Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, January 10, 1993 TAG: 9301090218
SECTION: BUSINESS PAGE: B-5 EDITION: METRO
SOURCE: PAUL NOWELL ASSOCIATED PRESS
DATELINE: HIGH POINT, N.C. LENGTH: Medium
FORMER PREACHER NOW SPREADS THE WORD ABOUT IGA
The Independent Grocers Alliance had been looking for someone to revive its tired image when Thomas S. Haggai took the helm 16 years ago.The former Baptist preacher, motivational speaker and radio personality has yet to disappoint the Chicago-based cooperative.
In fact, under Haggai's leadership, IGA has become the world's sixth-largest supermarket chain with $16.2 billion in sales and nearly 4,000 affiliated supermarkets in 49 states and six countries. IGA is a wholesale supplier to independent grocery stores in Western Virginia.
Last year alone, 248 IGA-affiliated stores were opened, including the first in South Korea. Even remote places like Papua, New Guinea, have IGA supermarkets thanks to Haggai's globe-trotting efforts.
"If I didn't consider it as a ministry, I wouldn't work so hard," said Haggai, 61, who became IGA chairman in 1976 and its chief executive officer a decade later.
Haggai also has been instrumental in improving IGA's private-label program and setting new standards for stores.
The IGA, which is owned by 20 of the country's largest grocery wholesalers, was founded in 1926 by Chicago accountant J. Frank Grimes to help independent grocery stores compete against the big chains like A&P and National Tea.
Grimes was revered as an inspiring leader, and the alliance grew in numbers and strength. Right out of a Norman Rockwell painting, the local IGA became a comfortable meeting place with its friendly service.
Haggai first became involved with IGA in 1965, when Grimes asked him to give motivational speeches to member stores. In 1972, he was appointed to IGA's board of directors.
When Haggai became chairman four years later, his first task was to reverse what industry observers described as a loss of energy and momentum for the group - as well as market share.
For much of his tenure, Haggai said, the first question was always: "Will it survive?"
"Now we're outstripping the chains," he said, explaining independents have seen slightly larger sales gains in the last five years than their large chain-store competitors.
Haggai believes his biggest asset is versatility.
When he took the helm of IGA, he decided to commute from his home in High Point to Chicago, rather than relocating his family.
Staying in North Carolina also allowed him to keep doing his work at the Tom Haggai and Associates Foundation, a non-profit group that gives scholarships for young men and women planning careers in youth leadership.
"Our flexibility is probably the biggest secret to IGA's success," Haggai said. "We stay flexible by serving all size cities and towns."
Because IGA is a franchise corporation and not a retail chain, it doesn't always have to build its stores from the ground up. In many cases, it enlists existing stores that meet its standards.
This allows IGA to more easily move into new areas, including overseas markets.
It also means the local ownership doesn't change. The franchising efforts have helped IGA attain an international presence.
"We believe the entrepreneurial spirit is a worldwide phenomena," Haggai said.