Page 55 - NSA GALA JOURNAL 2015

Frank Zapata
NSA Board Member
“THE FUTURE OF THE INDEPENDENT GROCERY RETAIL SUPERMARKET”
Operating an independent grocery store in New York is much more difficult today than decades ago. Those years we can termed as the golden era of the industry today is unavoidable and urgent a change in the way we operate our businesses. This is due to the large increase in competitiveness in the operation of national chains such as BJs, Fairway, Whole Foods and the emergence of new formats as dollar stores and the rise of pharmacy chains and others. The increased regulations and policies imposed by government agencies at all levels of government is forcing the disappearance of independent store operators.
The level of competition is becoming more fierce
Competition in our industry will always be fierce in addition to the super centers and conventional supermarkets we’re seen a variety of formats that are competing for the dollar. However, the entrepreneurial independent grocers continue to adopt and rebound in what continues to be a very challenging recovery for our local economy.
Rising costs in labor, rent, taxes and new competition is a few of the main concerns facing independents today. Add to that the increased costs of healthcare by more than thirty percentage since 2013.
Independent Retailers Are a Reality
The impact of independent retail and wholesale grocers are all integral part of the American economy. Nationally, we have contributed nearly 1% of the US economy. According to the National Grocers Association’s Economic Impact Study, independent supermarket operators’ are accountable for more than $131 billion in sales and $27 billion in taxes, of which $14 billion in State and Local tax revenue. In addition, we are job creators, providing nearly 1 million jobs in the United States totaling over $30 billion in wages. We also made nearly $2 billion in capital investments which helps generate over 7,000 additional jobs. Locally, here in New York, the independents are responsible for $6.8 billion in sales, approaching 100,000 jobs and contributing nearly $2.8 in tax revenue for the State.
Despite our challenges, we represent a powerful and growing, force in the United States. The future of the industry is in our hands. We must continue to forge strategic and powerful alliances so that the sacrifices, sweat and tears of those who came before us – Eligio Peña, Pablo Espinal, Ursula Jorge, Antonio Liriano, Manuel Peña and Jose Taveras – was not in vain.
Board Member Frank Zapata is a proud graduate Magna Cum Laude from the Universidad Autónoma de Santo Domingo (UASD), Dominican Republic, majoring with a degree in Economics.