Allegiance Retail Services (ARS) has expanded its grocery co-op by welcoming Peck’s Markets, a group of four employee-owned supermarkets located in New York’s Sullivan County. This strategic acquisition marks a significant milestone not only for ARS but also for the independent grocery landscape in the region.
The new additions, located in Callicoon, Livingston Manor, Jacksonville, and Eldred, have committed to enhancing their customer service and operational efficiency through technology and store remodels. Noah Katz, the president and CEO of PSK Supermarkets (the parent company of Peck’s Markets), shared that the employees overwhelmingly supported the sale, emphasizing their desire to align with a company that supports growth and fosters a positive working environment.
The decision for the sale originated in early 2023. CEO Lee Reimer of Peck’s approached ARS after a unanimous vote among the store’s more than 200 associates. This collective decision underscores an important shift in the dynamics of employee ownership and how it shapes corporate strategy. Katz highlighted, “They wanted to sell, but only to a company that would continue to provide a good working environment for its people with the possibility of growth.”
As part of ARS, Peck’s Markets stands to benefit from enhanced purchasing power and collective operational support. This transition is not just about acquiring stores; it’s about fortifying the cooperative’s buying capabilities which, as noted by Joseph Fantozzi, COO of ARS, translates into better savings for customers. The additional scale allows the co-op to negotiate more favorable terms with suppliers, enhancing the bottom line for consumers in the current economic climate. This means more competitive pricing at the cash register, an essential factor for groceries in the area.
ARS has proven its effectiveness in community-centered retailing by providing a variety of marketing, merchandising, and technological support to its members. With over 130 member-owned independent supermarkets—including familiar names like Foodtown and Gristedes—ARS maintains a robust presence in the grocery sector, within which independent supermarkets are finding it increasingly challenging to compete against larger chains and e-commerce platforms.
The importance of local relationships cannot be overstated. Katz affirmed that the new parent organization intends to maintain relationships with existing local vendors and charitable organizations. This commitment is vital for sustaining community ties and ensuring that the stores continue to contribute positively to the local economy and social fabric.
The evolution of Peck’s Markets under ARS could serve as a case study for other independent grocers looking to adapt and thrive. For instance, ARS’s focus on providing comprehensive support services to its members is a strategic move illustrated by its impressive suite of tools including IT support, category management, and retail execution services. By creating a support structure that independent grocers would otherwise struggle to access alone, ARS enables its members to compete on a much larger scale.
Historically, Peck’s Markets has a rich background, founded in 1970 by Arthur Peck in Narrowsburg, NY. Their journey reflects a strong community commitment, resonating with customers who seek not just products, but also service excellence and local engagement. Now, as part of ARS, they are poised to enhance their service offerings while retaining their local charm and customer loyalty.
The integration of Peck’s Markets into Allegiance Retail Services illustrates a growing trend among independent grocers to unify and strengthen their collective operational frameworks. Such partnerships may lead to greater resilience in the face of rising competition from e-commerce giants and changing consumer preferences.
As the grocery landscape continues to shift, the collaboration between ARS and Peck’s Markets stands to serve as an influential model for how independent retailers can harness their communal strengths to preserve local business culture while scaling their operational capabilities. The ability to leverage collective purchasing, marketing, and technological support may well prove to be the lifeline that independent grocers need in today’s challenging market.
In conclusion, the decision by Peck’s Markets to join Allegiance Retail Services is not just about business growth; it’s about community commitment, employee welfare, and sustainable retail practices that cater to both consumers and the local economy.
