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SBA aids Smithmyer’s sale

Saint Francis, gov’t help Loretto landmark undergo ownership change

Jim Gregg restocks the produce section recently at Smithmyer’s Superette in Loretto. Gregg and his wife, Jessica, purchased the grocery store from longtime owner James J. “Jay” Smithmyer on Aug. 1. Mirror photo by Gary M. Baranec

LORETTO — When Jim Gregg wanted to make the transition from working for the world’s largest retailer to owning a town store, he relied on help provided through the U.S. Small Business Administration.

Jim and his wife, Jessica, purchased Smithmyer’s Superette in Loretto on Aug. 1.

The transition didn’t happen overnight. The Greggs had to learn the business and about running a small store.

When the Greggs heard in the summer of 2017 that longtime owner, James J. “Jay” Smithmyer, was quietly putting Smithmyer’s Superette on the market, they contacted a Realtor and the Saint Francis Uni­ver­sity Small Business Devel­opment Center for assistance.

In addition to other programs, the SBA funds research partners such as Saint Francis’ SBDC.

In 2017, the SBDC met with 212 clients resulting in 3,422 hours of client work. SBDC clients received just over $9 million in financing from a variety of federal, state, local and private sources. Twenty-five clients of the center reported starting, purchasing or expanding a business in the region.

According to USA.gov, the SBA helps Americans start, build and grow businesses. Through a network of field offices and partnerships, the SBA assists and protects the interests of small business concerns.

“Our goal is to help small businesses in all phases of the life cycle. Last year we counseled 3,960 clients, in western Pennsylvania. We provided more than 37,000 hours of free counseling. We’ve done a lot to help them start, grow and expand their footprint,” said Kelly Hunt, district director of the Pittsburgh office, which covers 27 counties in western Pennsyl­vania.

In FY 2017 the office guaranteed $198 million in loans to help small businesses in western Pennsylvania, Hunt added.

Smithmyer’s Superette was started in 1965 by Jay’s parents, James and Eleanor Smithmyer, and his uncle, Joseph Smithmyer, as a small family-owned grocery store.

Jay Smithmyer and his wife, Louise, acquired the business in 1972.

Hunt said she’s pleased her agency was able to not only help grow Smithmyer’s Superette, but also restore a local treasure.

“Small-town stores help define neighborhoods, creating a sense of place,” Hunt said in statement. “Resi­dents always are happy when popular shopping destinations get a second life.”

The Superette features aisles of grocery staples, a hot food counter, bakery, gas pump and hand-cut, flavored meats sold to patrons in more than 37 local zip codes and often drawing customers away from big-box retailers such as the one where Jim Gregg once was employed.

“After purchasing the Superette, I went from a management position at the largest retailer in the world to small-town business owner,” Gregg said in a statement. “I started shadowing [Jay Smithmyer] on my days off. Eventually working for free, seven days a week learning to open and close the store and do everything else until Aug. 1, when the purchase was complete.”

Meeting with the Saint Francis SBDC Director Jeff Boldizar sealed the deal for Jim.

“I helped him work on a business plan, and he really did his due diligence. We also prepared projected financials, enabling him to get a loan while keeping the town happy,” Boldizar said in a statement. “The assistance went so smoothly; the transition virtually was seamless and that’s good for customers.”

While keeping the name and the town’s treasures from bygone days hanging on walls and displayed on shelves, the Greggs and patrons soon began adding unique recipes to the already successful store.

“We purchased a new 100-pound smoker and started creating two kinds of homemade bacon. We also began selling pizza and making our own hot kielbasa and beef jerky, which area schools use as fundraisers — selling over 200 pounds,” Gregg said.

Ideas have been rolling in for the new owners.

“We went with what was feasible and what people wanted, like baking homemade specialty breads and goodies,” Gregg said. “We hired a culinary chef, creating breads for each holiday such as shaped turkeys, cornucopias, bunnies and snowmen. We even make our own gobs.”

Gregg is venturing into new territories: advertising in traditional media and posting in-store videos on social media, as well as forming a partnership with nearby Vale Wood Farms.

“Along with their milk and dairy products, they deliver our meats locally and as far away as State College and Altoona,” Gregg said. “Word-of-mouth advertising, coupled with our distribution and social media videos, really have in­creased traffic and sales as much as 2 percent.”

The Greggs also recently purchased a refrigerated trailer hitch enabling them to deliver their goods to Vale Wood and set up shop at local county fairs selling their homemade kielbasa and jerky to new customers.

The Greggs also insist on maintaining the customer service standards set by their predecessor.

“Our employees still wear dress shirts and ties or smocks and greet everyone at the door,” Gregg said. “And, yes, we still carry groceries to your car.”

Mirror Staff Writer Walt Frank is at 946-7467.

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