Tag Archives: supermarket shopping trends

Despite Mid-west Closing of Peapod, Ahold Expects Robust e-Commerce Growth

Ahold Delhaize, whose supermarket brands include Stop & Shop, Giant Food, Giant/Martin’s, Food Lion and Hannaford, recently announced that they will be closing the Midwest division of its Peapod online grocery arm.

However, the company also noted that the Peapod Midwest closing isn’t expected to have a significant impact on the previously announced goal to drive 30% U.S. e-commerce growth in 2020.

According to a SupermarketNews article, Ahold plans to focus on markets in which they already enjoy a strong presence. Going forward, Peapod Digital Labs will support online grocery delivery and pickup service for all Ahold Delhaize USA’s supermarket brands. The article also noted that Ahold “aims to establish those brands as the leading omni-channel grocery retailers in their market areas.”

“To continue our strong track record of sales growth and market share gains, we are accelerating our growth and expanding the leadership positions of our businesses in our East Coast markets,” Ahold Delhaize USA CEO Kevin Holt said. “This move will enable us to fully focus on markets where we have strong store density, leading market share and a longstanding heritage of customer loyalty.”

The BYOD Trend in Supermarkets: Pros & Cons

Pros & Cons of Emerging Trends

According to a recent article published by datecheckpro.com, Bring Your Own Device (BYOD), a technology-driven trend, is permeating the retail space with its promise to simplify operations, boost grocery stores’ bottom line, and bring in more millennial employees.

The article cited a survey by MarketsandMarkets that said BYOD policy adoption in North America increased from 36% in 2017 to 50% by the beginning of 2018, and the trend is expected to rise again in 2020.

Simply stated, these policies allow employees to use their own devices (i.e., phones, tablets, laptops) at work to complete their job responsibilities.

Pros & Cons
Like most things, there are both pros and cons associated with BYOD. On the positive side:

  • The store can save overhead on purchasing technology
  • Convenient customer service opportunities for sales associates on the floor who use their phones to answer customer questions and to quickly research answers to questions they can’t answer themselves such as dates on store inventory
  • Saves employees time because they tend to be more familiar with the device that they’re using (instead of having to potentially learn a new operating system provided by the company). On average, workers save 81 minutes per week.
  • Increases employee engagement; by using their own devices, and 78% of workers feel BYOD supports better work-life balance.

On the negative side:

  • Risks of incorporating external devices onto the store’s network
  • Distraction if team members use their devices for personal reasons
  • Overworked networks

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…

Martin’s Supermarkets Expands On-line Shopping

According to a recent Business Briefs article, Martin’s Super Markets, a mid-west chain, is continuing to roll out of its online shopping service, which they call Groceries To Go, and which is now available at 12 of their 21 stores.

The Groceries-To-Go service costs $4.99 per order, the article explains. The process is also straightforward, as once users go online or download the app (on either iPhone or Android devices) and create an account they simply shop and choose a pickup time, and then pay. Someone at their chosen store then sends an email confirming receipt of the order, and then sends another email when the order is ready for pickup.

To pickup their order, customers simply park in designated areas and then text or call to announce their arrival. A “Personal Shopper” then brings the groceries and loads them into the customer’s vehicle.

Pharmacy prescriptions, alcohol and tobacco products are not available for online ordering, the article said. Log on to www.martinsgroceriestogo.com for more information.

The trend toward online shopping and an enhanced customer experience continues…

“Smart” Supermarkets!

According to an article published on LInkedIn, Wal-Mart recently opened its first “smart store” supermarket in Xin’an Wu Road, Bao’an District, Shenzhen.

We first read about the “smart supermarket” concept in a piece published by AgThentic, a sustainability and innovation consulting firm focusing on the food industry. In a 2016 article, they referenced the increasing popularity of online grocery shopping and click-and-collect services, and predicted the model was set to change how consumers “will do their weekly shop.”

The article went on to say, “Incorporating predictive technologies into the online shopping experience will allow consumers to access discounts on their favorite brands or re-order the same essential items each week without having to individually add them to a cart. These features have huge implications for convenience… By using data collected from your previous purchases, retailers can understand what you buy and how often you buy it, and send you friendly reminders when you’re running low. Say goodbye to the days of getting halfway home and realizing you forgot to buy toothpaste.”

In addition to helping consumers shop with ease, these same practices are also beneficial to supermarkets as they look to manage inventory and reduce food waste. “Consumers expect to see an overstocked display of cosmetically attractive produce,” the article said.  “To compensate, supermarkets throw out up to 40% of food before it even reaches store shelves.”

AgThentic predicted  retailers of the future will use consumer data to understand how to market and sell ‘unattractive’ or ‘imperfect’ produce, citing examples in Australia that are already doing so.

Read the full article…

The e-Trend Continues: Saving Shoppers Time & Money

A recent “10 Items or Lessarticle posted by SupermarketNews identified steps taken by major food retailers that indicate the focus on e-shopping will continue to grow in 2017.

The article states that Wal-Mart Stores plans to have around 1,100 stores offering online grocery pickup this year, and that they are continuing with initiatives built around making fulfillment more versatile and/or efficient, such as offering discounts on online orders picked up in stores, and testing the idea of having store employees deliver orders to customer’s homes on their post-work commutes.

The piece goes on to report that Amazon said it was rolling out “Instant Pickup,” a free service offering its Prime members a curated selection of “daily essentials” available for pickup in two minutes or less. The service is available at five campus locations currently with plans to add more locations soon.

Even no-frills Aldi had issued a statement indicating it was getting into e-commerce for the first time through a partnership with Instacart in three cities.

“Our partnership with Instacart is another example of Aldi expanding our commitment to customer convenience and value,” Jason Hart, CEO of Aldi, said. “We know customers are looking for new ways to save time and money.”

As these new services are being rolled-out, it strikes me that supermarket chains will need to take an innovative approach to refining their work processes to reduce waste and cost.

See related article…about becoming more innovative.

Online Store “Made Easy” for Supermarkets

“We make it easy to take your grocery store online,” says Indemand a San Francisco-based plug and play platform for building an on-demand store or service.

According to the company website, their platform allows anyone to set up their own on-demand store without the need for any technical expertise. Customers can customize their solution, and also take advantage of a “mobile-first” solution.

While the service is available to “any” type of business, pricing plans for supermarkets range between $149 – $299 per month, plus a start-up fee and a per transaction fee.

 

Service v Price in Supermarkets?

Various articles and reports are consistent: supermarket shoppers want more convenience and better service!

One SupermarketNews article reported how consumer demand for service impacted operations at Meijer and the curbside pickup option it launched in some stores in 2015. The article quotes Peter Whitsett, EVP of merchandising and marketing at Meijer, “…[data] has put a spotlight on the huge demand for convenience, and the challenge for the big retailer to wrestle it economically. As retailers we’ve done a reasonably good job of managing price for products, but what we’re learning to do is managing price for service.”

The piece goes on to explain that Meijer assumed curbside pick-up would primarily serve for fill-in trips, but the company soon realized they “were 180 degrees wrong. Customers said ‘do all my shopping for me.’”

Similarly, Euromonitor International, a world leader in strategic market research, published a white paper “The New Definition of Convenience in Retail,” which indicates that, “Thanks to time-pressed consumers, the need for convenience is paramount and retailers, in all channels, are deploying tactics to get consumers what they want as conveniently as possible.”

Of course, the convenience of online shopping and grocery delivery means different things to different people. For urbanites, many of whom opt to forgo car ownership, transportation to and from the supermarket might be the key issue. Yet for others, as noted above, time might be the driving force.

So, what does this mean for supermarkets?

First, as noted by Meijer’s Mr. Whitsett, supermarkets will need to go beyond managing price and find ways to streamline and improve the work processes for providing added services and convenience.

Secondly, online shopping is poised to become a bigger part of the overall grocery shopping equation going forward, and grocery providers must find ways to compete in this arena – against the likes of Amazon and Walmart, this will not be an easy task!

As noted in an article posted on fooddive.com, “Grocery retail value should be re-framed to emphasize non-price factors such as freshness, quality, customer service and the shopping experience. 2017 could become the year when retailers stop primarily selling products and instead start selling services, solutions, and quite possibly stellar shopping experiences.”