The Neighborhood Changed

Dr. Max Case Study

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With the migratory nature of most of America’s urban communities is become increasingly important for a business to be able to mirror the demographics of the neighborhood. Retailers in most American cities are facing this need with varying degrees of success. One grocery store has found a way to retain long-term customers while attracting new customers through not-so-subtle changes to the merchandise mix.

The Symptoms.

A grocery store saw their neighborhood move from predominantly white to a white minority with Latino and Black majorities.

The Diagnosis.

With a three-mile distance between them and the next closest store it would have been easy to assume the customers had no other choice for their shopping needs. That would have been a dangerous gamble. Therefore a plan was instituted that called for changing the merchandise mix and marketing to one that was able to make two cultures comfortable and anxious with regard to shipping there.

The Prescription.

Their advertising has changed over the years to one that appeals to the distinct tastes of their new Hispanic and African-American customer base. It is not an easy feat given taste differences between the two demographics. The magic behind the store, which is one of the largest volume grocers in the state, is blending the commonality of the two demographics with the uniqueness of each. At the same time the store has taken its interior signage bilingual. This aligns their external marketing and signage to the interior signage to create a welcome image throughout the store.

Future Prognosis.

The results of the reinvention has been very good for the store. Not only have they survived the shift in the neighborhood demographics of its customer base they have seen continual sales increases. Despite being an independent grocer, the store became one of the highest grossing stores in the city.

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