Independent retailers boost Chicago produce distributors
Independent retailers boost Chicago produce distributors
CHICAGO — Terminal produce markets thrived in the United States when mom-and-pop stores needed a regular, reliable source to shop for fresh fruits and vegetables.
In Chicago, independent retailers have been serving the metropolitan area’s diverse ethnic clientele for many years. At the end of 2013, the service to specific neighborhoods gave a final blow to one of the city’s two remaining chain operations. Safeway Inc., based in Pleasanton, CA, closed its 72 Dominick’s stores at the end of December and in the following weeks.
Jewel Food Stores Inc., located in Melrose Park, IL, is the last chain to operate in Chicago. The local industry reports that the independent retailers are taking away Jewel’s business as well.
In its April 2014 issue, The Shelby Report of the Midwest indicated that Roundy’s Supermarkets, which is based in Milwaukee, “will hit critical mass in the Chicago market this year with its Mariano’s banner, thanks to the acquisition of 11” locations that were previously operated by Dominick’s.
Strube Celery & Vegetable Co. reviews retail ad flyers at its sales desk every day. Robert Strube III, president of the company, said it is helpful if retail buyers can see for themselves what their competitors are doing in the marketplace. There are so many independent retail companies in Chicago, tracking these ad promotions is not a simple matter. Steve Chmelovsky Sr., the president and chief executive officer of EveryDay Fresh Produce Inc. on the Chicago International Produce Market, confirmed that after Dominick’s closed its stores some of the empty units were “gobbled up” by Mariano’s and Jewel. In comparison to the chains, he said, “The independents are more focused on the melting pot. Chicago is so diverse.” There is the Little Italy neighborhood and Chinatown. “The Indians have their own little city within a city. That is how we make a living.”
Chmelovsky, who specializes in selling ethnic produce, noted “the chain stores need to buy into this ethnic produce. The market isn’t apples and oranges any more. There is such a diverse market.” Meanwhile, mainstream customers are looking for new, ethnic produce items to diversify their eating habits.
Chmelovsky continued, “One of the biggest obstacles for the chains is they need to buy in to service the ethnic community better. They are at a disadvantage with the independent grocers and the chains. They need to cater to the neighborhoods they are in. This is not a cookie-cutter model. At Thanksgiving, in the stores, the Indians aren’t going to buy the broccoli and sweet potatoes advertised on the back page” of store flyers. “I am shocked at how little they carry of what their consumers use.”
Nick Gaglione, who owns Dietz & Kolodenko Co., said the market enjoys business with independent Chicago retailers who have grown to have “three-, five- and 10-store operations. They are buying the stores that Dominick’s and Jewel used to run.
Robert (Rob) Strube III, president of Strube Celery & Vegetable Co., said Marino’s, which has about 25 stores, is one of the leading independent chains in the Chicago area. There are many other independent grocery stores that have expanded from one to five or 10 stores.
“The independent stores are getting bigger and bigger. Everyone on the Chicago International Produce Market serves their warehouses. We give service to them seven days a week. When these stores buy for holidays, they buy a little the week before, but the mostly wait until the Monday or Tuesday before the holiday to have it fresh. ‘Fresh’ is a better buy. They blow the chains away. Jewel is the only chain now” in Chicago. “The independents like to have stores beside Jewels to catch produce consumers.”
Jose (Pepe) L. Vega, a partner in La Galera Produce on the Chicago market, believes “the Chicago industry has been doing well. We have new, independent stores.” With independents taking over stores closed by chains, “there is a little more business for us. Chicago has been and always will be a great city for business.”