The Independent’s Playbook: Delivering Real Value

By Jim Dudlicek / NGA Managing Editor and Content Strategist

Independent grocers hold an enviable position in the marketplace. They typically have an edge over their national chain and big-box competitors when it comes to quality, service, specialty offerings and bringing a personal touch to the shopping experience. As the heart of their communities, independents are held in high esteem.

Price is the one point on which independents are often at a disadvantage, with those other components of the shopping trip combining to deliver a greater overall value.

However, the persistent effects of inflation seem to be influencing the shopping habits of folks in higher brackets.

According to a recent report by Brick Meets Click and Mercatus, a growing base of affluent households was a key driver of Walmart's strong growth through the first half of 2024 due to higher order frequency and higher spending than other customer segments, even as lower-income households remain Walmart's core online grocery customer segment.

"Regional grocers risk losing more of the business that's driven by affluent customers to Walmart if they don't effectively address shifting expectations," said Mark Fairhurst, chief growth officer at Mercatus. "To retain existing affluent shoppers and possibly attract others, grocers need to strengthen their value propositions by offering unique products, personalized promotions, exceptional service, and enhanced digital experiences that elevate customer satisfaction."

The latest edition of Profiling the Online Shopper: eGrocery Purchase Patterns in the U.S. analyzes how household penetration, spending and order frequency for online grocery have shifted between the first half of 2024 and the same period in 2023 for four major retail formats: supermarkets, Walmart, Target and hard discount.

While households making less than $50,000 annually accounted for 41% of Walmart's average monthly active users, Walmart's most affluent segment - households with at least $200,000 in annual income - expanded to 8%, growing almost five times faster than the 4% year-over-year growth for its overall base.

"Affluent households that shop online for groceries at Walmart spend 1.5 times more each month than households in the lowest income bracket, making them a very attractive customer segment to target and win over," said David Bishop, partner at Brick Meets Click.

Independent retailers would be wise to heed Fairhurst's warning and double down on those aspects of the shopping experience that set them apart from their large chain competitors. Effectively deliver and communicate the service you provide, the quality you deliver and your unique offerings that can't be found elsewhere, like local specialty produce, custom-cut proteins and chef-inspired prepared foods.

Solve their problems, identify with their challenges and always be the answer to, "What's for breakfast, lunch and dinner?"

By the way … if you're communicating those messages in effective and innovative ways, consider entering NGA's Creative Choice Awards.

Tell us how your latest marketing and merchandising campaigns enhanced your consumer engagement and your bottom line. You can win recognition among your peers and have your efforts celebrated at the 2025 NGA Show.

This year's awards feature new categories and additional opportunities to win. Enter today - nominations are being accepted through December 20.

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