I ran across a post in The Experience Manifesto blog that talked about a recent NY Times article on the identity crisis facing many supermarkets.  It seems that being a one-stop shop for groceries isn’t working so well anymore for the big chains like Kroger and Safeway, as they face competition from both the bottom (Wal-Mart) and the top (Whole Foods):

Now, the traditional supermarkets are trying everything they can think of to turn things around and win back customers. In a nod to Whole Foods, they are adding more organic and natural food items and selling more prepared foods for quick lunches and dinners. And they are cutting prices.  In a nod to Whole Foods, they are adding more organic and natural food items and selling more prepared foods for quick lunches and dinners. And they are cutting prices.  (Emphasis mine).

Let’s get this straight.  Traditional grocery stores, whose business model was built upon being all things to all people, have decided they can beat both Wal Mart and Whole Foods?  Since when can you win by competing on both service and price?

My advice, if you are looking for a new business, is to find one that can use an empty grocery store building, because there are going to be quite a few around. 

And if you are a lawyer?  Recognize that unless you dump hourly billing and leverage your productivity, the low-price battle is lost.  That leaves service as the only competitive advantage we have. 

Be Whole Foods, not Kroger.