Retailing Relevance

Independent grocers excel at creating relevance.

Even in a marketplace dominated by chains and big boxes, there will always be a place for independent grocery retailers. No doubt, there are some who will say I'm biased in this opinion, but I prefer another description — informed. My everyday dealings with independents give me the evidence I need to speak confidently about the future of these great retailers, and the reason I believe this can be summed up in one word: relevance.

This relevance is evident in the growing segment of shoppers who have determined that personalized customer service from a member of the community is more important than price — even in a struggling economy — which suggests that independents are quickly becoming the most relevant retailers around.

I had my first glimpse of the enduring entrepreneurial spirit of independent grocery retailers when I was a 19-year-old college student working at Rusty's IGA in Lawrence, Kan. Even then I was impressed with the way things worked at that store; I remember thinking it was entrepreneurialism at its best. The management at Rusty's IGA identified its customer base, and then made every investment dollar count by putting it toward programs and initiatives that would make theirs the best shopping experience around. And it was — because it was always listening to what customers wanted, and reacted quickly to meet their needs.

Today, the considerably more than 8,000 independent grocery retailers in this country have held true to their entrepreneurial roots, making them some of the savviest marketers in the industry. I've found an endless variety of examples among our members of the IGA Alliance, as well as among those independents outside of our group. They're hard-working and compassionate retailers who never hesitate to give back to the communities they serve. In addition to that, they're observant, nimble in their ability to evolve and adapt with consumer needs, and, most importantly, innovative.

Take IGA retailer Tyler Myers, for example. Tyler was already running two successful IGA stores in western Washington state when he decided it was time to address the fact that there were no supermarkets in downtown Seattle itself. In 2008, he converted the basement level of a historic department store to a full-service IGA and began catering to downtown Seattle's condo- dwelling residents, workers and pedestrians. Now he's connecting with his urban customer base by marketing to them in a way they understand: using lots of digital interaction, including Facebook specials and online ordering opportunities.

Then there's Mohamet IGA's Brooks Marsh. When Brooks wanted to remodel, he conducted a customer needs survey to find out what residents in the small town of Mahomet, Ill., really wanted from his store. He was shocked to learn that "going green" ranked at the top of the list. He had already planned to update with green in mind, but his shoppers' opinions made him realize he needed to think deeper than energy-saving light bulbs and deli cases. One year later, Brooks was one of the first grocers in the country using open-loop geothermal technology for all of his store's heating and cooling requirements.

These are just two examples, but I hear success stories literally every day about how independents are listening and reacting to customer needs, making them the most relevant retailers in their marketplaces. And it's not just IGA independents — it's independents across the board. All across America, we're seeing independents exercising their longevity, from D'Agostino Supermarkets in New York to Mc- Caffrey's Markets in Pennsylvania and New Jersey, from Coborn's in Minnesota and South Dakota to Russ's Markets in Nebraska to Quinn's Food 4 Less in California.

Here's another great example of this: This spring, the Cherry family of Cherry's IGA celebrated 100 years serving their Girard, Ill., community. How did they celebrate? By completely remodeling and expanding their store. If that's not a testament to the staying power of independents, then I don't know what is.

Yes, there will always be a place for independents in this marketplace. I'm certain of it because I see the innovative ways independents are connecting with, and staying relevant to, their customers and I know that it will serve as inspiration for a whole new generation of independent retailers and a whole new generation of devoted and loyal shoppers.

Mark Batenic is president and CEO of the Chicago-based IGA, the world's largest alliance of independent grocery retailers. For more information about IGA, or to sign up for its daily e-newsletter, The Independent View, visit www.iga.com .