For independent grocers, service to the customer is ranked the number one competitive differentiator. A recent survey* of independents published in a leading trade publication showed that service captured 40 percent of respondents’ votes, pushing store location and convenience to the second spot at 39 percent. Perimeter departments were selected by one-quarter of respondents as a differentiator. Service and location/convenience are particularly important to the single-store operator. In fact, almost half (46 percent) of the single-store operators see service as their biggest competitive differentiator, compared with 33 percent of those operators with two to 10 stores.
Some independents focus on fresh foods such as fresh cuts of beef. Produce and organic foods are typically key differentiators, along with strong emphasis on the deli, prepared foods and catering. Still others serve ethnic markets. It is notable that food retailers are substantially ahead of full-service restaurants as the primary source for take-out meals. Independents are uniquely positioned to meet this growing need as time-strapped shoppers look for ways to shorten meal preparation.
If any independents are able to lay claim to price as a differentiator, it would likely be the larger operators. While only 1 percent of single-store operators claim price as a differentiator, one quarter (25 percent) of those with two to 10 stores cite price as a differentiator. As independents become more innovative to better compete with the big chains, they’re also becoming stronger competitors to each other.
Whatever you are trying to achieve, Hobart is uniquely positioned to help enable you to realize your goals, whether it is delivering exceptional customer service, providing fresh meats and produce, well-appointed delis and bakeries or hot/par-cooked, prepared foods. Our products are designed to deliver the results you need while delivering durability, dependability and long life.
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*Progressive Grocer – “Technology and the Independent Grocer”