarians in Washington and
Oregon, who help spread Mud Bay’s
name by handing out its materials and
coupons. Leadership also counts on
store and district managers to become
part of the fabric of their communities
by participating in local events and creating in-store events.
With things going so well, the executive team sees no reason to slow down.
Mud Bay plans to continue growing its
store count by about 15 percent per
year—about six new stores annually
for the next few years. The Wulffs say
the immediate plan is to fill in locations
within the existing territories of Washington and Oregon, with stores averaging about 4,000 sq. ft.
“There are a lot of things we look for
when determining the location of a new
store,” Marisa says. “One is population
density. Another is determining areas
with higher levels of education. A third is
to be in a convenient place for customers
as they make their way home from work.”
In the end, Mud Bay’s leadership
team keeps coming back to the importance it places on employees. “We won’t
grow faster than we can grow well, and
the pace of our growth depends on
Mud Bay’s ability to develop great leaders,” Lars says. “It’s store managers and
staff who create the Mud Bay Experience and connect with our customers.
For Mud Bay to succeed, our whole
team has to be in the same boat, rowing
in the same direction and loving what
they’re doing.” PB
ed the essentials desired by customers,
they place great emphasis on continuously evolving their business to ensure a
superior shopping experience. We value
their unwavering commitment to customer
satisfaction, knowledgeable and trusted
staff, and selection of quality products.
Successful partnerships are built on trust,
integrity and teamwork; the entire team
at Mud Bay exemplifies these important
qualities each and every day.
Marie Moody,
Founder and Chairman, Stella & Chewy’s
Although Mud Bay has already perfect-
PET1507_141r1
141
6/18/15 9:48 AM
Editor’sView
The Mud Bay Experience
A
fter spending several weeks exploring just
about every facet of the Mud Bay retail operation, I came away with one burning question.
Can they please open a store in my neighbor-
hood?
Of course, there is little chance of that happening
anytime soon—if ever—given that I’m on the opposite
coast from the 33-store Pacific Northwest chain, which
is Pet Business’ 2015 Retailer of Year and the subject of this month’s cover
story. Despite a relatively
aggressive growth strategy that is expected to
expand Mud Bay’s store
count by about 15 percent a year, I did not
sense aspirations of becoming a national chain
among its executive
staff.
That is a shame. Mud
Bay offers a customer
experience that every pet
owner—heck, any shopper in general—longs
for. The stores have a warm yet modern aesthetic, with
sensible layouts, beautiful fixtures and clear signage
that make them easy to shop. And if pet owners do not
see exactly what they are looking for while shopping
the approximately 4,000 SKUs that line the shelves,
they can probably find it among the additional 2,500
items that the chain offers through special order—and
have it delivered to their location of choice within a
couple of days.
The centerpiece of each Mud Bay location is the
“apothecary” that resides behind the checkout counter. Sliding chalkboard doors featuring staff-generated
artwork and information on seasonal wellness and
nutrition themes cover large wooden cases filled with
a wide range of free samples. These samples, which
The stores have a
warm yet modern
aesthetic, with
sensible layouts,
beautiful fixtures
and clear signage
that make them easy
to shop.
6 l july 2015 — petbusiness.com
are given out liberally, enable
customers to try out many
of the products—particularly
food and treats—that are carried in the store before committing to a purchase.
But the experience that
pet owners will find at Mud
Bay goes well beyond the
physical features of the
stores. The staff does a
great job providing helpful
Mark Kalaygian
service centered on soluEditor in Chief
tion-based
conversations
without devolving into a pushy
sales pitch. “Not everyone wants to be helped,” notes
one Mud Bay official, who went on to say that customers are often blown away by the fact that store employees are not trying to sell them something. It is an
approach that makes it clear that, at Mud Bay, building
relationships is more important than closing sales. In
fact, if a store simply cannot deliver what a pet owner
is looking for, the staff will even recommend a different retailer that can.
Rounding out Mud Bay’s customer-friendly approach
to retailing is the chain’s pricing policies. The company
eschews periodic promotions in favor of a strategy that
hinges on consistently offering fair prices that are quite
competitive with even the national big-box chains. As
a result, Mud Bay is not beholden to particular vendors
for discounts, and shoppers do not have to scour weekly or monthly flyers for deals on their favorite brands, or
make compromises based on what is on sale during a
given period.
Unsurprisingly, all of this adds up to make Mud Bay a
retailer that enjoys a very strong level of word-of-mouth
promotion and a stalwart customer base.
So, sign me up. I’m ready to become one of those
loyal customers. I know it probably is not in the cards,
but a pet owner can dream, can’t he? PB

Honoring the Pacific Northwest`s premier independent pet

Transcription

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