With mass-market influence in natural on the rise, take note of these five strategies to turn occasion shoppers into loyal consumers.

Daniel Lohman, Organic Industry Strategic Advisor

July 17, 2014

3 Min Read
How to compete against mass-slippage

As Kroger, Target, and Wal-Mart pledge to take the lead in natural products retail, it's another reminder for natural retailers to unite in order to stay relevant—and in business.

Their recent announcements mean greater opportunities for top-selling brands to be represented at their stores. While I applaud their commitment to natural brands, their success could potentially stifle local and national natural retailers' growth. This will also have a dramatic impact on small local and regional natural brands.
Mainstream retailers cherry-pick the top-selling natural brands in addition to providing a wide variety of natural private label items. Their reach and their ability to connect with consumers is far greater than even Whole Foods Market.

This is an unparalleled threat to the natural products industry. Kroger has some of the strongest consumer loyalty rates in the entire food industry. Their true strength is converting consumers to loyal shoppers. It's time that natural retailers maximize each and every selling opportunity. This means turning occasional shoppers into committed loyal shoppers.

Focus on five key strategies

1. Assortment/selection. 
It is imperative that natural retailers offer the top-selling items in each category, in addition to unique items that differentiate your store from mainstream retailers. Consumers unable to find their favorite brands in your store will shop elsewhere. You need to give them a reason to shop your store often if you hope to convert them to a loyal shopper.

 For example, if a consumer spends $500 a month on food and supplements, the goal is have them spend that $500 in your store. This is called their shopping basket. Don't give them a reason to go to your competition.

2. Promotions
. Out-of-stocks must be eliminated. Promotions must be carefully orchestrated to reach the maximum number of consumers to encourage them to shop your store.  

3. Pricing. 
Playing the pricing game will not help you. You will never be able to outspend a large national retailer. You need to provide value for the price differential. Consumers will gladly spend more for value. The value includes your friendly staff waiting to answer any of their questions. 

4. Strong national brands. 
Strong national brands drive consumers to your store, help support your marketing programs, create excitement in the categories for the consumer, and help differentiate you from your competition. Private label should not be considered a strategy to drive consumer traffic. Strong natural brands offer the promise of consistent quality and value. 

5. Exceptional customer service
. Most natural retailers provide phenomenal customer support. This is what the channel does better than mainstream and where you have an unprecedented opportunity to sell the value of a natural way of life.

Natural retailers should focus on their:

  • Strengths

  • Years in business

  • Reputation and connection to the community

  • Incredible customer service

  • Unsurpassed product knowledge of their sales staff

  • Connection with local brands

  • Their ability to customize orders


This is the model natural retailers should adopt to remain competitive against mainstream retailers. Natural product sales will continue to grow in mainstream. This will benefit us all. The advantage natural has over its mainstream competitors is where we need to focus our energy and efforts.
Our goal should be to encourage customers to fill most, if not all, their shopping needs while at natural retailers. This is how you grow sustainable sales.

About the Author(s)

Daniel Lohman

Organic Industry Strategic Advisor, CMS4CPG (Category Management Solutions)

Daniel Lohman is an expert in the organic and natural CPG industry. With more than 20 years experience, he is certified at the highest level of category management proficiency: Certified Professional Strategic Advisor.   

Focused on leveling the playing field between natural and conventional CPG manufacturers and retailers, Lohman is passionate about helping them get more out of their available resources. He believes that natural and organic CPG companies deserve to benefit from the same practices and technologies as their conventional counterparts—without sacrificing what makes the natural channel distinctive. Lohman is a trusted and respected member of the natural community, a Natural Products Expo speaker, and a writer for Supermarket NewsNatural Food Merchandiser and newhope360. He is a staunch advocate, passionate about bringing true category management to the organic and natural channel and offers a unique and fresh perspective on the industry. 

Responsible for growing sales and teaching Category Management theory and principals while at Kimberly-Clark, Unilever and SPINS, Daniel has worked with and supported hundreds of natural and conventional manufacturers, retailers and brokers. His extensive knowledge and expertise extends beyond that of a traditional Category Manager and has earned him recognition and a reputation throughout the industry as a thought leader. He has mentored Category Managers, is a trainer, speaker and expert panelist for the Category Management Knowledge Group. 

Lohman is internationally published and the author of Strategic Solutions And Guide To Grow Your Natural Business and the What You Need To Know blog.

Category Management Solutions (CMS4CPG) provides innovative strategic solutions for natural and organic CPG companies interested in gaining a significant competitive advantage. CMS4CPG provides companies with actionable insights to assist them better connect with consumers, helping them "win-at-shelf." 

Follow Lohman on TwitterLinkedIn and Facebook. Lohman lives in Colorado, is a member of Naturally Boulder and can be reached at [email protected] or 303-748-3273. 

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