Also from Max Goldberg...
March 5, 2010
FROM RETAILWIRE:
Over the past generation, stores lost their individuality, becoming homogenous and undifferentiated. A major factor in this lack of personality came when stores began selling space for advertising. To what degree is co-op advertising responsible for any sameness seen across supermarkets?
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I don't know of any major grocer that is not striving to be relevant, consistent and accessible, and yet, with few exceptions, the stores still look and feel the same.
This is from the growth of national brands and brand consolidation; from retailers' decisions to charge slotting fees that keep local, different products off the shelves and out of prime shelf space; from endless brand extensions, rather than true innovation; and from a decision to sacrifice great customer service for lower prices.
Differentiation is occurring in the non-majors like Trader Joe's and Whole Foods, where the stores and their personnel have a different feel and way of interacting with consumers. These are stores where national brands do not dominate and where the employees really seem to care about customers.
The majors are going to need to be more than relevant, consistent and accessible to win back customers.