WHERE DO YOU SHOP FOR GROCERIES?

 

For some people it is about price. For others it is about location. Some people even look for superior service. Each of these is a tactic that may be employed by a retail business to create customers.

Near where I live, Kroger dominates the area with four stores that are closer than any competing [food] store. CVS is a bit closer in two instances. Could one really shop for most groceries at a CVS? If one had very limited needs it is possible. For the 99.999% rest of us, we will probably have a supermarket or supercenter that serves our grocery shopping needs.

Location [access] is the biggest reason I shop Kroger for groceries. Each of the four stores is on a major road all within 1.5 miles of home. No matter which way I am coming from, there is almost always a Kroger to be found on the way home.

Where do you shop for groceries, why?

LA TIMES: Safeway tries downsizing to better fit local needs

The grocer is testing a small-store concept that offers convenience. Wal-Mart has plans to do the same.

By Jerry Hirsch, Los Angeles Times Staff Writer
May 17, 2008

Some of the world's retail titans are headed for a battle over smaller grocery stores.

Safeway Stores Inc. jumped into the fray when it quietly opened a 15,000-square-foot store named the Market by Vons in Long Beach on Thursday as part of a test to see whether California shoppers like smaller neighborhood stores.

THOUGHTS

• Smaller stores can be closer to consumers
• Smaller stores have more location options [big store locations have large land requirements]
• Closer community connections [a community store will draw more local shoppers. Instead of a three mile shopper radius it might be less than half a mile. You will see more people you know.]
• An aging population prefers smaller stores. [Large stores are hard to navigate and the parking situation can be challenging (are there enough handicap parking spaces for peak shopping times at bigger stores?). Small local stores may be close enough to walk to. This will allow seniors who may not drive or no longer have cars to continue living independently.]
• Smaller stores will have a smaller selection [The average number of SKU's a person/family buys in a year is around 300 (source). A large assortment is not necessary for most categories. Some categories are dominated by a brand and size (Ex: Ketchup). Store assortment should be determined by the consumers that shop there.

OTHER OBSERVATIONS

More bicycle racks would be helpful.

• Stores can serve more customers with a smaller parking lot if people who live close by ride a bike.
  
• This reduces traffic as well as improves air quality.
  
• The fitness level of people who bike is improved.

Here in the metropolitan Detroit area Kroger dominates in supermarket sales. When Farmer Jack left the market Kroger acquired the best locations. This increased Kroger market share and keeps competitors with similar store size from expanding here. There are few locations where new 40-60,000 square foot stores can locate. The small store format allows location choice for firms that want to enter the metro Detroit market.

What are your thoughts?

NYT: Recession Diet Just One Way to Tighten Belt

Interesting article in the New York Times.

By MICHAEL BARBARO and ERIC DASH

Published: April 27, 2008

Stung by rising gasoline and food prices, Americans are finding creative ways to cut costs on routine items like groceries and clothing, forcing retailers, restaurants and manufacturers to decode the tastes of a suddenly thrifty public.

How are your purchasing patterns changing?