Reprinted from Vitamin Retailer Magazine, July 2011 issue.
When Bare Essentials Natural Market opened in 1984, it was a 1,000-square-foot store that sold “a little bit of everything.” But co-owners and husband and wife team Ben Henderson and Mary Underwood saw great potential in the tiny shop serving a small Blue Ridge Mountain community of 45,000 when they purchased it in 1988.
Being newcomers to the industry, they joined Southeast NNFA (now Southeast Natural Products Association). Today, Henderson is the organization’s president and also serves on the NPA Board of Directors. In addition, Bare Essentials Natural Market is a member of the Independent Natural Food Retailers Association.
“Our growth coincided as DSHEA was shaping up,” said Henderson, who is also the general manager. “When you’re around other industry people, especially independent retailers, you see their passion and it’s easy to catch that fever.”
In 1996, Bare Essentials Natural Market moved to a 4,800-square-foot location. Of the 4,000 square feet of selling space, about 60 percent is dedicated to organic produce, bulk, packaged foods and natural pet foods, while 40 percent is dedicated to homeopathic remedies, herbs, supplements, and health and body care.
Competition
In June 2004, a small regional chain opened a 30,000-square-foot store about three miles from Bare Essentials Natural Market. While the opening impacted its profitability for about three years, the single store has since recovered and, in 2007, entered a growth cycle that continues today.
“Last year was our best year ever, with more than $2 million in revenues,” said Henderson. “Store margins are about 40 percent overall, with grocery being 35 percent and supplements close to 50 percent And our sales are seven percent over 2010 (year to date).” It reclaimed those sales the same way all other small retailers differentiate themselves, with outstanding customer service, according to Andrea Morgan, wellness department manager.
“I routinely hear customers say [our competitors] don’t have anyone on the floor to answer questions,” she said. “We have four fulltime staffers dedicated to the wellness department to answer questions, take special orders and help customers compare labels. We provide a truly different kind of shopping experience.”
Education
Bare Essentials Natural Market has made a full-time commitment to making sure its staff is ready to answer any and all questions. About 10 percent of the wellness department’s time is devoted to research and education, be it attending educational programs, conferences and phone- and internet-based training, etc. This 16-hour a week commitment equates to about $1,000 a month, but it’s something Henderson views as an investment, not an expense.
“As a result of the investment, we have the potential to see $20,000 more in sales. Educated customers buy more, and they’re more satisfied with those purchases,” he said.
And as Bare Essentials Natural Market is truly a gatekeeper, having a knowledgeable Staff is paramount. Morgan expressed that when it comes to the wellness department, she’s seeing rep visits increase substantially as brokers make a bigger push with high-pressure sales.
“Suppliers once cultivated a long history of trust by offering us scientific information as their sales pitch, but we’ve lately seen a shift to slicker marketing campaigns,” she said. “I feel we have to be more vigilant than ever in asking scientific questions and for documentation, studies and research, where it was once offered up front.”
Future
By press time Bare Essentials Natural Market will have rolled out an expanded private label section from a new manufacturer. The four-foot floor-to-ceiling display will include a full set of A to Z vitamins, protein powders and supplements.
“We chose the line because the company offers trademarked branded raw materials,” said Morgan. “We can
offer branded raw materials at a better price—not a bottom-shelf price—and a good quality for the price. I think we really nailed it.”
The private label marries well with the company’s future goals, which are all about meeting customers’ needs.
“Customers are starting to mistrust conventional medical model, so a lot of the service we provide is the right information to bridge gap when asking their doctor what might be appropriate to take with their medication,” said Morgan. “We need to offer well-documented options to incorporate natural therapies while maintaining relationships with their physicians—good, safe, efficacious choices they can take to doctor.”
“The burden of proof is on us,” said Henderson. “It’s important that we offer solid information to give our customers the ammunition they need to achieve better health.”








