Category Archives: Supermarket management

employee engagement, Grocery shopping trends, Supermarket management

Retaining Talent

Like many other industries, supermarkets have been facing an ongoing staffing challenge.

The problem presents itself in various ways. For example, shelves might not be re-stocked as quickly as shoppers would like, or stores may note be as clean as they once were. In worse cases, specialty departments such as the deli might not always be staffed, in which case shoppers can only select from pre-packaged options.

So what is a retailer to do?

SupermarketNews has reported several examples of how some supermarket chains are dealing with the “talent” issue.

One such example is BJ’s Wholesale Club, which has launched a program to provide mental health and unpaid caregiver support to company employees.

According to the article, BJ’s associates and their dependents will have access to a well-being platform offered by LifeSpeak Inc., a Toronto based firm that provides expert-led digital resources that include classes on mindfulness, building resilience, managing stress, and related mental health topics.

In addition, BJ’s employees will have access to LifeSpeak’s caregiver support products, along with advisors who can help people resolve modern caregiving challenges.

A different SupermarketNews article reported that Walmart has taken a different approach to attracting and retaining talent, as they will be raising pay rates for hourly employees.

“Our new starting range for entry-level roles is $14-$19 an hour, depending on location,” a Walmart spokesman said.

Whether it’s more money or more benefits, it only stands to reason that retailers will need to find better ways of engaging their workforce. Automation can only go so far at satisfying the demands of today’s shoppers.

customer experience, Grocery shopping trends, Supermarket management, Systems and scanning

Inventory Issues Costing Supermarkets Dearly

SupermarketNews recently reported that, despite internal systems improvements, retailers continue to struggle with labor and supplier issues, costing North American supermarkets over $349 billion in total sales lossesmdue to out-of-stocks and overstocks.

Reports of consumer discontent are common, with shoppers claiming one-out-of-five items they want to buy are out-of-stock according to new research from analyst firm IHL Group the article said.

“While there have been considerable improvements in systems and processes in recent years, labor challenges and continued supply chain disruptions issues continue to frustrate both consumers and retailers,” said Greg Buzek, President of IHL Group. “In addition, challenges from theft, mistakes by employees, and spoilage cause retailer’s inventory counts to be off as much as 25%, resulting in consumers having a shopping experience where they left the stores without buying 1 in every 5 items they planned to buy.”

Ouch!

You can read the full article here.

Change, Supermarket management

Are Your Stores Future-Proof?

A recent Progressive Grocer article shared data indicating approximately one-third of all retailers are fearful to make any change during these inflationary times.

The piece goes on to point out this issue’s alignment with the late Harvard Business School professor Clayton Christensen’s “The Innovator’s Dilemma,” a book classic that has helped leaders across many industries better understand how to prepare for and manage disruptions.

The book’s research indicates that the best-managed companies often stumble during disruptions by failing to prepare themselves for future customer demand. As Christensen noted, “these companies – including iconic brands such as Xerox and Sears Roebuck – failed not because they were not well managed, but because the very management practices that have allowed them to become industry leaders also make it difficult for them to develop the disruptive technologies that ultimately steal away their markets… these companies have become hostage to their top customers.”

But retail leaders must also be aware that the pace of change and “technology disruption” might come faster than one thinks. As the article points out, it can be difficult to predict the future or the ever-increasing pace of change.

Further, as Christensen suggests and as others, including Simon Sinek, have warned, it is dangerous to project the future linearly, when in fact technology accelerates exponentially.

The article concludes that, by remaining hostage to one’s best customers today, retailers risk failing to allocate adequate resources to “future-proof” their business, while they have little understanding of how fast customer needs will change. This puts pressure on “late adopters” to react to those changes and adapt their service architecture to meet future needs.

customer experience, Supermarket management, Technology in Supermarkets

Supermarkets Dealing with Accelerated Training Demand

A recent progressivegrocer article referred to 2020 as “a year of feverish activity for training and development” in supermarkets due to new job functions and tasks brought on by a public-health crisis.

However, the piece went on to suggest that an even greater need for employee training will emerge this year, because “the pandemic accelerated technology’s impact on innovation and created all manner of new and elevated shopper expectations that front-line employees must satisfy.”

The article referenced a study by The Center for the Future Work, which included data on the extent to which algorithms and artificial intelligence (AI) are permeating businesses of all types (73%).

“What we once thought of as the future of work has now become the ‘now of work,’” the article said, and suggested more training around analytical skills will be needed going forward.

However, despite the wide-spread use of AI in supermarkets, the human touch still drives the customer experience. “Humans will continue to add value and be valuable by upskilling — having skills and capabilities that cannot be supplied by even the smartest of machines,” the report noted.

COVID-19, Grocery shopping trends, Supermarket management

Post-COVID Supermarkets?

Agilence, Inc., a data and analytics reporting company, recently conducted a survey of decision-makers in the grocery industry about how COVID-19 has impacted their business, how they’ve managed this change, and what plans they have in place for a post-pandemic world.

Among the current practices that most retailers plan to continue long-term post-COVID are:

  • Curbside pick-up (75%)
  • Sneeze barriers at checkout (60%)
  • Cleaning of carts per use (50%)

The practices many plan to continue for 3-6 months post-pandemic are:

  • Associates fitted with PPE (62%)
  • Six-foot separation at checkout (60%)
  • Specialized hours for seniors (45%)

Interestingly, 87% of respondents said they think “safety & cleanliness” will be an important component of their marketing/brand message over the coming year.

Developing or enhancing proprietary online food delivery service was also identified as a priority by most respondents, and 93% said they plan to increase their spending in IT over the next year. Below is a graph indicating the types of technology initiatives in which grocers plan to invest:

investment categories
Anticipated Supermarket IT Investment by Category 2020 – 2021
customer experience, Customer service and loyalty, Grocery shopping trends, Supermarket management

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.

employee engagement, Engagement, Grocery shopping trends, Supermarket management

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… 

Customer service and loyalty, Engagement, how to improve profitability in retail, Process improvement, Supermarket management

Sam Walton & the 5th “P”

In a recent article published by the International Speaker’s Bureau, author Michael Berghdahl referenced Sam Walton’s retail success, noting that Walton intuitively knew that retail marketing is all about the “4-P’s,” which are having the right products, price, placement, and promotion.

However, the article goes on to say that Sam Walton knew the “4 P’s” were not enough; that he was not satisfied to simply apply traditional methods, but rather always out to do more… to try new ideas.

“You might say he [Sam Walton] embraced change like a welcomed friend,” Berghahl wrote. “Never complacent, he sought ways to improve every aspect of the Walmart success formula each and every day.”

As part of this approach to continuous improvement, Walton figured out the key to creating a sustainable competitive advantage in the retail marketplace was by adding a “5th P” to his success formula: PEOPLE. Success required fully-engaged people working together as a high performing team, and serving his customers.

This perspective is consistent with the latest research on the critical importance and value of an engaged workforce.

But beware! Traditional efforts to engage employees have not been fruitful!!  These unsuccessful attempts have been haphazard at best, and have largely focused on trying to make employees happy.  Unfortunately, research and experience has proved that happy workers are not necessarily more productive workers.

Clearly a more strategic approach to engagement is needed, yet few retailers or organizations of any type have a formalized engagement strategy.

If you would like to create such a strategy, here are ten behaviors  you might initiate, which are based on research and experience that shows productive employees tend to be engaged employees, not the other-way-around.

Read more… 

Customer Service, Customer service and loyalty, Process improvement, Supermarket competition, Supermarket management

Customers King at Kroeger?

A recent SupermarketNews article reported that Kroger has launched a new improvement initiative to accelerate changes in assortments and better customer service.

While Kroeger has been in the news lately for considering the sale of its convenience stores, the new  “Restock Kroger” improvement initiative seems to be the bigger story. It will involve “an accelerated and more data-driven effort around pricing, personalized communications with customers, and a revamp of product assortments,” the article said.

“We will change the way people eat in the U.S.,” said Rodney McMullen, chairman and CEO. “If you are eating, we want to serve you. Unless you are eating in a white tablecloth restaurant, we want to be able to provide that meal for you.”

Read the full article… 

Customer Service, Customer service and loyalty, Grocery shopping trends, Incremental Purchasing, Supermarket competition, Supermarket management, Supermarket marketing, Systems and scanning

Insight Into Shelf-side Decision Making?

A recent article published by advancingretail.org shared some interesting information about understanding shopper behavior at the shelf.

“Understanding true shopper behavior in the store has become the latest battlefield in the fast moving consumer goods industry,” the article states.

Citing studies that show an estimated 76% of purchase decisions are made in the store, the article goes on to suggest that adding even a single product to a small percentage of shopping trips could equate to significant increases in sales revenue.

Wondering if there’s a way to accomplish this?

According to the article, Shopperception, a company with locations in Delaware and Buenos Aires, offers a platform that is able to “digitize shopper behavior in much the same way marketers are able to understand shoppers’ behavior online.”

Apparently their platform uses three-dimensional sensors combined with sophisticated algorithms to generate the data.

Assuming the decision-making that will be based on the consumer preferences translated by this data is combined with high levels of customer service, could this be a win-win opportunity for shoppers and supermarkets alike?