When the big Wal-Mart has already run the little chain grocery store out of business, is there any chance that a totally independent, locally-run grocery could compete? Yes.
Alva, Oklahoma. Population just under 5000. My hometown.
In 2002, the last grocery store in town, Homeland, locked its doors, leaving only the Wal-Mart Supercenter in the grocery business. The local manager of that Homeland didn’t stand still. He immediately worked to bring in a new chain. I have no idea how many different chains he met with. None of them would touch Alva, not with a Supercenter for competition.
Then the manager and his wife convinced each other to try it on their own.
Are you kidding? The chains knew it wouldn’t work. They were smart to stay away. How could these locals go it alone against the behemoth?
But they weren’t alone. They had the support of a bigger group of locals. The local tech center helped with a three year plan, a local lender was right there supporting the financing. Other economic and business development groups were deeply involved. Volunteers helped haul in equipment. People walked in to help get the store ready. One day as they scrambled towards opening, 23 people were working, and only four were on the payroll. Read the re-opening story in the Alva Review-Courier.
Finally, after a three year gap, they did it. Alva’s Market opened in 2005. Four years later, they are still going.
They will sack your groceries and carry them out to your car. They offer cooked meals at lunch time. A local barbecue artist smokes meat on weekends. Local and regional products, from cheese to candles, are for sale next to national brands.
It’s working. Despite everyone who said it wouldn’t. (I’ll admit, that includes me.) Despite the up and down economy. Despite the tight labor supply. Despite it all. It’s working.
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Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband have a small cattle ranch and are lifelong entrepreneurs. Becky is an international speaker on small business and rural topics.
Nice comeback. The impossible is sometimes evitable. There’s always a way, as long as you can focus on how you can provide more value and uniqueness that’s different from your Competitor
Very encouraging story, Becky. I’m so glad you posted it. I wonder if our local lenders would have done the same…?
Bobbie, that’s a good question. I also wonder if our local lenders would do the same today?
great story of how social ME-dia of people coming together together to build something that is caring and cares rather the box store mentality – i think the future is the mom & pop local trust store – a society built on trust serves its people – the big box stores talk about branding but the little guy talks about extended family – and so the future is here we just have to take it back :-) g-oh
“the future is here we just have to take it back.”
That’s why I love Geo.
So, I am breathlessly awaiting “People of Alva’s Market” to compete with this….
http://peopleofwalmart.com/
LOL
GREAT success story.
Some of the wiser national chains have started selling local stuff too.
Great things Becky. Great minds think alike on a Monday and I was thinking and writing about the same subject. http://paulswansen.com/?p=416
Paul & Paul, I love it when you both comment on a story. :)
Paul M., I have seen a lot of interest in local. There’s even talk of “local-washing,” trying to make a big business seem more local.
Paul S., you made some terrific points in your piece, about how our grocery stores have and have not changed. Thanks for sharing it. Before Alva’s Market was Alva’s Market, it was Homeland. And before it was Homeland, it was a Safeway. That’s going back to when I was a kid. :)
We lost our mom and pop grocery store to a Supercenter. However — in time — we gained a BBQ diner and a mom and pop outlet for local produce and garden plants.
The store’s former butcher — who also sold his fabulous smoked meats and BBQ at the grocery store — opened the diner; and the demand for local produce (formally sold at the grocery store) was the incentive for a local farming family to clear a corner of their land and start their business.
From there the farm family built a greenhouse — and went on to offer a very popular pumpkin patch and hay maze! It has grown so popular, the local Chamber decided to organize a Fall Festival every October!
The BBQ diner now has a neighbor: a butcher shop. It just opened … I really need to go see if the “new” butcher is the same friendly face that used save a sliced whole brisket at the grocery store meat counter! I just betcha it is!
Becky, thanks for sharing. It’s great reading stories like this. Too many times we hear why something won’t work rather than how to make it work. And in the end, even if it didn’t pan out- at least they tried!
Becky,
I loved this piece, especially since you show how a small business can beat the big guys at their own game.
It seems that Alva’s market did so by service and differentiation. I would bet that the owners and storekeeper’s are probably more knowledgeable about their product’s than the supercenter’s clerks.
I wish them luck…..
Cheers,
Marco
Stargardner, that’s a pretty good illustration of how small town businesses evolve over time.
Darrin, we have plenty of voices in the negative. It’s up to us to share the positive stories.
Marco, the Market is definitely different than the big guys. That’s why the succeed. Thanks. :)
This is such a great read. We really need to understand that it’s possible to compete against the big boxes. The comments are great too – especially the one from stargardener.
I came across a great interview with Dave Ratner, owner of four pet food stores, about this subject (http://www.businessweek.com/mediacenter/podcasts/smart_answers/smart_answers_09_14_09.htm?campaign_id=rss_smlbz). It’s an 11-minute audio clip that everyone has to hear. It has great advice for independents.
Basically, he says customers want to support the local business but they expect more from them. And that means incredible customer service.
Thank you, Carl. Great interview.
Every dollar is a vote. It is up to each of us to support local businesses. Local businesses mean dollars stay locally. Only shopping at big box stores and chains does not help local businesses (in any town).
You’re right there, Paul.