While there’s no denying that it’s hard to compete with the worlds largest retailer Bentonville based Walmart, a new report from Kantar Retail says that retailers with personality, Private Brand choices and consistent attention to low prices may actually be more appealing.
Its study, “Challenging the Behemoth,” compared Walmart to Market Basket. Market Basket is a chain of 65 supermarkets in New Hampshire and Massachusetts. It has stores from central New Hampshire to Bristol County, Massachusetts with headquarters in Tewksbury, Massachusetts. Supermarket News ranked DeMoulas/Market Basket No. 43 in the 2010 “Top 75 North American Food Retailers” based on 2009 fiscal year estimated sales of $3.0 billion.
Like Walmart, it’s made low prices the center of its positioning, using a stripped-down store layout and a “More for Your Dollar” tagline to appeal to shoppers. On the same day, Kantar execs visited both a Market Basket and a Walmart Supercenter in Epping, NH, comparing the two stores on four attributes: Basket analysis, merchandise assortment, endcap promotions, and store ambiance.
Walmart was the clear winner in many ways, notably on price, with a basket of identical branded items 9.5% less expensive than Market Basket’s. But Market Basket’s prices were also aggressive and competitive, particularly in food. And it performed better on Private Brands, which were 5.3% more expensive at Walmart.
Perhaps more surprising was that the smaller store also offered more variety, with more choices in both brands and Private Brands in two of three categories.