3 Strategies for Attracting “Moms” to the Supermarket

As Mother’s Day Approaches, a study showed that most moms prefer to shop at the supermarket versus online.

According to research recently completed by Valassis Communications, Inc., a Livonia, Michigan-based company that provides media and marketing services, when it comes to food purchases, 52% of moms do most or all of their shopping in-store, compared to 27% of dads. But when it comes to health and beauty care items (HBC), only 36% of moms opt for brick-and-mortar, compared to 24% of dads. Equally as revealing, the study showed that over half of moms want better solutions to save more time (53%) and money (58%).

A recent SupermarketNews article reported these findings, and also suggested three key strategies supermarket chains might consider in order to continue attracting “moms” to their brick-and-mortar locations:

  1. Provide a mix of savings and convenience. Over one in three moms are increasingly shopping via brick-and-mortar that offer the added convenience of delivery and pickup options. Just over half (51%) always or very often search online for coupons they can use during their shopping trips.
  2. Appeal to the evolving omni-channel shopper. As the digital and physical environments continue to blend, approximately one in five moms orders groceries online for delivery or in-store pickup. And as technology continues to integrate with the path to purchase, over one in four moms now use a smartphone app to scan barcodes as they shop, according to Valassis.
  3. Offer unique experiences. More than a third of moms (36%) have increased their shopping at stores that offer prepared foods/meals versus last year. The same percentage say they are doing more shopping at stores that focus on organic, natural and fresh products compared to last year.

E-Commerce Challenges for Supermarkets

A recent Wall Street Journal article reported that E-commerce is transforming the grocery business, “bringing-about the need to overhaul operations and invest heavily in technology and talent to keep customers from straying to Amazon.com Inc. ”

“Not since Walmart Inc. first pushed into groceries in the late 1980s have traditional chains faced so many challenges,” the article states.

As an example, Kroger, a long-term, consistently successful chain, stayed focused on store sales long after competitors were investing in online-ordering technology and delivery services. But, according to the article, company leadership has recognized they are behind and have crafted a plan for more rapid transition to keep up with consumer preferences.

The article goes on to note that few American retailers have managed the online transition smoothly, citing early struggles experienced by Target and Walmart before improving their e-commerce operations, and the demise of Sears Holdings Corporation and Toys “R” Us in 2018.

This perspective is consistent with that of our previous post, noting that, while still in growth mode, the on-line grocery shopping experience requires improvement. It will be interesting to see how Kroger and other traditional chains address the emerging demand for online shopping while still satisfying the more traditional demand for low prices as well as a “unique” in-store shopping experience.

Online Grocery Shopping Growing But Needs Improvement

The latest research from Valassis was referenced in a recent SupermarketNews article, noting two interesting discoveries about the online grocery shopping experience.

  1. 68% of online grocery shoppers say that using coupons and discounts to save money is the most important factor when shopping
  2. The online grocery shopping experience still has room for improvement

According to the study, 63% of consumers still make all or most of their food purchases in-store. But online shopping has increased year over year by 44% for food; 40% for health and beauty products; and 38% for household items.

Among the greatest opportunities for improvement:

  • 64% of online shoppers miss the sensory experience of touching and smelling produce
  • 62% find it frustrating when they can’t use coupons or discounts
  • 62% are uncomfortable having someone else pick out their produce or other perishable items

Read the full article…

Schnucks Leverages Tech to Improve the Shopping Experience

A recent SupermarketNews article reported that St. Louis-based Schnucks has responded to customer feedback to help shoppers save time and more easily identify foods that are aligned with their dietary preferences.

The article quotes Schnucks Vice President of Marketing Ted Schnuck, “We heard our customers saying that they’re time-starved and also hungry for more health and wellness information. These new Schnucks Rewards features will make customers’ experiences in our stores more convenient and take the guesswork out of nutritional planning by placing wellness information right at their fingertips.”

The app shopping list organizes customers’ lists according to the layout of their designated Schnucks store and also makes it easier to identify pricing information. In addition, the wellness guide enables customers to see nutritional information and labels (i.e., heart smart or gluten-free, etc.), and indicates which products have been approved by various USDA programs.

Read the full article…

Publix Adds Telehealth Stations to Florida Stores

A recent SupermarketNews article reported that Publix Super Markets Inc. plans to open three telehealth stations inside Publix stores in St. Johns County and a Publix Pharmacy at Flagler Hospital in St. Augustine Florida.

According to the article, the telehealth stations will be housed in a private room where patients can speak directly with a doctor via video-conferencing. The physician will be able to direct patients to use on-site diagnostic tools such as stethoscopes, blood pressure cuffs and high-definition cameras, and to make a diagnosis or write any necessary prescriptions. Publix Pharmacy support staff also will be on hand to assist patients.

The chain has partnered with Flagler Health+, a Florida-based health network, to provide these and related retail pharmacy and primary care services.

Read the full article…

Innovation at Hy-Vee Reduces Food Waste

Iowa-based Hy-Vee Inc. is piloting an innovative mobile shopping app that will reduce food waste, according to a recent SupermarketNews article.

The app is called Flashfood and is designed to let shoppers browse and buy food items nearing their “best before” date at significantly reduced prices. It was developed by a Toronto company of the same name.

“At Hy-Vee, we know it’s important that we do our part as grocers to reduce food waste,” said Jessica Ringena, Vice President of Innovation and Business Development.

Read the full article…

Best Supermarkets in 2019?

A recent article published by msn.com rated America’s “best” supermarkets.

With more than 66,000 supermarkets and other grocery stores in the U.S according to the U.S. Census, competition between chains has never been more fierce, the article said.

For the purposes of this list, supermarkets were defined as brick-and-mortar grocers, grocery stores, membership-only warehouse clubs, and nationwide department store retailers that have supermarkets within their retail locations. In addition, only those supermarkets with outposts in multiple states and more than five locations total were considered.

Judgments were made according to the following criteria:

Stock: A wide range of brands and offerings, including organic, locally sourced, artisanal, local favorites, international foods, and private label.

Services/Departments: Departments, including butcher, deli, bakery, and pharmacy.

Innovation: Delivery options, mobile apps, and staying on top of the latest trends.

Customer Service: Efficient checkout and self-checkout, easy returns/exchanges, loyalty programs, and personal touches like baggers who take groceries to the car.

Appearance and cleanliness: Brightly lit displays, tidy shelves, clutter-free aisles, and scuff-free floors.

Contribution to the community: Creating local jobs, working with local farmers and suppliers, and helping the less fortunate.

The top ten selections on msn’s list were:

  • Publix
  • Wegmans
  • Aldi
  • Likl
  • Trader Joes
  • Whole Foods
  • Harris Teeter (branch of Kroger)
  • Costco
  • Super Target
  • Kroger
  • More Groceries from Amazon in 2019?

    According to a recent SupermarketNews article, it will be easier to order food, groceries and medications from Amazon.com as the new year unfolds.

    The prediction is based on a report from e-commerce specialist Edge.

    “2019 could be the start of when grocery finally hits for Amazon,” Edge said in its analysis. “The e-tail giant’s grocery sales swelled 45% in 2018, yet that was less than the nearly 60% growth in 2016-2017. Amazon’s top grocery categories by sales in 2018 were cold beverages ($600 million, +35% year over year), coffee ($600 million, +40%), snacks ($300 million, +50%) and breakfast foods ($250 million, +15%). “

    While the article went on to say that Amazon in still a long-way off from where they’d like to be in the food and grocery sector, their expansion will involve the addition of more Whole Foods and Amazon Go stores.

    Read the full article…

    Supermarket Hiring Shifts To Deliver Better Customer Experience!

    According to a recent SupermarketNews article, supermarket salaries grew in 2018 in an effort to secure a more diverse mix of skills and experience to meet the demands of an “omnichannel” business model. “Omnicahannel” is defined as as a multi-channel sales approach that provides the customer with an integrated customer experience. The customer can be shopping online from a desktop or mobile device, or by telephone, or in a bricks and mortar store and the experience would be seamless.

    “Compared with last year, you see the pretty steady increases that you normally see. But the biggest thing goes beyond the numbers, and that’s the new positions being created,” said Jose Tamez, managing general partner at Austin-Michael. “That’s more of an indication of what’s trending — be it a digital role at a senior level, an omnichannel role or customer experience types of roles. Those particular roles have been in retail for some time but in other segments, such as department stores or fashion. Now they are making their way into grocery.”

    According to research done by HubSpot, organizations that currently providing the “best” omnichannel experience to customers include:

    1. Disney
    2. Virgin Atlantic
    3. Bank of America
    4. Oasis
    5. REI
    6. Starbucks
    7. Chipotle