1/31/2015
A Tale of Two Grocers
Ellen C. Wells
A new Whole Foods just opened in my old neighborhood, Boston’s South End. On the grounds of the
Boston Herald’s former headquarters—named Ink Block by the plot’s developers as a tip of the hat to the news rag—the Austin, Texas-based grocer’s new flagship New England store anchors some major residential growth in what has become the city’s most sought-after ZIP code. (I sold while the selling was good, before 1,000-plus units in concierge buildings came on the market and a 150-year-old brick rowhouse “garden level” condo was still worth something.)
This 50,000 sq.ft. location is more than just a grocery store, for sure. It’s a tribute to all the ways a person can spend $200 in a 10-minute trip to pick up organic unsweetened soymilk and a free-range rotisserie chicken. There’s the pickle bar, for starters, and olives for days. It’s also the first Whole Foods to carry spirits. Not the spirits of Pilgrims, of course, but the kind of spirits that would have Boston’s founding generation rolling in their graves. Grocery stores in Massachusetts aren’t allowed by law to carry hard alcohol, by the way. Not sure how they managed to skirt that little issue.
Oh dear, I have neglected to mention the full-service spa. While your swordfish is filleted, your lamb crown roast is artfully crafted and your kale and chia squeezed into juice, you can treat yourself to a mani-pedi, or even a hot shave and shoe shine. You’ve heard the phrase, “Retail as theatre.” Retail as spa is the next iteration.
Two miles down the street—and just a 10-minute walk from my new place of residence—a different neighborhood awaits the opening of its new grocery store. Tropical Foods Market doesn’t have 30 stores in Massachusetts. They have maybe just two locations. This new store is situated in the same parking lot as the store it is about to replace. The older store is more of a small corner market and … well, let’s just say I wouldn’t buy anything in there that wasn’t properly sealed, and certainly nothing in the vegetable and dairy departments. As the store’s name suggests, it specializes in tropical foods, and also in supplying foods and brands that are found in the “tropical” areas of the Caribbean, South America and Africa—where many families in the neighborhood originate. It may not have a pickle bar, but they have mountains of yucca, cassava and plantains.
Both grocery store openings have been eagerly awaited, and both stores are desperately needed. Whole Foods is anticipating the needs of about 3,000 new residents plus thousands more current neighbors who want a convenient, catered experience. Meanwhile Tropical is expanding to keep up with current demand, improve the shopper experience and to better provide the neighborhood with fresh food in what is otherwise a “food desert.”
My point? Both retailers know their customers and are endeavoring to serve them as best they can. And as a result, these stores are very different in their character. In fact, they couldn’t really be more different from each other and still both be grocery stores. If Tropical and Whole Foods were more similar in character and customer, then their next best strategy would be to compete on price. And you know where that gets you.
As you prepare for the spring season, take a really good look at your store. How are you different from the garden center down the street? Are you catering to your specific type of customer, or are you competing for the same customer, i.e., finding yourself in a price war? If you want to ease what seems to be an ongoing battle, see how you can not just change who you are as a retailer, but also what customer may be underserved in your market. Then go get her.
GP