Boosting Neighborhood Grocers with Technology and Additional Strategies
In an effort to stay competitive against larger rivals, regional grocery stores like Forty Acres Market and Schnuck Markets are focusing on exceptional customer service, fresh and local product offerings, and unique shopping experiences.
At a recent GroceryTech event, loyalty expert Liz Abunaw from Forty Acres Market and Scott Kaverman from Schnuck Markets discussed their strategies for differentiation. Lynn Petrak guided the session, which also featured Elizabeth Lafontaine from Placer.ai.
Schnuck Markets, as a regional grocer, competes by emphasizing local produce, quality fresh departments, and personalized service. They are adopting technology such as inventory management, floor-cleaning robots, smart carts, electronic shelf labels, AI-enabled salad bars, and improved personalization through its rewards app. However, they also place importance on minimizing waste, boosting efficiency, and redeploying savings in labor.
Forty Acres Market, being smaller and community-focused, probably differentiates through a curated product mix and hospitality-focused shopping. Customers speak to real people, know delivery drivers, and are familiar with the same team at pop-up stores. They prioritize interpersonal relationships over technology.
Elizabeth Lafontaine, director of research at Placer.ai, affirmed that value is the top consideration for consumers when making a retail decision, but the definition of value goes beyond just price. She emphasized the importance of providing consumers with a good in-store experience that includes personal connections to people and the brand, as well as products and services that make sense to them at any given time.
Abunaw, as an employer at Forty Acres, aims to make the store a desirable place to work by offering competitive wages, creating a pathway in the grocery industry, and showing employees that they are valued.
Grocery stores are seen as "third spaces" that offer opportunities for human interaction beyond technological conveniences. For regional players, value can be provided through specialties, services, and relationships, rather than relying on pricing.
Schnucks is implementing a robust promotional strategy that includes various discounts, multi-buys, and structured promotions, along with a rewards program for personalized offers. They are also focusing on a robust private label program to build differentiation and offer unique quality goods.
In summary, smaller food retailers distinguish themselves by creating a strong local connection, emphasizing freshness and quality, offering personalized service, and curating unique products that larger rivals do not typically provide. These factors foster customer loyalty and a differentiated shopping experience that larger stores find difficult to replicate.
- Schnucks, in their strategic approach, bolsters their private label offerings to create unique quality goods and build differentiation within the food-and-drink sector.
- In the digital age, Forty Acres Market chooses to prioritize interpersonal relationships over technology, setting them apart as a lifestyle choice for community-focused customers seeking a personal connection.
- To stay competitive, regional businesses like Forty Acres Market and Schnuck Markets focus on diverse financing options to fund their technology integrations, such as inventory management systems, while ensuring the savings are reallocated towards improving labor and minimizing waste.
