What's happening to the GROCERY SYMBOL GROUPS ?

Abstract

Back in the palmy days of midsummer 1970, the grocery voluntary groups scored a notable victory. Nielsen figures showed that, for the first time, symbol groups continued to gain ground while both multiples and Co‐ops marked time. By June/July 1970 the symbol share of the grocery trade had risen to 23.7 per cent, and had overtaken the share of the non‐affiliated independents, which dropped from 23 to 20 per cent. But things have never been the same since. Now the multiple share stands at 44 per cent, and the symbol groups have never exceeded that magic figure of 23.7 per cent. What's gone wrong with the high hopes of the 1960s, when the rescue operation for saving the small grocer from the depredations of the supermarkets turned into an aggressive force that had the multiples rather worried? Certainly the large groups are not declining — Mace, VG, Spar/Vivo all showed substantial improvements in 1972 over the previous year. But symbol group trade as a whole is stagnating, and it may turn out that only the larger groups are capable of competing with multiples in the struggle for favourable terms with manufacturers. Wholesalers have lost patience with the standard of retailer members' efficiency and co‐operation; much‐needed support is not always forthcoming. Cash‐and‐carry is tempting many retailers away from the path of loyalty to group wholesalers — which is fine again for the larger voluntary groups who have already diversified into cash‐and‐carry, but not so good for the smaller. What is the future for the voluntary group grocer? Last month a conference was held in Majorca which attempted to give some answers to this question; it was sponsored jointly by Mace wholesale distributor Hull Supply Company and the Grocers' Gazette. Some of the points made at the conference are summarised here.

Citation

Mersey, B. (1973), "What's happening to the GROCERY SYMBOL GROUPS ?", Retail and Distribution Management, Vol. 1 No. 2, pp. 44-48. https://doi.org/10.1108/eb017727