The fast-changing dynamics of the food retailing environment continue to
challenge companies to keep pace with fast-changing shopper demands. The
latest of these shifting shopper requirements involves their behavior on
digital platforms and is creating an imperative for grocers to compete
across all shopper touchpoints, digital and in stores.
New research conducted by IDC Retail Insights and commissioned by
Precima, published in the IDC InfoBrief, Personalization
in Digital Food Retail – Shoppers Expect More, casts light
on the current state of digital food retailing and what food retailers
need to do now to drive success. The research shows that while
Amazon.com continues to be a primary disruptive influence in fast moving
consumer goods retailing, they struggle with retaining food shoppers.
Another opportunity for grocery retailers revealed is that shopping
exclusively online is still relatively rare, so optimizing in-store
experiences can help retain customers who might otherwise prefer digital
options. A recent survey from Food Marketing Institute (FMI) confirms
this opportunity, revealing that by 2022 consumers could be spending
$100 billion a year on online grocery.
“Retailers have finite resources that are shared among competing
merchandising, operational and marketing priorities. They need to make
smart decisions about where to invest in digital capabilities and how
those capabilities and business decisions fit in with the rest of the
organization,” said Brian Ross, CEO of Precima, a global retail
strategy, analytics and cloud software company that provides data-driven
solutions to retailers. “The successful retailers are rapidly developing
and deploying digital capabilities to compete more aggressively. Our new
research separates facts from hype and discloses the tactics that are
paying off today and will pay off tomorrow.”
“Consumer expectations require grocery retailers to implement new
customer experience models and technology architecture,” said Ivano
Ortis, Vice President, IDC Retail, Manufacturing, Financial Insights.
“Investing in advanced analytics, personalized offers, and localized
assortment optimization, while adapting the store format to shoppers’
behavior, will allow grocery retailers to achieve short-term success.”
Additional key findings from the research include:
- 63% of shoppers say personalization is important
-
35% of shoppers will spend 26%-40% of their grocery budget online by
2020 -
A Personalized Customer Experience strategy is a clear
opportunity for brand differentiation -
Consumers expect a seamless experience throughout in-store and online
journeys -
Personalized offers are vital for ecommerce; shopping/wish lists are
an opportunity to enhance shopper experience and loyalty -
Retailers expect major disruption in the next three years, from
operations automation, retail commerce platforms, and added-value
shopper services
The data in the Personalization in Digital Food Retail – Shoppers
Expect More InfoBrief comes from a web-based survey of more than
4,000 consumers and 444 retailers in North America, France, Italy, Spain
and United Kingdom between November and December 2018.
Note to editors: The full report available HERE.
About Precima
Precima is a
global retail strategy and analytics company that provides tailored,
data-driven solutions to drive sales, boost profitability, and build
customer loyalty. Leveraging deep analytics expertise, Precima helps
organizations improve their competitive position across all facets of
planning and operations from pricing optimization, promotional planning,
assortment optimization, targeted marketing, and supplier collaboration.
Precima’s head office is located in Toronto, Canada, with global offices
in Den Bosch, The Netherlands, Chicago, USA, and London, UK. www.precima.com
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