Three Challenges, Three Actions
By Pat Sheridan, President & CEO, INFRA
Pat Sheridan, President & CEO, INFRA Competitive Price: The Robinson-Patman Act prohibits price discrimination and unfair practices that harm competition or create monopolies, ensuring a level playing field for smaller businesses. Enforcement of this law has long been dormant, allowing chains and other large buyers to execute discriminative pricing practices and damage smaller retailers—often leading to “out of business” signs on empty storefronts. Recent enforcement in the liquor industry offers hope for fairer competition in the natural food and supplement sector. However, there’s concern that the new administration may deprioritize this action, leaving smaller businesses vulnerable.
Equal Access: Supply chain constraints, potential new global tariffs, and anticipated mergers and acquisitions in the natural retail CPG sector, threaten product availability. Unique products that natural products retailers rely on may end up on the shelves of mass retailers, reducing differentiation for smaller stores.
Adequate Staffing: Staffing challenges persist as a key issue. Competing in a fast-changing environment intensifies the need for effective recruitment, retention, and technological adoption.
A Three-Pronged Call to Action
Natural products retailers can thrive by focusing on collective action, differentiation, and technology.
Collective Action: Joining associations empowers smaller retailers to advocate for fair enforcement of the Robinson-Patman Act and access competitive pricing. Associations have a larger voice with lawmakers and can influence at a higher level than just one storefront. And group buying is more important than ever. For example, INFRA negotiates on behalf of hundreds of retailers representing over $3 billion in annual sales, helping smaller retailers get closer to pricing parity with larger competitors.
Doubling Down on Differentiation: Local retailers hold a competitive edge through deep community connections and partnerships with local producers. These relationships foster resilient supply chains and help stores maintain their unique identity, even as large brands shift to mass-market shelves.
Embracing Technology: Staffing challenges make technology and data-driven strategies essential. Tools like online ordering, loyalty programs, data-driven pricing models, and digital shelf tags improve efficiency, allowing staff to focus on personalized customer service and community-building. By using technology to enhance customer experience, natural products retailers can maintain their edge over large chains.
Customers choose local natural products retailers because of the sense of community they foster. By leveraging collective power, embracing their uniqueness, and adopting smart technologies, these businesses can continue to thrive—even in challenging times.
