President and CEO of Associated Wholesale Grocers since 2023, Dan Funk joined the Kansas City-based cooperative wholesaler in 2012 and worked his way up the executive leadership team. Funk has worked at every level of the grocery industry over the course of his lifelong career, from store level to management, at retail and wholesale.
Funk recently shared his thoughts on leadership, collaboration and the state of the industry with NGA’s Independent Grocer magazine. The following are excerpts from his responses; you can read the full profile in the Summer 2024 issue of Independent Grocer.
How did you get your start in the grocery industry? How did you decide on this as a career?
My parents owned a small business when I was growing up, which led me to be interested and involved in our family business at a very young age. Living in a small town, jobs were limited, and I was fortunate to have an opportunity to work at a local grocery store starting at age 14. I really loved the grocery business. In college, I continued to work both in my hometown and at college in grocery stores while completing my business degree. It was in college that I knew I could make a career out of the business and pursued it. Essentially every paycheck I have ever received has been from the grocery industry – retail stores and wholesale companies. It has been a great industry and career.
What have you learned along the way?
What has been extremely beneficial to me is essentially working in every role possible in a grocery store and at the wholesale level. Being able to put myself in the shoes of member owners and our team members helped me to better understand what they need to be successful. Having multiple experiences over the years really helped me to understand how our company, our team and I can personally help our member retailers succeed and better support the teams I have been part of at AWG. Over the years, I have also learned that while there are differences between geographic areas, many of the challenges facing teams, stores and the wholesale business are similar. Being able to adapt to the unique differences within areas, immerse myself with the local teams and retailers, and adapt to the local needs has been something I have taken away from the various experiences.
What are the most significant changes you’ve observed in the grocery industry during your career?
The role of innovation and technology and how both have shaped the current consumer experience in stores today, and how the industry has changed as a result of innovative technological advancements. I started my grocery career in a store that did not have front-end scanning, so I am dating myself a bit, but to see how technology has changed virtually everything we do in the store, at the warehouse and also how we interact with consumers in the stores today, is pretty amazing.
How can independent grocers remain competitive in the face of competition from big-box stores and national chains?
Retailers who focus on their unique value proposition that differentiates their business from others is critical to ongoing success. Finding areas where they can excel within their local markets compared to competitors, and leveraging those strengths to continue to grow their business, is key. As a wholesale partner, we work to leverage the scale and provide services that any member retailer could not do within their own business at the same scale or efficiency. Bringing new programs, products and services to retailers is also a big part of the support that wholesale teams can provide in keeping independent retailers more competitive beyond the actual scale in the supply chain that a wholesaler can bring forward.
What are the most important issues facing independent grocers?
Finishing out 2024 and into 2025, certainly how the economy plays out will be critical. The consumer has been strained, and while some metrics conflict within the national view, many consumers are being impacted negatively. Seeing some leveling of consumer impacts that can create added consumer strength, and everyone will be watching closely. With the 2024 election, a large focus will be on continued progress that NGA, independent retailers and wholesalers have been focused on related to power buyers negatively impacting independent retailers. Also, the areas of regulation that are putting added cost burdens on retailers and wholesalers, disproportionately impacting smaller retailers across the U.S. and ultimately raising prices to consumers.
What one piece of advice would you give to someone just starting a career in the independent grocery industry?
Remember what you do is important to the communities you serve and the consumers you support. This career can be so rewarding and can lead to a lifetime of opportunities within the industry. Be open to taking on new challenges, responsibilities and roles within your companies. Continue to focus on your consumers’ satisfaction and your team’s success – those two areas put the fun and success into the business.
[RELATED: Funk Assumes AWG President, CEO Role Following Smith’s Retirement]
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