Editor’s note: This is the third of a three-part series of articles intended to provide a view of the path to a brighter future for independent grocery as a whole and to independent grocers.
Independent grocery is not in decline – it is in transition. The future will not belong solely to the largest players or the lowest prices, but to those who can align capital, leadership and purpose.
The defining question is no longer whether the independent model can survive; it is whether the industry will come together to ensure that it does.
In previous installments of this series, we examined the state of the independent grocery landscape and the individual retailer’s path toward succession. Now, in this final part, we shift the lens to the collective challenge – the responsibility of the entire ecosystem – wholesalers, retailers, investors, industry organizations and the next generation of operators.
The future of independent grocery will depend on their willingness to collaborate rather than operate in silos.
Wholesaler’s imperative
Wholesalers are the linchpin of the independent grocery system. Their growth depends on the ongoing sale of product, the preservation of stores and the expansion of new locations. Their long-term market share and financial stability rely on developing the next generation of successful retail partners.
Losing a store is not a one-off event; it reverberates throughout the system. Each closure erodes local market presence, weakens buying power and diminishes community influence.
That is why forward-thinking wholesalers are investing in programs that focus on transition readiness, leadership development and successor identification.
Innovative initiatives exist throughout the industry and demonstrate what’s possible – stabilizing the ecosystem, matching qualified operators with ownership opportunities and helping structure deals that work for both parties.
Wholesalers must continue leading this evolution by:
- Supporting creative financing arrangements – seller notes, earn-outs or structured buy-ins and possible direct financial involvement as determined to be appropriate;
- Offering leadership development and mentorship programs; and
- Facilitating matchmaking between outgoing owners and qualified successors.
The wholesalers that take an active role in these transitions are not only preserving volume, they are safeguarding the future of their distribution networks.
Retailer’s reality
For the independent retailer, succession is personal and practical. Profitability, retirement, risk management and the well-being of loyal employees all factor into the equation.
But too many owners wait for the “right buyer” to appear or for a cash offer that rarely materializes. That is not strategy; it is inertia disguised as patience.
The most successful transitions begin early and proceed deliberately. Owners must treat succession as a multi-year business initiative, not a one-time event.
This means identifying potential successors within or outside the company, exploring creative financing models and establishing a timeline that allows for continuity and stability.
A well-structured transition plan not only protects the owner’s legacy, it also preserves the store’s employees, community presence and customer loyalty. The decision to sell or retire should strengthen the business, not destabilize it.
Industry’s mandate
Industry organizations – NGA, FMI, state grocers associations and others – have a critical role in this equation. They are the voice, the convener and the policy driver for the independent sector. Their mandate is not just advocacy but sustainability.
The industry must collectively invest in developing future grocery owners. That means creating practical pathways for new entrants, standardizing education and certification programs and promoting the professionalization of succession planning.
It also requires building stronger partnerships between wholesalers, lenders and consultants to normalize transactions that go beyond the “all-cash deal.”
As much as anything, we must normalize the discussion. Members of the grocery industry are a tight group. They talk with each other and they learn from each other. We must encourage conversations that focus on broader solutions and bigger impact.
If we want independents to compete with national and regional chains, we must modernize our internal processes. We must make succession predictable, repeatable and supported by infrastructure – not dependent on chance.
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Next generation – ready but restricted
Across the country, there is a pool of 25- to 45-year-old talent working in the aisles, stockrooms and back offices of independent stores. They have what every retailer once had – time, energy, operational knowledge and the desire to run a successful grocery business. What they lack are capital, access and relationships.
The industry must stop treating these people as permanent employees and start viewing them as potential successors.
Owners often hesitate to train future leaders too deeply, fearing they may leave. But if we fail to engage and develop them, they will leave anyway – for competitors or for other industries.
The solution lies in building structured ownership tracks and mentorship pipelines. That includes:
- Leadership and management training tied to performance metrics;
- Wholesaler-backed financing vehicles for qualified successors; and
- Advisory networks connecting new operators with attorneys, CPAs and lenders.
These measures do more than retain talent – they build capacity. Every time we develop a future owner instead of losing one, we strengthen the independent model itself.
And as a side benefit, by training and supporting capable leaders, we might have the support and confidence to spend just a little more time away from the store and with our loved ones – perhaps even without wearing a store polo, so we can get back to work because we’ve only got a couple of hours.
Investors are missing link
Private and institutional investors have begun to recognize the stability and cash-flow potential of grocery operations. But few understand how to navigate the relationship-driven, locally rooted nature of the industry.
The best opportunities are not found on national listings – they are cultivated through partnership. Investors who combine capital with operational expertise and local commitment can unlock tremendous value. Their objectives are clear: find the right operator, generate sustainable cash flow and eventually exit with a return.
The opportunity for alignment is significant. By partnering with wholesalers, trade groups and successor operators, investors can play a transformative role. They can fund acquisitions, support new store development and create staged buyouts that balance liquidity for sellers with opportunity for buyers.
When investors act not as speculators but as growth partners, they bring credibility and continuity to the independent grocery sector.
Building the bridge – aligning incentives
Succession succeeds when all stakeholders are aligned around a single purpose – continuity. Each has a vested interest in seeing independent stores thrive:
- Wholesalers need healthy retailers to maintain product volume;
- Retailers need structured exits that preserve legacy and reward risk;
- Next-generation leaders need access to ownership and mentorship;
- Investors need operational talent and stable returns; and
- Industry organizations need a sustainable base of independent members.
The bridges between these groups must be intentional. We can no longer afford to view ownership transition as a private negotiation; it is an industry-wide strategy issue.
Every closed store represents lost market share, jobs and community presence. Every successful transition, on the other hand, preserves not only one business but the economic fabric of its region.
The path forward is clear – build systems that connect capital with capability and experience with opportunity. Collaboration – not consolidation – is the key to survival.
Unified call to action
Independent grocery has a future, but it must be built deliberately. The next decade will not reward passive observation; it will reward collaboration, innovation and courage.
Wholesalers must invest in their future operators. Retailers must begin planning before circumstances force their hand.
Industry organizations must elevate succession from a back-room discussion to a board-room priority. Investors must see beyond the spreadsheet and recognize the social and economic value of local grocery ownership.
If we do this – if we align our interests and take shared responsibility – then the future of independent grocery will not be written by chance or consolidation; it will be written by commitment.
The future of independent grocery is not something we wait for; it is something we build together.
Carey Berger is president of the Business Service Resource Group, a consulting firm serving family-owned businesses, primarily in the grocery industry. He specializes in assisting business owners and their families in navigating transitions by clarifying objectives and implementing meaningful solutions. A licensed attorney and holder of CLU and ChFC designations, he is a published author and frequent speaker with more than 30 years of experience in succession planning. He also collaborates closely with Associated Wholesale Grocers through the Crossroads program and applies his expertise personally as he works alongside two of his sons building a growing group of retail operations.