Hundreds of independent grocery executives gather in Washington, D.C.

Swipe fees

The National Grocers Association (NGA) has had a busy week, so The Local Checkout has much to report on this association, which advocates for independent grocers on a variety of issues.

On Friday, NGA applauded the Federal Reserve Board’s proposal to lower swipe fees on debit card purchases, and even went a step further, urging that the final number be set even lower.

Acting on powers granted under the 2010 Durbin Amendment, the Fed’s Board of Governors proposes to lower the debit interchange cap from 21 cents per transaction to 14.4 cents per transaction, while increasing the amount for fraud prevention to 1.3 cents and lowering the amount for fraud loss recovery to .04%, according to a press release from the NGA.

“This long-overdue announcement by the Fed is a welcome move in the right direction, but it doesn’t go far enough to help American consumers and businesses who paid $34.4 billion in swipe fees last year,” said Greg Ferrara, NGA president and CEO, in a statement. “The Durbin amendment directed the Fed to set a cap that’s both “reasonable and proportional, and 14.4 cents per transaction is neither. These ‘swipe fees’ have a direct impact on independent community grocers’ operations and the viability of their businesses. Reducing the costs of these fees would provide grocers with savings to pass on to their customers and create opportunities for reinvesting in their stores, expanding their workforce, and boosting local economies.”

Surveys conducted by the Fed show that bank costs have fallen consistently since the 21-cent fees have been in effect, and while banks enjoyed the extra profit, the average U.S. family is paying $1,000 each year for the privilege of using debit cards, NGA noted.

D.C. Summit

More than 250 independent grocery executives convened this past week for analysis, insights and discussions about the future of their industry and influence of politics on their business at the Executive Conference and Public Policy Summit hosted by the NGA in Washington, D.C.

The event is for executives and their leadership teams to gain a competitive advantage in the marketplace through in-depth forecasts on the future of the industry, outlooks of emerging economic and business trends, and opportunities to strengthen relationships with trading partners throughout the supply chain.

Attendance at this year’s event, which was held Sunday through Wednesday, topped that of last year’s event. Closing out the summit was a look at “The Future of Retail Leadership,” offering an exploration of the ability and vision that will be required of the industry’s rising leaders.

Moderated by Ferrara, the panel featured Erin Horvath, chief operating officer of Providence, Rhode Island-based grocery wholesaler UNFI; Tim Lowe, president of Winston-Salem, North Carolina-based supermarket operator Lowes Foods; and Kurt Schertle, chief operating officer of Sunbury, Pennsylvania-based grocery chain Weis Markets.

Here are a few key takeaways from the session:

•Horvath: “Be flexible for the customer, for what they want their experience to be. Know their expectations and be able to match that.”

•Lowe: “America needs what you have. Brick and mortar’s not dead, [but] technology’s not going away. Be in the right place at the right time. … You can’t be everything to everyone, but you’d better be something to somebody.”

•Schertle: “I’m bullish on our future. We’ve earned a lot of trust over the last few years … We’re changing to adapt to the newer consumer.”

“The insights shared by some of independent grocery’s most prominent leaders were the perfect way to close this year’s conference, as we all look ahead to the future and how best to keep this industry strong, successful and vibrant,” Ferrara said.

Wednesday included a presentation on “The Future of Grocery Distribution,” with moderator Mark Allen, president and CEO of the International Foodservice Distributors Association, leading a panel that included Dan Funk, COO and incoming president/CEO of Associated Wholesale Grocers, Certco President/CEO Amy Niemetscheck, URM Stores President/CEO Ray Sprinkle, and Scott Widtfeldt, EVP of sales, chain natural and independents at KeHE Distributors.

A key takeaway from the session regarding distribution includes:

Sprinkle: “We need to work closer with the vendor community and with the retailer to better understand their needs. … The consumer is no longer as brand loyal as they used to be. Our exclusive brands have filled that niche.”

Tuesday’s sessions included presentations from SPINS on “The Future of Consumer Demands” and how grocers can deliver on shoppers’ changing needs. The agenda closed with a presentation by author Randy Ross on “The Future of Relationships,” who revealed that good relationships beget happy employees who then deliver better customer service, solve problems and add value.

Also convening during the Executive Conference were the Women Grocers of America (WGA) Emerging Female Leader (EFL) share group and Executive Female Leaders (EXFL) Network meetings.

Thanks for reading The Local Checkout. Got an indie grocery story news item you think I missed? Email [email protected]