In an era when national retailers like Kroger, Albertsons and Walmart dominate the news cycle in the grocery industry, the National Grocers Association’s annual conference and exhibition provides smaller retailers with a forum to showcase the essential roles they play in connecting shoppers with food.
During The NGA Show, which took place in Las Vegas this past Sunday through Tuesday, representatives of retailers and companies that provide them with market intelligence, equipment and technology laid out the challenges and opportunities facing independent grocers as they look to differentiate themselves from competitors. While these larger rivals may have deeper pockets, they don’t enjoy the kinds of connections with local communities that have long set independent grocers apart.
“The elevated focus on fresh, clean ingredients, local and the desire for authentic experiences puts independent grocers in the strongest position to welcome more customers to your stores and deepen those community connections that independent grocers thrive on,” Greg Ferrara, president and CEO of the NGA, told attendees.
Here are three key takeaways from this year’s NGA Show.
Independent grocers face challenges but believe they will continue to remain relevant
While it was clear at The NGA Show that independent retailers believe they face critical challenges, optimism was also in the air.
Speaking during a keynote address on Monday, John Ross, president and CEO of the Independent Grocers Alliance, said customers depend on smaller stores to fulfill needs that bigger chains are not able to handle as effectively.
“At the end of the day, our shoppers want us to win. They believe that local is powerful and important. They think that their local stores sell fresh and healthy food,” Ross said, adding that new technology is helping smaller retailers be more competitive by allowing them to connect with shoppers more effectively and better respond to trends. “Shoppers will give us their dollars if we are showing them that we’re willing to meet them halfway.”
“The hero in the marketplace is the local control. [Shoppers] believe in us. They believe that we're going to be a partner. So in every way you take, whether it's economic stress or confusion about what to do in terms of healthcare or how can they still make ends meet,” independent grocers are poised for success,” said Ross.
Walmart and Amazon are the elephants in the room
The NGA Show might be all about smaller grocers, but it was clear throughout the event that keeping pace with larger retailers was never far from people’s minds.
Vendors underscored their ability to allow independent grocers to access the same kinds of technology systems available to their larger competitors. In an example of that, self-checkout vendors including Fujitsu Frontech North America and ECR Software displayed cutting-edge technology such as AI-powered “scan avoidance” systems that use computer vision to stop customers from passing something over the scanner without ringing it up. Self-checkout technology designed to identify products without reading a barcode was also on display.
A tech-focused session on Monday zeroed in on ways independent retailers can use AI to better understand their operations and connect with shoppers. Deborah English, president and founder of DL English Design Studio, an interior architectural design firm specializing in immersive retail and experiential environments, showed videos a member of her team created with AI that visually summarized how trends unfolding on social media would impact the experience grocery shoppers might expect.
During another session, Josh Poling, vice president and chief operating officer of Kirby Company, which oversees Market Fresh Stores, explained how he uses an AI assistant to guide walkthroughs of stores, which he used to manage using paper. “When I finish, I get clean, structured notes, department by department breakdowns, clear action items, assignments that managers can actually execute,” Poling said.
The relationship between large CPGs and independent grocers is alive and well
Smaller grocers focus heavily on their connections with local communities and niche products, but there’s no denying the fact that they also draw strong attention from major food suppliers intent on reaching consumers no matter where they shop.
In a prominent example of that connection, Unilever and Kellanova’s Cheez-It cracker brand sponsored a Sunday session honoring the winners of NGA’s annual Creative Choice Awards, which recognize marketing and merchandising programs developed and executed by independent grocers. At a reception honoring the winners, Cheez-Its were the featured snack while Prince Cheddward, the crackers’ mascot, roamed the party snapping photos.
Attendees who jammed the main ballroom on Monday night to cheer on the contestants in the NGA’s Best Bagger National Championship, meanwhile, saw multiple blocks of commercials for drinks and snacks made by PepsiCo, which co-sponsored the event.
Not to be outdone, Coca-Cola sponsored refreshment breaks throughout the conference — another reminder of the important role independent retailers play in helping big brands sell their goods.
