As Topco Associates celebrates its 80th anniversary in 2024, the company reflects on its significant transformation from a small group of Chicago retailers to a global enterprise with an impressive revenue of $18.3 billion. Established during the final years of World War II, Topco has been a pioneer in supporting independent grocery stores across the United States, maintaining its core mission of helping local communities while adapting to a changing market landscape.
Founded in 1944 at the Drake Hotel in Chicago, Topco has evolved substantially, particularly in its ability to support independent grocers against major competitors, such as the now-defunct A&P. “The foundation remains the same,” explains Randy Skoda, Topco’s President and CEO. “It’s about independent retailers partnering strategically to gain scale while keeping their unique identities intact.”
This cooperative model not only fosters competition but also strengthens local communities. Danell O’Neill, EVP of Brand and Marketing, emphasizes the role of many independent grocery stores as local hubs that provide essential services, including pharmacies and nutritional guidance, especially in smaller towns. This connection to community needs underscores the importance of keeping these retailers operational and accessible.
The COVID-19 pandemic dramatically altered consumer purchasing behaviors, resulting in an increase in demand for private label products. “Shoppers discovered that they have alternatives and that they don’t have to sacrifice quality or value,” O’Neill notes. This trend can be seen in Topco’s members’ efforts to revitalize their own brands, helping them maintain a foothold in a market that increasingly favors larger corporations.
A vital component of Topco’s evolution has been its commitment to innovation and category management. Traditionally viewed as a sourcing provider for lower prices, Topco has transformed into a comprehensive support system for its member-owners. This includes a robust category insights team that capitalizes on consumer data to identify trends and shifts in shopping preferences. In the past five to six years, Topco has shifted its focus from mere sourcing to delivering insights that are imperative in today’s marketplace.
Topco manages more than 20 well-known brands such as Basket & Bushel and Food Club, the latter approaching its 80th anniversary next year. The Food Club brand has grown into a billion-dollar success, but not without recognition of the changing values of consumers. Skoda points out, “We realized it was time to refresh the Food Club brand and connect with a mission.” In partnership with Feeding America, the brand is undergoing a redesign focused on social responsibility, aligning with the growing consumer preference for brands that advocate positive change.
Furthermore, the cooperative structure of Topco allows its 46 member-owners to maintain operational independence while benefiting from collective resources and support. Each member can opt for their approach to the market, reflecting the global diversity of their clientele. Supporting this network, Topco provides members with various services, including HR benefits, waste management strategies, and even aggregated pharmacy programs which enhance convenience for shoppers navigating pharmaceutical needs.
While celebrating its legacy and impact over the last eight decades, Topco also aims to broaden its reach. Currently, the cooperative reaches approximately 70 million consumers who shop at its member stores. This vast network serves as a testament to the cooperative’s commitment to helping its members thrive.
As Topco looks to the future, it remains focused on fostering an environment where independent grocers can flourish alongside evolving consumer expectations. For those in the food retail business, Topco’s journey serves as an inspiring case study on adaptability and the essential balance between tradition and innovation in navigating the complexities of the modern marketplace.
