Keeping up with advancements in technology (ranked ninth last year) and online sales ranked third and fourth, respectively – understandably, considering
Amazon’s acquisition of Whole Foods Market and the accelerated pace at which technology is taking over all aspects of retailing, from shopping to checkout to delivery to the supply chain. Industry statesman Fred Morganthall, the now retired executive who led southeastern grocery chain
Harris Teeterthrough its merger with
The Kroger Co., recently told an audience at Western Michigan University’s Food Marketing Conference that retailers should be redirecting brick-and-mortar cap ex budgets to online. “If you don’t do that, I don’t think there’s a future,” Morganthall remarked.
But it’s clear that nearly every issue related to being a relevant retailer in today’s climate is constantly on the minds of grocery executives.
“The biggest issue that keeps me up at night is the rising cost of doing business, in particular, the ongoing increase in DIR [direct and indirect remuneration] fees,” says Randy Edeker, chairman, CEO and president of West Des Moines, Iowa-based Hy-Vee, which operates nearly 250 supermarkets and as many retail pharmacies, and is the parent company of Amber Pharmacy and Hy-Vee Pharmacy Solutions.
“Right now, retail pharmacies must conduct business in an unpredictable environment where we are unsure of reimbursements and fees for administering much-needed medication for our customers,” Edeker tells PG. “Operating in this business situation creates uncertainty not only for a retailer, but most importantly, its patients who are trying to navigate an already complex health care system.”