Grocery has always been a fast-moving, high-volume retail operation. But changing demographics, new working habits, and the evolving competitive landscape have added more complexity alongside the usual dilemmas of speed and scale. Now grocers are having to fight harder and think smarter to ensure share of wallet, superior customer experience, and margin improvement. 

These conditions have provoked a new era of experimentation. Grocers are fast evolving their environments, experiences and even their business models. Some are adding new endpoints, hoping to deliver cost savings for themselves and a swifter transaction for the customer. Others are swapping points-based loyalty programs for immediate discounts. Brand collaborations are more commonplace, as are rumored mega-mergers. Every operator is now asking how omnichannel retail can be used to entice mobile-first shoppers away from a huge array of price-increasing delivery services, and back into the aisles. Inflation, labor shortages, energy costs and supply chain issues are also driving change.  

Here are three key considerations for every modern grocer: 

      1.  Retail formats 

Many supermarket operators now have a mix of mega-stores and smaller ‘express’ shops or franchises that open longer and cater for corner shop-style convenience. Some tier 1 grocers have incorporated ‘own label’ clothing and homeware stores inside their premises or added fuel, quick service dining and pharmacy concessions to key locations. More recently, brand partnerships are emerging, whereby a separate business may take space within a store. These changes can add complexity to the commerce operation, as customers look to transact across multiple retail verticals, multiple loyalty and promotions programs, multiple brands, and even multiple businesses. Grocers need to ensure they have an underlying platform that can cope with, connect, and even unify a diverse commerce ecosystem. 

      2. Transaction types 

 Mobility, labor shortages, cost-pressures and a Covid-hangover regarding physical interaction have led grocers to offer customers new self-service ways to scan, bag and pay. Self-checkouts, mobile consumer apps, in-store kiosks, vending machines and interactive digital signage have added choice, but have been challenged by those who prefer a more human touch at a manned checkout. Operators are examining the optimal endpoint mix in-store, including at different ‘peak’ trading times each day. The objective is to succeed in a balancing act between impactful customer service and unobtrusive loss prevention, requiring flexibility and efficient adaptation.  

Ensuring the customer feels valued, and not frustrated, however they choose to shop, is key. The optimal way to achieve this is with data consistency across all channels, smart choices of hardware, and open technology ecosystems that encourage experimentation and collaboration.   
     
      3. Customer experience 

The convenience of meal delivery apps and growth of home working created a conundrum for grocers looking to entice customers back into the store. The answer is experience. Grocers are returning to the concept of the ‘theatre of retail’ with more tastings, demonstrations and pop-up activities, plus added incentives such as free coffees, newspapers or even take-home recipes. The idea of the grocery store as a destination rather than a chore has truly taken hold. That means giving customers more reasons to visit, and more reasons to stay in store (spending more as they do so). Social consciousness is also on the agenda, be it through micro-donations at the point of sale, or other brand collaborations with good causes.  

As always, technology is the key enabler. Grocers need an open ‘plug and play’ technology environment to foster new innovations and new ideas. They also need an open mind.  

++ So where does grocery go next? In this age of flux, the first step is laying the foundation for an agile infrastructure that can cope with new deployments and third party niche solutions. With Flooid, grocers have the agile, dependable unified commerce infrastructure they need to deliver innovation, change and scale. If you’re in grocery and you want to evolve the way you operate, a call with Flooid is your first step forward.