How a grocer's size impacts consumer trust

Who’s better positioned for victory when it comes to battling for consumers: larger chain retailers or nimbler, smaller independents? Does size even matter? 

A recent Kearney Consumer Institute (KCI) brief digs into consumer trust of institutions, particularly of large and small businesses. When asked overall, consumers told us they trusted small businesses to large businesses in a 3:1 ratio. This notion may lead larger businesses to try to mimic the intimacy of a small business.  

But when we dug into specifics, the margin was never that large, and in fact, big business was often preferred. For food and grocery, 65% of consumers preferred large retailers and chains over smaller options.

It turns out, consumers are pretty objective in terms of what they look for, but the way to build trust varies depending on size. Big business wins on process, consistency and wide selection. Small wins on interaction, perception and craft.  

Consumer trust relies on a foundation of honesty and consistency, but how it’s built differs depending on the size of the business. By peeling back the layers, we can better understand how to build trust with consumers, and how these approaches vary. The research highlights that some businesses are likely underplaying their inherent advantages and wasting assets in pursuit of what they see as “the other guy’s” strengths. 

Consumers who prefer small grocers said their purchasing decisions almost always came down to their desire to invest in the community and the belief that the products being sold were “better.” We received comments such as, “I like to support my local companies as I know they help the community more than larger companies.” Or: “Food is less likely to be treated with harmful chemicals/Doesn’t travel as far from farm to market/Local people have more vested in the community so want to treat it right.” 

The analysis also served as a reminder that consumers are shopping at more than one store and prioritize their purchases accordingly. “I usually go to a farmers market for fruits and vegetables and grocery store for the rest,” noted another consumer.

Conversely, many respondents like the offering of big retailers, with consumers telling us they like larger stores based on location and breadth. We heard comments such as, “It’s closer to my home, [has] a great rewards program, higher-quality foods, and great customer service,” and “I can do all my shopping in one place and get everything I need from beauty products to food items. I can also buy flowers and household products like toilet paper and clean products as well.”

On price and convenience, we heard, “I can get everything I need in one place at good prices,” and “It's nearby and convenient; I enjoy chains as well.”

Sometimes, it’s simply because of what they know: “I'm more comfortable and used to shopping at large supermarkets as it's what I've always done so that trust factor comes with the familiarity and consistency of doing so over many decades.”

As we continue to navigate this uncertain time, our research indicates that retailers should focus on their consumer-defined strengths, intuition and consumer observation.