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How can I save this brick and mortar business?

by BillyBee
12 replies
I friend of mine owns a grocery store and the economy is really killing his business. If he can't turn things around he will have to sell the store. He's already looking into doing that and has picked up an additional job to make ends meet.

It's a small market in a wealthy neighborhood and his business has dropped because everyone shops at the major supermarket chains to save money rather than walk to his neighborhood store, which is more convenient but can't compete price-wise.

Since I'm a friend of his and have been marketing online full-time for a few years, I was wondering if I could come up with something to save his business.

I have never done the "offline" business model, so I thought I'd ask for ideas in here.

Any advice?
#brick #business #mortar #save
  • Profile picture of the author jtgjustin
    Originally Posted by BillyBee View Post

    I friend of mine owns a grocery store and the economy is really killing his business. If he can't turn things around he will have to sell the store. He's already looking into doing that and has picked up an additional job to make ends meet.

    It's a small market in a wealthy neighborhood and his business has dropped because everyone shops at the major supermarket chains to save money rather than walk to his neighborhood store, which is more convenient but can't compete price-wise.

    Since I'm a friend of his and have been marketing online full-time for a few years, I was wondering if I could come up with something to save his business.

    I have never done the "offline" business model, so I thought I'd ask for ideas in here.

    Any advice?
    Go to the major supermarket at 3am with plenty of gasoline .. you know the drill.
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  • Profile picture of the author leogood
    I don't think so. The supermarkets were always there and he was doing well before. Something must have gone wrong - maybe the quality of the goods, cleanliness of the store etc etc.
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    • Profile picture of the author BillyBee
      Originally Posted by leogood View Post

      I don't think so. The supermarkets were always there and he was doing well before. Something must have gone wrong - maybe the quality of the goods, cleanliness of the store etc etc.
      This is not true. I'm in that store every day and nothing has changed.

      You don't think any struggling business can be saved with some new and innovative marketing ideas? Or just not this one?
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  • Profile picture of the author leogood
    Also wealthy people are not affected by the economy.
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    • Profile picture of the author BillyBee
      Originally Posted by leogood View Post

      Also wealthy people are not affected by the economy.
      Hah!! If that were only true. Everyone is watching their money these days, don't kid yourself. You'd be surprised how many affluent people shop at Costco.
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  • Profile picture of the author Rich Struck
    I've always been amazed at how really nice high end smaller grocery stores are able to not only survive but actually flourish even with big box stores in spitting distance. They don't even try to compete on price. If he's in a wealthy neighborhood, that might be the way to go.
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    • Profile picture of the author BillyBee
      Originally Posted by Rich Struck View Post

      I've always been amazed at how really nice high end smaller grocery stores are able to not only survive but actually flourish even with big box stores in spitting distance. They don't even try to compete on price. If he's in a wealthy neighborhood, that might be the way to go.
      That's a good point, Rich. I've noticed that with other high end stores, too. The problem with this guy's store is that it does not LOOK high end.

      I'm just wondering if there is some sort of local "Groupon"-type strategy or something I could do for him.
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  • Profile picture of the author SamirSM
    Originally Posted by BillyBee View Post

    I friend of mine owns a grocery store and the economy is really killing his business. If he can't turn things around he will have to sell the store. He's already looking into doing that and has picked up an additional job to make ends meet.

    It's a small market in a wealthy neighborhood and his business has dropped because everyone shops at the major supermarket chains to save money rather than walk to his neighborhood store, which is more convenient but can't compete price-wise.

    Since I'm a friend of his and have been marketing online full-time for a few years, I was wondering if I could come up with something to save his business.

    I have never done the "offline" business model, so I thought I'd ask for ideas in here.

    Any advice?

    I have a couple of suggestions (unless they have already been implemented):

    1.Take online orders

    2.Offer home delivery

    Apart from that you may also offer delivery of the supermarket goods for cheap rates.
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    • Profile picture of the author halmo
      The wealthy always has money, regardless of the economy. The key is that your friend shouldn't offer the same things as the big stores. He should offer items at high prices (yes, you read it right), that are targeted for the wealthy (things that people can't buy at the regular stores. e.g specialty cheese, caviar, specialty European pastries, specialty wine, etc.). It could become, although not necessarily, like what they call in Europe a "Delicatesse" store.

      He could offer some of the basic things too, such as milk and bread. This would serve two purposes: 1. The current buyers who still go there for milk and bread will see that he now has specialty items that they can't buy anywhere else. 2. It will provide convenience for the people who will start going there for the specialty items because they can still pick up some bread and milk.

      He should advertise accordingly. Target the appropriate buyers Pricing is interesting. If you compete on price, you will always get the low-end buyers, and you always sell basic commodities. If you sell high quality items, the higher the price, the more you sell because the high price gives high-end customers CONFIDENCE that they are getting high quality items. People who have the money to spend will rather pay $100K for a Mercedes than pay $40K for a Honda. They want the quality, and high enough price for a rare item automatically instills a feeling of high quality.

      If it's a wealthy neighborhood, this should be a good opportunity.

      I have done a lot of offline advising. Feel free to PM me.
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  • Profile picture of the author Barry Unruh
    Originally Posted by BillyBee View Post

    It's a small market in a wealthy neighborhood and his business has dropped because everyone shops at the major supermarket chains to save money rather than walk to his neighborhood store, which is more convenient but can't compete price-wise.
    It is called niche marketing.

    Here is his problem. He has chosen to compete in a market which is filled with larger, more prosperous, and cheaper options.

    Here is his solution. Quit selling what they are selling. I used to work in a Kroger Store, stocking shelves part-time, as a second job. In our small community we had 2 Kroger stores and a Walmart which had full grocery services. 20 minutes away were dozens of other Kroger Stores and dozens of additional Walmarts.

    In our small community there was a bakery which thrived. A small meat store which supported the owners and a few employees. A specialty spice store was on the other end of town and was thriving. A donut shop which people drove to from other towns. These stores are all going great guns today.

    The Kroger store managers wanted to put these places out of business. They actually "forbid" their employees from shopping in them. (Which was mostly ignored.)

    These stores flourished because they discovered niches within the market which were under-served.

    The meat in this little store was 20% higher at a minimum. The bakery was 30% higher than the Kroger bakery. The spice store was at least 100% higher.

    What they had was QUALITY, SPECIALTY, and SERVICE! Kroger had their piece of the market in those areas, but these stores never worried about Kroger or Walmart. They knew their clients were not buying "normal groceries" but were buying "specialty items".

    Now, if he can figure out how to become specialized in his departments, then you have a real story to tell.

    He needs a Facebook fan page for the local community. He needs to create RAVING FANS which spread the word.

    I hope his niche does not remain "groceries" because he will be eaten alive...

    Good Luck,

    Barry
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    • Profile picture of the author BillyBee
      Originally Posted by Barry Unruh View Post

      It is called niche marketing.

      Here is his problem. He has chosen to compete in a market which is filled with larger, more prosperous, and cheaper options.

      Here is his solution. Quit selling what they are selling. I used to work in a Kroger Store, stocking shelves part-time, as a second job. In our small community we had 2 Kroger stores and a Walmart which had full grocery services. 20 minutes away were dozens of other Kroger Stores and dozens of additional Walmarts.

      In our small community there was a bakery which thrived. A small meat store which supported the owners and a few employees. A specialty spice store was on the other end of town and was thriving. A donut shop which people drove to from other towns. These stores are all going great guns today.

      The Kroger store managers wanted to put these places out of business. They actually "forbid" their employees from shopping in them. (Which was mostly ignored.)

      These stores flourished because they discovered niches within the market which were under-served.

      The meat in this little store was 20% higher at a minimum. The bakery was 30% higher than the Kroger bakery. The spice store was at least 100% higher.

      What they had was QUALITY, SPECIALTY, and SERVICE! Kroger had their piece of the market in those areas, but these stores never worried about Kroger or Walmart. They knew their clients were not buying "normal groceries" but were buying "specialty items".

      Now, if he can figure out how to become specialized in his departments, then you have a real story to tell.

      He needs a Facebook fan page for the local community. He needs to create RAVING FANS which spread the word.

      I hope his niche does not remain "groceries" because he will be eaten alive...

      Good Luck,

      Barry
      That's a great response, Barry, thanks! I think you're right on.
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  • Profile picture of the author HeySal
    Looks like Barry got here first with my train of thought. Rich people entertain. They want impressive gourmet foods they can't get at the local grocery. They are also more able and willing to pay for natural and organic foods - and locally grown if he knows people with a greenhouse or is located where food can be grown year round.

    I go nuts looking for stores that sell things like sesame tahini or organic crackers, cheese blends, and breads. It can even be a hastle finding grape leaves sometimes.
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    Sal
    When the Roads and Paths end, learn to guide yourself through the wilderness
    Beyond the Path

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