HOW COVID-19 HAS CHANGED MEMPHIS GROCERY STORES
Wonder why you can’t find Fresca or Cherry Coke in a can? It’s not because Coca-cola is having issues making the products, it’s because there is a shortage of aluminum to make the cans.
Now, more than six months since the COVID-19 pandemic hit, grocery stores nationwide are still dealing with shortages and unavailability of some products.
In March, customers rushed to stock their pantries, loading up on paper products, canned goods and cleaning supplies. As restaurants closed dining rooms, more people than ever before began cooking at home. Supply could not keep with the sudden increased demand.
We checked in with two locally owned and operated grocery stores — Cash Saver and Cordelia’s Market — to see what is going on in Memphis stores today.
Shortages from suppliers
On a delivery last week to the Midtown Cash Saver on Madison Avenue, only 1,712 of the 2,638 cases of products ordered actually arrived.
“That’s only 65% of what we needed,” said Rick James, owner of the Cash Saver chain and
Highpoint Grocery. “On that list, 35% were listed as unavailable from the manufacturer right now. 11% of those items were listed as ‘long term unavailable,’ meaning we may not be able to get those products until 2021.”
PRE-COVID-19, Cash Saver was used to having a 98% fulfillment rate on orders.
James said the delivery is irregular from store to store. On a recent day, the Third Street store had a fully stocked paper goods aisle, but the Madison Avenue store had a 20-foot gap on the same aisle.
“The supply is so fragmented,” said James, pointing out that availability is based solely on when the order was placed.
Cordelia’s Market is experiencing similar shortages. General manager Erica Humphreys said she is grateful the store has multiple suppliers, many of which are local.
When they couldn’t get name brands like Campbell’s soups, the market started stocking more of the Wolfgang Puck soups from its natural foods supplier instead. Staff also started explaining to customers how to make bases like cream of chicken soup from scratch.
“We had to get creative and show customers that they still had options even though their regular product may be out,” Humphreys said.
Cordelia’s Market also used the shortages as an opportunity to promote local brands.
“For awhile, Marmilu Farms was the only place we could get eggs and bacon. Having them be the only option on the shelf exposed them to new customers and gave them a chance to be seen,” Humphreys said.
When Stouffer’s frozen lasagna wasn’t available, Memphis-based Franco’s Italy started making a frozen lasagna for the store. Owner Franco Contaldo also started making frozen take-and-bake pizzas when frozen pizzas became scarce.
Humphreys said she has found many customers are now turning to local products rather
Jennifer Chandler
than going back to national brands.
The packaging dilemma
According to James, packaging is the most recent issue impacting the grocery industry.
James said about six weeks ago, he was alerted to the change in Coke’s canned products, with the company focusing on canning only its top sellers. Mccormick has also sent out a notice that while it may have plenty of spices on hand, it is having trouble sourcing packaging.
Cash Saver is known for its beer selection, and James is noticing that industry being affected as well. When Yuengling released its newest beer, it did so only in bottles.
Even a store’s in-house packaging is being impacted. “In the meat department, we used to have certain colors of foam trays for certain cuts … like black for Angus beef,” said James. “Now we can’t pick the color when we order.”
And wondering why you still can’t find Clorox Wipes? It is not because of shortage of the cleaner, but because there is a shortage of the material used for the wipes.
Shopping habits are changing
Both grocers said they are seeing customers shopping fewer times in a week, but purchasing more at each visit.
James said on an Aug. 28 report from FMS, an independent national retailer accounting and consulting firm, sales were up 9.7% in the grocery sector nationally, but that customer transactions were down 13.2%.
He said he thinks his customers are planning more than in the past.
Cash Saver has also seen a significant
increase in the use of its grocery delivery service. "We have seven times the number of customers shopping online than we did before the pandemic. 55% of those were first-time users and 98% became second-time users."
Humphreys said while Cordelia’s is a small neighborhood market, it is trying to transition to be the primary store for its customers. “I am asking my customers if you still have to go to Whole Foods for a product, what is it and we will see if we can get it for you.”
When James reopened Highpoint
Grocery last month, he expressed the same sentiment about that store, which was primarily used as a supplement rather than a primary store.
A lot of consideration went into the products offered at Highpoint Grocery, James said in an August interview about the new store. “We wanted to get as much variety as possible in this small footprint.”
Both retailers expressed how grateful they are to their customers and staff.
“Our customers have been very understanding,” said Humphreys. “I think it is because we are talking to and listening to them.”
James added he is grateful Cash Saver’s customers are being understanding about the shortages and safety protocols like masks. “Our employees have been at the forefront through all this. I am proud as heck of this.”
Jennifer Chandler is the Food & Dining reporter at The Commercial Appeal. She can be reached at jennifer.chandler@commercialappeal.com and you can follow her on Twitter and Instagram at @cookwjennifer.