{"id":39455,"date":"2022-12-12T17:27:59","date_gmt":"2022-12-12T17:27:59","guid":{"rendered":"https:\/\/www.elixirr.com\/?p=39455"},"modified":"2025-10-31T10:37:19","modified_gmt":"2025-10-31T10:37:19","slug":"are-you-loyal-to-one-grocer-they-might-all-have-more-in-common-than-you-think","status":"publish","type":"post","link":"https:\/\/www.elixirr.com\/en-gb\/are-you-loyal-to-one-grocer-they-might-all-have-more-in-common-than-you-think\/","title":{"rendered":"Are you loyal to one grocer? They might all have more in common than you think…"},"content":{"rendered":"\n

Grocery shopping is a universal necessity. Love it or hate it, we all need to do it. However, how we choose to food shop is a highly personal experience. <\/p>\n\n\n\n

Perhaps this explains the market\u2019s keen interest in new technological innovations in this space. Cashier-free checkouts, biometric payments, and startups claiming to revolutionize shopping for the \u2018modern\u2019 grocery consumer now dominate market headlines. Yet, despite these tech-focused disruptors, there was an overall increase <\/em>in loyalty towards traditional retail grocers last year. It seems conventional grocery shopping is here to stay, so retailers both high and low-end need to get even better at winning over and retaining customers.<\/p>\n\n\n\n

\"Grocery<\/a><\/figure>\n\n\n\n

High versus low-end<\/strong><\/h2>\n\n\n\n

It’s hard to ignore the rise of the big discounters over the past 5 years. In particular, hallmark German discounters Aldi and Lidl are beginning to make a splash across the pond. Aldi is now the United States\u2019 fastest-growing grocery chain and third-largest national<\/a> grocer by store count. On the other end of the cost spectrum, high-end retail grocers Wegmans and Erewhon are taking regional footholds, growing at rapid pace, and competing with established competitors like Whole Foods. Erewhon\u2019s financial success is so staggering they reportedly earn an average of over $2,500 per square foot \u2014 four times that of most grocery stores. This growth at both ends of the spectrum is likely here to stay \u2013 just look at the recent Kroger-Albertson merger (proving discount retailers\u2019 stronghold in the market), and the continued success of established high-end grocers like Sprouts and Giant Eagle. <\/p>\n\n\n\n

The market is polarized: two drastically different models, most essentially bifurcated by price, are showing strong growth. So, what are they doing right? Winning over the consumer.<\/strong> And how are they doing it? With surprisingly similar <\/em>strategies. Let\u2019s dig in. <\/p>\n\n\n\n

Value-driven & community-centric<\/strong><\/h2>\n\n\n\n

It may seem counterintuitive that one of Aldi\u2019s first customer touchpoints requires shoppers make a 25-cent deposit<\/a> for use of a shopping cart. After all, asking customers to immediately give up money appears in direct contrast to the values conventionally associated with discount shoppers (i.e., low-prices, sales and freebies). However, the Aldi shopping community doesn\u2019t mind. This is because Aldi provides customers a clear and simple explanation. Firstly, shoppers will be refunded a quarter when their shopping cart is returned. Secondly, the deposit helps to keep food prices down because Aldi doesn\u2019t have to spend extra money on hiring staff to collect carts. <\/p>\n\n\n\n

Aldi\u2019s shopping cart model is successfully designed to engage their customers\u2019 sense of purpose. By shopping at Aldi, customers are helping themselves, and others, secure and maintain discount food options. This value-driven, community-centric approach, also emulated through Aldi fan pages, working mom Facebook groups<\/a>, and digital campaigns is one way community-centered values can help drive business growth.<\/p>\n\n\n\n

On the opposite side of the pricing spectrum, high-end grocers must tailor towards a customer base with strong purchasing power, high optionality and luxury-minded expectations. Unlike discount grocers, those at the high end cannot use pricing to galvanize their customer base. And yet, both Wegmans and Erewhon have successfully created business models that have community-centric values. For instance, both have taken efforts to enhance their customer\u2019s in-store experience by building out large dining and seating areas. Taking advantage of in-person retail space, high-end grocers use communal dining areas to help build their credibility as a community asset. <\/p>\n\n\n\n

Certainly, community-centric models and in-store experiences that fit their customers\u2019 economic and values-based needs are used by both high- and low-end grocers to drive business growth. <\/p>\n\n\n\n

Future-proofing omnichannel strategies<\/strong><\/h2>\n\n\n\n

Omnichannel shopping, once a source of differentiation, has now become a necessity. Maintaining market relevance and resilience requires retailers learn how to integrate their customer\u2019s key values across the omnichannel platform. One way to increase omnichannel shopping is through mobile apps. Wegmans has opted for an in-house approach, developing their popular Market2Go app. Part of Wegman\u2019s omnichannel success is their strategic integration of digital platforms and in-store experiences. For example, when pandemic lockdowns eased, Wegman\u2019s incorporated their trademark in-person \u2018Market Caf\u00e9\u2019 offerings into the Market2Go app with an order-ahead feature. This also shows consideration for their high-end consumer\u2019s preference for quality service delivered quickly. <\/p>\n\n\n\n

Aldi took a different omnichannel approach, opting to partner with Instacart for their at-home-delivery service. Despite market concerns that discount retailers would struggle with a \u2018luxury service\u2019-like grocery delivery, Aldi continues to meet their customer\u2019s low-cost needs. One key factor is Aldi\u2019s integration of Supplemental Nutrition Assistance Program (SNAP) payments, which are designed to help low-socioeconomic individuals purchase healthy food. By joining Instacart\u2019s pilot SNAP payments program, Aldi has become one of the leading grocery retailers to integrate SNAP payment options across multiple omnichannel platforms. Aldi\u2019s omnichannel strategy is forward thinking \u2013 SNAP heavily contributes to Aldi\u2019s annual grocery revenue and purchases increase in economic downturns. <\/p>\n\n\n\n

At both ends of the spectrum, discount and high-end grocers show how agile and future-proofing omnichannel integration is essential. <\/p>\n\n\n\n

Private labeling <\/strong><\/h2>\n\n\n\n

Private labeling comes with a bad reputation for being \u2018second-tier\u2019 substitutes. Yet today, both discount and high-end grocers are proving the very opposite. Take Aldi for example \u2013 the third largest grocer by store count that is leading the private-label retail volume with over 77% of share spend in private brands. Or Whole Foods\u2019 private 365 Everyday Value label, Amazon\u2019s high-end retailer, which quickly became one of Amazon\u2019s leading private-label brands. <\/p>\n\n\n\n

Reputational trust is key to both Aldi and Whole Food\u2019s private-label success. For high-end retailers like Whole Foods this requires delivering high product quality by focusing on organic ingredients. Whole Foods also must deliver novel products that excite customers, which is why 365 Everyday Value includes both commodity staples and a range of cuisine options from around the world. Aldi have adopted similar stances on private-label ingredients and quality, announcing in 2017 that all synthetic coloring, MSG and trans fats would be removed from their products. In addition to achieving product novelty, Aldi\u2019s private-label strategy includes creating exclusive product offerings, such as their liveGfree General Tso\u2019s Gluten Free Crispy Chicken, which help engage and retain customer loyalty. <\/p>\n\n\n\n

Although lower-cost options interest all demographics, these top private-label grocers know that quality, novelty and exclusivity are really what sell private-label brands. <\/p>\n\n\n\n

Time to checkout<\/strong><\/h2>\n\n\n\n
  1. The idea that pricing is the defining difference between high-end and discount consumers is outdated, so how else can you keep your existing customers loyal and attract new ones?  Consider how your customers interact with physical retail space. What customer story is being told?<\/li>
  2. Develop omnichannel strategies to better address your customer\u2019s core values and needs. <\/li>
  3. Look at opportunities to increase your customer base through discounted and\/or private-label products and branding.<\/li><\/ol>\n\n\n\n

    The most successful retail strategies, both for discount and high-end grocers, drive growth by leaning into what\u2019s important to the customer beyond just prices. Loyalty is built by reinforcing brand identity and prioritizing customer values, not by simply adopting new technologies to reinvent the wheel.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Grocery shopping is a universal necessity. Love it or hate it, we all need to do it. However, how we choose to food shop is a highly personal experience.  Perhaps…<\/p>\n","protected":false},"author":1,"featured_media":39464,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[116],"tags":[235,288],"related_service":[],"related_industry":[360,65],"class_list":["post-39455","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-business-strategy","tag-retail-consumer-goods"],"acf":[],"yoast_head":"\nAre you loyal to one grocer? 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class=\"wp-component-card edwp-component wp-component-card--resource wp-component-card--link js-card-link\n edwp-fade-in\">\n <figure class=\"wp-component-card__image-wrapper\">\n <img width=\"2400\" height=\"1440\" src=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail.jpg\" class=\"wp-component-card__image\" alt=\"Grocery article\" decoding=\"async\" srcset=\"https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail.jpg 2400w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-300x180.jpg 300w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-1024x614.jpg 1024w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-768x461.jpg 768w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-1536x922.jpg 1536w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-2048x1229.jpg 2048w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-87x52.jpg 87w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-319x191.jpg 319w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-479x287.jpg 479w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-567x340.jpg 567w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-767x460.jpg 767w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-1023x614.jpg 1023w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-1278x767.jpg 1278w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-1378x827.jpg 1378w, https:\/\/www.elixirr.com\/en-gb\/wp-content\/uploads\/2022\/11\/Retail-1640x984.jpg 1640w\" sizes=\"(max-width: 2400px) 100vw, 2400px\" \/> <div class=\"wp-component-card__preview-icon\">\n <span class='edwp-svg '><svg width=\"47\" height=\"47\" viewBox=\"0 0 47 47\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g>\n<path d=\"M23.4141 0.539062C36.1232 0.539183 46.4258 10.8416 46.4258 23.5508C46.4257 36.2599 36.1231 46.5624 23.4141 46.5625C10.7049 46.5625 0.402465 36.2599 0.402344 23.5508C0.402344 10.8415 10.7048 0.539062 23.4141 0.539062ZM23.4141 1.68945C11.3606 1.68945 1.55273 11.4974 1.55273 23.5508C1.55286 35.6041 11.3607 45.4111 23.4141 45.4111C35.4673 45.411 45.2743 35.604 45.2744 23.5508C45.2744 11.4974 35.4674 1.68957 23.4141 1.68945Z\" fill=\"currentColor\"\/>\n<path d=\"M19.2841 33.6992C18.9579 33.6986 18.6374 33.6111 18.3543 33.4454C17.7167 33.0759 17.3203 32.3585 17.3203 31.5797V15.8189C17.3203 15.0379 17.7167 14.3227 18.3543 13.9531C18.6442 13.7827 18.9735 13.6951 19.3078 13.6994C19.6421 13.7037 19.9692 13.7998 20.2548 13.9776L33.4237 22.0406C33.6981 22.2166 33.9244 22.461 34.0812 22.751C34.238 23.0409 34.3203 23.3668 34.3203 23.6982C34.3203 24.0295 34.238 24.3555 34.0812 24.6454C33.9244 24.9353 33.6981 25.1798 33.4237 25.3558L20.2527 33.421C19.9604 33.6017 19.6256 33.6979 19.2841 33.6992Z\" fill=\"currentColor\"\/>\n<\/g>\n<\/svg>\n<\/span> <\/div>\n <\/figure>\n <div class=\"wp-component-card__content edwp-row-load\">\n <p class=\"wp-component-card__eyebrow\">\n Articles <\/p>\n <a href='https:\/\/www.elixirr.com\/en-gb\/are-you-loyal-to-one-grocer-they-might-all-have-more-in-common-than-you-think\/' class='wp-component-card__title'>\n <h2>\n Are you loyal to one grocer? They might all have more in common than you think…\n <\/h2>\n <\/a> <div class=\"wp-component-card__description\">\n Grocery shopping is a universal necessity. Love it or hate it, we all need to do it. However, how we choose to food shop is a highly personal experience.  Perhaps… <\/div>\n <div class=\"wp-component-card__meta\">\n <p class=\"wp-component-card__date\">\n 12 December 2022 <\/p>\n <div class=\"wp-component-card__terms\">\n <div class=\"wp-component-tags edwp-component\">\n <div class=\"wp-component-tags__tag\">\n Retail <\/div>\n <div class=\"wp-component-tags__tag\">\n Retail & Consumer Goods <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"wp-component-card__button-wrapper\">\n <button class=\"btn btn--link arrow wp-component-card__button\">\n Read more <span class='edwp-svg '><svg width=\"20\" height=\"20\" viewBox=\"0 0 20 20\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n<g id=\"Lg\">\n<path id=\"Vector\" d=\"M1.12509 9.50162H15.8648L9.43259 3.06941C9.374 3.0113 9.3275 2.94216 9.29576 2.86599C9.26403 2.78981 9.24769 2.70811 9.24769 2.62559C9.24769 2.54307 9.26403 2.46137 9.29576 2.38519C9.3275 2.30902 9.374 2.23988 9.43259 2.18177C9.54971 2.06535 9.70814 2 9.87328 2C10.0384 2 10.1969 2.06535 10.314 2.18177L17.8151 9.6829C17.8737 9.74101 17.9202 9.81014 17.9519 9.88632C17.9837 9.96249 18 10.0442 18 10.1267C18 10.2092 17.9837 10.2909 17.9519 10.3671C17.9202 10.4433 17.8737 10.5124 17.8151 10.5705L10.314 18.0717C10.1975 18.1871 10.0404 18.2522 9.87641 18.2529C9.79414 18.2534 9.71259 18.2376 9.63643 18.2065C9.56027 18.1754 9.491 18.1296 9.43259 18.0717C9.374 18.0135 9.3275 17.9444 9.29576 17.8682C9.26403 17.7921 9.24769 17.7104 9.24769 17.6278C9.24769 17.5453 9.26403 17.4636 9.29576 17.3874C9.3275 17.3113 9.374 17.2421 9.43259 17.184L15.8711 10.7518H1.12509C0.959309 10.7518 0.800312 10.686 0.683084 10.5687C0.565857 10.4515 0.5 10.2925 0.5 10.1267C0.5 9.96093 0.565857 9.80193 0.683084 9.68471C0.800312 9.56748 0.959309 9.50162 1.12509 9.50162Z\" fill=\"#1D0F25\"\/>\n<\/g>\n<\/svg>\n<\/span> <\/button>\n <\/div>\n <\/div>\n<\/article>\n","_links":{"self":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/39455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/comments?post=39455"}],"version-history":[{"count":2,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/39455\/revisions"}],"predecessor-version":[{"id":58440,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/posts\/39455\/revisions\/58440"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/media\/39464"}],"wp:attachment":[{"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/media?parent=39455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/categories?post=39455"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/tags?post=39455"},{"taxonomy":"related_service","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/related_service?post=39455"},{"taxonomy":"related_industry","embeddable":true,"href":"https:\/\/www.elixirr.com\/en-gb\/wp-json\/wp\/v2\/related_industry?post=39455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}