Login to Customer Portal
Enter your mobile number
Data Privacy & Security Guaranteed
Funding in 24 hours!
The U.S. Grocery Store or food retail industry is defined as a store engaged in retailing a general range of food products. The grocery stores industry forms foods (fresh or packaged) sold at grocery stores, mass merchandisers, drug stores, convenience stores, and foodservice facilities. For example, Walmart, Kroger, and Walgreens are some of the renowned market players in the food retail industry in the United States.
Today's grocery stores industry is reeling under some disturbing problems. They are;
increasing costs, decreasing productivity, and race-to-the-bottom pricing. They cause
profitability and growth of the industry to go downhill. And no doubt, they also factor a
huge decline in the economic value of grocery retails.
Today's grocery stores have an existential crisis due to online and non-grocery channels.
These market players are disrupting the industry by risking over $1 trillion in earnings. If
it ever happens, the endgame to half of the traditional grocery retailers is certain. The
grocery store industry is never immune to changes that happen in the market.
From consumer behavioral changes to intensifying competition, they are bound to occur. And
the grocers ill-equipped to identify such changes get caught off the guard. And those who
turned such changes into advantages survived and thrived.
Today’s independent grocery stores struggle with an existential crisis in the presence of
larger establishments relatively more famous and well-established in the U.S. grocery
industry market.
To retain grocery ownership is a big challenge in a time when opportunities to seek working
capital are mired with a variety of regulations imposed by financing institutions across the
country. Most of the lenders condescendingly decline loan applications of the borrowers with
low credit scores and poor financial condition of their business.
Grocery stores are in high demand, but they are still a low-margin business whose success
relies on some key components. As a business owner, you will make money by selling bulk
items compared to selling some expensive items with a large profit margin. The beauty of
grocery store financing is that it enables you handle ups and down of running your grocery
business.
In 2019, the foodservice and food retailing industries supplied around $1.79 trillion
worth of food. Out of which, the food service facilities alone made close to $978.2
billion worth of supplies. In 2020, the growth of the foodservice and food retailing
industries was projected to go higher. However, it encountered a steep decline of nearly
16.9 percent because of the COVID-19 pandemic and the mobility restrictions it
caused. As a result, various commercial foodservice establishments faced a recession.
The market size of the supermarkets and grocery stores industry, based on revenue measures,
is $758.5bn as of 2021. And it is expected to jump by 2.3% in the future.
Moreover, the average industrial growth of these sectors between 2016 and 2021 was 3.1% per
year. What affects the growth of this industry is intensifying competition and the national
unemployment rate. On a positive note, the revenue growth of supermarket food sales which
was around 447 billion U.S. dollars in 2018 accounted for about 60 percent of the country’s retail grocery market.
The beginning of chain grocery retailing in the United States started around the twentieth century. This was the time when the market had the presence of regional players, including the Great Atlantic and Pacific Tea Company. Grocery stores of the bygone era used to be small, say within a thousand square feet, and dealt-in non-perishable items. They were dealers trading in comestible dry goods, like sugar, spices, peppers, etc. They were called "grossier" – a French word for wholesaler because they stocked items in bulk.
Piggly Wiggly was the first semblance of today’s supermarket in the U.S. It was founded in
Memphis, Tennessee in 1916 by the late entrepreneur Clarence Saunders. The
supermarket chain is credited with pioneering self-service shopping in America, even though
there were some major players around the country, namely Alpha Beta in Southern
California. They were also trying their best to bring forth the idea of self-serving
supermarket about the same time, but it was Piggly Wiggly that stole the limelight.
Before Piggly Wiggly, customers had to go through a different kind of shopping experience.
For example, clerks at the store counter received grocery lists from the consumers who then
had to wait for some times to collect and bag up the goods.
In those days, the stores stocked dry goods and grains as predominant items available for
purchase. Items, such as butchered meats and dairy products were sold in different stores
for decades. Even though Piggly Wiggly was a radical concept store of Clarence Saunders, it,
however, led the way of novelties, like baskets, aisles and checkout lanes that are
synonymized today’s grocery shopping experience.
By 1920, the American food retailing came under the dominance of chain stores, with small regional players like Kroger, American Stores, National Tea, Loblaws, and Dominion Stores. They kept spreading their territorial dominance and started to make a nationwide prominence. Founded in 1859, the Great Atlantic & Pacific Tea Company was one of the most successful grocery store chains in the United States and Canada. In 1920s, combination stores selling perishable items were developed. The co-founder of Merrill Lynch, Charles Merrill arranged the merger of a grocery store called Skaggs Cash Stores. The business operations of the grocery stores were in Northern California and the northwestern United States. The interesting part of grocery store coming out in those times was merger-based growth, a common practice in the late 1920s and 1930s which caused several attempts to tax the grocery stores out of business.
It is difficult to say when supermarket came out in the United States, even though some players like King Kullen and Ralphs of California and Weingarten's and Henke & Pillot claimed that they had pioneered supermarkets in the country. Later the Food Marketing Institute in collaboration with the Smithsonian Institution defined supermarket based on attributes, like self-service, isolated product departments, discount pricing, marketing and volume selling. According to them, Michael J. Cullen, the former Kroger employee, opened the first true supermarket chain called King Kullen in the United States, on August, 1930, inside a garage of a 6,000-square-foot (560 m2) in Jamaica, Queens in New York City. By 1936, the supermarket chain branched out seventeen stores. No doubt, Piggly Wiggly’s Clarence Saunders is credited with having introduced self-service, uniform stores and countrywide marketing. However, Michael J. Cullen had applied some tweaks to the idea of Saunders and added separate food departments, a parking lot and maintained selling bulk food items at discount prices.
The idea of Cullen was emulated by some other established American grocery stores in the
1930s, including Kroger and Safeway Inc. It was the time when the Great Depression
eclipsed the economy condition of the country, thereby forcing consumers to become
price-sensitive at an unprecedented level. After World War II, the growth of supermarket
across the United States corresponded to automobile ownership and suburban development.
North American’s suburban strip shopping centers have maximum number of supermarkets that
are regional in their company branding. The supermarket chain, Kroger is said to be the most
ubiquitous personality in the U.S. that has also kept most of its regional brands, including
Ralphs, City Market, King Soopers, Fry's, Smith's, and QFC. The supermarket we
know today was initially a phenomenon of independent and small regional chains until their
counterparts became popular brought on refinement to the concept of supermarket by
introducing a certain degree of advancement better than the Spartan Stores of
the early 1930s.
Today’s market that is divided into different segments is the result of discounting movement
as amplified in the era of 1980s. There was a gradual disappearance of middle chains as the
mainline chains grew upscaling while low-end stores adopted a warehouse model that was
precisely an evocation of the supermarkets in early 1930s.
Numerous grocery chains operated under different business names, say for example, A&P
brands and Edwards and Finast. This trend got momentum after superstores remerged
featuring general merchandise and groceries under one roof. The other trend that was
catching up in that time was mergers and leveraged buyouts. They affected nearly most
major grocery chains. For instance, Safeway privatized itself to avoid hostile
takeout in 1987 which resulted in losing great deal of its geographical reach. The same
reason was with Kroger which slimmed down in 1988. In the year 1992, American grocery
company, Albertsons expanded heavily and bought American Stores (formerly Skaggs
Drugs Cos.). Two years later, it acquired four stores from San Diego County chain and
Big Bear
Stores.
The COVID-19 pandemic has caused an unprecedented damage to grocery retailers across the
United States. It also caused a dramatic and rapid shift in consumer behaviors. They
prompted grocers to prepare for what lies ahead, such as understanding a new industry
baseline and the nuances of key consumer shifts observed over the past year. The initial
lockdown imposed on March and April 2020 caused suspension of all nonessential businesses.
As a result, consumers chose to consider proximity, store cleanliness, safety, health and
other factors, including price, service, and in-store experience.
As long as the pandemic continues, consumers will consider affordable options and
availability of the products in stock and other options that would make their shopping
experience convenient.
The role of technology has been a growth engine to industrial development, and grocery store is not unaffected by such technological innovation. The latest development known as cashierless technology is gaining ground and is said to make grocery shopping far more convenient and seamless for the shoppers.
Why cashierless stores are a growing trend can be attributed to Amazon’s cashierless Just
Walk Out technology. The new 25,000 square foot Amazon Fresh store in
Bellevue, Washington, marks a milestone for the company as it is scaling up the
technology to handle larger stores through a series of overhead cameras and
pressure-sensitive shelves. They will automatically detect what shoppers put in
their carts and can scale up to stores, irrespective of size.
Amazon Go Grocery has become the only grocery chain that has brought on something
interesting like Just Walk Out Shopping, in which grocery shoppers visit the store, take
what they want, and walk out. The absence of standing in line, scanning items, or paying for
your purchase at the cashier counter sums up the beauty and uniqueness of cashier-less
technology of Amazon.
According to Amazon, customers who arrive at the new store (in Bellevue, Washington) will be
prompted to pick a checkout option. It doesn’t mean that the traditional checkouts will not
be there for them to use. If they choose to use Just Walk Out option, all they have
to do is scan a QR code in the Amazon App, insert a linked credit or debit card, or scan
their palm to enter the store. During exit, the items customers purchased are billed
automatically in their virtual cart, and a digital receipt is sent to the them.
Will Just Walk Out restrict the crime associated with shoplifting? For Amazon, it doesn’t
concern itself much with customers if they accidentally shoplift from its cashierless store.
The company is ruling out any possibility of mistrusting its unique instant checkout system.
Kroger has reportedly green-lit a new drone delivery pilot by autonomous drones, to provide customers with on-the-spot service. The retail giant has partnered with Drone Express, a division of TELEGRID Technologies, to deliver products to any location; and on the spot, like delivering picnic supplies to a park, or condiments to a backyard cookout.
The location where the package is supposed to be delivered is synced with the smartphone of the customers, allowing them to book package via a smartphone and get the delivery where they are. In addition, the new drone delivery pilot that Kroger launched is believed to be a part of the evolution of today’s fastest-growing and innovative e-commerce business.
Popular online retailers like Amazon have noticed a sharp rise in demand for home delivery,
certainly an opportunity to make a great deal of money. The windfall for online retailers
due to the rise in demand for home delivery has led brick-and-mortar grocers grow cautious
and race to build out their own delivery channels while making an effort to control the
expensive door-to-door service that already puts so much strains on the restaurant business.
Grocery chain that operate business both online and offline are developing resources into
omnichannel platform that can help them to capitalize on their physical footprint and online
presence. Basically, they are implementing a model called BOPIS (buy online pickup in
store). It allows customers to purchase online and pick up their order in-store. The
customer can find the option for choosing BOPIS in additional shipping options during online
checkout.
In addition, Amazon-owned Whole Foods Market has also converted its stores based in
New York, Chicago and other cities to delivery-specific service. Albertsons, the
second-largest grocery chain in the U.S. is testing temperature-controlled smart lockers in
some stores so that customers can easily shop perishable items online. A supermarket chain
in the Midwestern United States, Hy-Vee, is remodeling its stores and parking lots to fulfill the
rising demands of BOPIS.
The Covid-19 pandemic and its quick fallout has augmented badly the vulnerabilities of supply
chains of grocery retailers. This has prompted big retailing brands like Amazon and Walmart
to pump billions of dollars into building out robust shipping and fulfilment infrastructure.
In response, the small retailing brands have shifted their focus on micro-fulfillment
centers to synergize operations by incorporating the speed of in-store pick-up service with
the efficiency of big, automated warehouses. It enables them to manage quick delivery to the
customers in urban areas. Tomorrow’s supply grocery supply chains will require
micro-fulfilment centers to manage inventory supply and live up to consumer demand with
flexibility and speed.
Do you remember the last time you visited your favorite food joint? If it’s the brand you
know well and has various locations throughout your city or town, most probably your
favorite fast food stop is a franchise.
The benefits of owning a franchise are many for aspiring entrepreneurs. First of all, the
reputable brand of a franchiser helps you make a profit while essentially taking care of
your own business. Secondly, it is an axiom that the most successful franchises seldom go
out of business which means, you put aside the risk that typically rests on opening a brand
new business.
In fact, some main benefits of owning a franchise include getting a proven business model, a
name that is well-known, and a network of vendors and suppliers.
When you get all these benefits in one-go, imagine the degree of risk and hectic works you
can avoid in starting a new business.
If you try to figure out how much money you can make out of buying a franchise, you need to
understand that it depends on a variety of factors, mostly you have to see if the franchise
is well-known in your local demographic and has a demonstrated support system for
franchisees. You can also consider a franchise’s number of locations and annual revenue to
determine whether it can be profitable for you.
One of the most reliable ways to determine a franchise’s future viability is by evaluating
Item 19 of Franchise Disclosure Document (FDD) that outlines the fiscal
performance of industries. Besides, consult a lawyer or an accountant who can help you make
an informed decision. Don’t consider the franchises if their initial fee and upfront
investments are not conducive to your existing financial condition. In summary, to determine
whether you can profit from a franchise is a subjective exercise.
According to the report, the total number of supermarkets in the United States was around 38,307 in 2018. The U.S. Department of Agriculture reports that the sale of country’s 115,526 food stores was around $717 billion of retail food and nonfood products in 2019. The grocery stores, including the supermarkets and those smaller businesses (not including the conventional stores) generated the major share of store sales (92.1 percent).
The role of grocery wholesaling is as the middlemen serving between food producers and
retailers. They provide industry products and services that include; Fresh meat and meat
products canned food, frozen food, dairy products, specialty food, fresh fruits and
vegetables, paper and plastic products, etc.
In 2020, the revenue growth of grocery wholesaling industry dropped by 4.1% due to reason
associated with the closure of downstream markets and disruptions that took place in the
supply chain in the aftermath of COVID-19 (coronavirus) pandemic. Most of the customers from
the industry that consist of the largest market segments, including schools, stadiums,
restaurants and community events witnessed temporary suspension of their operations followed
by the enforcement of pandemic laws.
However, the status of grocery retailers and supermarkets is positive as they have witnessed
a buying frenzy of the customers who started to store food items assuming the volatile
lifespan of the pandemic. Experts see the silver lining indicating the future growth for the
grocery wholesaling industry as the country’s economic condition is in recovery mode from
the pandemic. The support of the industry is largely dependent on increasing consumer
spending and mounting demand from important downstream consumers, including restaurants.
A grocer’s approach to financing depends on his business model, his values, and
possibilities.
The good news is obtaining a grocery store financing or supermarket financing is now a
seamless process. If you are conversant with your requirements, know your business finances
and are aware of how to take care of your options, nothing can stop you from getting a loan
for a grocery store to keep your business up and running.
Here, we are discussing some options for business loans and what types of financing options
will suit your purpose and your grocery store business.
Get a business plan in order if you have not done it already – considering it will serve as a
key part of your business loan application process.
The value of a sustainable business plan lies in the fact that it qualifies your loan
application in the eyes of lenders, helping them evaluate how you, as a business owner,
appear to run your company, the kind of cash you need to run your business, estimated costs,
and the long-term future plans for your business.
In addition, a healthy business plan also helps you remain focused in your strategy,
something very crucial for you to help your business grow in future.
The simple way of running a business successfully is to make sure that the revenue is bigger
than the expenditures. The lenders are usually interested in knowing the growth trajectory
of your business and whether the financial health of your business is future perfect.
Factors like cash flow, revenue streams and usual business expenses are the projection of
vial data that determine whether or not you qualify for the most attractive business loans.
To obtain a good grocery store loan, you should essentially take your lenders into
confidence, convincing them that your grocery business is in healthy financial condition.
Seen from the perspective of lenders, it is understandable that they are risking their
investment by putting faith in your business.
Obviously, they will want a certain degree of surety that you will not default on repayment
of their money (plus interest).
Being consciously aware of your business finances helps to make the bank’s approval process
expedite more efficiently. Moreover, it will also serve you in the long run in term of
leading a good positive impression on your creditors.
It goes without saying that a bad credit score casts an instant displeasure to any lender you
may seek out for a business loan.
While it is understandable that this is not the case with every type of loan, but a good
credit standing can mean a reliable pathway to receiving funding for a grocery store or
other business loans.
Take a good look at your personal credit history and your business credit scores.
Familiarize yourself with the insights as to which lenders are most likely to grant your
loan, at what interest rate.
A reliable way to countervail the bad impression due to poor credit score is seeking out a
grocery store loan with a co-signer whose credit score and history are as excellent as
possible.
A business that’s been in operations for many years affords a good impression to your lenders
and banks. The longevity of your business is a projection of your ability that you can
handle challenges and decisions that come from running a functional grocery store.
In addition, the chance at getting a loan for your grocery business can be bolstered if you
bring in a partner who has been a successful business owner in the past. A business for more
than a year is as important a factor in determining its creditworthiness as a personal
credit.
All the expenses made in a business are not identical. So are business loans. They differ,
according to the purpose and the needs of the business.
The market offers you a broad variety of options you can use to fund your grocery business.
Understand the motive behind borrowing the money, or be familiar with why you need grocery
store financing, and for what purpose. It may not sound like a piece of wise money advice to
you – your lender will spare no pains in determining your creditworthiness by asking you
questions about your business plan and its viability for future success of your business.
A solid business plan in place can help you understand the degree of finance your business
needs and it may also help you save money for rainy days. Among a variety of loan options
that you come across from different lenders out in the market, most of them can help your
business with lump sum working capital that you can use to cover expenses, such as bills
during cyclical swings, pay for a brand new deli slicer, etc.
However, each type of loan you see in the market comes with different interest rates and
terms, respectively.
This is a hugely popular loan option for the grocery store owner or well-qualified
entrepreneurs to get necessary financing at attractive terms for their business. If there is
no risk that you will default on the repayment, you will be sanctioned a larger amount of
loan from the administrative partners of SBA, at competitive rates, and on longer repayment
periods for your grocery business.
To qualify for the SBA loans requires an excellent credit history, among other eligibility
criteria that a borrower is supposed to follow.
An excellent tool for a grocery store loan, a business line of credit gets you a set amount
of finance as part of a business line of credit. You are at leeway to use the money for your
business’ needs under the set limit. The reason why business lines of credit differ from
business credit cards is that the latter comes with high-interest rates compared to business
lines of credit that come with favorable interest figures.
In addition, credit card holders are often subjected to low spending limits, something a
business line of credit doesn’t mandate.
Equipment financing is one of the best grocery store financing options to cover outlays
related to buying expensive equipment that keeps merchandise fresh and ready for your
customers. You need to pledge the equipment as collateral against your debt.
The ownership of the equipment will be transferred to you once the loan is repaid in full.
In some cases, your lender may ask you for a personal guarantee, may impose a lien on your
other business assets to secure the loan in case you default on repayment. This explains why
you must carefully read the terms and conditions of your equipment financing for the grocery
store.
Alternative financing institutions sound a very useful option for grocery store owners with
poor credit history and not-so-good financing conditions of their business. There are many
alternative lenders out in the market you can choose to have your grocery business funded
with necessary financing at attractive rates.
For example, Funderial is one of the fastest-growing aggregators in the U.S. providing a
variety of financing options for small and medium-sized businesses. In addition, we have our
in-house financing model through which necessary funding is granted to deserving borrowers.
All you need is to submit your loan application with requisite documents, give us few times
till our underwriters evaluate your documents to handpick some of the best financing options
that may suit your business need and your financial discretion.
Though the value of the grocery retail market is around 743 billion dollars, it is also a very expensive and low-margin industry. Many grocery store owners can’t run their stores successfully without sufficient financing in place. This is where the grocery store financing comes into the picture, helping grocery store owners to bankroll a large volume of inventory purchases, system upgrades, expansion, equipment financing, payroll, and other expenses. It stands to reason why grocery store owners should properly manage their cash flow and inventory, like purchasing bulk items they can sell faster at a much higher profit margin.
The Agriculture Council of America (ACA) is an organization comprising leaders in the agriculture, food, and fiber communities. The organization serves the purpose of encouraging public awareness of how agriculture has a pivotal role in American society. ACA’s core purpose is to organize the National Agriculture Day Program in March of every year. The ACA and the National AG Day program came into existence in 1973.
The Bread Bakers Guild of America was founded in 1993 by Pittsburgh bakery owner, Thomas McMahon, with a mission to provide educational resources to artisan bakers, help in the development of artisan baking community, and maintain the highest professional standards, along with honoring the craftsmanship of the artisan bakers. It is a non-profit alliance of professional farmers, educators, technical experts, bakers, bakery owners, students, suppliers, millers, and managers. Based in Sonoma, California, the Guild today boasts of a community of 2,500 members in the U.S. and worldwide.
A non-profit organization based in Southern California, the California Avocado Society was founded in 1915 as California Avocado Association engaged in the sustainability practices of eco-friendly farming, the wellbeing of avocado growers, and the economic viability, which is s a key part of sustainability to put spotlight on the economic value of the California avocado industry.
The Food Processing Suppliers Association (FPSA) is a non-profit global trade association. The purpose of the association is to serve the suppliers to the food processing and packaging industries. The member companies of FPSA are provided with networking, marketing and educational opportunities to help assure their success and improvement in key business practices and network among industry colleagues. The association’s goal is to boost customer engagement through improved efficiencies and productivity, along with exploring manufacturing solutions in the supply chain and attain the highest standard of food safety.
The Independent Restaurant Coalition is a trade group founded in the wake of the COVID-19 to help restaurateurs, bars, and the workers in food supply and chain to survive the pandemic. For this, the group lobbied local, state and federal governments for relief to the restaurant industry that had to shut down their business because of the Covid-19 protocols enforced by the government to restrain the spread of viral infections. The leadership team of the group consisted many prominent chefs and restaurateurs with an aim to undermine the impact of the closures of independent restaurants.
The Juice Products Association (JPA) is a trade association in the U.S. It represents the country’s fruit and juice processing industry. The association claims membership of more than 130 Regular and Associate member organizations, ranging from processors, packers, brokers and marketers of fruit/vegetable juice to industry suppliers and food testing laboratories. The support of the Association extends to all the industries in the United States and overseas. Manufacturers in the JPA group represent 80% of the country’s volume of juice and fruit beverage production.
Washington-based National Chicken Council or NCC is a non-profit trade association that advocates and voices the interests of the U.S. broiler chicken industry to the United States Congress and United States federal agencies. The Council is bound to missions that include influencing key legislative and regulatory policies and government programs affecting chicken, and staying in touch with the Washington policymakers and the media about chicken production, processing and products, along with affecting domestic and global trade policy to maintain and grow overseas markets for the country’s chicken.
U.S. Poultry & Egg Association is an industry trade group in America. It was formed in 1947 and is currently based in Tucker. It is the largest and most active poultry organization in the world representing overall poultry industry as an "All Feather" association, and providing research, communications, education, and technical services. The Association’s membership consists of producers and processors of ducks, eggs, turkeys, broilers, and breeding stock, along with other companies allied with the Association.
The Washington Restaurant Association (WRA) was founded in 1939 as a business association in the state of Washington and is sanctioned by the National Restaurant Association. A total of 14,039 restaurants based in the state are represented by WRA. The Association provides its members with various opportunities, including educational training and career development, along with cost-saving programs for them.
The Public Relations Society of America (PRSA) was brought to existence in 1947 as a non-profit trade association for public relations professionals by combining the American Council on Public Relations and the National Association of Public Relations Councils. The Association is governed by its own set of bylaws, and boasts of representing more than 1,000 brands famous worldwide, advocating the trust, credibility and honor of public relations as a profession.
The year 2021 witnessed many things that got up close and personal as grocery stores embraced
quicker and more sophisticated methods to get into customers’ mind. The deployment of
emerging technologies helped grocery store owners understand customers’ behaviors and
closely monitor shoppers’ preferences.
Amazon.com emerged by far the fastest-growing U.S. food and grocery retailers between 2014
and 2019, with a compound annual growth rate of nearly 50%. Dollar Tree
(formerly known as Only $1.00) and Albertsons Cos. respectively witnessed sales boost of nearly 25
percent in the last five years. With the growth of more than 270 billion U.S. dollars,
Walmart was emerged as the top retailer in the U.S. for the year 2019.
According to the report by Progressive Grocer, Aldi has emerged as one of the
fastest-growing food and grocery retailers in the country, given its considerable growth in
the last five years. The contemporary Aldi’s success is attributed to company’s focus on
less self-promotion and more on serving the customers. The company believes that loyal
customers are ambassadors to help spread the great news there is to share about Aldi – from
its wonderful lineup of products to the incredible savings customers can experience at Aldi
stores.
John A. Catsimatidis is an American billionaire businessman and radio talk show host.
He heads Manhattan-based grocery chain, Gristedes Foods as its owner, president,
chairman, and CEO. He also owns the Red Apple Group, a conglomerate involved in the
energy, real estate, finance, insurance, and supermarket industries.
John’s fate to become a businessman came when Tony, an uncle of a friend, sold half of his
small supermarket at 137th & Broadway to him, a store that eventually parlayed into
Manhattan's leading supermarket chain.
John opened his first grocery store in 1971, at Broadway and 99th Street. Soon
afterward, he purchased another store on 87th street, a location west of Broadway. The store
known as Red Apple became a resounding success which later acquired Gristedes
Supermarkets in 1986.
To stay competitive in the marketplace, John toyed with new ideas, like keeping his grocery
stores open late seven days a week and helping customers with free delivery and cashing
their checks, to increase stores’ footfalls. According to John himself, keeping the business
open during Sundays was an innovation that helped his business rapidly grow and expand.
By the time he aged 24, John was the owner of 10 grocery stores, made $25 million
a year from his business, and personally earned a million dollar a year.
Meanwhile, his Red Apple acquired 27 stores in the Bronx and Manhattan, generating annual
sales of nearly $40 million that culminated to $110 million in sales, in
1985.
To make his grocery business more successful, John branched out his businesses into numerous
sectors, including an oil refinery that leases convenience stores in New York and
other cities, and real estate holdings in New Jersey, New York, and Florida.
Within the past four decades, John’s supermarket on Manhattan’s Upper Westside grew into
diversified assets generating annual sales of more than $4 billion and employing more
than 8,000 individuals. John’s Red Apple purchased 36 Gristedes supermarkets
and 11 affiliated Charles & Co. specialty-food stores from the Southland Corporation,
in 1986.
As per a 2009 report, John’s main holdings enlisted 50 Gristedes supermarkets, 371
gas stations in 3 states, $500 million in real estate, and a flourishing oil
business. John believes in hard work and doing everything that requires to be successful in
a business.
For grocery store chains to run successfully, timely financial assistance is one of the most
important things. It helps them manage cash flow and cover sundry expenses, such as buying a
new set of equipment, upgrading older equipment, expanding the business, funding marketing
costs, and refinancing existing debts, among other things.
This is where loan companies like Funderial come into the picture, extending a broad
variety of loan options for small and medium-sized businesses, at attractive terms through
our in-house financing model, as well as through our trusted lending partners across the
United States.
To help you operate your grocery store and maintain its sustainable growth, we have a host
of unique financing options at affordable rates and easy terms, with instant approval
timespan, and quick funding.
We are fully aware of the dire financial need a grocery store owner experiences. And in
critical times like pandemic-ravaged economy forcing small businesses to shut down their
operations due to lack of funding, our well-timed funding assistance can help your business
survive and thrive without risking crisis-induced cessation of your venture.
