It might be tempting to slash margins just to match the prices of the big-box supermarket down the road, but competing on price alone isn’t a sustainable way to keep customers coming back.
Instead, independent grocers can offer what big chains often can’t — personal service, curated products, and a shopping experience that they can’t find anywhere else.
From specialized offerings to personal connections, this article breaks down practical ways small grocery stores can thrive by leaning into what makes them one-of-a-kind.
How To Compete With Big-Box Supermarkets in 2025
Customers shopping at big-chain supermarkets may find lower prices, but that doesn’t mean they’ll find products that truly match their lifestyle or taste preferences.
Big chains spend millions trying to understand their customers, but you get this valuable info firsthand — through real conversations at the register and around the store. That personal connection is your greatest advantage.
Related Read: How To Manage a Small Grocery Store: 7 Tips & Tools
Independent stores can also tap into the growing preference for shopping local, keeping more money in the community, supporting neighbors and small businesses, and strengthening the local economy.
Below, we’ll outline five practical ways to turn these strengths from mere observations into legitimate action.
1. Offer Products Big Chains Can’t Match
Independent stores can compete by carrying products that big-box supermarkets don’t — or can’t.
Specialty, local, artisanal, or private-label items can better meet shopper lifestyles, maintain healthy margins, and help your business stand out.
These offerings also support smarter pricing. A $12 small-batch jam costing $6 wholesale gives a 50–60% margin, letting you offer value while staying profitable.
Big chains can’t stock unique items in small quantities or source local goods, so your curated selection gives shoppers a reason to choose your store over a cheaper alternative.
Here are some ways to identify and stock unique products:
- Visit competitors regularly and note which categories or niche items are missing — and how your store can fill those gaps.
- Ask customers directly what products they want and offer loyalty points for completing a short interest survey.
- Connect with local farmers or small producers to source items not carried by large chains.
- Test small-batch or seasonal products to see which items drive repeat purchases.
- Work with suppliers or co-packers to develop private-label products that reflect your store’s identity, such as branded pantry staples, specialty snacks, or locally-inspired offerings.
Meeting customer demand isn’t “set it and forget it.” Track trends with your point of sale (POS) system, collect feedback, and focus on stocking items shoppers continuously reach for. As a general rule of thumb, aim for a 70–80% sell-through rate within two weeks for seasonal products to keep inventory moving smoothly.
Once you’ve curated a product mix that works with your financial plan, the next step is to make it even easier for folks to shop through channels like online ordering, delivery, or pickup.
2. Develop a Targeted E-Commerce Strategy
E-commerce isn’t just for massive supermarket chains — in fact, it’s quickly becoming table stakes for most shoppers.
With online grocery sales hitting a record $12.5 billion in 2025 and climbing 31% year over year, independent stores can’t afford to miss out on this growing segment of customers.
Bonus Resource: Grocery E-Commerce: Top 4 Industry Trends
Online ordering, pickup, and delivery help smaller stores match the convenience of larger franchises, but it can be difficult to know where to start. Luckily, many industry-specific POS systems include built-in e-commerce tools that keep online and in-store inventory aligned, making it easier to sell across channels without extra work.
With a backend system in place, here are a few additional e-commerce strategies to implement:
- Set up designated pickup and dropoff areas so customers know where to go to receive orders quickly and safely.
- Promote your e-commerce offerings through digital channels, including email newsletters, social media, and in-store signage.
- Use digital-only coupons or promotions to drive online orders and increase customer engagement.
- Allow subscription or preorder options for seasonal or limited products to keep shoppers coming back regularly.
- Track customer behavior to tailor recommendations, highlight popular items, and improve overall service.
Pickup and delivery are only convenient if your store runs them well. Train staff on how to properly pack and prepare orders, and set clear procedures for order accuracy, timing, and customer communication to ensure a positive shopping experience.
Once logistics are running smoothly, you can layer in targeted marketing, rewards programs, and engaging in-store experiences, giving customers multiple reasons to return — whether they start their shopping journey online or in person.
3. Build Loyalty Through Personal Connection
Grocery shoppers, in particular, show strong loyalty to stores. A recent survey found that 53% of grocery customers are more loyal to merchants than to individual products.
You can strengthen these connections by remembering regular shoppers’ preferences, offering personalized recommendations, or giving early access to seasonal items they love.
Here are some ways to strengthen loyalty through personal connection:
- Use POS data to set up loyalty points on high-turnover or seasonal items (e.g. 2x points on locally-sourced produce or weekly staples).
- Give a small reward or free item for a customer’s birthday or rewards program anniversary.
- Recommend complementary products based on past purchases, like a particular pasta with a local sauce.
- Alert regulars when limited-stock or new local products arrive before they’re available to the general public.
A well-designed loyalty program strengthens these efforts. Even if competitors offer lower prices, repeat buyers keep coming back for points and discounts on their favorite items.
Unlike big-box chains that rely on broad, one-size-fits all promotions, you can create targeted offers, alert customers when their favorites are back in stock, or give early access to new products — all managed through your POS system.
4. Curate Memorable In-Store Experiences
Classes, tastings, or unique in-store promotions can set your store apart, making it a destination for shoppers while also letting you showcase products in a hands-on way.
Consider hosting events that make sense for your business and target audience, like a gingerbread house workshop for kids, seasonal cocktail nights, or Valentine’s date night with chocolate, strawberries, and champagne.
You can also set up booths at local fairs, hand out flyers for in-store deals, and use these moments to sign up more loyalty members.
Here are a few tips to garner attention and make the most out of your events:
- Promote events weeks in advance using customized receipts, social media posts, email newsletters, and in-store signage to get people excited early.
- Highlight the products featured in the event, using POS data to focus on bestsellers, seasonal items, or limited-stock goods.
- Offer incentives for loyalty program sign-ups or referrals during the event to convert attendees into repeat customers.
- Capture photos and short videos during the event to share online, in newsletters, or on social channels.
- Collect feedback after the event through surveys, quick polls, or casual conversations to refine future experiences.
POS data is a valuable resource when planning these in-store experiences. Reports can show which top-selling or seasonal items to feature, and help you decide how to promote the event both digitally and in store.
You can use the data to target loyalty members with personalized invites, highlight items that pair well with the theme, and even track which products generate the most interest during the event — giving you insights for future promotions.
5. Implement Community-Focused Marketing Campaigns
Marketing at a local grocer doesn’t need the scale or budget of big-box retailers.
Instead, it’s a chance to highlight your offerings, reach the right customers, and strengthen your community presence — without blowing your entire budget on paid ads.
Related Read: 5 Point of Sale Marketing Ideas for Grocers (+ 5 Creative Uses for POS Data)
Start with a clear, measurable goal, like boosting loyalty program sign-ups by 20% in six weeks. Tie promotions to strategic pricing, such as limited-time bundles or discounts on high-margin items.
For example, instead of matching a competitor’s single-item deal, pair a popular craft soda with a local snack — adding value while preserving margins. POS data can help you determine which offers to send to which customers, rather than just implementing blanket discounts.
Here are some additional tips to make your marketing strategies stand out:
- Highlight new arrivals or seasonal items in weekly email newsletters, social posts, and in-store signage to notify shoppers of the latest deals.
- Segment promotions using POS data to target frequent buyers, loyalty members, or occasional shoppers.
- Partner with local business owners to cohost events or cross-promote products.
- Create exclusive online deals with short redemption windows and encourage followers to share with friends for extra reach and engagement.
- Track campaign results to see which drive more in-store visits or online orders, and refine messaging and timing as needed for future promotions.
Throughout your campaigns, track relevant metrics like email open rates, click-throughs, social engagement, or redemption rates to see what’s working. Marketing is inherently experimental, so use each initiative to test new ideas, get creative, and showcase your store’s unique brand.
Partnering with local artists, content creators, or other community figures can also amplify your reach, all while keeping your store at the center of the conversation.
See How the Right Technology Drives Results
Local stores don’t need to survive on even slimmer margins to succeed. Instead, it’s about getting creative and leaning into your niche.
Whether your store specializes in regional products, offers a compelling loyalty program, or provides personalized service that big chains wish they could match, these differences all add up — especially when powered by a POS system built specifically for grocers.
Markt POS understands the needs of independent grocers, offering everything you need to stay competitive in 2025. Compare plans to find the best setup for your store — with features that can grow alongside your business.
by Luke
by Joel