Competition in the grocery industry has never been greater. In addition to traditional supermarkets, there are now many different types of food stores to choose from. It is estimated that shoppers spend over $500 billion annually on food in all types of food stores. The traditional supermarket lost a great number of their customers to super centers and discount stores. Traditional supermarkets also have seen a decline in how much shoppers spend and how frequently they shop in a particular store.
Most grocers believe that focusing on their primary shoppers and offering products they want to buy, at fair prices and treating these customers with lots of tender, loving care will be the key to successful growth. The NGA (National Grocers Association) researched what is important to the shopper. In the 2010 Consumer Survey Report done by the NGA, 46% of the shoppers surveyed stated they would like to see their primary grocery store improve on price and cost savings. Some of the other items that ranked in this survey are:
41% - More locally grown food
30% - More variety/better assortment/wider choice
22% - More fresh made food
22% - Better customer service/employees
Creating a positive shopping experience and creating the perception of value in the customer's mind, will be the absolute key for traditional supermarkets to succeed in the marketplace. Ideally, retailers need to know who their customers are and what they want.