Competing in the center-store

After 50 years in the grocery business, I have pretty much given up on the center-store, as we traditionally know it.  We as independents can no longer compete for the majority of everyday items anymore, as the Mega stores, and Wholesale clubs, plus Dollar stores, are getting preferential treatment.  Does anyone out there also feel this way?   I have knocked out over 2000 sku's in the last 5 years, and will probably get rid of another 1000 items in the coming year.

     It makes no sense to carry a huge household, & laundry section, as most people don't even consider buying that stuff in my store anymore.  Diapers have been eliminated, baby formula is gone, 

most bath tissue and paper towels eliminated except for deals I can find off the street to re-sell.

The list goes on, as the chance to buy in on a great deal has been reduced to scan-down only items,and  a few hot deals on  cool whip and cream cheese 3 times a year.  Independents are left out in a wholesale buying desert, and I can not figure how to change that.

       What I have done is make a huge Gluten-Free, and diabetic friendly aisle with some unique affordable organics thrown in,and it is doing pretty well.  My coke & pepsi products come from another store who has contracts, and even those prices are way too high.    I also work very well with strong regional suppliers on unique snacks and thaw & sell pastries, which are different, that carry a good price as well.  My father looks around my store, and just can't believe how things have changed

over the last ten years.  You know what?? I concentrate heavily on the outside perimeter of the store, and have managed to grow a little each year in sales.  Customers still want a great deal on meats, and Dairy, plus a premium Deli, which the other stores do not have, and it is what I have to stay alive in this crazy business.  This article is not meant as a vent, but I just would like to hear from any Independent  out there, that has changed course 180 degrees in order to grow their business, and find out how you all did it.        Thanks   and Happy Holidays to all!!!