Groceries: between the physical and digital shelf

Grocery retailing has always been a tough business: Small margins, high costs, and the difficulty of handling perishable products. This business has only gotten harder with time, with discounters entering the market and differentiation in supply strategies. This has led to fragmentation in the market, and customers are overwhelmed with options.

 

This differentiation is evident in the UK market, where the online trend has started particularly early in the grocery world. Here the return on invested capital has been continuously declining for years, mainly caused by increasing fixed costs.

 

To reduce costs, more grocers are adopting automated technologies and robots. A successful example of this is Amazon Go, where Amazon, instead of trying to shave seconds of the customer experience, decided to remove one step altogether to speed up the process: checkout.

 

Consumers are not killing retail. Retailers are killing retail; consumers are just eyewitnesses to the crime. @RetailProphet

 

 

At the same time, the consumer asks for not only faster in-store experiences but also for rapid online groceries. Consumer demand for online groceries has been steadily increasing, and there is no doubt of where it is heading. However, even in this case, costs are high. Service fees from groceries pick up are just as high as shipping fees.

 

In terms of experience, the online world needs to be more inspired by retail to create a meaningful shopping experience. However, retail needs to look at online to understand how to offer comfort to the customer.

 

To convey the experience online, communication and content strategies are critical. In a world where the grocery market is fragmented and complicated, Omnishopper can find solutions and strategies to succeed in the online world.

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