Independent food retail is under considerable pressure from the supermarkets who have procurement, distribution and marketing monopolies and dominate both market and consumer behaviour. How can independents compete?
For an already successful, single-site, family-owned food retailer, it’s a significant risk to decide to scale it. The decision requires insightful strategy, the implementation of a management structure, codifying the proposition for replication, understanding consumer behaviour and demographics and building supply-chain security, all whilst preserving the owners’ ethos.
Many farm shops seem to polarise their offers around a mix of price, provenance, quality, presentation and/or owner-ethos but few understand which their customers relate to most and leverage the strongest to best-effect. Growth in both revenue and profitability is possible as long as existing customers can be persuaded to come more frequently and/or spend more each time they do so, spend a greater proportion of their food budget in one place, new customers can be lured away from their routine shops and additional product-lines can augment typical purchases. Here’s one approach we’ve taken recently;
Are you really being served?