SAN DIEGO — Regional drug chains and supermarkets are in the ascendant. To better understand the reasons behind their rise, retailmediaIQ hosted a breakfast meeting on the sidelines of the NACDS Total Store Expo in the packed San Diego Ballroom of the Marriott Marina, sponsored by T-Mobile for Business, GoodRx, Cleanlogic, and Nature's Way.
The event, with support from The Emerson Group, featured leaders of four burgeoning regional chains:
The event featured a powerhouse lineup of speakers:
- Jim Tsipakis, President of Supermarkets and Pharmacy, Giant Eagle
- Aaron Wiese, President, Hy-Vee
- John Marraffa Jr., President, Kinney Drugs
- Mike Wysong, CEO, Care Pharmacies
Jeffrey Woldt, Editor-in-Chief of retailmediaIQ, moderated the discussion.
Among the topics addressed during the discussion were the importance of regionals’ roots in the community, their ability to adapt quickly to shifts in the marketplace, diversification strategies, and relationships with CPG companies as regional players are facing pressures from many sides. “This is a very pressing topic,” said Wysong of Care Pharmacies, as pharmacies confront stiff competition from large companies.
A strong throughline in the discussion was “Authenticity” and the ability of regional players to maintain authentic relationships with customers, who “see through the bs immediately,” as one panelist put it. When it comes to authenticity, a regional player is more connected to the communities it serves and can engage with customers more directly than bigger ones.
Despite many seeing social media as a challenge for companies, Hy-vee's Weise highlighted their benefits. If a customer has a negative experience, they may take to social media to vent their frustration. That can be an opportunity, “when someone reaches out immediately,” he said, to make the customer feel heard and mend the relationship.
Recently, musician Taylor Swift spoke about her appreciation of sourdough bread. Hy-vee associates noticed this on social media and leveraged it into product offerings and promotional material, a case study in the power of social media and an engaged workforce.
Kinney's Maraffa Jr. spoke about the agility of regional companies. Kinney has the capability to bring a new product to all their stores in 24 hours, he said, something a larger entity could not do. This gave the company a leg up when dealing with suppliers, especially local producers.
In Hy-vee's case, Weise relayed the story of a supplier who came to the company on the Wednesday before Memorial Day, wanting to launch their new product at the company's grocery stores in the next few weeks. During their discussions, the idea arose to get the products on the shelves before the holiday weekend. The company's nimbleness enabled it to do so, with great benefit to the supplier.
“We don't have the same rigidity as bigger companies. Quick to get products on the shelves. We always want the newest products on our shelves,” Weise said.
Jim Tsapakis from Giant Eagle said the size also helped the company to hear from their associates. “Listen to people and find good solutions,” he said and recommended “listening twice as much as you speak.”
“We can compete on the things that matter to the customers today,” he added.
As regional retailers continue to surpass national players with localized strategies, agile operations, and strong community connections, this discussion provided valuable insights for both suppliers and retail media executives.
