Tag Archives: Grocery shopping trends

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…

Supermarket “Automation”

Related to recent posts about the trend toward online grocery shopping is a recent SupermarketNews article featuring input from Brick Meets Click co-founder Bill Bishop.

The piece is part of a twice-monthly series in which industry executives, experts and other grocery players share their insights about the news, trends and issues that matter most to retailers and their business partners.

In this installment, which also includes a Podcast, Bishop lists five ways that automation will impact grocery retail, which include:

  • Supermarkets will become more productive and, in turn, more competitive
  • A more educated and/or engaged and productive workforce will be attracted to food retailing
  • Automated order selection systems will replace or reduce self-service retailing
  • Technical breakthroughs will drive significantly lower retail costs
  • Customers will see a more personalized shopping experience.

“The world around us is changing very rapidly. Consumers are using digital aggressively, and it’s changing their expectations. Of course, that’s particularly strong among younger shoppers. Beyond that, competition is putting significant pressure on margins today. This automation technology is a way to maintain profitability,” Bishop said.

“Now we see automation stepping in with the opportunity to replace large sections of the supermarket,” he later explained. “That automation is able to operate in a much smaller footprint, and there’s significantly higher productivity.”

Read the full article/listen to Podcast…

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.

New Level of Customer Service Goes “Beyond” Home Delivery of Groceries

Walmart is expanding the online grocery shopping experience by going “beyond” home delivery. According to a recent SupermarketNews article, certain Walmart stores are delivering groceries not just to more homes, but also inside them.

This new service will be launching in the fall when associates will deliver groceries right to a customer’s refrigerator, or to other designated areas inside shoppers’ homes, such as garages or pantries. Various methods are incorporated into the process to ensure security and to allow customers to actually view the delivery from remote locations.

“Online grocery remains a meaningful contributor to e-commerce growth,” Walmart’s Chief Financial Officer Brett Biggs is quoted to say in the article. “Customers continue to really appreciate our grocery pickup and delivery offerings as we scale them across the U.S., …they want product faster than ever before, and Walmart is the best-positioned in the industry to deliver grocery same-day.”

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.

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…