Regional grocers can hold its own against Walmart by emphasising value and neighbourhood appeal, according to a new study by Kantar Retail. The study covered a new Market Basket grocery store in the Northeast along with a nearby Walmart Supercenter to identify how the smaller firm effectively competes with the US giant.

The study looked at basket prices, merchandise assortments, in-store promotions, and overall ambience. It found that while Walmart’s basket was nearly 10% less expensive overall, Market Basket beat Walmart on select promotional items, particularly in its food and private-label offerings, which supported its value positioning using the slogan.

Kantar Retail noted, “Walmart's grip on price leadership was strong, but Market Basket effectively carved a relevant value proposition through assortment and signage to fulfill its shopper expectations”.

The full study, titled ‘Challenging the Behemoth: Assessing a Regional Grocer's Tactics Against Walmart’, can be downloaded from this website.

NamNews - Wednesday 28th July 2010

 

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