Competing with Giants
How Small Grocery Stores Can Stay Competitive With Large Chains
DOI:
https://doi.org/10.58445/rars.3380Keywords:
Economics, Grocery Store, BusinessAbstract
With narrow profit margins ranging from 1-3% and increasing costs, remaining competitive in the grocery store industry is challenging, especially for smaller local grocery stores. This paper analyzes why small local grocery stores often face challenges competing with wholesale and large retail giants. It also provides a roadmap for their relevance in today’s dynamic market environment. These smaller establishments operate with thinner profit margins and higher per-unit costs, making it challenging to offer the same low prices as their larger competitors. Although it may seem inevitable that large retailers take over local grocery stores, various strategies can be used to prevent this from happening. It was found through a comparative analysis of local markets, large chain stores, and the business models of different grocers that when grocery stores advance customer experience and enhance local engagement, customers can be more integrated into their shopping experience. This paper aims to deliver valuable wisdom on how small grocery businesses can not only survive but also thrive in a highly competitive market.
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