Matching competitive strategy with grocery store format: an investigation of the performance implications

Abstract

This paper examines the performance implications when grocery store format is compatible with Porter's (1980) generic strategy that is realized among 131 firms in the US grocery industry. Superstores and regular supermarkets emphasized a differentiation strategy while warehouse stores emphasized the low cost strategy respectively. Convenience stores may have been attempting a differentiation focus strategy. Compatibility between store format and realized competitive strategy had performance implications among warehouse stores and convenience stores. Higher performing warehouse stores emphasised both differentiation and low cost. Higher performing convenience stores appeared to emphasise a differentiation focus.