Boosting Neighborhood Grocery Stores via Technology and Other Measures
In the dynamic world of grocery retail, smaller food retailers are finding innovative ways to compete with their larger counterparts. By adopting selective advanced technologies that optimize operations and customer experience, while simultaneously emphasizing interpersonal relationships and personalized services, these retailers are turning technology into a tool to enhance rather than replace human connection.
The final session of Progressive Grocer's recent GroceryTech event, held at the Marriott Dallas Uptown from June 10-12, saw the participation of Elizabeth Lafontaine, director of research at Placer.ai, Liz Abunaw, CEO of Forty Acres Market, and Scott Kaverman, senior director, strategic pricing at Schnuck Markets.
Key strategies for smaller grocers include leveraging agile, flexible POS technologies such as mobile POS systems, self-service kiosks, and digital menus. These technologies not only improve service speed and convenience but also free staff to focus more on personalized customer interactions.
AI-driven tools are also being utilized. For example, AI can help tailor product recommendations and improve stock availability, enhancing customer satisfaction and loyalty. Implementing omnichannel strategies that integrate online and in-store experiences seamlessly is another important strategy.
Elizabeth Abunaw, CEO of Forty Acres Market, stresses the importance of quality in creating the perception of affordability. To this end, Forty Acres delivers goods, operates pop-up stores, and is about to launch a new website for improved user experience and easier payments.
Scott Kaverman, from Schnuck Markets, emphasizes the importance of a concrete and clear pricing strategy, both at base and promotional pricing. Kaverman suggests tailored promotional mechanisms beyond standard discounts to supplement pricing strategy.
For regional players, value can be provided through specialties, services, and relationships, rather than relying on pricing. Schnucks, for instance, adopts technology like inventory management, floor-cleaning robots, smart carts, electronic shelf labels, AI-enabled salad bars, and personalization through its rewards app.
However, Abunaw believes in using tech to free up associates' time for customer-facing tasks and boost efficiency. As an employer, her goal is to make Forty Acres a sticky place for employees and attract new ones with competitive wages. Schnucks, too, reinvests in continuous learning opportunities and development to attract new and youthful labor.
Grocery stores are increasingly seen as "third spaces" offering opportunities for human interaction beyond technological conveniences. This approach balances efficient tech adoption (e.g., advanced POS, AI analytics, and omnichannel platforms) with the strength of personalized service and community connection, effectively competing against the scale-focused strategies of larger rivals.
In conclusion, the focus is on giving consumers a good retail experience as a way for grocery stores to win going forward. Both Elizabeth Lafontaine and Abunaw observe that consumers want a good experience in store, emphasizing the importance of personal connections and brand relationships. As technology continues to evolve, it is clear that smaller grocers are finding ways to leverage it to their advantage, while maintaining the human touch that sets them apart.
- Smaller food retailers, such as Forty Acres Market, are focusing on creating a perception of affordability by delivering high-quality goods, operating pop-up stores, and launching improved websites for seamless user experiences.
- Schnucks, another smaller grocer, is adopting technology like inventory management, floor-cleaning robots, and AI-enabled salad bars, alongside personalization through a rewards app, to provide value through specialties, services, and relationships.
- In the realm of private label products, grocers are utilizing AI-driven tools to tailor product recommendations and improve stock availability, aiming to enhance customer satisfaction and loyalty, while also emphasizing human connections and personalized services.
