In early 2014 businessinsider.com posted an article about emerging trends within the grocery industry, indicating it was undergoing some of the most dramatic changes since supermarkets emerged in the 1940s.
We couldn’t agree more!
Aside from the steady trend toward on-line shopping that we’ve discussed in several posts, and in addition to a shift toward digital marketing, about which we have also written, other trends contributing to these changes, according to the article were:
1. Consumers are shopping across multiple channels
2. Private label is gaining popularity
3. Shoppers prefer smaller store formats
4. Fresh produce is a main driver
Fast-forward to year-end, and it appears the “crystal ball” was working well, as these predictive trends seem to have been quite accurate…
For example, shoppers’ demand for fresh healthy foods coupled with their desire for indulgent foods have shaped the food retail business in Chicago, according to a recent Chicago Tribune report.
Also, a retailleader.com piece reported that food retailers are adjusting their promotional strategies as print media continues to lose ground to digital communication channels.
The article references a report, “2015 Advertising & Promotional Practices Among U.S. Supermarket Retailers,” indicating 54 percent of respondents expect to decrease their use of printed circulars during the next three years, and that every retailer surveyed said they expect to increase the incorporation of digital coupons in their marketing mix. Likewise, 100 percent of food retailers surveyed said they expect to leverage more mobile coupons and offers, and 92 percent said they expected to ramp up their use of e-mail for customer communications. Seventy-five percent said they expect to make more use of Facebook, and 70 percent said the same of Twitter.
Along similar lines, a mid-November Wall Street Journal article reported that 85% of high-income households (over $500,000/year) were making use of Amazon Prime for grocery purchases, primarily due to the convenience and programs such as “auto refill” and “one hour delivery” which simplified the shopping experience.
As the New Year dawns, it will be interesting to see what the experts predict for 2016… and we’ll be sure to share our research with you after the 1st!