Boosting Community Shops Using Technology and Additional Methods
In the ever-evolving world of grocery retail, smaller players are finding innovative ways to compete against larger rivals. This was the focus of the final session at Progressive Grocer's recent GroceryTech event.
Regional players like Forty Acres Market and Schnucks are shifting their strategies, focusing on specialties, services, and relationships to provide value that goes beyond just pricing.
Forty Acres Market, for instance, places a strong emphasis on interpersonal relationships. Customers speak to real people, know their delivery drivers, and build familiarity and relationships with the store. This personal touch sets them apart in an increasingly tech-driven market.
On the other hand, Schnucks is embracing technology, adopting solutions such as inventory management robots, smart carts, electronic shelf labels, AI-enabled salad bars, and improved personalization through its rewards app. They also invest in continuous learning opportunities to attract new and youthful labor into their workforce.
Scott Kaverman, senior director of strategic pricing at Schnuck Markets, emphasizes the importance of a clear and holistic pricing strategy. He recommends a robust private label program to build differentiation and loyalty among customers. Kaverman also suggests exploring different promotional mechanisms beyond standard discounts to supplement pricing strategy.
Elizabeth Lafontaine, director of research at Placer.ai, affirms that consumers want a good in-store experience, which comes from personal connections to people and the brand. She notes that value is the most important factor consumers consider when making a retail decision, and it goes beyond just price.
Liz Abunaw, CEO of Forty Acres Market, aims to make her store a "sticky" employer by providing competitive wages, showing employee value, and creating a pathway in the grocery industry. Her goal is to create a retail environment that is more than just a technological convenience—a "third space" offering opportunities for human interaction.
In essence, smaller food retailers are using data analytics for smarter pricing, emphasizing convenience and quality, harnessing loyalty-driven digital marketing, and curating distinctive local or niche products to effectively compete with larger players in today’s technology-enabled grocery market. They are proving that in this digital age, the human touch still matters.
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