Current:Home > InvestI'm a retired Kansas grocer. Big-box dollar stores moved into town and killed my business. -Quantum Capital Pro
I'm a retired Kansas grocer. Big-box dollar stores moved into town and killed my business.
View
Date:2025-04-15 21:16:43
I’m a retired grocer.
It wasn’t my choice to retire. I was driven out of business by a big chain that made it impossible to compete.
I was thinking about my own story when Democratic presidential nominee Kamala Harris recently announced a plan to go after price gougers in the grocery business.
I oppose that proposal.
I don’t think it’s necessary or needed. I began my career in the grocery business in 1975, after President Richard Nixon instituted price controls and it was a disaster for independent grocers.
End of independent grocers like me started with big-box dollar stores
As someone who ran a grocery store, high grocery prices are the symptom – and not the disease. If anyone really wants to cure the problem, they have to go after what’s causing it.
I live in a little Kansas town called Haven, population 1,200, and I bought a neighborhood grocery store in 2012 because I figured I could retire and hand it off to my son.
My grocery store was doing fine for the first three years, but then a dollar store came to town.
Before they even opened their doors, they started tilting the game in their favor. They told our local officials that they wouldn’t do business here unless they got some significant breaks. The city gave them freebies like electricity and sewer service.
That may not sound like much, but I’d still be in business today if I had gotten breaks like that.
Their store opened and my sales fell off like someone flipped a switch.
Why?
Just like that dollar store did with local officials, the big chain stores demand special treatment from suppliers, including special packaging sizes, prices and promotions.
How can I compete when they are selling a can of soup for $1 and the price I pay is $1.20?
The soup came from the same factory and was purchased in the same quantity by my wholesaler, but the big chains paid far less.
Those big chains know exactly what they’re doing, and what’s worse, they know they can get away with it.
I love and respect my community; if I could charge $1 for that can of soup, I would, but I had to keep the lights on. Factor in the rising cost of utilities, labor, credit card fees and everything else − and it’s hard for small businesses to stay open, let alone get ahead. Independent stores (like mine was) operate on a super thin profit margin, and when we have to pay more, we need to charge more just to keep afloat.
Government doesn't know best:Harris and Walz champion the Californication of America. Voters should say no way, San Jose.
We don't need new laws, we need to enforce the ones we already have
The Federal Trade Commission is about to launch an investigation into grocery prices and why they’re so high. It will take months or years to get a final report.
I can tell you the answer right now: It’s because the big chains aren’t playing by the same rules as smaller players.
A law known as the Robinson-Patman Act (RPA) is supposed to ensure that big chains can’t use their buying power to disadvantage smaller stores like mine. The law wasn’t aimed at giving anyone breaks but at making sure that the competition was fair and that shoppers would end up getting the best prices.
In the 1980s, prosecution of RPA cases died off, doing irreparable damage to small businesses along the way. We don’t need a new law today. We need to enforce the law we already have.
Price controls are bad economics:Harris' economic plan promises voters affordable groceries and homes. Don't fall for it.
My time in the grocery business ended in 2015. One day, I sat down with my son and did the math; we just couldn’t stay in business the way things were going.
If you drive down South Kansas Street in Haven today, you’ll see the abandoned building that used to be my store. It’s the one with the “For Sale” sign in the window. If you look inside, you can see the empty shelves and the registers covered with a thin layer of dust.
That store used to be my American dream and path toward retirement, but now it’s a cautionary tale.
Independent grocers are not gouging their customers. They’re the ones getting gouged while fighting to survive and serve their customers despite a rigged playing field.
Douglas Nech is a retired grocer from Haven, Kansas.
veryGood! (54117)
Related
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- Study Finds that Mississippi River Basin Could be in an ‘Extreme Heat Belt’ in 30 Years
- ¿Por qué permiten que las compañías petroleras de California, asolada por la sequía, usen agua dulce?
- Chilean Voters Reject a New Constitution That Would Have Provided Groundbreaking Protections for the Rights of Nature
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- Jessica Simpson Sets the Record Straight on Whether She Uses Ozempic
- Toxic Releases From Industrial Facilities Compound Maryland’s Water Woes, a New Report Found
- Occidental is Eyeing California’s Clean Fuels Market to Fund Texas Carbon Removal Plant
- Average rate on 30
- Amanda Kloots' Tribute to Nick Cordero On His Death Anniversary Will Bring You to Tears
Ranking
- Former Danish minister for Greenland discusses Trump's push to acquire island
- This Adjustable Floral Dress Will Be Your Summer Go-To and It’s Less Than $40
- Teen Mom’s Kailyn Lowry Confirms She Privately Welcomed Baby No. 5
- Chilean Voters Reject a New Constitution That Would Have Provided Groundbreaking Protections for the Rights of Nature
- Man can't find second winning lottery ticket, sues over $394 million jackpot, lawsuit says
- One mom takes on YouTube over deadly social media blackout challenge
- Inside Clean Energy: Explaining the Record-Breaking Offshore Wind Sale
- The debt ceiling deal bulldozes a controversial pipeline's path through the courts
Recommendation
North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
John Mayer Cryptically Shared “Please Be Kind” Message Ahead of Taylor Swift Speak Now Release
This airline is weighing passengers before they board international flights
Da Brat Gives Birth to First Baby With Wife Jesseca Judy Harris-Dupart
McKinsey to pay $650 million after advising opioid maker on how to 'turbocharge' sales
It's not just you: Many jobs are requiring more interviews. Here's how to stand out
Mega Millions jackpot grows to $820 million. See winning numbers for July 21.
To save money on groceries, try these tips before going to the store