Empowering Nanostores for Competitiveness and Sustainable Neighbourhoods in Emergent Countries: A GenAI Strategy Ideation Process

This exploratory study investigates the use of Generative Artificial Intelligence (GenAI) tools in developing strategy practices for nanostores — i.e., small independent grocery retailers — to enhance their competitiveness while contributing to community sustainability. Nanostores, particularly in emerging countries, face intense competition and rapidly changing trends. By leveraging their proximity to consumers in neighbourhoods, these stores adopt various strategies, such as offering complementary services, integrating technology, and adapting business models. While existing literature highlights the broader economic, social, and environmental roles of nanostores, there is limited comprehensive research on how they may simultaneously contribute to their competitiveness and communities’ sustainability. This study employs a 'thing ethnography' approach, using GenAI tools —i.e., ChatGPT 3.5 and Microsoft Copilot— to explore potential strategy practices for these shops, and reflect on their possible use for strategy ideation and implementation. Key findings suggest that prioritising local sourcing, understanding local preferences, flexible inventory management, efficient retail operations, in-store sustainable practices, promoting healthy lifestyles, and diverse community engagement are crucial for success. However, the study also acknowledges the limitations of GenAI tools, including possible bias and the need for result validation. By aligning with these evolving requirements, nanostores can strive in neighbourhoods and decisively promote sustainable communities.