Grocery stores that offer the convenience of a coin counting machine on their premises may have a better shot at maintaining a competitive edge in an increasingly competitive industry.
In the past, residents of cities throughout the U.S. have relied on a small number of large, nationwide food service chains for the majority of their household needs. A handful of companies would compete on a regional basis to offer a wide variety of options at low prices. However, the grocery industry has become much less homogenized in recent years, as smaller stores suddenly find themselves attracting a substantial number of local shoppers.
This trend is most evident in the recent growth of Dollar General stores throughout some regions of the U.S. According to CBS News, the variety store chain, which previously specialized almost exclusively in non-food items, recently decided to open a handful of full-scale grocers in Florida to expand business opportunities. The Tampa Bay Tribune said not only is the company hoping to attract customers of more established stores such as Wal-Mart and Target, but Dollar General is also touting its reputation for low prices to more directly compete with other enterprises.
The newspaper said Dollar General has already built 100 of these new prototype stores. In fact, data compiled recently by the market research firm Kantar Retail showed the new stores have already taken Wal-Mart's position as offering the lowest prices for grocery items.
Grocers must look for other ways to attract business
As the industry becomes more competitive throughout the U.S., stores will have to rely on much more than pricing to get customers through the door. While excellent service and quality produce options are always a plus, additional amenities such as self-service coin counting machines can also be highly effective in improving long-term retention rates. A recent article in the Columbia Daily Tribune, which is based in Columbia, Mo., said grocery stores must establish a reputation early on for being a go-to destination for local residents who want to complete a number of errands in a single trip. The more options a business is able to provide, the more likely it will experience a steady increase in sales. These stores may ultimately have a steadier advantage over their competitors as well. By attracting customers who simply want to be able to turn their collected change into cash, grocers will have opportunities to sell more items and increase profitable revenue.
January 10, 2014