Independent operators continue to hold their own in the grocery space

Grocery stores are like people—they come in all different shapes and sizes. And here at The Local Checkout, I’ll be taking a closer look through a wide lens of independent grocery stores. Because just like people—they all matter.   

Indies hold their own

A new report was released on Friday proving independent grocers continue to hold their own in the retail grocery space.

The 2023 edition of the "Independent Grocers Financial Study," a joint effort of the National Grocers Association (NGA) and FMS Solutions, documents small grocers' operational and financial performance in a complex marketplace.

A whopping 521 independent grocers, representing nearly 2,000 stores, shared their results for fiscal-year 2022, which runs through March 31, 2023. And the results paint a positive picture of the strategies independent grocers continue to implement.

"Independent grocers' knowledge of the marketplace, grit and nimbleness resulted in a solid year in most key metrics," said Robert Graybill, president and CEO of FMS Solutions.

"Inflation, competition and continued supply issues were just some of the challenges facing independent grocers in 2022," noted Greg Ferrara, NGA president and CEO. "However, independent grocers did what they do best: pivot to meet the ever-changing marketplace opportunities and challenges. Independents reinvested into their stores and built or expanded loyalty programs, e-commerce platforms and digital marketing."

Employee turnover remained an issue, averaging 57% in 2022, the survey revealed.

"Despite the challenges, only 35% have turned to automation solutions to fill labor gaps," added Graybill. "Independent grocers are known for customer service and are carefully evaluating the impact of consumer-facing automation."

Looking ahead, Ferrara offered an optimistic outlook.

"For many years, independent grocers have proven they are up to the test," he said. "More than anything, this year's study shows that strong customer loyalty combined with business savvy means independents are set to survive and thrive in the remainder of 2023 and 2024." 

Taking care of the employee

Yoke's Fresh Markets (Yoke’s), an employee-owned, Washington-based chain of grocery stores, founded in 1946 by Marshall and Harriet Yoke, has partnered with DailyPay to give employees immediate access to their pay. The partnership also will provide employees with access to tools that help them invest, pay bills, and spend and save on their own schedule.

“It’s always nice to give our associates an additional benefit that our competitors may not have,” said John Orton, VP of marketing at Yokes Fresh Markets. “Also, it’s a benefit that doesn’t cost the company anything. What could be easier?”

And what a way to take care of the employee!

Hello Tally

Wakefern Food Corp. is expanding Simbe Robotics' shelf-scanning robot and business intelligence solution to additional ShopRite stores after a successful pilot. 

In case anyone is wondering, Simbe is the maker of Tally, an inventory management robot that travels a store's aisles and scans thousands of products daily to track on-shelf status, pricing and placement.

Over the past several months, Wakefern fully vetted Simbe’s comprehensive platform in more than 20 stores to ensure that the technology seamlessly integrated with store environments and optimized inventory. After a highly productive pilot, the stores were able to leverage Simbe’s real-time insights to meaningfully reduce out-of-stock rates, maximizing inventory availability and exceeding industry standards.

“This consistent access to deep, precise insights has empowered Wakefern and its members' store teams to further improve the exceptional shopping experience their customers expect by keeping shelves fully stocked,” commented Brad Bogolea, co-founder and CEO of Simbe. “We look forward to continuing to enhance the experience for store teams and shoppers alike.”

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