Grocery Store Financing

GUD CAPITAL

Loans For Supermarkets

The grocery store and supermarket industry is the largest retailing channel of food products in the United States.The $638 billion grocery store and supermarket industry in the United States has seen steady annual growth over the past 5 years (1.2% average annual growth). Employment in the grocery and supermarket industry has now surpassed 3.4 million employees — or 2% of total U.S. private sector jobs. The nearly 38,000 supermarkets in the U.S. carried roughly 42,000 products per location and generate, on average, $516,000 in median weekly sales per location, with average costumer spending $30 per transaction. Average total sales in the supermarket and grocery industry average $148 per labor hour. With low profit margins in the grocery store and supermarket industry, stores and chains rely on lots of sales volume and streamlined efficient operations. Large supermarkets have an obvious advantage due to purchasing power, marketing and distribution (with the top 50 grocery stores and chains generating 70% of the industry revenue. But small supermarkets and grocery stores are finding they are able to compete by offering specialty and local products.

What Are The Options To Fund Supermarkets?

Some of the different financing options used to fund supermarkets and grocery stores include:

• Term loans
• Lines of credit
• SBA loans
• Alternative business loans
• Invoice financing
• Cash advance funding

What are the Uses of Loans for Supermarkets and Grocery Stores?

Grocery stores use loans and financing for many different purposes, including:

• Working capital
• Grocery and supermarket expansion
• Make Payroll
• Advertising for supermarket
• Pay suppliers and/or vendors
• Hire employees
• Pay taxes or other liabilities

Term Loans

Conventional term business loans allow grocery stores and supermarkets to get the best financing rates available, while providing these stores and chains with the longest terms available to ensure easiest repayment schedule of all the business debt funding options. This type of financing is usually only available to the most creditworthy supermarkets and grocery stores because of the limited amount of risk the lenders are willing to take.

• Rates: 5-10%
• Terms: 1-25 years

Grocery Store and Supermarket Lines of Credit

A line of credit offers grocery stores and supermarkets to have access to readily-available financing that they can draw on as needed, and only pay interest on the amount drawn. A lender will prequalify the grocery store or supermarket for a total amount they will have access to, and when the business owner needs money, it can access this cash without having to obtain additional clearance from the lender.

• Rates: 5 – 15%
• Terms: 1 – 3 years

SBA Loans for Grocery Stores and Supermarkets

SBA loans are simply traditional bank loans that the U.S. Small Business Administration provides an enhancement to. An SBA enhancement allows lenders to loosen up lending requirements because the government agrees to accept bulk if the lenders’ risk by covering up to 90% of the lenders’ losses should the borrower of the SBA loans default.

• Rates: 6 – 8%
• Terms: 3 – 25 years

Alternative Grocery Store Financing

Alternative business funding provides grocery stores and supermarkets who lack bank-rate credit or cash-flow, with access to affordable rates and terms. Mid prime alternative loans are the middle ground between a bank loan and a high-interest business cash advance. Mid prime lenders require minimal paperwork and have lower credit requirements than banks, which allow them to fund in a fraction of the time a traditional commercial takes.

• Rates: 8 – 20%
• Term: 1 – 5 years

Grocery Store and Supermarket Business Cash Advances

Cash advance financing for supermarkets and grocery stores provide these businesses with access to fast funding, without much paperwork required. A cash advance isn’t a loan, but is instead the sale of future grocery store bank or credit card deposits in return for an advanced lump sum of cash. After funding the merchant cash advance lender will then draw a fixed amount of percentage from the supermarkets bank and/or credit card deposits each day until the agreed payback amount is paid-off.

• Factor rates: 1.15 – 1.55
• Terms: 4 – 24 months

Whole Foods to ditch 'points' in loyalty test

Dallas over Philadelphia on greater simplicity, coupon intergration

Dec 2, 2016Jon Springer

RELATED MEDIA

Gallery: Whole Foods welcomes fast-casual restaurant

After testing two versions of a loyalty program in separate markets over recent months, Whole Foods Markets appears to have settled on a winner.

The retailer informed customers in Philadelphia this week that its nascent Rewards program there — an affinity program where shoppers earned points redeemable for store discounts and events — would be switching to the model it had been testing recently in Dallas, which instead provides “members-only” discounts.

Whole Foods' new loyalty program is expanding from Dallas to Philadelphia.

The Austin, Texas-based retailer said it made the switch based on customer response indicating shoppers preferred the simplicity of a program that didn’t require tracking and redeeming points.

Bill Kirk, an analyst at RBC Capital Markets, told SN Friday the Dallas program is also more similar to a national digital couponing initiative underway at Whole Foods, which would allow for more effective managing of the programs when the Rewards program is expanded to additional markets.

“Some shoppers like the gamification of points-based systems, but that doesn’t appear to be the feedback Whole Foods got,” Kirk said.

Whole Foods launched the Philadelphia program in 2014 and expanded the program without the points element to Dallas/Fort Worth area stores this summer. The company said then that it intended to launch Rewards nationally following that test. It was not immediately clear whether a national rollout would begin at the same time, however.

“While we don't believe this timeline should be extrapolated for national launch expectations, we are glad there are some signs of progress and refinement,” Kirk said.

Whole Foods told Philadelphia Rewards members that they would be automatically switched to the new Rewards program on Feb. 27. Customers can continue to earn points through Jan. 1 and redeem them through Jan. 27. Leftover points not redeemed before the switch will be issued a dollars-off reward.

Read More: http://supermarketnews.com/marketing/whole-foods-ditch-points-loyalty-test#ixzz4RxfBNodz

Supermarket Spotlight: Erewhon in Los Angeles is an Absolute Must-Visit Destination

 Max Goldberg  December 3, 2016

Supermarket Spotlight is a bi-monthly column, and it will showcase independent, organic supermarkets throughout the country that people ought to know about, such as Erewhon in Los Angeles.

This column will run every other month and is sponsored by my friends at RangeMe, the leading platform that empowers retail buyers with an efficient way to discover innovative new products and to manage their inbound product submission process. RangeMe gives product suppliers and manufacturers increased control over the marketing of their products and greater access to retail buyers.

If you would like to nominate an organic supermarket for this column, I would love to hear from you.

—

Several years ago, I was introduced to Erewhon, and my life has not been the same since.

Not only is it my first stop whenever I go to Los Angeles, but anytime I meet someone who is from there, I always ask “So, do you go to Erewhon?” It is that impressive of a supermarket and is a place I think about often, even from 3,000 miles away in New York City.

What many people may not realize is that Erewhon has been a pioneer in the health food world since the 1960s and was profiled in Joe Dobrow’s fascinating book Natural Prophets: From Health Foods to Whole Foods — How the Pioneers of the Industry Changed the Way We Eat and Reshaped American Business.

Even though I never experienced Erewhon in its early years, how the supermarket has evolved would certainly make its founders incredibly proud.

So, what makes this market so special? There are many things.

• I have never seen an organic market that makes its own pressed organic juice and nut milks in glass bottles.Furthermore, its selection is enormous, its recipes are uncommon and delicious, and the pressed organic green juice is some of the absolute best that I ever had. This quality is something that you’d expect from a top juice bar, not a supermarket.
• For me, what makes an organic market stand apart from the rest is not only how products are merchandised but the uniqueness and wide selection of the products. I like to go into organic markets and be able to find the best products that I uncover at Expo West, Expo East and Fancy Food Show. Even more, I like to learn about new organic products that I have never seen before. And this is exactly what you find at Erewhon — the newest, the best and the most cutting-edge.
• The prepared foods section is the most extensive and outstanding organic prepared foods section that I have ever seen. It’s mindblowing. And it is breakfast, lunch and dinner.
• Erewhon has two naturopathic doctors in the nutrition department, which enables the store to sell medical grade supplements. The market also offers a wide variety of herbs that are not available elsewhere.
• A tonic and juice bar that serves up elixirs such as Hot Tonic Jing City and Reishi Cappuccino.
• Completely organic catering menu, which accommodates all lifestyles and dietary habits.
• Wellness Wednesdays, at its Venice location, offers free wellness seminars with local health experts.

Along with its 100% organic produce selection, the other thing that I love about this store is the very detailed and impressive Erewhon Standard, which says, among many other things:

– Any processing, packaging or transportation and storing must also ensure the retention of maximum nutritional value.

– It goes without saying that we stand firm against Monsanto and support the Non-GMO Project.

– Ingredients such as yeast extract (unless Non-GMO or organic), corn starch (unless Non-GMO or organic), maltodextrin (unless Non-GMO certified) and natural flavors (unless source is stated and approved) are all banned.

Current owners Tony and Josephine Antoci purchased the existing West Hollywood location in 2011 and have since added stores in Venice and Calabasas. While I was a huge fan of what Erewhon was before the Antocis took over (here’s a video I shot there in 2011), these two have taken it to a whole new level.

To understand where these owners are coming from, all you need to do is read Tony Antoci’s bio on the Erewhon website.

When Josephine and I bought Erewhon, I really had no idea what exactly we were getting ourselves into. We set out to buy a market. That’s all we were looking to do. But as I’ve come to learn, Erewhon is so much more than that. And we are not just store owners. We now have the huge responsibility of ensuring the future of one of the most remarkable places in all of Los Angeles. Erewhon is an oasis – a haven of pure, clean, nutrient-rich foods and products that change the lives of the people who shop here. What we offer is made with great care and love, and with respect for the wellbeing of our customers and our planet. While it is a business and we must make a profit that is not our primary goal. Profit is the side effect of our real purpose which is to be of the greatest service by maintaining the highest standards in the marketplace.

Tony is 100% correct. Erewhon is an oasis, and Erewhon is also one of the most remarkable places in Los Angeles.

And organic consumers should be so grateful that Tony Antoci believes that running this operation is a “huge responsibility….to be of the greatest service” because he and his wife fully understand that organic supermarkets aren’t just places that help keep our kitchens stocked. These are the places that nourish us, heal us and provide us with the world’s most powerful medicine — food.

If you’re in the Los Angeles area, it goes without saying that Erewhon is a must-visit.

U.S. Not Even in Top Third of Sustainable Food Nations

DECEMBER 2, 2016 by EMILY MONACO

The Barilla Center for Food and Nutrition (BCFN) has revealed the results of its Food Sustainability Index, indicating that France, Japan, and Canada are the countries where people eat most sustainably around the world. Out of 25 nations, these countries ranked the highest in sustainable food production, distribution, and consumption.

“The Food Sustainability Index will help us to understand where people eat the best around the world, not in terms of how good something tastes, but in terms of the sustainability of the food system, helping researchers and decision makers to understand where to focus research and policy choices,” explained Guido Barilla, BCFN President in a press release.

The United States ranked 11th on the FSI, which uses 58 criteria including food waste, balanced diet, and general wellbeing of the population to measure food and nutrition sustainability in each individual country.

France’s first place spot comes in large part thanks to its innovative policies to fight food waste, including forcing supermarkets to donate food waste to charities and encouraging stores to sell “ugly” produce at a discounted rate.

Japan and Canada ranked second and third in the Index thanks to policies regarding the democratization of sustainable agriculture and healthy diet.

While the United States has made strides in its efforts to tackle unhealthy eating habits, the Index showed that it still has a long way to go. The United States’ obese and overweight populations are second only to certain countries in the Middle East. The United States also ranked second-to-last for excessive eating and lack of physical activity.

In addition, the United States continues to have very high levels of food waste, throwing away about 46 million tons of food every year.

Countries that scored the lowest on the FSI include India, Saudi Arabia, and Egypt, due in large part to challenges in these nations that include obesity, malnutrition, and unsustainable water use.

Load tracking software means no more phone calls

For foodservice distributor US Foods, real-time location information means there's no need to call drivers or dispatchers to manage exceptions and check on the whereabouts of loads.

By DC Velocity Staff

 Comment

National foodservice distributor US Foods Inc. runs a distribution network that delivers fresh produce and prepackaged and frozen foods to some 250,000 chefs, restaurateurs, and foodservice operators across the U.S. The Rosemont, Ill.-based company, which also provides its customers with e-commerce, technology, and business solutions, generates approximately $23 billion in revenue each year.

In a bid to manage its vast network more efficiently and obtain visibility over goods in transit, US Foods recently selected the FourKites load tracking platform. The software will give the distributor access to real-time location information and the estimated time of arrival (ETA) for every truck carrying its products, which will enable its customer service team to manage exceptions and provide answers without making calls to dispatchers or drivers, the software provider says.

In the coming months, US Foods plans to roll out the FourKites platform beyond logistics to other areas of the business, including sales, warehouse operations, and business intelligence. By getting all these internal teams on one page, the company hopes to streamline operations and improve its decision-making.

US Foods selected the FourKites system because it allows it to work with carriers of every size and to integrate with in-cab ELDs (electronic logging devices) and driver cell phones, the company says. That precision tracking ability is crucial in an industry where companies have to collect products from many different vendors, centralize them in a DC, and then ship them back out to multiple customers, all on a strict timetable.

"Food distribution is a pretty tight-margin business," said FourKites CEO Matt Elenjickal. "And it runs with tight inventory; you don't want to buffer extra inventory in a warehouse when you're dealing with perishable products." Keeping track of all that inventory can be a serious challenge for a large company like US Foods, which relies on a diverse array of trucking companies to move inventory in and out of DCs and storage facilities across the country.

"They work with a lot of carriers, and you can't expect them all to have EDI [electronic data interchange] capabilities, and you can't expect them all to have wireless connectivity because the smaller ones may not even have IT departments," Elenjickal said. "So it's important [that their software has the capability] to work with many carriers of different sizes, onboard them quickly, and then get information to a centralized portal so you can make sense of the data."

So the next time you're enjoying a meal at your favorite restaurant, you may want to raise a glass and toast the supply chain visibility network that made it possible.