Tag Archives: food shopping trends

Study Predicts Increased Investment for Online Grocery

A recent SupermarketNews article reported the “digital sector” will continue to grow in 2023.

“Grocery operators’ spending to support digital transactions will increase by 2.3% next year despite a 1% shrinkage in technology budgets,” the article said, citing an October report from Grocery Doppio, a grocery insights and data provider. ,

Other findings:

  • 23% of grocers plan to increase their technology spend on digital in 2023
  • 77% said fulfillment efficiencies will be among the three most popular investments
  • 67% identified digital basket size nurturing would be a focus
  • 55% said system-wide inventory data accuracy/transparency would be a priority

Read the full article…

Retail Grocery Predictions

A recent article published by Progressive Grocer predicts some big changes will take place within the retail food industry this year.

“We believe we’re in for the biggest shift in retail history, revolving around the dramatic change to digital mindsets,” the article said.

“The most important things in retail will become even more important. The things that have always been important to retailers — convenience, value and personalization — will continue to matter. In fact, they’ll matter more than ever. However, the ways that retailers deliver on those three core ideas is ripe for innovation.”

Their predictions for 2022 include:

  • The hybrid in-store and online model will continue to explode because it delivers convenience for shoppers.
  • Bundling will need to be redefined to offer even larger value to customers.
  • Personalized white-glove service will have to expand beyond the in-store experience.
  • As digital transformation accelerates, measuring results is going to become increasingly important.

Read the full article…

5 Grocery Trends in 2021

The grocery business has been, as we all know, greatly impacted by the pandemic and shifts in consumer shopping habits and demand. The return of more grocery shoppers in-store has retailers breathing a sigh of relief, but supply chain issues and the associated challenges of getting stock into the store are concerning.

SupermarketNews recently published a report listing five key trends that have emerged this year:

  1. Fresh is back on track! With bakery and deli sections reopening and rebounding, things look bright on the perimeter.
  2. Supply chain issues linger, impacting center store most and increasing the likelihood of Consumer Packaged Goods (CPG) out of stocks.
  3. Beverage sales are up, with single-serve beverages making a comeback as consumers resume their more active lifestyles.
  4. Snacks have become more popular as all-day noshing buoys the category both in-store and online. It seems younger consumers are more likely to snack for lunch.
  5. Wellness and weight control have had a positive impact on demand for vitamins and supplements, but flu remedies are lagging.

Stockpile Alert?

A recent SupermarketNews article shared the results of Inmar Intelligence research that warned retailers and consumers alike that we could be in for another wave of consumer stockpiling.

With COVID-19 infection rates climbing and mounting concerns about the Delta variant, a surprising number of people are fearing the worst.

Of 1,000 U.S. adults surveyed by Inmar, 69.4% said they’re considering replenishing a current stockpile of groceries and other essential products as transmission of the Delta variant increases.

Forty-six percent have already created a product stockpile in response to coronavirus, and 12% of those that haven’t done so said they now will stock up because of the Delta variant.

Another 32.8% said they’re not sure if they will build up their supplies.

Interestingly, sixty percent of consumers polled reported still having products in stockpile they created because of the COVID-19 outbreak! And sixty-five percent said they now plan to always have a stock of food and supplies for emergencies like the pandemic.

If these projections should prove to be accurate, grocery shopping trends could very well shift back to what we experienced at the height of the pandemic, which included larger average order size and an influx in online transactions.

Tech-Driven Improvements an Emerging Trend in Supermarkets

The mounting demand for e-commerce due to COVID-19, and the expectation that it will be necessary to continue offering many of the “new normal” services post-COVID, has resulted in a number of grocery chains making major changes to their infrastructure and improvements in their processes.

As reported by SupermarketNews, some of the process and facility enhancements include:

  • Conversion of store or shelf-space to accommodate online order fulfillment
  • Creation of automated micro-fulfillment centers (MFC’s) to support automated fulfillment for grocery delivery, sometimes referred to as “dark stores” since they have no retail space
  • Curbside pickup
  • Installation of automated pickup points, enabling customers and delivery personnel to drive up, scan a code and retrieve their orders

The expectation is that those retailers who are able to convert store space or operate MFC’s will be better able to scale their business as the demand for e-commerce continues to grow.

“For grocers to adapt and stay relevant — and for consumers to eat the cost of the last mile — grocery retailers need to embrace curbside pickup,” said Rob Wilson and Shang Saavedra in a recent report from L.E.K. Consulting.

“Given that stores are designed for optimal in-store shopping, it’s often inefficient for staff to wander through aisles to assemble orders and, when it comes to operating margins, far from sustainable. Moreover, stores have been forced to quickly create online pickup areas, leading to messy front-of-store experiences for consumers.”

Clearly the costs associated with some of the major changes such as building stand-alone MFC’s favor the larger retailers. One possible solution for smaller chains might be the use of “solution partners” to get the job done.

Either way, and as noted in a recent SupermarketNews article, all indicators say that online grocery shopping and curbside pickup are here to stay.

DoorDash Now Offering On-demand Grocery Delivery

According to a recent article published by Restaurant News, “last-mile” food delivery provider DoorDash is now offering on-demand grocery delivery arena, led by the launch of its new DashPass service.

DashPass enables customers to place orders with participating grocery retailers at DoorDash.com or via the DoorDash mobile app and have their groceries delivered directly to their homes by DoorDash.

Defined as the movement of goods from a transportation hub to the final delivery destination, the focus of “last mile delivery” is to deliver items to the end user as fast as possible.

DashPass delivery service is provided via a $9.99 monthly subscription, for which members receive unlimited free deliveries and reduced service fees for orders of at least $12. Customers also can order groceries via DoorDash on a per-order basis for a $3.99 standard delivery fee (depending on the service area), with no minimum order amount.

In a separate article published by SupermarketNews, it was reported that DoorDash, which recently became publicly-traded, built its reputation as the country’s top food delivery provider by strategically going after suburban markets.

As consumers continue to exhibit an increasing demand for convenience as well as quality and choice, retailers and their strategic partners continue to respond with innovative solutions such as this.

Digitized Food Shopping?

89% of U.S. grocery shoppers now use a smartphone at the store says research from Acosta.

The data was published in a recent SupermarketNews article, which stated the current figures marked an increase when compared to the 67% who said they used smartphones while shopping in 2015.

“Mobile-assisted grocery shopping is here to stay and offers a great opportunity for brands and retailers to truly meet the needs of today’s shoppers,” said Colin Stewart, executive vice president of business intelligence at Acosta. “By delivering an end-to-end approach from mobile recipe/meal planning and list making to e-commerce and an in-store experience that is enhanced by mobile, they can not only attract more customers but also engage with them in new and meaningful ways, during the pandemic and beyond.”

Some additional data that might be of interest includes:

  • 58% of consumers polled report being comfortable using digital and online tools to help with food shopping, compared with 42% in 2017 and 35% in 2015
  • 70% reported using a grocery retailer’s app while shopping
  • 34% of shoppers said they view their grocery store circular online
  • 30% of grocery shoppers said they redeem online/mobile coupons downloaded to their smartphone, up from 24% in 2017 and 19% in 2015

Top Stories on How COVID-19 is Impacting Supermarkets

A recent SupermarketNews article shared the latest news on retailer and consumer response to the coronavirus pandemic.

Among the top stories were:

  • Of shoppers polled by Acosta, 38% said they stocked up on groceries at the start of the COVID-19 crisis and would do so again if another shutdown occurs.
  • More than 4,000 of Walmart’s 4,700 U.S. stores will expand their closing time from 8:30 p.m. to 10 p.m. by Aug. 17.
  • Two of the largest retailers are expanding their delivery options, including beyond grocery items, in their bids to challenge Amazon’s e-commerce dominance: Walmart & Kroger
  • Whole Foods launches free virtual home economics classes,

The article also features a slide show depicting new and emerging news related to the pandemic’s impact on the grocery retail sector.

Read full article…

4 Ideas for Supermarkets in the New Normal

The pandemic has changed the way people shop and what they care about most, says strategy-business.com. And most likely for the long term.

So, as a result, retailers’ strategies must also change.

“Whether the trip they’re looking to win is inside a store, curbside, or at a customer’s front door, emerging from the crisis on a strong footing will require retailers to plan around this new normal. Those that are best at sensing demand and responding quickly with engaging and brand-defining experiences will “win the trip” and see the highest return on their investments in those experiences, or return on experience (ROX),” the article said.

The piece goes on to suggest that retailers have likely seen growth in demand for certain categories, including food and beverage, personal care and wellness, home improvement, and pet care, as most of life’s activity has shifted to the home. Consequently, extra care (and inventory) in those categories will be necessary. Supermarkets also have an opportunity to “compete for trips — real and virtual — and reinforce their brand leadership by offering shopper resources, such as recipe ideas and educational content, in these categories.”

The authors suggest these four key ways that retailers can compete in the new marketplace:

  1. Improve and personalize targeting.
  2. Reinforce consumers’ category interests.
  3. Invest in targeted subscriber acquisition.
  4. Reimagine loyalty programs.

Read the full article…

Reinventing Grocery?

An interesting e-book, “Reinventing Grocery: The Timeline to the New Normal,” was recently released by co-creators Agilence and Date Check Pro.

With no sales or marketing messages, the publications shares straightforward content about several key issues affecting the supermarket business, such as:

  • How former “slow moving” categories may be worth further investment
  • The role Associates play in future customer acquisition & retention initiatives
  • Why cleanliness & safety protocols will arise as a key driver to new sales
  • Why a familiar industry adjacent to the grocery industry may emerge as a direct competitor
  • The DNA of the New Shopper

More information about downloading the e-book