Greg Ferrara, president and CEO of the National Grocers Association, recently took time from his busy schedule to talk with The Shelby Report about the state of the grocery industry and the many challenges facing independents in 2025.
While it may be some time before the new administration’s policies begin to have their full effect, what is the general feeling among NGA members about the next four years under the new president?
On behalf of the nation’s independent grocery industry, we look forward to working collaboratively with the new administration and 119th Congress to support Main Street businesses and the communities they serve.
Congress and administration can provide relief for Americans at the checkout stand by working to advance policies and legislation that help reduce regulatory burdens that hold back economic growth, promote competitive tax structures, especially for pass-through businesses, and ensure we have competitive markets that will help rebuild Main Street America.
Independent grocers are vital to our communities, fueling local economies, creating jobs and providing essential services.
What are the top three legislative issues NGA expects to be tackling this year on behalf of its members?
NGA plans to continue to build upon the momentum of our in-roads on antitrust reform and enforcement of the Robinson-Patman Act; support efforts to ensure federal nutrition programs, such as SNAP, continue to work for the independent grocer and their customers; and work toward reducing the regulatory burdens caused by new refrigerant and traceability rules.
In many of the markets we cover, we are increasingly hearing about the need to address food insecurity and food deserts. Independent grocers often are on the front lines of these two battles. How are you seeing NGA members respond?
An excellent example of how independents are addressing food insecurity is Oasis Fresh Market in Tulsa, Oklahoma, operating in an area that had been without a full-service grocery store for many years.
The concept has taken off so well that its creators are looking to expand it to other cities. We shared Oasis’ story in the latest issue of NGA’s member publication, Independent Grocer. In so many parts of the country, both rural and urban, independent grocers are the only source of fresh food for miles around.
Being able to operate on a level playing field with national chains and big-box stores – through enforcement of antitrust laws – is essential to the survival of so many stores in these communities, so consumers have better access to fresh foods and a real choice when shopping for groceries. Independents have become very resourceful, amid inflationary times, in delivering the best value possible to their communities.
In terms of technology, what are you seeing your members embracing most? Any insights into what they plan to implement in the near future? (retail media networks, AI, self-checkouts, shopper apps, etc.)
An increasing number of our member retailers have been introducing smart cart technology in their stores, to more seamlessly integrate the online and in-store experiences and remove friction from the shopping trip.
Also, more grocers are looking into how AI can streamline operations to free up more associates for consumer-facing tasks, as well as provide a more personalized shopping experience.
You said last summer you hoped the administration would look at stemming anti-competitive behaviors impacting your members. What is your reaction to the Kroger-Albertsons merger being terminated? What do you hope will be achieved under the new Administration that will help your members have a level playing field?
As we noted at the time of the court ruling that led to the merger being terminated, 69 percent of all grocery sales are controlled by four nationwide chains.
Growth and consolidation once aimed at efficiency are now primarily motivated by amassing raw buyer power used to strong-arm product suppliers while undermining smaller competitors. This marketplace trend was at the core of the failed merger between Kroger and Albertsons.
Grocery consolidation stems from decades of Federal Trade Commission failure to enforce critical antitrust laws like the Robinson-Patman Act, which was designed to protect consumers and foster competition by preventing economic discrimination against independent grocers. Without enforcement, dominant chains abuse their power to coerce preferential pricing and terms of trade from suppliers and agriculture producers. As a result, suppliers are forced to offset these losses by charging higher prices to independent grocers – even when independents buy in similar volumes.
Main Street America has been decimated over the years, losing locally owned grocery stores, pharmacies and hardware stores. Antitrust laws provide important guardrails to help keep markets free and open, but when enforcers fail to do their jobs, the system breaks down and our communities suffer. Now, it is time for Congress and the FTC to enforce and strengthen antitrust protections to ensure a fair marketplace for independent grocers and their customers.
In that same vein, what are your thoughts about the enforcement of the Robinson-Patman Act related to FTC’s suit against PepsiCo for price discrimination that favored a major big-box retailer?
The FTC reinforced its commitment to promoting fair competition and strengthening Main Street America by addressing the illegal promotional practices implemented by dominant retail chains, or power buyers, to gain unfair advantages in the marketplace.
By enforcing the Robinson-Patman Act, NGA commends the FTC’s commitment to fulfilling its responsibility to protect competition and ensure all consumers can get fair prices and more choices.
The continued enforcement of this critical antitrust law is an important step toward ensuring that all retailers and wholesalers have equal access to similar pricing, discounts and promotions, thereby enhancing competition and ultimately expanding opportunities for all American consumers to enjoy lower prices, no matter where they shop.
NGA is optimistic that the FTC, under the Trump-Vance administration, will continue its important work to ensure a fair market for independent grocers and hardworking American families alike, many of whom continue to struggle with rising food costs.
[RELATED: FTC Sues PepsiCo For Illegal Price Discrimination]
Across the country, there is a need for young people to come into the grocery industry and make a career. How is NGA assisting members in this realm?
Nurturing grocery’s next generation of leaders is a responsibility that should be embraced by industry veterans, to ensure good decision-makers with fresh ideas are guiding our industry toward future generations of success. NGA supports its member companies that offer robust initiatives in mentoring and career development.
For NGA’s part, the Student Case Study Competition, administered by the NGA Foundation and sponsored by UNFI, brings students from across the country every year to the NGA Show, where they present solutions to an issue currently impacting the independent grocery industry.
The program allows student teams to interact with an independent grocer and ground their education with real-life experience. Participants move through three rounds of judging from food industry professionals. The winners and their schools receive a cash prize.
Among its extensive leadership development offerings, the foundation hosts the annual Executive Leadership Development Program at Cornell University.
The program includes four days of interactive, intensive instruction led by a mix of respected academic and grocery industry leaders and time to network with other rising grocery executives.
In addition, participants will receive an in-depth, personalized, 360-degree assessment of their personal leadership styles and develop action plans to improve. The next ELDP is scheduled for June 1-5.
Other leadership development opportunities within the association include NGA’s emerging leaders share group and the NGA Foundation’s Women Grocers of America.
NGA recently promoted five people, and we’ve reported on several other promotions in recent months. Speak to the importance of your staff in doing the work you’re called to do, and what do you tell prospective members about why they need to be a part?
With a lean staff of talented individuals, NGA is able to punch well above its weight as an effective advocate for its members, providing support in government relations, education, communications and technical assistance.
But none of those legislative victories outlined above would have been possible without the support and participation of our members.
Nothing resonates with policymakers more strongly than hearing directly from grocery retailers, wholesalers and suppliers how what happens in Washington impacts their communities back home.
Our members meeting with legislators on Capitol Hill and hosting visits in their stores are essential to telling the story of Main Street grocery businesses.