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FRANK FELIX ZAPATA GENERAL SECRETARY A RETROSPECTIVE OF THE INDEPENDENT SUPERMARKET INDUSTRY As the General Secretary of the National Supermarket Asso- ciation and on behalf of our Board of Directors, I would like to address an important part of our industry and the changing world we operate in. Being in the present and looking towards the future, it is crucial to look through two lenses: one, being the lens of exciting opportunities, and the other addressing some of the existing challenges that Independent Supermarket Owners face. In order to utterly understand the Independent Supermar- ket Industry and the NSA role in this sector we must first take a bird’s eye view of the segment nationally and regionally. Numerous studies illustrate that Independent Community Gro- cers play a critical role in growing the U.S. Economy. The Inde- pendent Community Grocers supports more than one million jobs and generates billions in wages. We are part of the $150 billion independent supermarket segment in the United States. Independent Community Grocers represent over 22,000 stores nationwide contributing more than $250 billion to the economy, or about 1.3% of the U.S. GDP. Independent Community Grocers sales account for 33% of total U.S. grocery sales, up from 25% a decade ago. The National Supermarket Association has expanded its foot- print throughout the eastern part of the United States. The NSA on the Easten Seaboard represents over 600 retailers across the New England Region, New York Metro, Mid-Atlantic and Southeast. NSA generates approximately $6 billion in sales. As the National Supermarket Association occupies a large seg- ment of the independent supermarket segment on a regional level, it is also responsible for more than 1.2 million jobs earning wages approaching $40 billion. It also has indirect effect on oth- er industries such as wholesalers serving independent grocers, providing jobs that earn wages of nearly $3.3 billion. Indepen- dent Community Grocers also generates Federal, State, and Lo- cal tax revenues surpassing $36 billion. Independent supermarkets have always had a footprint in the economically challenged neighborhoods. The Supplemental Nutrition Assistance Program (SNAP) is responsible for nearly 200,000 U.S. grocery industry jobs earning wages totaling more than $6.7 billion. The NSA has been an advocate to protect this program for the consumer we serve. With tactical and strate- gic investment and planning, Independent Community Grocers found themselves well situated to meet the intense demand placed on them by consumers during the pandemic and have proved themselves to be indispensable partners in their commu- nities and local economies. In spite of enormous challenges, it also has opened opportu- nities where the owner members admittedly were not focusing on, such as technology in day-to-day operation and the e-com- merce space. E-commerce has driven sales as independent grocers have invested more on their online shopping platforms, which gave independents an edge during the pandemic. Online grocery sales grew 54% in 2020 to nearly $96 billion, driving it to a 12% share of total U.S. e-commerce sales and 7.4% of all grocery sales. Independent grocers continue to expand their e-commerce capabilities, particularly to accept Supplemental Nutrition Assistance Program (SNAP) benefits for online pur- chases, enhancing their ability to help with food insecurity. Another solution to some of the challenges is adding automa- tion technology to cut costs, such as electronic price labels on shelves, cameras for measuring stock levels, and store-cleaning robots. There are numerous challenges faced by independent super- markets still facing the effect of post covid on supply chain disruption, and competition from large chains. Large grocery chains often have greater buying power and can offer lower prices. Operational costs are also a hurdle. Smaller indepen- dent stores may struggle with higher overhead costs compared to large chains, and combating inflation. What are some solutions? We have identified a few issues on inflation and have offered some solutions such as private-label goods. Many shoppers switched to house brands during the pandemic shortages of name brands and have stuck with them. These challenges of supply chains contribute to increased volatility in imports of products and the national distribution of domestic products. Ba- sic product categories were especially affected by the problems with increased instability in the industry. The message is clear, the Independent Supermarket segment is the backbone of feeding America, and the National Super- market Association is an integral the American Economy. Mr. Frank Felix Zapata General Secretary, National Supermarket Association Suma Cum Laude in Economics Universidad Autónoma de Santo Domingo