The Magazine Built for California’s Grocery Community

With each issue, California Grocer takes in-depth looks at the most important political and business issues impacting our industry. In Issue 4, we provide a teardown of CBD, while in the recently published Issue 5, we build upon the topics explored during the 2019 CGA Strategic Conference to learn more about the gaps between our businesses and customers, employees, and new technologies.

Visit our online archive, or set aside your print copy for a Sunday morning read.

With CGA Strategic Conference behind us, we are speeding into the holiday season and new year. The 2020 Independent Operators Symposium is the signature event for independent retailers, providing a relaxing environment to reset and renew the vision you have for your business.

The 2020 Symposium will take place January 12-19, 2020, at the Fairmont Kea Lani on the beautiful island of Maui. Register today, or learn more about this annual retreat.

This summer, California’s grocery community gathered in Northern California and Southern California to golf in support of the CGA Educational Foundation. Thank you to all who attended, as well as the tournament’s sponsors. These golf tournaments go a long way in supporting the scholarships and awards that are growing tomorrow’s grocery workforce. Below is a list of tournament winners and photo gallery.

2019 CGAEF Northern California Golf Classic

Winners

First Place
Fred Thumhart, Classic Wines of CA
Brian Hudgins, Classic Wines of CA
Dan Reid, Classic Wines of CA
Brett Rober, Classic Wines of CA

Second Place
Michael Philipps, RMG Organic Waste Recycling
Joe Perez, rePLANET, LLC
Juan Trillas, Bimbo Bakeries USA
Joe Lima, Raley’s

Third Place
Kathleen Smith, Albertsons
Victor Woods, Albertsons
Rick Whidden, SEB Security
jeffrey Scales, Albertsons

Longest Drive
Men – Cameron DeJean, Ogletree, Deakins, Nash, Smoak & Stewart
Women – Megan Conder – Kimberly-Clark Corp.

Closest to Pin
Men – Dan Reid, Classic Wines of CA
Women – Hillen Lee, Procter & Gamble

2019 CGAEF Southern California Golf Classic

Winners

First Place
Greg Sheldon, Anheuser-Busch
Cody Yorgesen, Anheuser-Busch
Jordan Wettstein, Anheuser-Busch
John Fehling, Anheuser-Busch

Second Place
Damon Franzia, Classic Wines of CA
John Larramendy, Classic Wines of CA
Phil Dubourdieu, Classic Wines of CA
Todd Singleyn, Classic Wines of CA

Third Place
Gary Vicek, Certified Federal Credit Union
Donna Simpson, Certified Federal Credit Union
Steve Weakley, Certified Federal Credit Union
Jay Lassister, Certified Federal Credit Union

Longest Drive
Men: Ted Baker, Whole Foods
Women: Heidi Spiller, Jelly Belly Candy Co.

Closest to the Pin
Men: Tony Lawrence, Mondelez International
Women: Deedee Laskey

Meet Stan Phelps

Stan Phelps walks the walk. He stands out in the sea of sameness by modeling his own Differentiated Experience (DX) message: Differentiation isn’t just about what you say, it’s about what you do and, more importantly, how and why you do it. Stan leverages his unique collection of 5,000+ case studies on customer, employee, and brand experience to engage audiences with informative learning-based experiences. He challenges audiences to think differently by exploring new opportunities to be more successful in tomorrow’s changing world.

A show and tell speaker, Stan empowers audiences to take action that delivers bottom-line impact. He strives to change the paradigm of marketing by encouraging audiences to focus on experiences as the ultimate competitive differentiator. He believes purposeful DX wins the hearts of employees and customers, and differentiation ultimately boosts loyalty, retention, referrals, and results.

Stan is a Forbes Contributor, TEDx Speaker, IBM Futurist, Certified Speaking Professional™, and bestselling author of the 13-book Goldfish Series that begins with Purple Goldfish 2.0 – 10 Ways to Attract Raving Customers.

A masterful storyteller who quickly connects with audiences, Stan has delivered keynotes and workshops for Fortune 100 brands including IBM, Target, and more. He works directly with you to customize content that matches your audience and your goals to create a memorable and meaningful experience every time. Count on Stan to show up early, arrive prepared, and disrupt the all-work-and-no-play methodology with his sharp wit and trademark showmanship. He makes it his mission to exceed expectations and inspire audiences in ways they just can’t help but talk about — and won’t soon forget.

Find Stan’s keynotes and workshops at StanPhelpsSpeaks.com.

For the latest episode of the California Governor’s Office of Emergency Services (Cal OES) podcast, All Hazards, CGA’s Tim James joined Abby Browning from the Governor’s Office of Emergency Services for a conversation on disaster response.

Recently, Tim, our Sr. Manager of Local Government Relations, wrote in this very newsletter about the new role of “grocers as first responders” that has developed in the aftermath of recent wildfires and earthquakes. Being proactively engaged in disaster response policy continues to be a great way for grocery operators to serve communities and make friends with elected officials. Give the podcast a listen to learn more.

Hear from the Experts

During the process of creating this year’s CGA Strategic Conference theme, it became clear the rapid pace of change occurring in the industry continues to occupy significant headspace among California’s grocery leaders.

A byproduct of disruption is chaos, which is why we’ve curated a collection of speakers that will challenge and inspire the industry as it forms new frameworks for conducting business in this contemporary landscape.

Visit our Strategic Conference website to see who’s on tap for September 29 – October 1.

Earlier this month, JLL, a commercial real estate firm, released its 2019 Grocery Tracker. The report showed an expanding grocery industry led by new store openings in California, Texas and Florida. The CGA communications team caught up with one of the report’s authors, Taylor Coyne, for a follow-up to dive deeper into the report’s conclusions to draw out new insights for California’s grocery community.

For reference, the full report can be downloaded here.

California grocery stores were one of the largest drivers of square footage growth in the U.S. This growth sounds positive, yet year-over-year, it appears the percentage growth was actually lower. What is your overall impression of the California grocery market?

A clarification about those percentages – California had 12.2 percent of all new openings (in square feet) in 2017 and had 7.83 percent of all new openings in 2018. California’s year-over-year growth is not reflected in that number. It took less of the overall pie because Florida had such strong growth from Publix. California opened approximately 157,000 square feet of more grocery space in 2018 compared to 2017. All signs continue to point to a strong and healthy California grocery market.

California growth was boosted by expansions of Sprouts Farmers Market, Aldi, Grocery Outlet, and Smart & Final. Do the particular brands that are expanding, and their operational niches, signal anything in particular to you about the state’s grocery community?

One of the characteristics of well-performing grocers is an awareness of the customer. All these grocers are doing a good job at connecting with shoppers both from the quality of products and price point. There is an acknowledgment that the modern consumer is focused on wellness and these grocers are responding by providing food options that appeal to this desire and need to purchase good quality foods and products for themselves and their families – all while not breaking the bank.

Grocery Outlet is headed towards an IPO while Smart & Final has been reacquired by Apollo. What do these strategies for raising capital, both going public and private, tell you about where the California grocery market is headed?

It’s about growth opportunities for these grocers. Raising additional capital to expand footprints will benefit many markets across the U.S., including California. California is and will likely remain a top market for grocery expansion because of our population numbers and the density of our major urban hubs. Grocers will want to continue to solidify footprints in the state.

A lot has been written in the industry about the trend towards smaller formats. Your report also talks about this trend, referencing formats designed for short, frequent trips. Why do you see a bifurcation in customer behavior occurring as the frequency of small trips grows, all while click and collect/e-commerce grow? What can this mix tell grocers thinking about building new storefronts?

This all goes back to realizing that not every customer shops in the same way and not all customers have the same shopping behavior for every grocery trip. It’s about providing reliable options for every shopper. So, while there seems to be a bifurcation in the way customers shop, there’s more fluidity between those two sides of the spectrum. In the years to come, grocers are going to become increasingly aware of these varying shopping patterns and will expand format options. As we see grocers expand, I think we’ll be seeing more concepts emerge as part of that process.

Despite the trend towards smaller formats, recent headlines have also noted that grocery retailers are exploring opportunities in shopping malls or replacing Sears and other failing mass retail concepts. Then again, there is also concern about foot traffic falling for malls…What is the logic behind these large concepts?

It’s not just grocery stores moving into these vacant spaces. We’re seeing much more food and beverage, entertainment concepts, and fitness and wellness backfill these spaces. These concepts are helping to reinvigorate these centers and are giving people new reasons to shop there. The location of these centers is also appealing. Many of these opportunities are in great locations with access to nearby consumer spending. Grocers may hope to capitalize on that proximity of potential shoppers.

Follow up to #5, what consumer dynamics are pushing grocery retailers into redeploying mall spaces? Will that continue?

It stems from customers wanting more out of their shopping experience at these centers and malls. It’s also about convenience. There is an appeal to checking off multiple items on a to-do list and a co-tenancy with grocery and other more typical retailers gives that ability and flexibility to the customer.

Final question: As e-commerce grows, do you predict grocers will grow square footage for “dark stores” or “ghost” supermarkets to separate the shopping experience for in-store vs. online?

We’re already seeing grocers experiment with micro-fulfillment centers both attached to existing stores and as stand-alone sites. We mentioned Giant Foods new click-and-collect store that also allows customers to order groceries at a walk-up counter. I expect we will see more grocers explore these hybrid concepts in the future as companies work to provide this flexible shopping experience to all types of shoppers.

On Wednesday, June 5, California’s independent grocery community gathered at Foxtail Golf Club in Wine Country for a day out on the links. Thank you to all who attended, as well as the tournament’s sponsors.

The Winners!

FIRST PLACE
South Course
Mike Mannci, S and L Food Sales
Dave Parrish, North State Grocery
John Blackburn, North State Grocery
Larry Stephenson, S and L Food Sales

North Course
Matt Bloom, Mollie Stone’s Markets
Richard Moresco, Mollie Stone’s Markets
Karen Brandon, Mollie Stone’s Markets

SECOND PLACE
South Course
Julio Sandoval, Mi Rancho
Frank Palladino, Mi Rancho
Joe Santana, Mi Rancho
Andrew Berber, Mi Rancho

North Course
Ian Albrecht, Peet’s Coffee
Tim Albrecht, Peet’s Coffee
Dennis Albrecht, Peet’s Coffee
Jeremy Markus, Peet’s Coffee

CLOSEST TO PIN
North
Men: Joel Russetti, Moresco Distributing
Women: Raeleue Neve, Sonoma Salad Compan

South
Men: Damon Franzia, Classic Wines of CA
Women: Rae Paulson, Moss Adams LLP

LONGEST DRIVE
North
Men: Casey Rodacker, Mar-Val Foods
Women: Shirley Liu-Pasquin, Olivers Market

South
Men: Taylor Janowitz, Moss Adams LLP
Women: Rae Paulson, Moss Adams LLP

What’s up next for independent grocers? The Independent Grocers Forum at our CGA Strategic Conference this fall.

Each year, Consumer Reports measures responses from its 75,000, or so, members to rank supermarkets based on 13 attributes — characteristics like food quality, product variety and price. In this year’s survey four out of the top five grocery stores are regional chains, with Gelson’s Markets winning top honors for Western grocers.

Also featured in the rankings of 96 supermarkets were Costco, New Leaf Market and Grocery Outlet. Read more about the report.

In another exciting piece of news for California’s grocery community, the Stater Bros. 12th Annual Jack H. Brown Heroes Challenge Golf Tournament raised $110,000 for charities that support veterans. Read the press release.

Jacquie Slobom, Senior Director of Store Operations, Gelson’s Markets, was recently elected Chair of the California Grocers Association Educational Foundation (CGAEF) Board of Directors, succeeding Brad Askeland, North State Grocery, Inc., who had served as Chair for three years.

In addition, Mark Johnson, UNFI/SUPERVALU, was re-elected Vice Chair; Christy Duncan-Anderson, The Albertsons Companies Foundation, Treasurer; and Jeremy Cullifer, C&S Wholesale Grocers, Secretary.

“Jacquie’s leadership will be a tremendous asset to the Foundation to guide and ensure the continued growth of our vibrant industry through education and training. We look forward to the future under Jacquie’s guidance.”

CGAEF President Ron Fong.

Slobom began her career with Gelson’s Markets more than 30 years ago and worked up the store ranks in a variety of positions to her present role of senior director of store operations.

In this capacity, Slobom is responsible for the overall four-wall operations for several Gelson’s locations. She also spearheads multiple charitable giving causes for the company. She initiated and developed programs with local food banks and supports numerous organizations.

“I am honored to serve as the Chair of the CGAEF Board of Trustees,” said Slobom. “CGAEF is transforming lives in the grocery industry. I believe in CGAEF, I believe in its mission, and I look forward to helping the team achieve sustainable success for years to come.”

The CGA Educational Foundation was created in 1991 to assist CGA member companies by encouraging them to identify qualified employees, educate them in preparation for advancement and offer them the means to sharpen their skills in order to grow.

 “CGAEF is an organization near and dear to my heart,” Slobom said. “Since the beginning, the Foundation has worked to improve the industry by empowering people to learn and grow. I look forward to working with fellow trustee members, the staff and CGA membership to help shape the Foundation’s future to positively impact the grocery industry.”