2 Independent Grocers Speak in D.C. About Unchecked Buyer Power

Two independent grocers went to Washington, D.C., this week to speak on behalf of independents across the United States regarding anticompetitive tactics by dominant retailers in the grocery marketplace.

Tom Charley, co-owner of Charley Family Shop N’ Save in Greensburg, Penn., and Anthony Pena, owner of City Supermarkets in Norwalk, Conn., testified on behalf of the National Grocers Association (NGA) to the Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) Antitrust Division. The March 28 forum, which focused on food and agriculture, was held as part of a series hosted by the FTC and DOJ to hear from those who have experienced first-hand the effects of mergers and acquisitions.

Charley and Pena spoke to lawmakers about how consolidation in the food retail space has created an unchecked buyer power in which a few dominant firms are able to set favorable terms, prices and product allocation for themselves.

A fourth-generation retailer, Charley described how his great-grandfather emigrated from Syria in 1900 and sold produce door to door before opening his own food distribution business.

In his remarks, he described how his family now has three Shop N Save grocery stores within a 15-mile radius in Pennsylvania—but they are the only local independent retailer in the area.

“Independent grocers don’t shy away from a challenge. But I want to address a challenge that’s gotten bigger over the years. That’s a few enormous, dominant retailers using their power to get around the rules designed to protect competition,” Charley said in his oral statement.

Pena, a second-generation Dominican supermarket operator, who owns nearly 10 grocery stores in Connecticut, Massachusetts, and Rhode Island under the Super Fresh and Save-A-Lot banners, described how each of his stores is uniquely tailored to the communities they serve.

“Merger policy shouldn’t forget about the benefits that my stores bring to consumers. You should look at service. You should look at accessibility and the convenience of locations,” Pena said during the forum.

“America’s independent community grocers and other Main Street businesses play a vital role in local economies, providing access to quality products, nutritious food, essential services and creating jobs,” said Chris Jones, SVP of government relations and counsel for NGA, in a statement. “As described in today’s testimony from Tom and Anthony, ensuring a diverse, competitive food and ag sector benefits independent community grocers, and stakeholders throughout the food supply chain, including wholesalers, manufacturers, suppliers, farmers and consumers.”

Earlier this year, CEO of Fresh Encounter Inc. and NGA member Michael Needler testified on the effect of grocery chain consolidation and unchecked buyer power on independent grocers in front of the House Judiciary Committee’s Subcommittee on Antitrust, Commercial and Administrative Law.

NGA continues to work on antitrust issues, most recently arguing for the enforcement of the Robinson-Patman Act to level the playing field between independent grocers and large national chains.