2021-11-17-科尔尼-Four_ways_regional_grocers_can_gain_a_competitive_advantage_16页_1mb

Key Findings on Gaining Competitive Advantage in Regional Grocery

Introduction

The food retail landscape is highly competitive, with regional grocers facing challenges from national chains and e-commerce. To succeed, leaders must strategically invest in four key areas to build a sustainable edge.

Four Areas for Competitive Advantage

• Customers: Focus on deep customer insights and convenience. Segment customers, use micro-targeting analytics, and offer multiple shopping options like online and in-store services. Leverage store associates for local knowledge.
• Channels: Integrate physical and digital channels seamlessly. Enhance physical stores for social experiences (e.g., grab-and-go services), and develop online capabilities with partnerships like Instacart–Unata to ensure a frictionless digital-to-store journey.
• Product Assortment: Create a balanced mix of national brands, private labels, and local offerings. Tailor assortments to community preferences using micro-targeting, and invest in private labels to differentiate. Space allocation should adapt to local demographics, such as targeting Gen Z with regional brands.
• Experiences: Build strong emotional and social connections through unique, interactive experiences. Use digital tools for frictionless shopping, but emphasize "doing" over "being" to engage customers actively, like beauty classes for product interaction.

Additional Strategies for a Leading Edge

• Focus on Unique Capabilities: Invest in key areas like agile supply chain, local merchandising, and cost-conscious technology to excel in specific dimensions rather than spreading resources thin.
• Embrace Zero-Based Budgeting: Implement this approach to justify all spending based on current needs, reducing costs without compromising growth, fostering a culture of efficiency.
• Create a Winning Vision: Develop outside-in goals that connect the store to the community and digital advancements, such as being the leader in experiences or health and wellness offerings.

AT Kearney offers expertise in transforming regional grocers through proven strategies and consumer insights to help them thrive in evolving markets. For more information, visit www.atkearney.com/retail.