It could be called the “ply” model — as in, “ply your wares with digital technology.” This model seeks to offset the scale advantages of Amazon and Walmart by leveraging the distinctive capabilities of a local grocery store: a supply chain fed by full-truckload shipments (which Amazon lacks); dynamic pricing and promotion (which Walmart disdains); and the ability to command intensive loyalty from shoppers, because of its local community knowledge, customer segmentation, and product customization. To compete in the coming decade against the twin disruptions of Amazon and Walmart (and their equivalents), today’s grocers and supermarkets need to return to the customer-centric mind-set of their 19th-century predecessors, while making the most of today’s digital tools.
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