Dive Brief:
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Unified Grocers delivers to customers in Guam and Alaska from warehouses in Washington and California. The challenges in doing so are immense – and rewarding, an article in The Shelby Report says.
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The initial step in both directions is often done by barge to enable loads large enough for several weeks to make the weeks-long journey.
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Both stores and shoppers rely on and appreciate Unified Grocers' efforts.
Dive Insight:
Imagine having to plan for Christmas sales in August, devote center-store space to ethnic favorite dishes from other countries, and warehouse enough stock to last the weeks it takes before more can come in. These are everyday issues for retailers in the United States' more far-flung areas.
Distance is the biggest challenge for Guam retailers, who are 5,000 miles from their wholesaler. Weather and wildlife are the biggest challenges for shoppers in Alaska. Moose, deer and bear are frequent road hazards, as is thin ice — a significant issue when a frozen river is the road.
Temperatures and food storage are also a challenge. Alaskans sometimes buy a month's worth of food and extras at once because travel conditions can be unpredictable and risky. Depending on where a person is in Alaska, winter temperatures can range from the 20s to 30 degrees or more below zero. By comparison, Guam's temperatures average highs of 86 degrees and lows of 76 degrees. Heating or cooling costs are a serious consideration for food retailers who store weeks' worth of supplies at a time.
Shoppers also tend to store sizable amounts of food because they don't know when their favorites will be back on store shelves. A popular part of the cuisine in both places is locally-sourced seafood – one of the relatively small number of items that is locally sourced in Alaska, one of a great many in Guam.
Unified Grocers also air ships some products to remote locations. While this naturally pushes costs up — milk and bottled orange juice can easily be priced at more than $5 — shoppers in remote locations know where they live is a long way from the sources of their food. High cost is a trade off for being where they want to be.