SAN DIEGO — The overall feeling at the National Grocers Association annual convention was one of optimism for independent grocers in the face of increasing competition.
A series of workshops giving small retail chains ideas to combat the rise in online retailers, dollar stores and discount retailers could be simply summed up with: You Be You.
A big part of that is emphasizing perishables, particularly high quality fresh fruits and vegetables, especially when they’re local and can give consumers a connection between their local retail chain and the community they serve.
Consumers like the convenience of online ordering and delivery and low prices, but the Dollar Generals, Amazons and Aldi’s are not taking over the retail world.
Consumers also like engaging with their communities, and their local grocery store can serve as a community meeting place. This happens whether in big cities, suburbs or small towns.
“Build community, build trust and loyalty,” said Peter Vail, vice president of merchandising and procurement for Associated Grocers of New England, in a workshop.
“Independents are much better at connecting with consumers,” said Dan Funk, chief supply and merchandising officer for Associated Wholesale Grocers. “Pay attention to how neighborhoods change.”
Independent retailers should consider what these non-traditional retailers do well and see if they can do some of that too. Independents must invest in online systems and be anywhere consumers want to shop and buy.
They can convert a non-performing section of their stores into a “dollar area.” They should continue to work on cutting cost out of the system, and if they work with a wholesale grocer, they should work together with that company or co-op.
The message to NGA attendees is there’s no reason to dramatically change their business model, just do more of what consumers already love them for.
