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 strategies 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 local 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 research on how they may contribute to their 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 stores. Key findings suggest that prioritising local sourcing, understanding local preferences, flexible inventory management, efficient retail operations, and diverse community engagement are crucial for success. However, the study also acknowledges the limitations of GenAI tools, including potential bias and the need for result validation. By aligning with these evolving requirements, nanostores can decisively promote sustainable communities.