Through a special arrangement, presented here for discussion is a summary of a current article from Frozen & Dairy Buyer magazine.
For supermarkets getting clubbed by club stores and losing share, experts advise grocers to focus on selection, convenience and quality. And -- perhaps most important -- be sure to stand for something.
"If you are all things to all people, you are nothing to anybody," said Jim Hertel, managing partner, Willard Bishop LLC.
He advises being sure you are equal or better than your competition on things that are important to your best customers. That starts with a thorough understanding of your best customers, something that supermarket operators are getting better at all the time.
"Go through everything in your offering -- meat, produce, service, cleanliness, dairy, frozen and all the key differentiators," Mr. Hertel said. "Consider your own strengths and vulnerabilities, and do the same for your competitors. Choose areas where you want to make a stand, and then be the significant leader in your market."
Michael Clayman, editor of Warehouse Club Focus, a newsletter based in Foxboro, Mass., said that part of every supermarket operator's homework should be walking the club stores on a regular basis.
"Theoretically, at least, the clubs stock only those items with high sales per square foot, or they wouldn't be there. If you see something you don't have, consider it -- either branded or private label," he said.
Discussion Questions: How should supermarkets position themselves to face competition from club stores? What advantages should supermarkets be exploiting? Where shouldn't they try to best clubs?