WGA President's Letter

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May 5, 2023

Quick Looks

Last Chance to Nominate!
Media Impact on Gen Z's
WGA Wage Survey Available
Sustainable Packaging Guide

ONLY ONE WEEK REMAINS to nominate one of your colleagues from the grocery industry and recognize their accomplishments!

Awards include Grocer of the Year, Excellence in Operations, Vendor of the Year and Community Service.

Nominations Due Friday, May 12th!

Click here for more info and to nominate!

INDUSTRY

PAW-some! Sendik’s Food Market’s first animal welfare campaign was a PAWS-some success! Sendik's guests rounded up their totals at the registers, bought crazy straws, and bought their favorite pet supplies to help our furry friends at local humane societies. Cause for Paws raised over $42,000 in just six weeks! Their post on Facebook: Big thanks to the Wisconsin Humane Society, Humane Animal Welfare Society - HAWS of Waukesha, and the Washington County Humane Society for swinging by every store in their county over the course of the campaign to educate our guests on the adoption process.

Retail Wage Survey Available Receive the latest on wages with WGA's 2023 Retail Wage Survey. The state has been divided into "wage zones" and each zone has its corresponding wage results. The results in the survey are an average of all respondents in each specific zone. Order your copy today for only $25! ($50 for non-members) by emailing Sarah Decorah.

Women in Grocery Sponsored by the Women Grocers of America, the first gathering of the Emerging Female Leaders (EFL) share group attracted 13 participants for two days of education, team building and networking in Chicago. This share group is open to any female leader with the support of a nominator from their company. These individuals have demonstrated high performance potential and are expected to continue to impact the industry in the future. Click here to learn more. Many thanks to Kristin Popp (Woodman’s Food Markets) for serving as President! (Pictured at the share group: Alyssa McQueen Ziegler (Upside); Kristin Popp (Woodman's Food Markets) and Haley Sammis (Rosie, an Instacart Company).

In The Running!! FMI-The Food Industry Association has announced the 12 finalists for the 2023 Store Manager Awards. "These outstanding store managers stood out from the crowd for their ability to generate sales growth; effectively communicate company and store goals and objectives; demonstrate team leadership in their store; provide exceptional customer service through in-store programs; and improve community relations." Congrtas to Greg Glisch, Skogen’s Festival Foods (Category A (1-49 stores). FMI will host "its People’s Pick category, during which we ask the public to vote for their favorite Store Manager Awards finalist (May 8-12). Winners from all four categories and the People’s Pick recipient will be announced during a live, virtual celebration on May 16 at 2:00 p.m. ET via FMI’s YouTube channel. Four Grand Prize winners receive a crystal award and $1,000 each. The People’s Pick recipient is awarded a special trophy and $500 to celebrate their store employees." See the announcement here.

FORE! Northern Golf Outing

REGISTRATION IS OPEN!

Allied Members, Vendors and Suppliers >>> click here

to check out the Opportunities for vendors to WGA the WGA and spend the day with WGA retail grocers and warehouse folks!

WGA Grocer Members >>> click here to register for your spot at the

new location – the Stevens Point Country Club!

One Week Left! Only one week remains to accept applications for the WGA Foundation's Leadership Institute! All those with the desire and drive to succeed in the industry as grocery leaders are encouraged to attend! There are 4 one-day classes: June 14th - Valley Cooperative Association, Greenville; July 12th - Krueger Wholesale Florist, Rothschild; August 10th - Kwik Trip, La Crosse and September 20^th, Milwaukee Area Location TBD. Our volunteer faculty will share their knowledge, experience and expertise in topics such as Decision Making/Problem Solving, PR/Media Relations, Social Media/Promotions and HR & Workplace Safety. Click here for more info and to apply today - DEADLINE IS FRIDAY, MAY 12TH!

COMMERCIAL BREAK

Everything is Pricey Now comes the report that olive oil prices are at a quarter-century high, and they’re expected to stay there. CNBC reported that the drought in Spain has ravaged olive farmers in an extremely dry growing season that has produced an olive crop 50% less than the usual output. Full Story Here.

Media Impact on Younger Gens MNB.com picks up a ZDNet story about Deloitte's 17th annual "Digital Media Trends" survey, which "suggests traditional television shows and movies are no longer the only forms of entertainment." (Editor’s Note: Duh.) According to the story, "Younger generations, often called Gen Zs and Millennials, are increasingly turning to user-generated content (UGC) -- which relies on unpaid contributors rather than traditional media professionals -- and video games to find personal fulfillment, value, and meaning. "These younger users are creating a vibrant, immersive, and social tapestry of experiences with UGC, video games, music, and social media all playing significant roles. "Deloitte's survey found 32% of consumers view online experiences as meaningful substitutes for in-person interactions…Almost half (48%) of these younger generations engage more with others on social media than in the physical world, and 40% of them socialize more in video games than offline." Kevin Coupe notes, “… is instructive for businesses that depend on traditional media to reach younger customers, especially since we've also been having a conversation here about the efficacy of retailers moving away from traditional weekly print ads. Read the story here.

Snack Time Snacking is a lifestyle in the U.S., fueled by younger generations. Almost 50% of consumers snack more than three times per day - up 4% in just two years. Read the Food Institute Focus report here.

Pricing Campaign The "Shop the Dot" campaign from Save A Lot seeks to attract customers by reducing prices on items for periods of 30 to 90 days, offering new items and conducting weekly sales. The grocer will publicize the campaign on its website, through customer emails, on streaming television and on social media. Read the full story in Supermarket News here.

Consumers Driving Change Perimeter bakeries are one key to attracting younger shoppers who are less likely to peruse aisles and who eschew large portion sizes to avoid leftovers. "We are seeing that single-serving section really being expanded," said Rick Stein, vice president of fresh foods for FMI -- The Food Industry Association. "We're seeing our members really start to gravitate to these grab-and-go items." Read the full Supermarket News story here.

COMMERCIAL BREAK

WORKFORCE

Tight Teams Many grocers operate with small, tight teams but this can leave the company shorthanded when a major project or expansion is just over the horizon. Companies facing these challenges may want to consider hiring third-party fractional positions on a part-time or single-project basis to add support and expertise. See the Food Institute Focus here.

Sustainable Packaging Assessment Guide As industry imperatives toward sustainability continue, FMI has created this playbook to assist retailers and their suppliers in advancing efficient design, responsible sourcing, and circular systems for packaging. The Sustainable Packaging Assessment Guide is a tool that can support internal business operations and effective trading partner collaboration regarding sustainable packaging. The playbook provides guidance on topics ranging from material sourcing to design, to end-of-use, with a particular focus on recyclability. For each sustainable packaging topic, the playbook outlines a list of key actions to take, and some next steps to consider, as progress gets made. There’s even a tool for evaluating if a packaging change has unintended consequences. Download Your Copy Today Here !

ECONOMY

U.S. Likely Headed for Recession That was the general consensus among panelists during Wisconsin Economic Forecast Luncheon hosted by WisPolitics.com, WisBusiness.com and the Wisconsin Bankers Association with the support of other partner organizations. The WGA is a contributing member of the Forecast. The panel of economists agreed on the need to be "cautious" about forecasting recessions given the uncertainty involved. But peak inflation rates -- like last year's rate of around 9% -- are usually followed by recessionary periods. The panel expressed uncertainty about the likelihood of a "soft landing" versus a "hard landing," where regulatory efforts to stave off inflation lead to a more severe economic downturn. In a separate presentation from the other panelists, a managing director and senior economist for Wells Fargo's Corporate and Investment Bank said a soft landing is possible -- but not likely. Job growth has been strong in recent months but added that's expected to change, pointing to "some cracks under the surface."

Interest Rates A Quarter Point, Possible Pause The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter of a point but opened the door to a long-awaited pause in its most aggressive tightening campaign since the 1980s. The widely expected and unanimous decision puts the key benchmark federal funds rate at a range of 5% to 5.25%, the highest since August 2007, from near zero a little more than one year ago. It marks the 10th consecutive rate increase aimed at combating high inflation and slowing the economy. Read the Fox Business News report here.

Big City Expectations WisBusiness.com reports that a recent survey, MMAC found quarterly sales and profit expectations among Milwaukee businesses are relatively low while their employment outlook is "a bit more robust." The results suggest slower local economic growth in the near-term and a possible recession in the year's second half, notes the report. 60% expect sales to rise in the second quarter compared to the prior year, 19% predict sales to decline and 21% expect no change. 49% of surveyed businesses expect second quarter profits to rise over the year. Still, job growth so far this year is "off to a slow start," rising just 0.2 percent year-over-year in the first quarter. That's compared to the 1.4 percent growth seen in the fourth quarter of last year, according to MMAC. Read the release here.

HEALTH

Covid Residual More than one-third of Wisconsin households struggled to meet basic needs in 2021, even with additional federal pandemic assistance. Now, many of those programs — like extra FoodShare benefits and the expanded Child Tax Credit — have expired. And calls to the 211 Wisconsin line inquiring about assistance with hunger, housing, substance use, transportation and education increased from 2021 to 2022. A new report from the United Way of Wisconsin found that the share of households in the state that couldn’t afford housing, child care, food, transportation, health care and other necessities increased from 32 percent in 2019 to 34 percent in 2021. Read the WPR story here.

From The Government, Here To Help The NGA reports the EPA is cracking down on Unregistered Cleaning Products. The EPA is investigating household cleaning products labeled with unverified antibacterial and antiviral claims. NGA reports some retailers are receiving a Request for Information (RFI) from the EPA. In the RFI, the EPA seeks documents from retailers regarding their purchase and sale of household cleaning products labeled with antibacterial and antiviral claims. The EPA asserts that these products should have been but were not registered with the EPA. In the early days of the pandemic, marketers, including some who did not know of, or ignored Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) registration requirements, rushed to supply cleaning products bearing antibacterial and antiviral claims. Retailers may have unknowingly purchased these unregistered products for resale as they worked to meet their customers’ needs. Watch for the NGA/OFW Law alert for your team detailing what to do if you receive an RFI from the EPA.

FINAL NOTES

Welcome to Wisconsin Representatives of the German state of Hessen met with state leaders this week, including the WGA’s Mike Semmann, who sits on the Board of the Hessen-Wisconsin Society, as part of a delegation hosted by WEDC. Wisconsin and Hessen have been sister states since 1976 and are starting to prepare for a 50^th anniversary celebration. Members of the delegation met with elected leaders Gov. Tony Evers, Assembly Speaker Robin Vos, Majority Leader Tyler August, Sens. Dan Feyen and Diane Hesselbein, among others. They toured facilities at UW-Madison, Madison Area Technical College, Epic Systems, MilliporeSigma, and small business incubators. "Hessen is a valued trade partner for Wisconsin and we're looking forward to the new opportunities digitalization can create," WEDC Secretary and CEO Missy Hughes said in a statement. Read the WEDC statement here.