MUNCIE, Ind. - Older shoppers and Generation X consumers hold the key to survival for many small grocery store chains and independent outlets, says a Ball State University researcher.

A new survey points out the two groups are natural markets for small operations to target in order to survive an increasingly competitive industry, said Joseph Brown, marketing professor.

“Key survival strategies do exist for the small chains and independents,” he said. “In order to survive the price competition from the mega giants in the grocery business, smaller chains and independents must stress target marketing and customer service.”

His survey of 300 grocery store shoppers confirms that patrons of smaller chains and independents expect these strategies.

The survey found:

• A distinct market exists for smaller chains and independents.
• Low prices is the distinct reason shoppers patronize large supermarkets, super centers and warehouse clubs.
• Shoppers at smaller grocery store chains seek price savings by reading advertisements and using coupons.
• Small grocery store patrons seek good customer service and stores that are modern, offer take-home food and are open around the clock.

Grocery store managers should target older shoppers and Generation X consumers because these people are looking for particular conveniences when they shop, Brown said.

“Seniors are long-time small grocery store shoppers because small outlets were their only source for groceries for many years,” he said. “In serving seniors, retailers should stress small product sizes in promotions, provide help to reach products on top shelves, offer seating areas and hires retirees for part-time work.”

Generation X consumers are a key market because they seek many of the same conveniences, plus take-home food and 24-hour service, Brown said.

Loyalty programs also would be successful in attracting and retaining these two groups. Other areas of customer service include friendly employees, convenient parking, carry-out assistance, extremely clean stores and a good image in the community.

“In stressing customer service, smaller operations should position themselves in the communities and neighborhoods as the customer service leader in the market,” Brown said. “Retailers should continuously track the customer service perception.”

Brown’s survey will be published in an upcoming edition of the Journal of Food Marketing.

(NOTE TO EDITORS: For more information, contact Brown by e-mail at jbrown@bsu.edu or by phone at (765) 285-5192.)