Grocery Store Business Plan Template [Updated 2023]

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V. Competitive Analysis

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Direct & Indirect Competitors

The following businesses are located within a 5 mile radius of [Company Name], thus providing either direct or indirect competition for customers:

Farm Foods
Established in 1946, Farm Foods is a family- and employee-owned chain of 32 supermarkets in the Midwest. The company employs more than 7,500 associates, who provide personal attention and support to each customer. It offers a complete range of groceries, as well as free child care for customers (1 hour maximum, first come/first served). Farm Foods emphasize perishable and prepared products, which account for about two-thirds of sales. Most of the food and other items the stores sell are free of pesticides, preservatives, sweeteners, and cruelty.

The company gives back to the communities it serves via donations, event sponsorships, fundraisers and community events.

Shop and Save
Family owned and operated for 33 years, Shop and Save is a 22,000 square foot grocery store. The full service grocery store features fresh produce (some farm-to-store), meats, bakery, seafood, deli, dairy and other grocery items. They also offer specialty prepared foods such as salads, soups, panini, custom made to order sandwiches, carving station meals to go, take and bake pizza. Entrees include shepherd’s pie, rotisserie chicken, lasagna and stuffed shells.

Working with local farms for fresh summer vegetables including sweet corn and zucchini and apples, cider and peaches, they estimate about one third of their produce is locally grown.

All Natural
In business for four decades, this all-natural supermarket carries a large variety of items including vitamins, supplements, herbs, homeopathics, aromatherapy, greens, groceries, bulk foods, coffee & tea, dairy, frozen and refrigerated foods. They also only carry certified organic items and their wheat and gluten free section is currently the largest in the area.
Newly added, they now offer an expanding line of organic prepared foods such as, sandwiches, salads, juices, acai and smoothie bowls, with many gluten-free, dairy-free, and vegan options.
But what’s really different from the mainstream grocery store is that the Market is also like a boutique food shop, where part of the appeal is that you know that these products were carefully chosen by someone with a passion for natural foods.

Competitive Pricing

The price of groceries varies widely depending on the product, but below is a comparison of the competitor’s service fees.

Grocery DeliveryGrocery Pick-up
Farm Foods$7$3
Shop and Save$9$5
All Natural$12$7

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Location: [Company Name]’s location is near the center of town, giving us access to commuters going and leaving the train station, local office workers, and passersby going to local shops. We also offer adequate parking making it easy for customers to patronize us.
  • Great service at an affordable price: The store will offer home delivery and grocery pick-up services, further extending our market reach
  • Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
  • Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all of the local leaders, newspapers and other influences. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
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