LAS VEGAS – In a room full of independent grocers at the 2018 National Grocers Association (NGA) show, Harold Lloyd, president, H. Lloyd Presents, Virginia Beach, Va. Said, “Don’t be nice, be weird.” which was held February 11-13 in Las Vegas. “Successing against a formidable new competitor—whether it’s a tough discounter or another retailer—is about staying relevant. Pay attention to your shots to get the points of difference.”
The annual NGA Show gathered more than 3,000 independent grocery retailers, wholesalers, food industry executives, manufacturers and service providers to discuss emerging trends within the food retail industry. Defined as a privately held, or family-owned entrepreneurial business, independent supermarket operators run businesses of all formats and sizes. NGA. As of 2011, the independent supermarket industry accounts for about 1% of the country’s total economy and $131 billion in sales.
The “two-headed monsters” in the retail world are Aldi and Lidl, according to Mr. Lloyd, who said independent grocers won’t survive the expansion of these heavy discounters if they don’t establish a mission and a strategic plan. Some key features.
“It’s scary without a focus,” he said. “It’s really scary if you don’t have an identity.”
Mr. Lloyd recommends that independent retailers select five strategic points of differentiation to remain relevant with today’s shoppers. But, he stresses, you should go above and beyond and make sure the buyer knows the things that are “weirdly great” to store. They offered a list of 25 ways to make a difference, including offering the freshest foods, offering the greatest variety, connecting to the community, being a great place to work, and being the best food marketer. .
“You can’t be good at everything but can’t be great at anything,” he said.
industry status
At the show, key findings from the third annual National Grocery Shopper Survey were released. The online survey was conducted between November 13 and December 8, 2017 among 3,008 adults, using a sample from The Harris Poll Panel who identified themselves as independent shoppers. Additional analyzes were obtained from Nielsen’s panel-based independent Grocer Shopper database of 44,000 consumers. Loyal independent shoppers are those who spend 50% or more of their reported purchases at an independent grocery store.
According to the survey, sixty-four percent of independent shoppers are very/extremely satisfied with their local supermarket. The key areas that independent shoppers value most are low prices, quality meats and products, friendly staff, cleanliness and locally grown produce and other packaged goods.
NGA President and CEO Peter Larkin said, “There is no doubt that the supermarket industry is changing rapidly, either due to the growth of e-commerce or the explosion of new formats, as well as changing consumer trends, However, independent grocers are nimble enough to remove obstacles quickly, and with strong ties with their communities, they know what consumers want and need. ,
The primary reason to shop at an independent grocer is convenience (70%), with more than half (52%) of shoppers believing that independent grocers have the best prices. Quality (44%) and personalized service (20%) are the other major reasons.
“In today’s ubiquitous retail environment, independent grocers maintain a unique and strong relationship with their shoppers,” said Jean Danubio, executive vice president of retail major markets at Nielsen. Applying the findings of this year’s survey, Nielsen’s new Independent Buyer Group panel data shows that a loyal independent grocery shopper spends more than 40% more at grocery than the average buyer. For independent grocers, this It will be important to maintain the quality and personal connections that continue to bring these valued consumers back to the independent store.”
More than three quarters (76%) of shoppers who buy groceries online have used food delivery, compared to 39% who use the “click-and-collect” method. The most commonly purchased food is packaged foods (14%), followed by general merchandise/health and beauty care (10%) and cleaning products (10%). Nearly 3 out of 10 (27%) shoppers indicated that they expect their online grocery shopping to increase in the next five years.
Independent buyers expect a lot from retailers. The majority (63%) expect their grocery stores to support them with a healthy lifestyle. Top recommendations include: cooking instructions with certain foods (28%); Assistance in reading labels, including ingredients and nutritional claims (25%); and general guidance on food that gives good nutritional value for the dollar (23%). Shoppers were roughly divided on where healthy foods should be displayed, with 58% saying that healthy food choices should be put on the shelf alongside other foods, while 42% thought healthy foods should be on their own. Must be in its own section, separate from main corridors.
a federal challenge
Separately, on the NGA’s opening night, U.S. Secretary of Agriculture Sonny Perdue addressed attendees, sharing his thoughts on the importance of shared public-private partnerships between the USDA and stakeholders within the food retail industry. He acknowledged how independent, community-focused retailers and wholesalers are the backbone of their communities. He praised them for playing the role of job creators, innovators and economic drivers, and he promised them a positive future in terms of regulatory reform.
The next morning, the White House announced its budget proposal, which includes ending the Supplemental Nutrition Assistance Program (SNAP), a major source of sales for many independent grocers. The attendees were stunned.
The NGA issued the following statement:
“Often considered the backbone of its community, America’s independent supermarket operators have long been indispensable partners in the SNAP food delivery system, serving millions of low-income families, including children, the elderly, and families with disabilities,” said Greg Ferrara, said executive vice president of advocacy, public relations and member services at the NGA. “SNAP is one of the most efficient federal social safety net programs because retailers are the linchpins of a successful public-private partnership. Fierce competition in the food retail industry drives consumer prices down.” Therefore, people with limited food budgets benefit more than anyone. The NGA is deeply concerned with the President’s budget proposal, as it abandons the proven free market model on the false assumption that the government is working with its existing private sector. Can buy and provide food more efficiently than partners.
