Study: Regional Grocers Can Compete With Walmart

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July 27, 2010

Regional grocers such as Tewksbury, Mass.-based Market Basket, can compete with the likes of Walmart by focusing on store brands, value and neighborhood appeal, according to a new study by Kantar Retail.

Cambridge, Mass.-based Kantar Retail compared a Walmart Supercenter to a 76,000 square-foot Market Basket in Epping, N.H., and found that although Walmart claimed price superiority (10 percent cheaper overall), Market Basket beat Walmart on its store brand pricing and select promotional items, according to a Supermarket News report.

Market Basket’s focus on value, which it communicates effectively with signage and its product assortment, remains true to its slogan, "More for your dollar," according to Kantar.

The "use of personal appeals, handwritten signage and a neighborhood style established Market Basket as not only more regional and authentic, but also as more engaged with shoppers,” Kantar found, compared to Walmart’s more sterile and uniform store environment.

"It is this connection that Market Basket may leverage to develop shopper loyalty, thus providing the means to maintain its shopper base or at least share of wallet," according to Kantar.

Market Basket, a family owned business since 1917, operates 65 stores in New Hampshire and Massachusetts.

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