Tag Archives: food shopping trends

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

Voice of the Customer

Supermarket shoppers appear to be optimistic about things “returning to normal” according to a recent study by Acosta Research, thought the results vary a bit based on certain demographics. They also believe that some of the new in-store behaviors being put in place, such as hand sanitizing and mask wearing, may become permanent.

According to the study, 51% of shoppers polled expect life to return to normal in less than six months, while 29% believe it will take more than a year to return to pre-coronavirus behavior and daily life.

Summarized in a SupermarketNews article, the study also indicated that many of the current safety protocols have become second nature to shoppers, and that Millenials and Southerners are the most optimistic about a return to pre-Covid life.

43% of those surveyed believed their state was “reopening” at an appropriate rate, while 39% said steps toward reopening were being taken too soon. Only 13% said their state’s reopening plans were moving too slowly.

A bit closer to the aisles, 68% of shoppers reported using a hand sanitizer before or after shopping, and the same percentage reported wearing a mask while shopping. The study found mask usage has doubled since early April (most popular among shoppers in the Northeast) and nearly half of shoppers (49%) reported shopping during off-peak hours to avoid crowds. The use of self-checkout has risen as well with 34% of shoppers choosing to do so.

Not surprisingly, shoppers are over-buying select items depending upon expectations of supply shortages. The current (as of mid-May) item of concern is meat, as opposed to the paper products buying frenzies during the first quarter. Of those who are “stocking up,” 34% said they were doing so because they are “eating at home more often” and 31% said the reason was fear of shortages or an attempt to reduce the frequency of shopping trips. 35% noted higher prices,

Order for Pick-up Best Practices

A recent SupermarketNews article referenced the fact that the gross majority of people in the US own a smartphone and that this has led to a “NOW” economy where almost everything consumers want is available at their fingertips or on-demand. “These expectations provide a great opportunity for grocery brands to grow revenue if they can provide the pickup experience that customers are looking for,” the article said.

The piece went on to cite data from Rakuten Intelligence indicating that “Order for Pickup” has grown 2.5x faster than delivery over the last 3 years and that over 60% of consumers having tried curbside pickup or “click and collect.”

To capture those valuable and loyal mobile-first customers, grocers must be prepared to offer the right products as well as a top notch experience.

In fact, the article referenced a study by PWC highlighting that 73% of customers point to experience as a critical factor in their purchasing decision.

The following 5 best practices were then identified as critical to a successful Order for Pickup program:

  1. Focus on logistics and infrastructure. Clear signage, dedicated parking and pickup areas will reduce wait times and positively impact the customer experience.
  2. Leverage data to personalize the experience. The lower the wait time and the more personalized the experience becomes, the higher the customer perception of the overall shopping experience.
  3. Optimize technology to alert employees when customers arrive to pickup their orders.
  4. Provide dedicated employee training so they can provide high-levels of service.
  5. Promote your program to drive awareness and usage.

SpartanNash Reducing Food Waste & Enhancing Customer Service with Flashfood

An earlier post featured SpartanNash for leveraging technology to enhance their online and order pick-up processes. Today we once again focus on the company as they have launched an innovative program to reduce food waste while enhancing customer service.

According to a recent Progressive Grocer article, SpartanNash is piloting a Flashfood mobile app at five of its West Michigan Family Fare stores, allowing customers to purchase meat, produce, seafood, deli items and bakery products that are nearing their “best-by” date at up to 50% off.

As you may know, Flashfood is a Toronto-based mobile app that operates in more than 440 grocery locations throughout Canada and the US.

After downloading the Flashfood app, customers can select a participating Family Fare store, choose items, pay for them directly on the app, and then pick up their items at the store’s customer service counter, where the purchased items are stored in refrigerators.

“Customer convenience is key with the app,” said Matt Bennett, Director Retail Consumer Innovation at SpartanNash. “This app is a win-win for customers and the environment.”

Read the full article…