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The Shelby Report of the Southwest • OCTOBER 2016
HARPS MISSION STATEMENT
Our mission is to provide the best overall value to our customers, building a reputation for competitive prices, product quality and freshness, friendly service and cleanliness.
Southwest Retailer of the Year: Harps Food Stores Small Towns and Big Odds: Harps Just Keeps on Growing What is today known as Harps Food Stores was founded in 1930 by Harvard and Floy Harp in Springdale, Arkansas. Harvard had saved $500 while he was working in the citrus industry in California. That was the seed money for Harps Cash Grocery. For 34 years, the pair remodeled, expanded and sought out larger spaces so the company could grow.
From left, Don Harp and Harvard Harp. Harvard and his wife, Floy, started the business in 1930 with $500. Harvard and Floy’s oldest son, Don, joined them in the family business by the early 1950s. In 1964, Harps became a chain when it opened a second store in North Springdale. About this time, Don’s brothers, Gerald and Reland, also were involved in managing the company. Don Harp became president in 1968, when his father died, and he continued to guide Harps until 1994. In 1995, Gerald Harp assumed the duties of CEO and presi-
dent after the company purchased Don’s stock. At the same time, the company purchased a 10-store chain. This transaction significantly increased the leverage of Harps. The company then focused on driving down its debt. That has been integral to the company’s growth, and Harps to this day maintains close relationships with its lenders. In 1998, discount chain Wal-Mart began selling groceries in its supercenters. Harps would prove itself more than worthy of battle with the retail colossus. Roger Collins, who now is chairman and CEO, became president of Harps in 2000. The next year, the company completed a buyout with an Employee Stock Ownership Plan (ESOP), purchasing outstanding stock from the family and management. Its wholesaler, Associated Wholesale Grocers (AWG), helped Harps accomplish the switchover. “AWG has been a great partner, and we’ve enjoyed really a great relationship with them for a lot of years,” Kim Eskew, current president and COO, said. “As far as a wholesaler, I’m not sure there’s a better one than AWG. We’ve had a good relationship with all of their executives and people up and down the line. We feel like they’ve treated us just superbly.” For the next four years, Harps again focused on reducing its debt following the change to an ESOP. After that, Harps really began to grow through acquisition and new store construction. Eskew was named president in 2008. Harps now operates more than 80 stores in Arkansas, Oklahoma and Missouri. A store is under construction in De Soto, Kansas, and will be the first Harps in the state when it opens. It operates several stores in Missouri, including stores
Harps store, 1950s in Anderson, Noel and Joplin, which are located in counties that border Kansas. Eskew said he wouldn’t be surprised to see more Harps stores open in Kansas. The company recently grew again through acquisition when it purchased former Walmart Express stores in Arkansas and Missouri. Harps has grown into the largest employee-owned company headquartered in Arkansas while staying true to its roots and keeping its focus on small towns. With its incredible success against big odds and continued growth on the horizon, Harps is just getting started.
Praise for the CEO
“Roger is a widely respected and visionary leader in the independent supermarket industry. Throughout his career, Roger has served as a passionate advocate who always has an eye on growing and strengthening both Harps and the industry. Known for his honesty, strong work ethic and generosity, I believe some of Roger’s greatest strengths are his ability to build strong relationships and inspire those who work alongside him.” —Peter Larkin, president and CEO, National Grocers Association “You could disagree with Roger and debate and go back and forth and it can be a spirited debate, but after it’s all over, he might say, ‘Hey, you want to go get a bite to eat?’ It’s done. It’s over and there’s no animosity, no hard feelings. You’ve expressed your opinion. He’s expressed his opinion. We don’t always agree, but nobody is slamming their door and pouting for two weeks because it didn’t go their way. Sometimes it will go your way and sometimes it will go his way, but there are no ensuing hard feelings about that discussion. That’s really unique, I think.” —Kim Eskew, president and COO, Harps Food Stores “Roger always speaks well about the rest of us, but I want to tell you my opinion on Roger. Roger is one of the toughest negotiators that you’ve ever met, and I’d say he’s one of the toughest bosses...but he’s also the best leader that I’ve ever worked for. There’s no comparison. I truly believe that if Roger Collins hadn’t been part of Harps from the time he started, we might not still be here. That’s how critical his leadership has been for this company. I think all four of the other guys and anybody else that’s worked closely with him would tell you the same thing. He’s one of the most humble persons you’ll ever be around.” —Harps executive committee member (name withheld by request)
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Harps Food Stores Executive Committee members include, front, from left: Jim Antz, VP of finance and administration; Roger Collins, chairman and CEO; and J. Max Van Hoose, VP of store planning; back, from left: Kim Eskew, president and COO; Mike Thurow, VP of store systems; and Frank Ray, VP of human resources. “I have been extremely fortunate to have these guys around me because we didn’t get to where we are just on my shoulders. They have made a great contribution to helping us be where we are. It’s really the people that we have that has made a difference, and I couldn’t handpick five people to be on the executive committee any better than what I have. They all are men of very high character and work ethic and focus.” —Roger Collins, chairman and CEO, Harps Food Stores
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