Cost of living is higher than ever, and economic uncertainty is driving prices up. So, what can a small grocery store do to compete with big chains and maximize profits?
The answer — get creative! People choose small grocery stores for the unique local offerings and personality they can’t find anywhere else.
Try these eight grocery store ideas to highlight what makes you unique, drive sales, and stay ahead of the competition.
1. Create a Rotating Display of Local Favorites
Customers love shopping at independent grocery stores to see the various local goods on offer, which can be lucrative for a small business. Over 80% of customers say they are willing to spend more money to support local brands and businesses.
Find ways to showcase your commitment to local brands and suppliers with creative displays.
One option is to set up a table or standing display near the front of your store with products from a particular brand along with timed discounts. You can then rotate the brand every few weeks or every month to encourage customers to check in and see what’s new.
Contact the company in advance and ask if they have any signage or promotional materials they’d be willing to give you. The free advertising will help build goodwill in the community, and branded signage will make your displays pop.
You can also draw customers to local selections throughout your store using shelf labels that feature your state flag or another image. Or, create handwritten signs that tell a local business’ story in a few sentences.
2. Create Recipe Packs and Bundles
Many people want to eat healthier or cook something new, but get intimidated when searching for ingredients. Make it easy for customers with custom ingredient bundles and recipe packs.
Asian groceries have been doing this for years, with pho spice packs for making broth or pre-packaged Tom Yum packs that include galangal, lime leaves, and lemongrass. In many cases, people are willing to pay a small markup for the convenience of not having to find all the ingredients themselves.
Pair these packs with instructions on the label (or a QR code with a recipe link), and you can make shopping at your grocery store an exciting experience by learning and trying something new.
Here are a few more ideas for ingredient bundles:
- Save your less popular or spare cuts from your butcher for soup and broth-making kits
- Bundle tomatoes, limes, onion, cilantro, and jalapeno for a pico de gallo pack
- Rotating meal kits with ideas from local chefs or staff
- Easy salad mixes with pre-cut veggies and homemade dressings
- House-made spice rubs and marinades
As long as your point of sale (POS) system supports custom SKUs and barcode printing, the only limit to your grocery store ideas is your creativity.
3. Have An Ugly Produce Section
A shocking amount (over 20%) of perfectly good produce is thrown out because it’s not aesthetically pleasing. That’s not only incredibly wasteful, but a complete loss.
Instead of throwing ugly produce out, create an area in your produce section that celebrates their imperfections. Your ugly produce section can offer aesthetically odd produce at a slight discount.
This is tempting for the budget-conscious shopper and shows customers that your grocery store is committed to sustainability and reducing food waste.
Simply program a function for “ugly produce” in your POS system to easily apply the discount at checkout.
Related Read: 4 Technologies Helping Grocers Tackle Waste
4. Use QR Codes on Signage
The majority of Americans have a smartphone, and as a result, QR codes have become ubiquitous in retail — for good reason. They are a great way to quickly link people to websites containing signup information, offers, and educational materials.
Yet, they’re underused by many small businesses. There are various free tools to generate QR codes you can use on customer-facing signage to share things like:
- Links to your newsletter, blog, social media, or website
- Recipes and cooking tips
- Info on local brands and partners
- Discount codes and promotions
- Signup page for your customer loyalty program
If you use QR codes, make sure they’re paired with descriptive text. People won’t be inclined to scan a random QR code, but they will if there’s a friendly message like, “Scan the link below for some recipe ideas.”
5. Use BOGO and Mix and Match Offers for Complementary Items
After running a grocery store for a while, you’ll likely notice a few patterns. For example, customers tend to pair items. Think chips and dips, milk and cereal, or beef and potatoes.
Encouraging cross-selling is a great way to increase cart size and boost sales. In addition to adjusting your store layout, you can use buy one get one (BOGO) offers to drive sales and promote cross-selling.
Last, don’t base your promotions on instinct alone. Use your POS system to get a refreshed view of what items customers frequently buy together — you might be surprised!
Customer loyalty programs are an effective tactic to encourage repeat business by letting customers earn points on purchases or get access to exclusive discounts.
However, arguably the most valuable aspect of a customer loyalty program is the contact details you get. When customers sign up for your loyalty program, you can communicate with them directly.
Take advantage of that by writing a weekly newsletter that shares fun announcements, new product arrivals, and promotions. You can even include a few newsletter-exclusive discount codes to encourage people to stay subscribed.
As your loyalty program grows, use your POS system to see if there are any particular products that your members like more than others. This will help you tailor deals that are specific to them.
7. Host Community Events
If your grocery store is just a place to buy ingredients, it’s harder to differentiate yourself from corporate competitors that do the same thing on a bigger scale.
Host events to make your grocery store a community hub. Events are a great way to connect with customers and promote high-margin items.
Here are some grocery store event ideas to get you started:
- Host cooking classes or demonstrations with local chefs, and then offer the ingredients used at a discount
- Partner with local suppliers for product samplings
- Serve food at cookouts or seasonal celebrations to let people sample your superior ingredients and unique flavors
When you host events, give attendees exclusive discount codes to use in your store. This encourages people to come back and gives you a metric to monitor your events' return on investment (ROI).
8. Offer Ready-To-Eat Meals and Cozy Seating Areas
Another way to make your grocery store a favorite local hangout is to offer ready-to-eat meals and comfortable seating. If you have the space, consider setting up a grocerant with a few tables so people can eat lunch and grab a coffee while they shop.
If the food is good enough, word will spread, and as people come in to sample the food, they’ll probably browse your shelves, too.
Of course, not every grocery store has the space to offer a full quick-service restaurant. However, if you have ready-to-eat sandwiches and drinks, having some cozy seating areas still helps your grocery store feel more welcoming.
Bonus Tip: Need Inspiration? Use Your Grocery Store POS
It’s hard to come up with universal ideas for grocery stores because every store and every community is different. What works well for one neighborhood might not work for another.
So, while the ideas on this list are a starting point, inject them with your personality and local flare to make them work for you.
Still racking your brain for ideas? Try the reports on your grocery store POS. Every time you receive inventory or make a sale, your POS system is collecting data that can be used to improve your promotional strategies.
For example, with the reports on your POS system, you can:
- Identify your best-selling items and product categories
- Spot slow-moving inventory to use in discounts and sales or as part of product bundles
- Discover your peak hours to help plan when to hold in-store events
- Show local suppliers’ sales data to encourage collaboration
…and more.
Schedule a custom demo with our grocery experts today to see how IT Retail’s grocery store POS system can help you make better decisions, cut costs, and drive sales.
