Cities and cities used to have shops and markets distinctive to that space or area. You might need had a common retailer, a ironmongery store not owned by a series, or perhaps a family-owned grocery store.
Shops like Newark Save-a-Lot, owned by the Breen household, have been widespread, particularly in communities underserved by regional and nationwide chains.
Impartial grocery chains, nevertheless, have been in decline for many years.
“From 1990 to 2015, the number of U.S. independents dropped 39%, to 2,648, with an average of 30 store closings a year, according to a 2021 government report,” Grocery store Information shared in January.
Expertise, rising prices, and labor points have pushed native operators to the brink as they function in an business that already has razor-thin margins.
Now, the Breen household, which has operated a series of grocery shops/supermarkets in New York, relationship again to 1908, has made the choice to shut the doorways of their ultimate location.
Grocery chains face elevated competitors
What’s occurring with the Breen household isn’t an remoted occasion. Impartial grocery shops and chains nonetheless make up a sizeable proportion of the enterprise, however they’re combating for survival.
A 2024 survey from the Nationwide Grocers’ Affiliation (NGA) confirmed a few of the issues going through the business.
“Traditional grocery continues to lose share to mass/supercenter and club stores while the market continues to be splintered among discount grocery, dollar, drug, and specialty channels,” the research confirmed.
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As extra gross sales transfer to giant chains and digital retailers, impartial manufacturers have been making adjustments, NGA Content material Strategist Jim Dudlicek wrote.
“Many independent operators made changes to their sales and operational strategies — focusing on margin and shrink management, creating points of differentiation, and upgrading their stores and online capabilities. All the while, independents fostered and built upon their strong community ties and invested in employee and customer loyalty,” he shared.
Native, impartial grocery shops and chains have misplaced the geographic benefit they as soon as had as a consequence of supply.
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One other native grocery chain disappears
Loyalty has not been sufficient to maintain many native operators in enterprise. The Breen household shared a message on their Fb web page saying their near-immediate shutdown.
“It is with heavy hearts and wet eyes that we write this post. Unfortunately, our time in Newark and the grocery world has come to an end. We have given everything we have to this business, but it’s time to let it go and start a new chapter,” the family shared.
They thanked staff and customers, but did not say what would happen to the location or share a closing date. The shutdown date was clarified in a post at 9 a.m. on Feb. 21.
“There’s very little left, but everything is 60% off today. Only open for a few hours today. Once it’s gone, it’s over,” the family wrote.
This is the end of a regional dynasty.
“The Breen family has been a staple of Wayne County grocery stores since 1908. They once boasted several locations across the area,” the Wayne Digest reported.
“The family’s Palmyra ‘Breens’ closed in 2022, with their Williamson location closing just two years later. Palmyra was replaced with a Byrne Dairy, and the Williamson Plaza is slated to become a Quickly’s convenience store,” the newspaper added.
National chains have taken over
Much like the way Home Depot and Lowe’s decimated Main Street hardware stores, independent chains have been hurt by added competition from Target, Walmart, Costco, and Amazon, while also having to fend off regional rivals, including Kroger, Publix, and Albertson’s.
It’s a trend that appears to be accelerating, and I’ve covered two other local grocery stores closing for good, in one case, while the other closed half its locations.
- 80-year-old beloved grocery chain closing all locations after sale
- 87-year-old grocery chain closing over half its locations
Walmart, Costco, and Target can cut their already-thin grocery margins using them as loss leaders in their stores. In addition, Aldi has been growing by hundreds of stores in the U.S. each year, giving the off-price grocery chain a buying edge over smaller players.
Scott Moses, partner and head of the grocery, pharmacy, and restaurants advisory group at New York-based Solomon Partners spoke about rising competition at the GroceryShop trade show in 2023, Supermarket News reported.
“For many years, I’ve been sounding the alarm about the rise of national/discount grocers—Walmart, Target, Costco, Amazon, Dollar General, Family Dollar and Dollar Tree—and the existential threat that they pose to supermarket grocers, just as we’ve all seen over the last 20 years how department stores have been marginalized,” Moses stated.
He shared some numbers that illustrated the hazards.
“Ten of the highest 15 U.S. grocery retailers in 2003 have been supermarkets, with Walmart at No. 1 with a 16% share, adopted by Kroger at 11%, Albertsons at 7%, Safeway at 6% and Ahold USA at 5% within the prime 5,” he shared.
That has changed dramatically.
“Quick ahead to 2023, and the listing flips to 10 of the highest 15 grocers being non-traditional grocery retailers, led by Walmart with a 29% share and Kroger (10%), Costco Wholesale (8%), Albertsons (6%) and Amazon (5%) rounding out the highest 5, although Goal and Ahold Delhaize USA additionally maintain a couple of 5% share,” he said.
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