As we examine how AWG retailers can compete with various formats, it’s often good to get some context and perspective from people who watch the industry closely. We asked some questions of Shelby Reports President and Publisher Stephanie Reid.
Reid has more than 27 years covering the grocery industry. The Shelby Report has covered the grocery industry for 55 years and is a venerable source of industry news and trends.
Q: What do you think has changed most in the competitive dynamic between grocers since the beginning of Covid?
A: The obvious answer is the fast track to e-commerce platforms. While many large chain and regional independents were already building their online ordering capabilities, the offerings shifted quickly to independent operators of all sizes. This opportunity was mainly due to the solutions offered by emerging technology companies specializing in the indie arena, like Rosie and Freshshop, who leveled the competitive playing field in record time.
Q: What are Dollar General and other dollar stores doing well that resonate with customers?
A: To flip the script here, it’s more telling what they are not doing well that independent grocers can avoid. In many cases, they lack the experiential shopping aspect that creates loyalty and bigger baskets. Are the stores aesthetically pleasing? Do they offer extraordinary customer service? Are their prepared food department’s destinations? At best, they are perceived to have deeply discounted prices… which is not always the fact nor is it a sustainable model to nurture a long-lasting shopper relationship.
Q: How important is innovation for independent retailers to keep up with the Krogers, Walmarts, Amazons of the world?
A: Innovation through technology, shopper data analytics, and targeted digital marketing is certainly essential for all operators’ longevity. But what the Amazons and Walmarts lack to keep up with the independent grocer is their ability to project “local” … the sense of “community.” Every neighborhood market can create a unique, personalized in-store experience that far outweighs the latest, high-tech self-scanner!
Q: Is online shopping essentially essential for any grocery retailer at this point?
A: There is no question that it is imperative for operators of all sizes to embrace online ordering. The key is finding a solutions provider that will customize e-commerce offering to be inclusive of a retailer’s brick and mortar store and their existing customers. Being mindful of the mobile presence is of particular importance as online ordering will continue trending on these devices.
Q: What advertising or marketing strategies do you think are most important for retailers in the next few years?
A: There are countless strategies to embrace, many are advanced and require capital investments (which will be outlined below), and some are free of cost and overwhelmingly effective. Steve Morrow at Allen’s Foods is a favorite example of an operator utilizing social media to engage with customers and drive sales. Data-driven marketing options, provided by companies like SmartMarket are affordable and enable retailers to increase market share and connect with customers with personalized and relevant messages. These solution providers facilitate the transformation from the newspaper circular to digital coupons and targeted offerings … again, keeping the independent competitive. Also in the mix: artificial intelligence, robotics, augmented reality, voice commerce, and Livestream e-commerce. At the end of the day, it’s all about high-quality data and a centralized marketing measurement platform to store and analyze ongoing intelligence.
