Michael Provenzano, Sr.

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Michael Provenzano, Sr.
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History of Independent Grocery Retailers in the
U.S.

• Market Share

1998 FDI Report
1925 IGA Formed
1962
Time
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1998 Report Bleak Outlook for Independents

• Independents/wholesalers less than 37 share of
  market in 1998
• Market share declined 1 per year between
  1992-1998
• Full-line wholesalers declined 72 between
  1986-1998
• Chains fastest growing segment of business in
  1998 but represent only a fraction of
  wholesalers business
• Source Strategies 2005 A Vision for the
  Wholesale Supplied System, 1998, Food
  Distributors International (now FMI)

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History of Independent Grocery Retailers in the
U.S.

• Market Share

1998 FDI Report
1925 IGA Formed
1962
Time
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Independents More Competitive in Last 10 Years
Market Share
1998 FDI Report
1925 IGA Formed
2007
Time
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Reasons for Independents Success?

• Investing in their businesses
• Revitalizing stores
• Paying attention to changing marketplace
• Providing right products/services to customers at
  right time

Market Share
1925 IGA Formed
1998 FDI Report
2007
Time
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Ranch Markets Success Parallels This Track

• One-store company in 1982
• Launched Hispanic-format Ranch Markets in 1997
• Arvin, CA and Delano, CA
• Opened two stores in Bakersfield, CA (2000 and
  2002)
• Four stores in Phoenix area
• Two warehouses (Ontario and Phoenix)

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Ranch Markets Continuing Our Growth in
Southwest U.S.

• El Paso
• Former Smiths store (80,000 sq. ft.)
• Opening in September, 2007
• Albuquerque
• Former Wal-Mart store (65,000 sq. ft.)
• Opening 2008

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As Weve Grown, Our Efforts Have Been Noticed
AWARDS

• 2001 Southern California Grocery Sales
  Association
• Excellence in Retailing
• 2002 Arizona Newspapers
• New Times Best Mexican Takeout Food
• Arizona Republic Best Mexican Market

SCGSA
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As Weve Grown, Our Efforts Have Been Noticed
(cont.)
AWARDS

• 2004 Arizona Food Marketing Alliance
• Retailer of the Year
• 2005 Hispanic Retail 360 Conference Expo
• First Hispanic Retail Excellence Award
• 2006 Unified Western Grocers, Inc.
• Ben Schwartz Retail Grocery Visionary Award

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What Makes Ranch Markets Successful?

• Fully Understanding the Market We Serve
• We know what our customers want, how they want it
• Delivering on our Value Proposition
• We are a Hispanic lifestyle store
• Appeal to all generations

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What Do Our Customers WantAnd How Do We Deliver
It?
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What Do Our Customers WantAnd How Do We
Deliver?

• They want fresh foods

Panaderia Tortilleria
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Panaderia
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Tortilleria
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What Do Our Customers WantAnd How Do We
Deliver?

• They want specialty shops

Carniceria Pescaderia Cremeria
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Carniceria
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Pescaderia
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Cremeria
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What Do Our Customers WantAnd How Do We
Deliver?

• Shop with families and friends

Cocina Aguas Frescas
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Cocina
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Aguas Frescas
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What Do Our Customers WantAnd How Do We Deliver?

• Hispanics spend 47 more per year on produce than
  non-Hispanics
• Source Hispanics and Fresh Produce, Produce
  Marketing Association, Industry Fact Sheet, 2004

Produce Dept.
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Produce
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What Do Our Customers WantAnd How Do We Deliver?

• Family relations are reinforced through frequent
  celebrations and social gatherings, food is
  central to the celebration

Restaurant/Banquet Hall
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Restaurant/Banquet Hall
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What Do Our Customers WantAnd How Do We Deliver?

• 22 Hispanic shoppers walk or take public
  transportation to market compared to 3 of
  general population
• Source Winning the Hispanic Shopping Trip,
  Unilever, May, 2006

Courtesy Bus
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Courtesy Bus
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What Do Our Customers WantAnd How Do We Deliver?

• Want to feel at home, comfortable

Signage, Décor, Music
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Signage/Décor
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The Bottom Line

• Ethnic marketing requires full commitment to your
  target audience
• Do your research
• Stay true to your mission
• Implement strategies down to finest detail
• Follow through on a daily basis

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