Considerations for the Future
The RPI rank reveals which retailers’ customer value propositions are best positioned for future, long-term market success
Quality Isn’t Enough… Especially for Quality Focused Retailers
Quality-First Regionals and those Leaning on Quality are closing gaps with Quality-First Non-Conventionals. Savings-First retailers are closing quality gaps to the rest of the market, while bringing their savings advantages with them. With quality convergence occurring in the market and satisfaction with quality already relatively high in the market, focusing on delivering a great overall Quality/Savings equation needs to be the focus.
Choose A Lane and Clearly Differentiate…Then Expand Carefully
The Undifferentiated regionals and those retailers merely leaning in one direction or the other have slow growth and weak emotional connection. However, the Quality-First Non-Conventionals struggle to build per customer share of wallet and broaden their appeal, which limits their market share ceiling and leaves them exposed, should their core missions lose some appeal. Smart expansion into adjacent missions beyond their focus today is a must.
Digital Enhancements and Online Offerings Are Not a Must Have
Trader Joe’s, Market Basket and WinCo – and up until only recently Aldi – deprioritize or even completely ignore these pursuits because they excel at the Value Core: delivering an excellent Quality/Price equation and a consistent in-store experience. However, digital investment can enhance your value proposition and should be pursued, if it doesn’t take focus away from quality assortment and/or savings.