independents carry on the american dream · 44 produce business • october 2009 reader serv i ce #...

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PRODUCE BUSINESS OCTOBER 2009 36 “I know independents are getting stronger,” says Richard Stiles, director of produce and floral for Red- ner’s Markets Inc., in West Lawn, PA, with 38 stores. “We’re able to ride this economic downturn a bit bet- ter than larger food chains because we can react quicker and easier to the circumstances out there. If we need to get our price points down and change our margin, we can do it starting tomorrow.” Carissa Mace, president of the Fresh Produce and Floral Council (FPFC), located in La Mirada, CA, reports, “In the Los Angeles marketplace, indepen- dents have become an increasingly important seg- ment of the business. With their buying power in pro- duce, they can rival some of the national chains in dollar volume to vendors.” John Vena, president of John Vena Inc., situated in the Philadelphia Regional Produce Market, in Philadelphia, PA, adds, “We have seen a measurable increase in the number of independent stores buying from our market — a trend we have followed for most In the shadow of downbeat economic news, lay- offs, cancelled expansions and general negativity, many independent stores have continued to plug away day after day doing what they do best to serve their customers. Independents Carry On The American Dream With local produce, love for their community, a loyal customer base and a lack of corporate bureaucracy, independent stores find their niche and prove they have serious staying power. BY JODEAN ROBBINS Lyndhurst, NJ-based H Mart Companies, has grown from just one store in 1982 to the 40 stores the company currently operates.

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Page 1: Independents Carry On The American Dream · 44 PRODUCE BUSINESS • OCTOBER 2009 Reader Serv i ce # 143 niche or market and are catering to it.” Finding a niche is a key element

P R O D U C E B U S I N E S S • O C T O B E R 2 0 0 936

“I know independents are getting stronger,” saysRichard Stiles, director of produce and floral for Red-ner’s Markets Inc., in West Lawn, PA, with 38 stores.“We’re able to ride this economic downturn a bit bet-ter than larger food chains because we can reactquicker and easier to the circumstances out there. If

we need to get our price points down and change ourmargin, we can do it starting tomorrow.”

Carissa Mace, president of the Fresh Produce andFloral Council (FPFC), located in La Mirada, CA,reports, “In the Los Angeles marketplace, indepen-dents have become an increasingly important seg-ment of the business. With their buying power in pro-duce, they can rival some of the national chains indollar volume to vendors.”

John Vena, president of John Vena Inc., situated inthe Philadelphia Regional Produce Market, inPhiladelphia, PA, adds, “We have seen a measurableincrease in the number of independent stores buyingfrom our market — a trend we have followed for most

In the shadow of downbeat economic news, lay-offs, cancelled expansions and general negativity,many independent stores have continued to plugaway day after day doing what they do best toserve their customers.

Independents Carry On The American Dream

With local produce, love for their community, a loyal customer base and a lack of corporate bureaucracy, independent stores find their

niche and prove they have serious staying power.

BY JODEAN ROBBINS

Lyndhurst, NJ-based H MartCompanies, has grown from justone store in 1982 to the 40 storesthe company currently operates.

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people who started with nothing, rolled uptheir sleeves, worked hard and created a suc-cessful business. “This holds true whetheryou’re talking about the Italian-American whostarted his business in the 1940s or the WestAfrican who only opened six months ago,”says Vena.

“These operations contribute to the Ameri-can dream because you can be an entrepre-neur,” adds Spezzano. “Many owners runningthese companies are immigrants born inanother country. They came here, they

worked hard, they bought a small store andthen grew it to two or three, or in some cases50 or 100! Whether Mexican, Korean, Armen-ian or American, one thing they all have incommon is they really work. Isn’t that theAmerican dream? You work your way up, and10 years later, you own it.”

“A lot of the independents out there startedwith nothing when they came to this countryand they’ve been able to build the business,”states Joseph Battaglia, produce director forRidgewood, NY-based Western Beef, a 28-store operation. “It’s amazing how you seepeople grow and prosper.”

Many independents have contributed tothe American dream and their communitiesfor decades. “Our stores have been in businesssince 1948,” says Jose Manzano, producedirector for Dorothy Lane Market in Dayton,OH, an upscale grocer with three stores. “Thesame family built the business from just onestore to three and still owns them to this day.”

Redner’s Stiles explains, “Thirty-five yearsago, Mr. Redner left Grand Union and openedup two stores. He was able to grow with thecommunity and his business became very suc-cessful. This parallels what is happening todayas well.”

“Independents are a win for everybody,”exclaims Spezzano. “A win for the communi-ty, a win for the owners and a win for the pro-duce industry.”

D i f f i c u l t y I n D e f i n i t i o nThe diversity making independent stores so

successful and unique also contributes to thedifficulty in defining them. The Arlington, VA-based Food Marketing Institute’s (FMI) Inde-pendent Operator Insights into WholesalerRelations and Services report, published in2008, states, “Independent stores are oftenlumped into one category simply because ofthe number of stores operated. While not nec-essarily inaccurate, it’s important to note inde-pendents make up the most varied group of

of the last 10 years. We also see many smaller,long-established independents located inurban centers are growing within their tradingareas and are buying and merchandising moreaggressively. This is particularly true amongthe growing Hispanic and Indian communitiesin the greater Philadelphia area.”

Growth of many independent stores hasbeen low-key. Dick Spezzano, president ofSpezzano Consulting Services Inc., located inMonrovia, CA, explains, “They usually don’tget a lot of press, but when you get a list, youend up seeing the independents you thoughthad two stores actually have 10 or 15 stores.Right now, we probably have around 200independent stores in the greater LA area.”

“With independents, it’s been gradualrather than sudden,” agrees Karen Caplan,president of Frieda’s Inc., headquartered inLos Alamitos, CA. “In every major city and insmall towns over the years, you see an inde-pendent here and there. Suddenly, thereseems to be a huge presence. When the bigguys buy and merge, the smaller independentsare buying the properties the big guys are get-ting rid of.”

T h e A m e r i c a n D r e a mIn many ways, independent stores are the

epitome of the American dream — built by

FOUR AREAS OF EXCELLENCEAccording to Dr. Richard George, professor of food marketing at St.

Joseph’s University, in Philadelphia, PA, there are four areas in which anindependent should excel:

1) No one should be closer to the customer: independents run thestores in the neighborhood.

2) No one should out-service them in terms of customer service.

3) No one should out-fresh them: they know the market; they knowwhat’s available.

4) No one should be quicker than them: they should be the quickestto respond.

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“The independents we serve range fromtraditional supermarket formats in traditionalsuburban and urban areas to retailers carryingproducts geared to very specific ethnic cus-tomers from around the world who have set-tled in communities in our trading area,”Vena of John Vena explains. “Then, we havesome independents referring to themselves as‘international’ retailers, meaning they carrylines of products geared to the whole gamutof consumers. They don’t limit themselves toany ethnic area and are particularly goodcustomers for our lines of specialty produce.”

In general, there is a sense of an indepen-

retail operations in terms of formats, size, spe-cialties, locations, store design and clientele.”

“When you say ‘independent’ you’re cov-ering broad territory,” warns Ed Odron with EdOdron Produce Marketing and Consulting,headquartered in Stockton, CA. “Even the eth-nic categories break down further. Asianbreaks down into Vietnamese, Chinese, Philip-pine, etc. Latino stores can be Mexican, Sal-vadorian or Dominican. Then you have theinner-city Mom & Pop stores, as well as inde-pendents of small chain size anywhere fromfive to 200 stores. Each one addresses thebusiness differently.”

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dent having greater and more local controland ownership. “An independent store is alocally owned, private company serving thelocal community,” says Stiles. “We’re an inde-pendent even though we have 40 stores.”

According to the FMI study, ownership is areflection of independent-status. Nearly allrespondents in the study are family-owned (66percent) or privately owned (27 percent) com-panies. While formats and target markets mayvary greatly, the FMI report indicates close to60 percent of respondents operate conven-tional supermarkets, 28 percent run limitedassortment stores and 11 percent operatesuper/combination stores.

I d e n t i f y i n g T h e N i c h eFormat and niche marketing may be an

indicator of success for an independent.“There are some independent operators whoare really customer-focused and have donewell and others who are struggling,” says Dr.Richard George, professor of food marketingat St. Joseph’s University, in Philadelphia, PA,and author of the FMI report.

Paul Weitzel, managing partner at WillardBishop Consulting Ltd., headquartered in Bar-rington, IL, suggests, “While we may be seeinga continual decline of smaller Mom & Popstores, we are also seeing an increase in thenumber of ethnic run stores that really differ-entiate and provide a more defined shoppervalue equation, for example, unique produceand authentic brands.”

“We do see some growth in some non-eth-nic perishable-oriented stores,” agrees Spez-zano of Spezzano Consulting. “The upscalemarket is growing in Northern California, butthis is very specific to geographic or demo-graphic area. Conversely, upscale indepen-dents in Southern California are not seeingmuch growth. Where we do see growth is inthe ‘other’ formats, such as Trader Joes orFresh & Easy, as well as all the ethnic-orientedoperations — stores that have defined their

H Mart carries a wide selection of tofuproducts to appeal to the varied Asianpopulation it serves.

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niche or market and are catering to it.”Finding a niche is a key element of success

for an independent. “They’re looking at creat-ing stores fitting particular needs,” says Dr.George. “We see all these new markets serv-ing the ethnic communities. People recognizeif you’re an independent and can develop aconcept fitting the needs of the market, thestore is more focused and successful.”

“The independents serve a niche,” statesFrieda’s Caplan. “There are many now servingan ethnic niche and they’re growing.”

“You also have the niche independentswho have built a business around the quality

or variety of a particular category, for exampleseafood,” says Odron of Ed Odron ProduceMarketing. “They’re hanging in there againstthe big guys. Their challenge is the lack ofroom for growth or expansion. Many times asecond outlet fails.”

“The national chains are focused on thebig middle and they miss the edges or seg-ments of the market,” adds Dr. George. “Whatindependents want to provide is the differen-tial advantage. ‘How am I different and why isit better?’ Focus on customers in order to learnhow to provide a better, different experiencefor them.”

However, having a targeted market doesn’tmean stores are mono-focused. “Most of ourstores have a large amount of Asian con-sumers, but some have up to 50 percent non-Asian consumers as well,” reports David Shinof Lyndhurst, NJ-based H Mart CompaniesInc., an operation that has grown from justone store in 1982 to the 40 stores the compa-ny currently operates.

“Our demographic includes Spanish,African American, Polish and of course,Anglo,” says Battaglia of Western Beef. “Wedon’t consider ourselves gourmet, but we havepremium produce and choice meats. We’renot exotic. This is why we appeal to a widedemographic. For example, in our BocaRaton, FL, store we can sell everything from

“We are a neighborhoodstore. We serve our

customers as individuals,person-to-person. We’re

always on the floor taking care of the

customers and givingthem good service.”

- Sam MarrogyUniversity Food Center

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broccoli rabe to plantains. It’s a wide mix.”University Food Center in Detroit, MI, is a

one-store operation serving a college areawith a diverse population. Sam Marrogy, pro-duce director, notes, “We are a neighborhoodstore. We serve our customers as individuals,person-to-person. We’re always on the floortaking care of the customers and giving themgood service. The store is very clean and theproduce is very fresh.”

“Independents are getting a lot of cross-over customers, especially with the economy,”says Spezzano. “Most of these stores have full-time employees working to ensure the highestlevel of cleanliness and appeal. Also, they dohigh-volume in perishables so product looks

fresher, and it’s priced competitively for thequality. As Anglo customers look for options,many are finding they like the independents.”

T w o S i d e s O f T h e C o i nFlexibility, reaction time and lower costs

allow independents advantages specific totheir business. “They have abilities to do somethings the big chains don’t and there istremendous opportunity in that,” says Dr.George of St. Joseph’s University.

Consolidation and the flight of big chainsfrom inner cities have left an opening formany rising independents. “The independentsare moving into smaller strip malls that arebeing vacated by the larger chains,” reports

Instead of spending money on television and print ads, Redners Markets claims to focuson procuring the best quality produce for its consumers.

Weitzel of Willard Bishop. “They often can getlower rent in space that has already beendeveloped. It’s an easy and relatively low costof entry.”

“When the chains leave the inner cities,often the independents will look for thosesites,” says Spezzano of Spezzano Consulting.“Generally, when the main store goes dark ina strip mall, the others go dark, too, so thelandlord gives a discounted rent to the inde-pendent store because it keeps the entireshopping plaza viable.”

Their ability to use non-union, or alterna-tive union labor and lack of corporate bureau-cracy also works in their favor. “Independentshave several advantages when it comes tooverhead,” says Spezzano. “In general, over-head is lower and produce labor percent ofsales is significantly less than a national chain.They also take a smaller margin on perishablesand make up for it in volume. They have moreflexibility to move to different sizes in productand many times, they’ll move to where thevalue is.”

Frieda’s Caplan points out another advan-tage for independents. “These stores don’tseem to have the infrastructure costs, over-head or be as highly leveraged as the averagenational chain,” she explains. “They’re notpublically traded companies. Since they’re

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beholden to their owners, rather than to WallStreet, they tend to be more long-range orient-ed in their performance goals. The indepen-dent has a lot more flexibility.”

“We can change faster,” adds Battaglia.“We can make price changes faster and bringin new items faster.”

However, they face significant challengesas well, especially for those experiencingrapid growth. “As independents grow, theystruggle to get more sophisticated in systems,management and organization,” explainsSpezzano. “To get IT properly funded takesmoney, but you have to spend it in order togrow. For many, the biggest hurdle is how theygo from 20 to 50 stores and support thegrowth, for example, having programs toattract and maintain senior- and middle-man-agement. All the things independents aren’tgood at, they need to get better at in order togrow their business at that level.”

“The challenge some independents face ishow they can gain vendor support if there isno scale or the necessary people and systemsto accept support,” says Weitzel. “This oftenmeans the independent has to go it alone,unless they are part of a co-op or association,such as IGA. Also, being able to see the latestnew items and capitalize on growth from newitems with a small merchandising staff can be

very tough.” “Financing is another big disadvantage for

independents,” Spezzano adds. “Nationalchains have access to funds especially forexpansion. Privately held independents tendto get a shorter lease from banks. Normally,expansion comes out of cash flow or what

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“If you have 20 good independent stores, it

can be the equivalent inproduce cases goingthrough a vendor’s

system as selling to 80Ralphs or Vons. Don’t

midjudge them for beingtoo small because the

volume they’re doing istremendous.”

- Dick SpezzanoSpezzano Consulting Services Inc.

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loans they can get — so they expand slowerthan chains.”

D i r e c t C u s t o m e r L i n kPerhaps the greatest banner an indepen-

dent waves is the direct link to its customers.“If it’s an independent, then customers have ahigher expectation of the store knowing themand their family needs,” explains St. Joseph’sUniversity’s Dr. George. “They feel the store is

probably trying to do more and a better jobbecause it’s not part of a conglomerate.”

“Because they are so locally based, theyknow their customers much better than thosewho buy out of national offices,” says FPFC’sMace. “They court their communities by spon-soring local organzations such as kid’s soccerteams.”

“There’s a connection and relationship theindependents establish,” agrees Odron. “The

customers’ mission when they park their carsat a large chain is to get in and out as fast asthey can, whereas the independents tend tonurture more of a relationship during theshopping experience.”

Since demographics of independents varyso much, one of their assets is their ability tocater to those differences. Redner’s Stilesexplains, “Over our 40 stores we have verydifferent demographics, some have a larger

Dorothy Lane, based in Dayton, OH, has been in operation since 1948. The family-owned business now operates three stores.

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Hispanic clientele, others are a high-end mar-ket. One of the strengths of an independent isbeing able to identify the differences in thesedemographics. It’s our community and we canmake the decisions on a local level we needto really service each individual communityand react to what they want and need.”

“Independents have to know their ownmarketplace,” adds Spezzano of SpezzanoConsulting. “Even within a 10-store chain,there may be 10 different communities. Storemanagers must understand the nuancesbetween the communities and thus, how thestore serves them. Most independents havebecome experts at this.”

Serving specific needs through targetedproducts and services is the key. “We are ableto better target and satisfy a customer base,”says Shin of H Mart. “Independents are betterable to meet the needs of the customer basewith products and services.”

“Independent stores know their neighbor-hoods well and can market to ethnic cus-tomers by mirroring their culture with foodsand styles from their homeland,” adds BillVogel, president of Tavilla Sales Co. of LosAngeles, based in Los Angeles, CA.

They are clearly filling a niche, especiallyfor the Hispanic and Asian communities.“Shoppers often feel more comfortable inindependent stores where stronger relation-ships are formed and there is a sense of com-munity pride,” says Weitzel of Willard Bishop.

“We try to sell what they want and notwhat we want to make them buy,” distinguish-es Western Beef’s Battaglia. “We know theneighborhood, and if plantains are what theywant, we’re going to get it for them.”

This customer knowledge translates intoloyalty for many stores. “Independent storestend to have a closer relationship with theircustomers,” says Frieda’s Caplan. “People liketo buy from people who are like them, so as

independents are more like the neighborhoodthey serve, they will have more loyalty fromtheir shoppers.”

“Our customers tend to be loyal,” reportsManzano with Dorothy Lane. “We’re not

PERIMETER FOCUS

Most independents lead heavily with perishable departments, especially produce. “Ourindustry is a big win in the whole independent movement,” states Dick Spezzano, presi-dent of Spezzano Consulting Services Inc., based in Monrovia, CA. “Especially with His-

panic, Middle-Eastern and Russian independents, produce is extremely important. If you look atthe makeup of the sales of those stores, they’re produce- and meat-driven. Produce in a conven-tional chain is about 12 percent of total store sales and meat is about the same, maybe less. In theHispanic and Middle-Eastern formats, produce is 20 to 25 percent and meat is 18 to 20 percent.”

“Produce plays a huge role in the independent,” agrees Karen Caplan, president of Frieda’s Inc.,in Los Alamitos, CA. “They tend to have more flexibly in purchasing. Sometimes, they can make abetter deal and get a better price because of it. If they’re purchasing regionally, it’s possible thatthey don’t need the kind of shelf-life the larger chains that ship longer distances require. If they geta good deal on tomatoes, they’re selling them next day.”

“Produce is one of our main items,” says David Shin of Lynhurst, NJ-based H Mart. “Peoplecome to our stores just for the fresh produce. We are able to bring a variety of produce itemsother big markets do not carry.”

“Produce is a great opportunity for independents,” adds Dr. Richard George, professor of foodmarketing at St. Joseph’s University, in Philadelphia, PA. “Most people think brands are what theyput on the shelf, but I tell stores, ‘Think like a brand; act like a retailer.’ They need to figure out howto use produce as a destination spot. What more can they be doing?”

According to a Food Marketing Institute report, “Independents identified produce and meat asthe most important categories to remain competitive over the next five years... dairy and deli closeout the top four.”

Quality of perishables, as well as service in these areas, is crucial. “We focus on upscale prod-ucts of high quality,” reports Jose Manzano, produce director of Dorothy Lane Market, a 3-unitchain in Dayton, OH. “We set the standards in our area for what we call the upscale grocery store.We are a trend-setting store and we focus on healthy items, handling a lot of organics in all depart-ments. We have the best bakery around and good quality perishables.”

“Produce can definitely impact customer loyalty,” says Paul Weitzel, managing partner atWillard Bishop Consulting Ltd., in Barrington, IL. “Many times, independents have an opportunityto do a better job procuring and merchandising local produce than the larger supermarkets. Thelarge chains just dabble in this area and it’s a big opportunity if done right. It’s harder for larger,national chains to manage local produce given their centralized buying offices and proximity tothe local market. Independents can get closer to the customer and react much more quickly. Thisshould be a big opportunity for independents.” pb

Western Beef caters to African American, Polish, Spanish and Anglo consumers.

exempt from the current economy and we stillhave some challenges we’re dealing with, butoverall we haven’t seen a significant change inour customer base. We have so many cus-tomers who started in the early days of ourcompany and their subsequent generations arenow shopping with us. It’s all about the rela-tionship we develop with our customers.”

“Never lose sight of the customer,” advisesDr. George of St. Joseph’s University. “Focuson the front door, not the back door. Focus onthe people coming in your store and how youcan make their life easier and better. Mostretailers can tell you to an X of a penny whatthey pay for tomatoes, but when you ask themwhat the value of a customer is, their eyesglaze over.”

A l l A b o u t V a l u eSuccessful independents are very focused

on the value equation — providing real valueas far as produce quality for the money andservice. “We have to offer a reasonable, goodvalue to our customers,” says Manzano. “Itreally is about value more than price. Shop-

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offer good quality at a good price — whatfolks are looking for in this economy.”

“Independents enjoy a lot of flexibility inmatching their offering to the tastes of theirclientele,” adds Vena of John Vena. “They arewell positioned to take advantage of theopportunity a full-service market such as ThePhiladelphia Regional Produce Market has tooffer regarding pricing and selection.”

“We provide a standard and competitiveedge for the community,” says Western Beef’sBattaglia. “We try to compete and do betterthan the chains in quality and in value. Weremember to take care of the customer andgive them value. Many times, larger stores for-get about this.”

Some independents report seeing growthin their business during these tougher eco-nomic times because of the perceived valueoffered. Battaglia states, “I think now, with ourbusiness being up, people are looking forvalue and they know they can get value shop-ping at an independent.”

“We’re still seeing the same customerscoming in,” says Marrogy of University Foods.“Some customers don’t want to make the tripto drive to a larger chain, so they’re comingback to the neighborhood store.”

“Going forward, independents should belooking to see what they can do to build thebusiness and take advantage of theirstrengths,” advises Dr. George.

“You can’t be afraid of the large chainscoming into your community,” warns Stiles.“You have to stay true to who you are and dowhat got you to where you are now. It’s allabout service, quality and value. That’s whathas made many independents successful and

Many successful independent stores havebeen started by immigrants, who thenmake sure to hire employees that reflecteach individual store’s demographic.

pers will be willing to pay a little extra if theyfeel the product is worth it and that it’s whatthey want.”

“Everybody recognizes the need for value,but value is not just low price,” explains Dr.George. “It’s taking care of the customers’needs. It’s asking ‘how do we help you?’ Thereare opportunities, such as helping peopleresolve the What’s-for-Dinner issue, and inde-pendents can respond to these needs morequickly and with more precision. They canreally shine in being responsive to people anddemonstrating a caring atmosphere.”

“We listen to our customers and react to

what they want,” says Redner’s Stiles. “Weknow the value and products they’re lookingfor and we can react and give it to them. Forexample, we don’t put tons of money intoadvertising on radio or TV. Instead, we takethat money and put it into cost of goods so wecan give the customer the best price on qualityitems because we know that’s what our cus-tomers value most.”

Part of the value equation is being able tooffer a great deal on short notice. “The inde-pendents can act quicker and offer better dealsthan chains who have to do planning furtherin advance,” FPFC’s Mace says. “They can

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given them longevity. Don’t forget it when youface competition.”

R e l a t i o n s h i p s W a n t e dIndependents want relationships, services

and good products when deciding with whomto do business. FMI’s report identifies, “Highservice levels, a good private label programand low prices are the top attributes indepen-dents use to pick their primary wholesalers.”

“Our produce supplier is very much awareof our focus and quality orientation,” saysManzano. “It doesn’t take much for them toknow what we’re all about. They’re alwayshelpful with sourcing the proper products, butthey also come up with special prices anddeals we can pass on to our customers.”

The relationship is a key element for pro-curement. “Just be honest and take care ofyour customers in the same manner you wantthem to take care of you,” advises Battaglia ofWestern Beef. “Try to give them the best quali-ty at the right price and be consistent. If you’reconsistently good, your business will grow.”

“For a company like ours, the direct, per-sonal relationships we develop with our inde-pendent customers afford us the access weneed to promote our products with each ofthese buyers,” says Vena of John Vena. “Cus-

tomer service depends on helping customerssolve problems. Our independents usuallyneed help with ad planning, special pricingand delivery.”

Understanding the needs of your particularindependent customer can really help get theright sale to them. “Vendors must put someonein charge of these accounts that understandthem and maybe it even means they mustspeak their language,” suggests Spezzano.“Also, don’t try to sell them sizes they don’tuse. Work with them to ensure what you’reoffering is what they can sell.”

“Produce companies could be more activein trying to sell more variety and keep productas fresh as possible,” says H Mart’s Shin. “And,we all need to better understand the needs ofthe consumers to improve our produce busi-ness.”

BENEFITS TO

THE INDUSTRYIndependents contribute to providing

overall stability and benefits to the produceindustry. “It gives the industry an outlet forsizes and products you can’t sell in a moreconventional national chain supermarket,”explains Dick Spezzano, president of Spez-zano Consulting Services Inc., based in Mon-rovia, CA. “It helps the profitability of thecrop overall.”

“They provide a great outlet for smallerlocal growers,” adds Ed Odron of Odron Pro-duce Marketing and Consulting, headquar-tered in Stockton, CA. “They also provide alot of volume and sales to local wholesalersas well. They’re a big part of the economy forthose local wholesalers, and a vibrant whole-sale market is essential to the health of ourindustry in general.”

Suppliers are encouraged to understandthe true size and scope of potential producebusiness with independents. “Vendors shouldrealize the power these independents have tomove volume and how quickly they can turnit around,” says Spezzano. “Many indepen-dents with only four or five stores have theirown Distribution Center. If you have 20 goodindependent stores it can be the equivalent inproduce cases going through a vendor’s sys-tem as selling to 80 Ralphs or Vons. Don’tmidjudge them for being too small becausethe volume they’re doing is tremendous.”

“With an independent retailer you canmake them a really aggressive offer becausethey can respond quicker,” says Karen Caplan,president of Frieda’s Inc., based in Los Alami-tos, CA. points out. “A lot of people in theindustry want to broaden their customerbase, so what better way to balance yourportfolio of clients than to have a mix of bigand small. You’d be surprised how much pro-duce an independent market can move,regardless of their size.”

“Independents are here to stay,” says BillVogel, president of Tavilla Sales Co. of LosAngeles. “They are driving significant trafficand marketers must stand up and pay atten-tion. There is no more ‘my way or the highway.’” pb

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Having patience and being pro-active ingrowing the relationship will reap numerousbenefits. “We need to learn patience whendealing with independents,” advises Vogel ofTavilla Sales Co. “As a customer, they mightbe telling us something we don’t want toaccept, but as a good vendor we need to learnand understand.”

“If I were a vendor I’d be looking at how tohelp these stores educate the people who areputting the product out and who have interac-tion with customers,” suggests St. Joseph’sUniversity’ Dr. George. “Something like sup-port for additional sampling and training inthe department.”

V e s t e d I n T h e C o m m u n i t yThe business life of the independent store

is interwoven with its community as the store

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kind of grocery or produce vendors,” saysVena. “Independents, particularly thoseowned by recent immigrants, have stepped into fill that gap. These entrepreneurs add to theeconomy of their neighborhoods by providingjobs for the local people and helping to attractother business and services.

“The best example of this in Philadelphia islong-time Philly Market customer, CousinsSupermarkets. After emigrating from the Mid-dle East, the Cousins family opened four storesin primarily Hispanic neighborhoods notserved by any retailers and have now been fix-tures of the local economy for over 25 years.”

The business independents bring can helprevitalize a potentially downtrodden businessarea and help others achieve their Americandream as well. Spezzano of Spezzano Con-sulting explains, “Instead of having a dark,

“Produce plays a hugerole in the independent.They tend to have moreflexibly in purchasing.Sometimes, they can

make a better deal andget a better price

because of it.”- Karen Caplan, Frieda’s Inc.

provides multiple benefits the communitymay not get anywhere else. “Many urbanneighborhoods have lost the services of any

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broken and blighted shopping strip, the inde-pendent revives the other stores around it. Agood independent revives the other eight or10 stores with a market as well. It helps thewhole economy in the area.”

“They often help anchor smaller and olderstrip malls,” adds Willard Bishop’s Weitzel.“This allows other smaller stores in the mall tocapitalize on the foot traffic. It also gives cer-tain demographic groups a feeling of beingcloser to home and a sense of community.”

Another way independents benefit thecommunity is by employing the people wholive there. “Because they’re in the middle ofthe community and have flexibility, they hirepeople who live in the neighborhood,” saysSpezzano. “Instead of having 60 to 70employees like an average, national chain,they have 150 from the nearby community. Itprovides a lot of coveted jobs for the area.”

For the independent, community involve-ment is a given — not an extra. “It’s aboutbeing part of the community and not justbeing a business in the community,” explainsRedner’s Stiles. “You’re doing things for thecommunity, such as charity events and donat-ing to the local food bank and school. It’s atwo way street between the community andthe store.”

Marrogy of University Foods reports, “Wedonate food or beverages for the baseballteam and interact with local churches andschools. Our owner is very active in trying tohelp better the community.”

Independents vary on the manner in whichthey are involved in the community. Dr.George explains, “One grocer ropes off a partof their parking lot and allows a school bandto practice there. Another does blood pressuretests, while another will have local groomers

come in and give tips on pets. Many times we,at retail, think only about what we sell people,but instead we should be asking what thecommunity needs that you have the ability toprovide. There’s no limit as to what one cando to be community focused. The key is tolook at the community and find how you canpartner with them.”

“Although a lot of chains do this too, mostof the independents are more in-tune to com-munity sports like sponsoring little league orsoccer,” says Odron of Odron Produce Mar-keting and Consulting. “They partake in morecommunity activities.”

“People are very supportive of our storesbecause they’re locally owned and started intheir back yard,” says Manzano of DorothyLane. “Shoppers like to know the ownersworked hard and built it up to what it istoday.” pb