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Implementation of Digital Strategies is Helping Smaller Retailers Finally Compete Against Big Box Stores

Independent retailers are enhancing their competitiveness against big box stores by adopting digital strategies. These digital investments are focused on improving customer experience and optimizing operations, allowing smaller businesses to level the playing field. The use of technology expects to blur the lines between small and large retailers through innovation.

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By Sarah Jarvis · · Bix Box StoresDigital InnovationDigital StrategiesEagle Eye
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Key takeaways

01

Smaller retailers are using digital strategies to compete with big box stores.

02

Technology investments enhance customer experience and streamline operations.

03

Digital innovation is key to leveling the playing field for small businesses.

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Some smaller brands and boutiques are setting examples that larger corporations could follow. Smaller and mid-sized retailers are now effectively competing against their larger retail counterparts by utilizing digital innovations. By implementing digital strategies, smaller retailers are enhancing customer value and operational efficiency.

By implementing digital strategies, smaller retailers are enhancing customer value and operational efficiency.

On an informative segment of an Experts Talk retail roundtable to highlight how smaller stores are creating new waves, Sarah Jarvis, a Retail Marketing and Loyalty Expert at Eagle Eye, outlined a critical role of digital integration in physical retail environments. Jarvis explained how data-driven decision-making is revolutionizing business operations and customer engagement. She particularly noted how the restaurant chain, Pret a Manger, boosted their sales and expanded their customer base with the use of digital promotions. She further highlighted how today, digital strategies stand at the core of business operations.

Digital strategies stand at the core of business operations.
— Sarah Jarvis, Retail Marketing and Loyalty Expert at Eagle Eye

"… They're using then, all of the data that they're harnessing on their customers to run the rest of the business better. So in terms of where should they open new stores, what product or fridge should they have, what day part should they be focusing on. They've got the connection and that customer data to be able to answer those questions that previously would have been impossible to answer on anything other than kind of gut feel," Jarvis said.

Video TranscriptExpand ↓

Well, to bring this to a smaller business or or, because we're talking big box, but, to loop this around to smaller, more niche stores, considering the growth that we're seeing, across the board of the big box, I mean, what lessons could maybe the smaller retailers or even, boutique brands opposite end of that, are there areas where smaller entities are leading the way that the big players, could learn from? I think one of the interesting the retailers who are doing this really well and harnessing the digital connection, they're doing it because they know that a digital connection with their customers is incredibly valuable. And a customer who shops as an omnichannel customer tends to be significantly more valuable than a customer who is a single channel shopper only. Some of the brands that we're working with interest in the art, like, high street food and beverage chains. So we work with the likes of Pret a Monge in the UK. They've got about four hundred and fifty coffee sandwich shops. And they, a few years ago, actually, in the middle of the pandemic, because we were coming out of the first wave of lockdown, launched a coffee subscription program that's through digital. And now three years later, they're seeing about forty two percent of their total sales come through digital channels, which for business that is one hundred percent brick and mortar mortar was kind of unimaginable a few years ago. And I think the learning really for them has been that they've put digital at the heart of how they run their physical store business, and they're using that connection with the customer to deliver a better customer experience, a better employee experience because things are happening in the store much more quickly because consumers prepaid for their coffee, etcetera. So that's like a barrier to, to speed taken away. And they're using then all of the data that they're harnessing on their customers to run the rest of the business better. So in terms of where should they open new stores, what product or fridge should they have, what day part should they be focusing on. They've got the connection and that customer data to be able to answer those questions that previously would have been impossible to answer on anything other than kind of gut feel.

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Sarah Jarvis
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