Food retailers, despite facing economic slowdown and competition from digital disruptors like Amazon and new discount chains, have found ways to focus on both short-term financial performance and long-term consumer engagement. Utilizing consumer data, improving vendor relationships, and adopting effective strategies are key tools for retailers to overcome fear and inertia. The article emphasizes the importance of making informed decisions based on customer knowledge to remain viable in the industry.

Companies that genuinely prioritize their customers gain a competitive advantage that is not diminished by competitors who only pay lip service to the concept. Customer-first is a misunderstood but effective strategy, bolstered by the evolution of customer data and data science. In food retail, a highly competitive sector, focusing on customer metrics rather than traditional product-driven strategies leads to better profitability. Metrics such as incremental dollar profit and customer profitability are more aligned with customer loyalty. Retailers should consider customer profitability when investing in new channels like e-commerce, rather than relying solely on traditional P&L assessments. The availability of customer data and data science tools necessitates a deeper understanding of customer needs and the ROI of meeting those needs.