How’s it going? Responding to the prompt Please tell us anything that is on your mind about your business, consumer shopping patterns, supply/inventory challenges, and any information you would like to share, respondents in our Annual Retailer Survey did not hold back.
There was optimism…
“Our industry, particularly independent supplement retailers, is a personalized entity. Despite many consumers shopping online, the interaction and education they seek comes only from a brick and mortar store with knowledgeable staff. We see more customers coming in to shop our store after having had a poor experience with an online retailer.”
“Supply continues to improve and fortunately for us, our customers are very patient. Inflation continues to occur, but it is not as bad as the supermarket. Hoping the election will change the cultural attitude.”
“We continue to grow at the same rate since 2021. We meet new people every week. We are and always have been running a little lower margin then most. Customers are coming from long distances because of prices.”
“The health care trend of prevention is alive and well!”
“Overall things are looking up supply-wise, so let's hope the economy bounces back after the elections!”
“It is an exciting time, but also a bit cataclysmic, since a recent political alignment has given us a lot of hope for a cleaner, healthier future. Now let's take the ball and run it into the end zone!”
...but also unease. Top concerns:
THE ECONOMY
“Price inflation is driving my customers away from the best products. I can't shrink my margins much and still pay my staff, pay the bills, and me.”
“Over the last 12 months we've been experiencing lower sales. Our customer count is down slightly and customers are more careful and selective with they're spending.”
“Consumers are pinching pennies, looking for cheaper brands. Prices going up on groceries literally with every KEHE and UNFI delivery.”
“Every time the people's cost of living rises, there is a definite downturn in sales.”
“Tariffs.”
“It’s been a challenge to spring back from the COVID time period. The wholesale prices are too high and I think the distributors could do more to ease that. A $2,500 order say six years ago today is $5,000 and for the same stuff.”
SUPPLY CHAIN CHALLENGES
“We are still experiencing many out of stock/supply chain issues. Also, many companies are discontinuing product that we stock.”
“Customers [are] just not coming through the door. They are frustrated by products that are not available anymore that they have used for a long time.”
VARIED COMPETITION
“Companies selling online directly themselves have affected Mom and Pop businesses.”
“Small stores are getting pushed out. Pressure from regular supermarkets selling what we sell and internet sales.”
“The click and receive mentality is hurting brick and mortar business—more so locally owned [small] business. Big Box stores have the resources to incorporate online and physical sales, whereas small business are challenged by the expense to do so and deal with the obstacles larger businesses create for smaller businesses (knowingly and unknowingly).”
AND MORE…
“It is getting difficult to find as much diversity and innovation in products being offered by the industry. There are also many smaller companies no longer doing business. It appears that the marketplace has tightened to fewer suppliers, and ownership of multiple companies under a single corporation has occurred.”
“Sales are strong, [but] finding stable, trained, and trainable staff is a challenge despite competitive compensation.”
Find more industry insights throughout this issue, including the Retailer Survey and the Retail Universe.
