Category Archives: Grocery shopping trends

Innovation at H-E-B!

A recent SupermarketNews article reported that H-E-B has opened a state-of-the-art technology center in East Austin, Texas, that will serve as a “hub of innovation” for its digital team and Favor delivery service.

The article quoted Jag Bath, chief digital officer of H-E-B and CEO of Favor, who said, “The center will play an essential role in keeping both Favor and H-E-B as digital leaders.”

As we have previously shared, innovation and technology have become driving forces in the food industry. As summarized in an article posted on bouncepad.com, grocery shopping as we know it is shifting. Retailers are leveraging technology to target issues consumers have struggled with for years, now offering online shopping and home-delivery along with related offerings geared toward providing more convenience for busy shoppers.

In-store experiences have also begun to mold to the modern consumer, using integrated technology solutions and secure touch-points like tablet enclosures, which help supermarkets with cross-sell services, offer personalized deals, guide shoppers around the store and increase sales.

Click here for a slide show featuring H-E-B’s new technology center.

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.

Kroger Predicts Food Trends for 2019

While New Year predictions are typically made closer to year-end, The Kroger Company recently shared their insights as reported in a Food Business News article.

They first named eating styles as a trend, citing the various diets and lifestyles consumers are adopting in pursuit of improved health and wellness.

“More consumers are purchasing better-for-you products and subscribing to different eating styles, from vegetarian to flexitarian to keto and paleo,” Kroger said in the article.

Gut-healthy foods is another trend expected to explode in the new year, the article said. Kroger expects to see the development of organic kombucha in flavors such as blueberry ginger and raspberry hibiscus, organic apple cider vinegar, Greek yogurt and probiotic low-fat milk, noting that  consumers are seeking foods that support self-care and healthy immune systems.

Consumer demand for low sugar and natural sweeteners also is forecast to drive product development next year, and the article cited research that indicated nearly half of consumers say they want to eat less sugar.

Plant-based foods will continue to gain traction in 2019 as well, Kroger says, as more consumers opt to reduce meat and dairy intake.

 

Walmart Setting the Pace for Online Grocery?

Our previous post indicated that Amazon was the clear leader in online grocery shopping. However, a recent SupermarketNews article said that “Walmart’s heavy investment in e-commerce is paying off, and the retail giant could top Amazon in online grocery market share by the end of this year.”

The data was based on a Deutsche Bank Securities report, which said Walmart  had been shifting focus and growth strategies in the direction of e-commerce, and that the chain has plans to bring online grocery delivery to 100 metropolitan areas — covering 40% of U.S. households — by the end of 2018 through its own services and third-party providers.

Read the full article…

Amazon Leader in Online Grocery Shopping

A recent SupermarketNews article states that Amazon has maintained a dominant position in online grocery retail.

The piece referenced a Brick Meets Click’s May 2018 consumer survey, which found that Amazon captured 30% of U.S. online grocery spending.

The data also showed supermarkets can still grow their online market share, noting that shoppers still visit brick-and-mortar locations more frequently than they place online orders.

The study polled 4,855 adults who do grocery shopping for the household.

Read the full article…

Kroeger Introduces Kroger Ship

The trend toward on-line grocery shopping continues, as The Kroger Co. has introduced a new service that will compete directly with Amazon, Walmart and on-line grocery delivery providers like Instacart and Shipt according to a recent SupermarketNews article.

Kroger Ship, a direct-to-customer e-commerce platform that enables consumers to order from a selection of groceries on-line and have them delivered to their home is now being tested in four markets: Cincinnati; Houston; Louisville, Ky.; and Nashville, Tenn.

On-line shoppers can select from 4,500 Kroger own-brand products as well as more than 50,000 center store groceries and household essentials.

Home delivery via Kroger Ship is free for orders over $35 and costs $4.99 for smaller orders.

Read the full article…

Employee Engagement at Hy-Vee

According to a recent SupermarketNews article, Hy-Vee Inc. has introduced a benefits program for part-time employees.

Calling the move a “first of its kind in the retail industry,” the Midwestern grocer said the program offers 11 benefit options to its more than 58,000 part-time staff ages 19 and older. Spouses and dependents also are covered by the plan, whose options include:

  • Health
  • Dental
  • Vision
  • Short-term disability
  • Accident and critical illness coverage
  • Hospital indemnity
  • Group  and individual life and disability insurance
  • Auto, homeowner and renter insurance
  • Pet insurance

Read the full article…