Paul Kneeland came to Gelson’s Markets in 2017 as senior director of produce and floral with the clear knowledge that he was joining a top-notch retail operation. He also knew there was room for improvement.

“When I arrived there was a strong core philosophy and a great foundation on which to build,” he said. “The core philosophy has stayed the same, but we have upgraded a lot of things.”

He noted that they have opened two new stores since he arrived, remodeled 10 others and added new equipment to almost all of the produce departments. He has also made some material changes to the merchandising concept. “One example is that when I arrived there were refrigerated cases at the front of each department. We took those out and have a seasonal display up front and a much more open market look. When a customer walks into our produce department they almost always see an amphitheater-style display of fruit that emphasizes color, freshness and seasonality.”

It will not be the same in each store, as Kneeland said the produce manager of every Gelson’s has autonomy to emphasize what’s best for their store’s customers. As long as that display makes a great first impression and is reflective of the season, Kneeland is all for the individual creativity, which would typically be a collaboration between the store’s produce manager and the merchandiser working with that manager.

He said that reveals another point of distinction that Gelson’s enjoys. Not every store carries every item. Gelson’s has the opposite approach. It challenges its suppliers to bring items that will work with specific demographics. This past summer, Gelson’s worked with Giumarra on a unique tree fruit programs that saw that supplier use an autonomous small plane to fly fruit directly from the field in the San Joaquin Valley to a small airport near one of Gelson’s Markets. The fruit was on a retail display rack literally hours after it was picked with the help of pilot-less aircraft. That resulted in a great story to tell its customers, who were able to share in a unique experience.

Though this stretches the concept of unique to its outer limits, it is representative of Gelson’s philosophy. Kneeland said he is most frustrated when a potential supplier offers him a deal without having been into a Gelson’s or knowing the company’s philosophy. The chain is not about getting a blow-out price on a particular commodity so it can undersell its closest retail competitor. Quality is always king, and a point of differentiation is equally revered.

For these reasons, and more, The Produce News is proud to name Gelson’s Markets, the 27-store upscale grocery chain in Southern California, our 2021 Produce Retailer of the Year.

Gelson’s is also a big user of organic produce as it is well suited to the company’s philosophy and that of its customers. In  some stores, organic produce sales account for as much as 30 percent of the department’s revenue.

Even when John Savidan,  Gelson’s senior director of produce and floral,  was a box boy at another grocery chain, he often would go to a Gelson’s Market in Newport Beach near his parent’s house and admire the produce department. He had no idea that he would one day work for that retailer, but he always appreciated the look of that department. “This is what I wanted my department to look like,” he said. “I tried to emulate what was going on at Gelson’s when I became a produce manager (elsewhere).”

Today, as one of the key leaders of Gelson’s produce team, it is Savidan’s job to make sure that the “Gelson’s look” continues at every store, every day. “Merchandising is what sets us apart. The craftmanship that goes into building a display is top notch. The guys building those displays touch every piece of fruit out of the box and stack them perfectly, making sure they are all turned perfectly,” he said.

He said the company’s mantra is to “never compromise on quality or the look of the display such that it will deter from the customer’s experience.”

Compared to other stores where he has worked, he noted that Gelson’s employs much more labor in their produce department. Their busiest store has a team of 12 or 13 produce clerks. The company has very little turnover with most of the produce team members having years of service behind them, including many that have been there more than three decades. When a new member joins the produce team, he or she gets a full two weeks of training before starting to build their own beautiful displays.

Under his command, Savidan has two produce merchandisers handling their 27 stores as well as three produce buyers and a floral director, merchandiser and buyer. When circumstances call for a new hire or promotion, the key characteristic he looks for is “someone with a great attitude. You don’t have to have every talent in the world, but you have to have a great attitude, want to learn and want to be part of a team. We can teach you the rest.”

John Paar is produce manager at the Gelson’s in Calabasas, an upscale community with national recognition largely because all of the Kardashians live in the area. Parr has been with Gelson’s for 33 years after having spent five years with another Southern California retailer, which is where he began his produce career. What he loves most about his job is the challenge of meeting the expectations of a demanding clientele. “It bugs me a lot when I am out of something that my customer wants,” he admitted, noting that out-of-stock items are a rarity.

Kneeland remarked that the entire Gelson’s produce team did an excellent job when panic buying during the first month of the pandemic saw an in-store demand that did create some shortages. However, he said the problem was quickly addressed with the buyers getting ample supplies and logistic solutions put in place within a matter of days.

Savidan said 2020 was a challenging year but a great year as far as sales are concerned. “We’ve had record sales and performed very well during this time. I’m not sure we will ever see this again,” he said, referring to in-store sales spikes that occurred because of the coronavirus and increase in retail sales.

Gelson’s did have an extra challenge, according to Savidan, of living up to its well-earned reputation of having impeccable displays. With produce sales off the charts, it was impossible at times to keep everything stocked. “Our produce managers were going crazy because they couldn’t get items from the warehouse fast enough to keep up with demand,” he said.

It was super stressful for a few weeks, but Savidan said once they got it under control and the supply chain was moving again, they readjusted orders and have been able to fill their shelves ever since.

Before COVID-19 protocols suspended in-store tastings, Parr loved to whip out his produce knife on the spot and offer those discerning customers a taste of a unique item or a piece of seasonal fruit at the peak of its flavor. He said a good tasting is a surefire way to increase sales, which he considers to be the most important part of his job. 

Parr also noted that he takes immense pride in his job and likes to go into other markets and compare their displays. “I like it that we are a cut above,” he said.

Steve Kaluhine has been with Gelson’s for nine years and is currently the produce manager at the Rancho Mirage store in the California desert near Palm Springs, another area with an abundance of high-end shoppers. Kaluhine has been in the retail produce business for more than four decades, spending many years as a produce manager in the Vons/Pavilion chain. In fact, he worked under Gelson’s CEO Rob McDougall at Pavilions and it was McDougall who convinced Kaluhine to come over to Gelson’s. “I came over as a produce clerk,” he said, adding that he initially didn’t want the added pressure of being a produce manager.

However, once in the fold, his passion for the job took over and he didn’t really enjoy being just a produce assistant. “My passion is designing displays. I am a merchandiser. I love that part of it,” he said.

He gets great pleasure out of building the display but of course the reward is the increased sales it creates. “That’s the proof of what you do,” he quipped.

Kaluhine discussed one particular avocado display that he created during his store’s run-up to the Super Bowl. He put the display in the front of the store. “It must have been 50 yards long. It stretched across the entire front of the store with a goal post at each entrance.”

Kneeland indicated it is this pride of ownership by the in-store personnel and attention to the “customer experience” that sets Gelson’s apart.

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