The regional grocery industry is under siege. In the past five years the number of public grocery retailers has been cut in half as bankruptcy and consolidation have taken their toll. At the same time, the average size of the business has nearly tripled as the survivors have gained scale. Every regional grocery retailer knows the same basic truths: Competition is fierce; margins are small; and customers are fickle.

Despite these challenges, it is a great time to be in this business, as long as you're willing to entertain new ideas about what you sell and how you sell it. Getting your fair share in this environment depends on being competitively differentiated from your competition. This Deloitte Research Consumer Business Viewpoint is aimed at helping mid-market grocery retailers think about the issues involved in developing a differentiated offer.

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