FRIDAY GROCERY NOTES | October 9, 2026
Before Adding Stores, Strengthen the Store.
Last Friday, I wrote about competing on value and connecting through assortment. That leads to another question: when is an independent grocer truly ready to grow?
A new location can multiply opportunities. It can also multiply unresolved problems. For me, preparing for growth starts with a fundamental relationship: a strong alliance with your primary wholesaler.
That choice deserves careful consideration. Does the wholesaler understand your business model, your customers, and your ambitions? Do its assortment, pricing, delivery capabilities, and support fit the operation you are building? A productive partnership requires shared planning, honest conversations, and a clear understanding of what the store needs to succeed. It should be central to your growth strategy. Then, look closely at the community around you. Start with the families living within five miles of your store. Who are they? What do they cook? What can they afford? Which products do they currently travel elsewhere to find?
Five miles is a useful starting point. Customer behavior, travel patterns, and local competition will help define your actual trade area. Demographic research matters, but so do conversations at the checkout, visits to competing stores, and requests your team hears every day. Use that understanding to build the assortment.
Mainstream essentials must be dependable and competitively priced. International products should reflect the communities you serve: the ingredients, brands, cuts of meat, produce, and everyday staples that make your store relevant to their households.
“International” is too broad to be a buying strategy. Different communities have different needs, and each item must earn its shelf space. Work with your primary wholesaler on that plan, and bring in specialty suppliers where specific needs require additional sourcing.
Finally, make sure the operation can support the ambition. Are margins translating into healthy cash flow? Are you controlling shrink, excess inventory, and out-of-stocks? Can your managers run the store consistently when you are elsewhere?
If every important decision still depends on the owner, another location will stretch that owner further.
Growth becomes more sustainable when strong supplier relationships, community knowledge, relevant assortment, and disciplined execution work together.
Before signing the next lease, ask:
If you opened a second store tomorrow, what would you be multiplying: your strengths or your unresolved problems?
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