Northeast enjoys thriving, aggressive retail market
The Northeast remains a highly competitive retail market.
The volume of population and number of retailers working to supply shoppers with product keeps supermarkets and the wholesalers on and off the Philadelphia Wholesale Produce Market that supply them busy.
"This is a very competitive area," said Tom Curtis, president of Tom Curtis Produce Inc., Philadelphia. "It's to the point now where when Giant runs an ad (in the newspapers), Acme will have one too. It's really cut-throat anymore. The retailers are doing well."
Curtis said Malvern, Pa.'s Acme Markets Inc., has improved since being purchased by Albertson's.
"It's a very competitive region in retail," said Mark Levin, co-owner of M. Levin & Co Inc., Philadelphia. "In the Northeast, you have every major chain from north Jersey to Baltimore. All of them have warehouses in those areas. There hasn't been any major shake-ups in our area, though some chains have been doing some merging. No one is breaking down the doors, but by the same token, they're not losing any ground either. The retail business has been pretty good."
Market wholesalers are doing more business with independent retailers, said Chip Wiechec, president of Hunter Bros. Inc., Philadelphia.
"There may be more independent retailers than there has been in the past, which is a good thing for our business," he said. "It gives you a chance to introduce and sell new products and to help them make money. It keeps us on our toes because we have to work with our vendors who do a good job. The (independent) retail business is doing well."
Philadelphia's Procacci Bros Sales Corp. sells to the large chains and the independents.
By writing their ads two to three weeks in advance, Procacci's merchandisers help the independents remain competitive against their larger competitors, said Mike Maxwell, president.
Those ads include major pages promoting 30-40 produce items, he said.
"When they promote, it pushes consumption, which drives sales to get people into the stores," Maxwell said. "We have a very strong independent market. The independents know the demographics of their neighborhoods and merchandise toward those groups. We also have all the big guys here and they fight it out every day, promoting value. From my standpoint, for those guys battling for market, share, it's all about consumption, which is what we need in this industry."
Independent operators are doing well in the region, said Ron Carkoski, president and CEO of Four Seasons Produce Inc., Ephrata, Pa.
"The independent retailers seem to be doing very well and are strong," he said. "They're the ones that have found the true niche of the customers they are serving. They're paying attention to the details and the needs of what the customers are looking for in their stores. That's the growth area in retail."
Retailers that remain current with trends, including freshness, variety, quality and organics, will remain successful, Carkoski said.
Like many market wholesalers, Coosemans Philadelphia Inc. sells some product to the smaller independents.
"It's a very competitive market here in Philadelphia," said Martin Roth, secretary-treasurer.
Philadelphia's retail scene remains vibrant, said Bill Burr, outside sales associate at John Vena Inc., in Philadelphia.
"The Philadelphia area market demographic continues to challenge retailers," he said. "With expansion of national retail banners into the area, consolidation of existing chains and independents striving to establish niche innovations, Philadelphia is stronger than ever."
