There are many pitfalls in the supermarket business: inadequate inventory, unattractive pricing, aging produce, and slow checkout lines. How does a market innovator manage all of that while blazing its own unique path to success?
Heritage Grocers, a supermarket chain based in Ontario, California, operating 115 stores in six states, has an answer to all these challenges and more: strong connectivity. By relying on high-speed fiber circuits and managed networking through Spectrum Business, Heritage Grocers fulfills its mission of keeping customers happy and always coming back.
The challenge: running a complex, multibrand grocery operation at scale
The Heritage Grocers Group comprises four distinct store brands, all of them supermarkets, each with its own identity and geographic center. Cardenas Markets (West Coast), Los Altos Ranch Market (Arizona), and El Rancho Supermercado (Texas) all offer authentically Hispanic shopping experiences, and Tony’s Fresh (Chicago) offers Hispanic as well as Italian cuisine.
“Connectivity is key, and it’s your lifeblood,” says Prabash Coswatte, chief operating officer, Heritage Grocers Group. “Nothing, not even in the back of the store that customers don’t see, happens without that connectivity, especially speed of connectivity. That’s mission-critical for us.”
Meeting customers where they are
One example of connectivity’s impact on Heritage Grocers is a leading perishable item: meat. From the planning stage to the cutting room, every meat manager at Heritage Grocers knows from data traveling across Spectrum Business fiber circuits just how much meat is needed that day, based on sales volumes, AI analytics of anticipated demand, and other factors.
“Number 1, we have the freshest produce available to the customer,” Coswatte explains. “Number 2, we don’t overproduce. That’s what we call ‘shrink’ in the business — nobody wants that.”
Using cloud-based AI tools constantly fed critical data by Spectrum Business circuits, Heritage Grocers can even determine optimal pricing for its goods, ensuring that it stays competitive with other supermarkets by offering customers the best deals.
“This helps us meet customers where they are,” Coswatte says. “Everything’s about the right price, right place, right production.”
Improving the in-store experience
Having reliable connectivity is vital to the entire operation, not only on a macro level managing supply and shipping but also at every store location, capturing shopping data while minimizing the time needed to approve credit card purchases.
A critical tool in focusing and monitoring enterprise-wide connectivity is a Spectrum Business networking solution, Managed Network Edge powered by Cisco.
Each Heritage Grocers location, using Wi-Fi layered as a modular, turnkey solution through Managed Network Edge, keeps customers engaged at home and in the store with special deals and discounts that can be accessed via their mobile devices for a more satisfying shopping experience. Wi-Fi coverage includes every part of each store, even hard-to-cover areas such as corners, long aisles, and storage rooms.
“When you’re shopping in a store, Spectrum connectivity is enabling in-store deals,” Coswatte says. “Consumers, who are always looking for a deal, can now be part of our rewards network to earn rewards points and get better value out of their coupons. All that is tied together.”
Seeing what the future holds
Anticipated future uses for connectivity include greater use of in-store video displays.
“Any kind of digital experience that requires some sort of streaming or message display requires connectivity,” says Adam Salgado, senior vice president of Marketing, Heritage Grocers Group. “We are also increasing the number of scannable QR codes and offers, so there can be store displays that shoppers can scan.”
Right now setting prices that appeal to bargain-hunting customers across all Heritage Grocers communities is proving key to connectivity’s benefit.
“Spectrum Business connectivity helps us react faster than we’ve ever reacted with pricing,” Coswatte notes. “We have thousands of price points for every store, every day. Spectrum Business helps us pull those prices down, to push and match what our competitors offer and ensure we never get beat.”
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Want to learn more about how Heritage Grocers is using AI with its connectivity to boost how it serves customers and enhances revenue? Read the full case study.