Specialty Retailers Should Lean Into Community

Retail architect Kevin Kelley of ShookKelley emphasized the importance of human connection and experience when designing grocery stores, during “Retail’s Hidden Strength: Convening Consumers in Place,” on the Show's Big Idea Stage, Monday. He argued that getting people to feel a sense of belonging drives grocery purchases and a loyal customer base.

During the event, Kelley noted that, beyond meeting basic needs, small- and medium-sized grocers can thrive by offering immersive experiences tied to their brand identity. He has worked on many projects involving regional and national grocers and convenience stores, helping them find their voice while driving sales.

“There will be three players that win on price and everybody else that tries to talk about price is just flattering the three,” said Kelley. “What you need to do is give people ways to cope through tough times, to give them meaning in a life that sometimes seems meaningless, and food is the great thing that bonds us and connects us and gives us a social payoff that is bigger than the price payoff.”

To create community, Kelley asserted that today’s grocers must have a viewpoint on food that is endemic to food philosophy.

He provided the regional Canadian chain Freson Bros. as a case study for this success. Before working with the founder, the brand lacked a sense of community. Plus the store was in a clutter: padlocks were merchandised next to chicken, and picture frames next to meat. Although photos of members of the family-run business were on the wall, Kelley said that these tactics did not work.

“If you can’t touch community, then it isn’t real,” he said.

After a dinner with the owner, Kelley saw he was passionate about the art of butchering and smoking meats and redesigned the store with that in mind. The redesign brought in a smokehouse and diverse meat program that sourced local meats. Store profits exploded after the store leaned into its identity, and began offering a specialty experience for its local community, he said.

Their in-store brand, Mother Dough Baking Co., even grew in popularity so much it became a standalone foodservice location.

“The market was not able to compete on price or variety; however, it could charge a slight premium for a differentiated product,” Kelley explained.