It is hard for the mom and pop grocery stores to compete with Super Wal-Marts and large grocery store retailers on price usually, but not always, and certainly not on everything. Take local produce for instance. If the private grocery store is local, it can buy from local farmers who will most likely deliver and give them an excellent price, too the produce does not have to be shipped and thus it is much fresher, not having to ripen in route, but on the vine with all the plant's nutrients.
Thus, the local grocery store can deliver better produce at a reduced cost and everyone wins, which gives it a slight advantage over the larger grocery store chains on at least the produce, therefore enticing more shoppers to come in and shop. Then the trick is to get them to buy other items that may not be as cheap as the larger stores so it can still make money.
Some smaller grocers have figured out what works and are still in business after many generations.And during a recession people still have to eat, or they die, so the grocery store business is not recession proof, but it is definitely recession resistant. The marketing mix strategies and the advantages of fresher produce at a lower cost might just be enough for them to stay in business even if they really cannot compete head-to-head with the chains that are across town or across the street. No one said it was going to be easy, but leveraging such advantages could be the ticket. Please consider this.
When the Farm is Next Door - Inherent Advantages of Mom and Pop Grocery Stores