Zaucha made his comments to independent supermarket retailers attending a seminar at Unified Western Grocers' Expo, the company's annual buying show for members.  The seminar, "How to Compete With Wal-Mart," was the first in a series of seminars NGA plans to hold around the country to help independents better prepare for the "Wal-Mart challenge."

"There's no question Wal-Mart will take volume from even the best operator," said Zaucha.  "But the question is, can it maintain that volume over time, or do loyal customers go back to a community-oriented, independent supermarket?"

Zaucha cited areas in which supercenters are vulnerable.  He pointed out that in many of these large stores, there aren't always enough employees to serve customers; managers aren't always available to solve problems; there are crowding and traffic problems on weekends; and that products sought by customers often are out-of-stock.

Zaucha said that in order to compete with Wal-Mart, independent retailers need to differentiate themselves from the competition.  He said that retailers should:

·         Develop alliances with wholesalers and direct-store delivery companies and work with them to develop marketing strategies;

·         Develop an advisory group that helps make realistic decisions about areas to be competitive in;

·         Do their homework by going into supercenters, conducting thorough research and identifying the stores' weaknesses;

·         Promote aggressively (i.e., displays, sales, etc.).  "You're not just a buying company," said Zaucha;

·         Promote a safe, clean shopping environment by keeping stores immaculate, uncrowded;

·         Treat employees fairly by empowering them to make decisions and by instilling a sense of pride in them; and

·         Be the first on the block to try something new, especially when it comes in investing in technology. 

Zaucha said that independents can win the battle, but only if they truly believe that they can.  "Too many retailers have a defeatist attitude about Wal-Mart.  But the truth is, you'll never win unless you have the will to win."

Unified Western Grocers, Inc. is a retailer-owned grocery distributor that supplies independent retailers throughout the Western United States.  Unified and its subsidiaries, which generate approximately $3 billion in sales during the 2001 fiscal year, offer independent retailers all the resources they need to compete in the supermarket industry.