Combat Today's Realities by Creating Value the IGA Way

 June 26, 2012 

It's often hard to be anything but upbeat in the world of IGA, but sometimes we have to deal with the dark side of the news and the impact that the world is having on shoppers. Just recently we got a powerful reminder of the tough times we are in.

An incredible report from the federal government detailed the loss of net worth most Americans have suffered thanks to the sharp decline in real estate values over the past five years. Today the median American household (the mythical family that is both poorer and richer than half the population) has a net worth of around $77,000, down from $125,000 in 2007.

That one statistic explains so much about the consumer anxiety we all continue to see in the marketplace. It explains why so many shoppers remain budget conscious at best and pessimistic at worst. As a hometown retailer, it's a reality you must keep in the center of your focus.

Remember that your shoppers continue to look for value in every possible way. That means price continues to matter, which in turn means you must keep a sharp eye on cutting costs to satisfy that demand. It means you need to highlight specials while creating a strong balance of national brands and private label. And it also provides an opportunity to talk with your community about values that can help them cope.

Remind them constantly about the budgetary value of home prepared meals. Remind them of the importance of buying quality products, so their money is spent wisely. And most of all, remind them that their concern is your concern, and that you are there—bringing in jobs, giving back to the community and in general, creating value for their hometown in every way you can.

Hometown Proud has never mattered more, especially to people who are so worried about their hometowns.

Thanks,

Michael Sansolo