Customer loyalty pulls independent grocers through in face of big chains - American Independent Business Alliance AMIBA

January 9, 2005

Customer loyalty keeps small grocery stores going

Joanna Larez
Greeley Tribune

Independent grocery stores need customer loyalty to survive the blizzard of national chains blanketing the country, and for Weld County's smaller stores, that's just what pulls them through.

Amid a growing number of national chains in the county, smaller stores keep their share of the market by sacrificing profit and holding fast to their rich histories and family traditions. More than business, these smaller stores are a way of life for many of the owners who have grown up in the business. Still, some have been sacrificed through the years, from Toddys on 23rd Avenue in Greeley to Steele's Market in Windsor , as the Wal-Marts and King Soopers move in with cheaper prices and larger selections.

Though many have resisted succumbing to the large-store competition, the concept of complete domination keeps independent owners on their toes. Location seems to be a large factor in the degree of concern about extinction of the mom and pop stores.

From a few long-standing stores in Greeley , to the stores that serve as glue that maintains the small-town atmosphere in growing towns such as Eaton and Johnstown , to the store in Ault, which is further from bigger cities, they all keep trekking through the storm facing the same challenges along the way.

SURVIVAL OF THE FITTEST

Jerry Mize opened Jerry's Market at 513 14th Ave. in Greeley in 1964 and 40 years later, the store is still a hub in the neighborhood. Steve Mize has kept the store in the race since his father's retirement in 1994.

"I would like to see the money stay local," Steve Mize said. "I think the thing that helps us is we can talk to our customers on a regular basis, and longevity really helps people trust you."

He views the large chains as a reminder to keep a competitive edge: "I welcome competition because it makes you better at what you do. I believe there's a piece of the pie for everyone."

Customers at Jerry's are not just dollar bills drifting through the store every day.

"This is my home," Mize said. "They're my friends."

Profit is not part of the big picture. Increases in utility costs, health insurance rates and doubled expense of freight and gas are financial obstacles Mize continually faces. Food prices go up too, which means Mize has to raise prices to stay open.

"If people don't raise prices, they won't be here tomorrow," Mize said. "I believe the way of the future is price increase."

Mize hopes and plans to have his store around for many more tomorrows. He replaced the coolers in the store which he hopes will cut down on utility and repair costs.

"I've spent a lot of money to save a lot of money," he said.

Mize's strategic moves allow Margaret Maltos of Greeley to return to the grocery store of her youth. She has been shopping at Jerry's for about 20 years, and she remembers Jerry vividly. Maltos stole a candy bar from the store when she was a child, and Jerry caught her. She remembers learning a lesson from Jerry, but after that incident, their friendship grew.

Maltos likes the small layout because she knows where to find everything she needs.

"It's faster and easier," Maltos said. "This is my store."

Darrin Berig of Greeley, a loyal Jerry's shopper of 15 years, said he likes the convenience of check cashing, grocery shopping and the ability to get money orders all in one stop.

"I like to keep money in small stores to keep them around," Berig said.

Greeley has three Safeway stores, two King Soopers and one Super Wal-Mart to give Mize plenty of competition.

"I think everybody has that fear of big guys coming in and taking over," Mize said. "Our biggest success is being able to open our doors every day."

Neal Pfitzer opened the doors to the 12th Street Pantry almost 10 years ago at 716 12th St. Pfitzer runs a salvage grocery store, and the chain stores have caused ripples in his business.

"It's not as good as it used to be," Pfitzer said. "The Super Wal-Marts do hurt us, and I do get a little bit nervous."

Pfitzer has to maintain low prices to maintain a competitive edge.

"The bottom line is price," Pfitzer said. "They don't like crowds and high prices."

KEEPING GROWING TOWNS SMALL

Mark Reichert opened Mark's Main Street Market in Eaton nine years ago, but the store was not new to the town.

Reichert worked at the grocery store in the 1970s, and he continues to uphold customer service values of the past. Everybody knows each other. The strong bonds that are cultivated in the grocery store help Reichert treat customers as friends. He can recall times when people forgot their check books. They were able to take their groceries home and swing by and pay later.

"When you know everybody really well, it is easier to do business," Reichert said.

Many of today's customers grew up at the store and they have remained loyal to their roots.

"Loyalty keeps us running," Reichert said.

Eaton could soon become home to a chain store in the future -- a pad site waits for one now in the Markets at Maplewood on the south end of town -- but Reichert believes his loyal customers will keep him in business.

"We like the small-town atmosphere, and a small store goes along with it, " said Joe Naranjo of Eaton, a customer at Mark's Main Street Market. "Losing a grocery store means gradually losing the small-town atmosphere."

Ken Rollin of Eaton makes a grocery list and buys everything he can at Mark's before he heads in to Greeley to pick up the remaining items: "I'll continue to do so as long as he's here."

Many customers like to keep their money in the local economy.

"I'm all about the little man making it, and I will always choose this grocery store over a larger store," said Shelly Ingersoll of Eaton. "My partner and I promised each other if a big store came to Eaton, no matter what, we'd shop here."

The Hays family depends on similar loyalty for the survival of Hays Market in Johnstown . Store Manger Russell Hays grew up in the store, becoming the fourth generation to help run the Hays Market.

"I think it comes down to the fact that we have not given into larger stores," Russell said. "We're not going to roll over and die."

Hays is now expanding the store and services to stay competitive. A floral department, bakery, expanded deli and drive-through pharmacy are in the makings at Hays. Russell also said that they are working on setting up a service to pick up a few groceries for people on the go. Customers will be able to call, e-mail or fax their list, and it will be waiting for them upon arrival.

Every Friday, Hays Market has employees deliver groceries to local senior citizens, and they, like Mark's, provide carry-out service for all groceries.

PEOPLE IN THE COUNTRY NEED FOOD TOO

The independent stores do not carry everything the larger stores carry, but most of them offer special order options for their customers.

Glee Wilson of Greeley has owned Johnson's Market in Ault for 28 years. She and her husband bought it from Ed Johnson, and their children have been helping run it since their father's death five years ago.

The store has been open since the 1940s, and it continues to attract customers. Glee said they frequently get special orders.

The Swedish foods ranging from desserts to sausage attract more business near the holiday season. It is a unique touch that Ed passed down.

Joe Menchaca of Fort Collins works in Ault and likes to put his money back into the town at the local grocery store.

"You don't have to wander around all the time," Menchaca said. "A store can give a little town its flavor."

Mark Trahan of Ault said he enjoys walking to the store, talking to the owners and supporting the local economy.

"The fact that you support your local stores keeps prices comparable," Trahan said.

He said some items may cost a few pennies more, but that's not enough of a reason to avoid shopping at Johnson's.

"If you drive into Greeley it's your money and your time," Trahan said. "We need to support local stores."

The customers support the independent stores, and the independent stores support each other.

Glenn Wilson of Fort Collins , Glee's son, said he works with Mark Reichert to get merchandise. They also send customers to each other if one carries something the other does not.

"That's what keeps a lot of the small guys going," Glenn said. "Helping each other."

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