NGA FOCUSING ON WAL-MART, NATIONAL COMPETITORS

JON SPRINGER

RESTON, Va. -- The National Grocers Association here is focusing not only on helping its members compete against Wal-Mart, but to beat it.

Competitive strategies for independent grocers and wholesalers as they contend with the influence of Wal-Mart and other national and international chains, will be one focus of the NGA's annual convention and concept show, dubbed "It's All About Winning," set for Jan. 29 to Feb. 1 in Dallas.

In an interview with SN, Thomas K. Zaucha, NGA's president and chief executive officer, said the show will offer programs to help independent grocers succeed against Wal-Mart on a number of fronts.

The sessions will address operations issues, Zaucha said, as well as "battle plans" on public relations, and on local, state and federal government action.

"As this industry has become so concentrated with mergers and acquisitions and with Wal-Mart's saturation bombing market by market, the key to our members' success is going to be how we compete against them," Zaucha said. "Everywhere you go, retailers of all sizes are talking about the Wal-Mart phenomenon."

Zaucha said NGA will address Wal-Mart and other issues raised at its convention within the guidelines of its "Nine Keys to Success" action agenda, which it has pushed for two years. According to Zaucha, these include:

Repealing the estate tax.

Creating a level playing field.

Reinventing the supermarket as a "lifestyle destination center."

Improving center store sales.

Recruiting quality managers and entrepreneurs.

Retailers and manufacturers operating as a virtual chain.

Taking advantage of new technologies.

Creating synergies to achieve economies of scale.

Accessing competitive growth capital.

Framing NGA's objectives within its "nine keys" helps to place challenges such as Wal-Mart in perspective, Zaucha explained.

"So much of our ability to succeed is a willingness to sustain the battle," Zaucha said. "These nine keys are not brain surgery -- they are all achievable objectives. "

The NGA has made significant progress in the last year, Frank DiPasquale, NGA's senior vice president, told SN, citing its effort to win back center-store sales as an example. The organization has already sent out around 3,000 copies of a recently completed study on center-store strategies, he said.

The NGA has also had significant impact on the legislative front, Zaucha said. Its lobbying efforts helped regulators to take a hard stance while examining the ultimately unrealized merger plans of Ahold-Pathmark and Kroger-Winn Dixie, he said.

Other topics NGA will tackle at its convention include educational workshops on operations, human resources, store design, food safety, estate planning and technology. The Concept Show will focus on the supermarket as a "lifestyle" center, with displays ranging from whole health/natural foods to gasoline marketing, Zaucha said.

Special events scheduled include a discussion of the new presidential administration and Congress, which would take office just a week before the convention begins. Noted political journalists Mark Shields of the Capital Gang and the Jim Lehrer News Hour and Fox News commentator Tony Snow are scheduled to debate the new administration in a session moderated by Zaucha. Sen. John McCain of Arizona is also scheduled to speak at the meeting.

The NGA and Food Distributors International will again be jointly sponsoring a marketing "conference within a conference" during the NGA show. This attracts retailers, wholesalers and suppliers interested in improving sales and building image through more creative advertising and merchandising, Zaucha said.

Between 3,500 and 4,000 attendees are expected, Zaucha said.

Also in 2001, NGA will hold its midyear conference, once again in partnership with FDI. That event is set for Sept. 9 to 11 in Toronto. NGA's Public Affairs Assembly, held jointly with FDI and the Food Marketing Institute, is set for March 26 to 27 in Washington.

NGA's Entrepreneurial Institute, focusing on leadership issues, will be held in April and October in Atlanta. The NGA/FDI Joint Distribution Supervision Skills Seminar, designed for supervisors in the distribution industry, will be held June 13 to 15 in St. Louis.