REGIONAL RETAILERS MAKE NEW PITCH TO OLD PARTNERS

David Orgel

Hello. My regional food retail company has been around for generations, and you've been supplying my stores for your entire career. But, let's be frank, you don't really have a full picture of my operation. I'd like to spend a little while re-introducing myself and my firm. That's the kind of conversation taking place around the country as regional retailers, newly buoyed by a resurgence, court suppliers. Some of that courting took place at this month's Grocery Manufacturers of America's Executive Conference in West Virginia. Three regional retailers -- Price Chopper, Marsh Supermarkets and Smart & Final -- outlined their businesses and local management strategies during a workshop in front of a supplier-heavy audience.

It was interesting to watch venerable chains discuss their operations as if the audience was composed of investors not familiar with the industry. There were even dazzling Powerpoint presentations.

Here's my seafood section. ... Now, my perishables. ... On the next screen, you see my latest format ...

So, you're wondering if the audience headed for the exits to avoid seeing pictures of stores that many were already familiar with? They did not.

That's because the full effect was instructive to manufacturers. The presentations portrayed the retailers as technology-savvy, customer-centric, long-term players in a changing industry. And importantly, there was a call to action from retailers to suppliers.

You have an opportunity to become more involved in our retail business. We can reach your customer in a more targeted way than the big chains can. A regional retailer is the best laboratory for your product marketing. Maybe you have an item for targeting to a particular ethnic group. We can do that using our first-hand knowledge of our customers. We need partnerships for our survival so you can be sure we'll be flexible and willing collaborators.

Consider this an enthusiastic invitation to play on our team. Let's discuss partnering in a way that jump-starts each other's businesses.

There are signs some suppliers are embracing the offer. Many no longer view regionals as an endangered species, at least not in the near term. Manufacturers are looking for diversification moves as bigger retail customers encounter challenges.

It's important to note that retailers will ask for some things beyond financial resources from their partners. Store executives will seek relationships built on trust and sharing of data and other information. Some will want greater access to full product lines of suppliers. Retailers will also seek ways to soften the disruptive impact of rapid changes in the ranks of some supplier executives.

Still, the biggest burden in these partnerships will be on the retailers. As more suppliers jump on board, it will be up to the store executives to make good on their promises of fruitful relationships. They will need to provide niche opportunities that the bigger retailers cannot offer. They will need to facilitate targeted marketing and ensure both parties build their businesses.

Otherwise, they will dig themselves into a hole in which even Powerpoint is powerless to help.