Member Only

OLYMPIA — Aug. 28,2024 — They support Little League teams, community food banks and local seniors shopping on fixed incomes, but Washington’s small, independent grocers are increasingly in need of help themselves to compete with big-box retailers and commercial grocery chains.   

Tammie Hetrick, president and CEO of the Washington Food Industry Association (WFIA) says small, independent grocers are at the center of a perfect storm of record inflation, labor shortages, skyrocketing energy costs, a purchasing power imbalance and potentially the largest merger in the history of the grocery industry.

“The grocery playing field is not level for small grocers –it’s not even close,” said Hetrick. “Small grocers don’t have access to the same volume discounts as larger competitors, which puts smaller and often rural or remote retailers at a competitive disadvantage. These smaller stores are facing unsustainable conditions, and in some communities, a small, family grocer may be the only grocery store option for miles. And when it comes right down to it, many of these smaller stores will eventually just close their doors or sell to a big competitor that does not have a connection with the local community,” said Hetrick.

Independent grocers in Washington state routinely average between 1% and 2% profit margin, Hetrick said. Meanwhile, major grocery chains have been operating at the highest profit margins on groceries in two decades since the pandemic, the White House Council of Economic Advisers reported earlier this year.

“Independent grocers simply lack access to fair prices from suppliers,” said Hetrick. “They’re doing their best to keep fresh produce and other household staples in stock, but don’t have access to the volume discounts of a large chain store. It’s creating a lot of stress on small communities who don’t have another fresh grocery option.”

What’s needed, Hetrick said, is for Congress to look into anticompetitive behaviors under the antitrust Robinson-Patman Act, including price discrimination, which is increasing prices for small grocery stores and their customers. Addressing skyrocketing swipe fees and reigning in excessive and burdensome regulations would also bolster independent grocers, she said.

“It’s time for the federal government to enforce this law and reign in the anticompetitive behaviors that are causing so much harm in this vital industry,” added Hetrick. “Our members are the backbone of so many communities in Washington state. We can’t afford to watch independent grocers get squeezed out, because in many corners of the state, when they’re gone, there’s no one willing to take their place.”