Among the lasting changes brought about by the COVID-19 pandemic are transformations in how people shop for groceries. The pandemic highlighted supply-chain issues and vulnerabilities, while the rise of at-home or curbside delivery has changed how many Canadians get groceries to their pantry and refrigerator.
Although this shift has enabled consumers to more easily and readily grocery shop from home, it has also allowed brands to market and sell to the consumer directly.
Being aware of how supermarket technology trends are shaping the future of supermarkets can help your markets and shops stay ahead of competitors, while bringing your customers an easy and enjoyable shopping experience.
Grocery Store Sales Trends
To build a strategy that aligns with the needs of modern shoppers, let’s start by examining the sales trends emerging in the supermarket experience in our post-pandemic world.
Increased focus on customer experience
Customers are becoming increasingly savvy about online shopping, and they expect unique and efficient experiences.
Before the COVID-19 pandemic, a grocery store could take a few days from receiving the order to delivering it. These days, customers expect either same-day or next-day service.
Customers increasingly want to shop at stores that are environmentally conscious and that have specials and discounts targeted to them.
Can your business offer same-day delivery, sustainably sourced products, and targeted deals catered to every customer? While that may be asking a lot, the important takeaway is to understand the evolving needs of your customer, where saving time, money, and sometimes the Earth are increasingly common customer demands.
Increased digital grocery sales
In Canada, online food retail sales made up 3.3% of all sales in 2020, compared with only 1.7% in 2019. That trend will be sustained and increase a bit as final 2021 numbers are tallied.
This change in consumer behavior will have long-lasting effects, even after the pandemic resolves. Customers now expect to purchase some of their groceries online and have become savvy while shopping through grocery apps and platforms.
Whether the consumer need is safety or convenience, online grocery shopping is being served by many of the larger Canadian supermarket chains and we can expect to see this trend continue downstream. As we’ve seen in the world of restaurant delivery, if your shop or market waits to let easy-to-use apps own the purchase and delivery cycles for your store, you may be at the mercy of their fees and their standards of customer service.
For shops and markets that rely on their personal relationships with their shoppers, building an equally engaging online shopping experience can help you pivot to the next set of expectations from online shoppers.
Increased reliance on contactless transactions
Food retailers had to adapt during the pandemic to allow transactions where the purchaser’s card was not present in-store.
Most stores are now implementing contactless card payments, which are not only more hygienic, they also speed up the check-out experience. A growing set of supermarkets are also featuring scan-and-go apps that allow customers to scan items as they place them in their buggy.
If you haven’t already, implement contactless payments at your check-outs and look for scan-and-go platforms that can also provide you with real-time inventory updates. Over time, the main benefits are both customer ease and an ability to redirect your employees to roles that do less scanning and more work in building customer experiences and loyalty.
Grocery Store and Supermarket Technology Trends
To reduce friction for customers, increase your brand visibility, and prioritize the customer experience, connect with the emergent technology that can drive sales and build loyalty.
Embracing mobile apps
As consumers become familiar with ordering online, they want to be able to place or modify their order when they think of items they need, they don’t want to go to the computer every time they have to update their order.
Your mobile app allows customers to revise their order at a moment’s notice—they can add something to their purchase the moment they think about it, rather than going through a cumbersome process to do so. Many customers now build their shopping lists with online tools and modern apps can connect directly to those lists to build orders that check off every item with one swipe.
If customers are in your store, mobile apps let them look online to see if you offer certain items or have them in stock. By making the process easier for them, you encourage them to continue shopping with you and you also reduce the need for employees to check in the back.
Using predictive analytics
By using technology to bolster predictive analytics, grocery store owners gain vital information that allows them to optimize product placement, manage their inventory, set prices and target shoppers with specific products.
Grocery store owners use information from predictive analytics to build promotions and loyalty programs and develop a unique marketing experience for customers.
Automated intelligence (AI) and machine learning (ML) is now layered on top of most sales analytics programs to help you anticipate inventory needs without having to comb through last year’s sales data. To see how these advanced analytics programs can integrate with your existing sales data platforms, reach out to an Amex small business specialist.
Optimizing energy efficiency
It’s not just customers who are concerned about energy efficiency. Grocery store owners have to watch where they can cut back costs.
Leveraging the Internet of Things (IoT) can help you keep track of how much energy your equipment is using, manage equipment performance and optimize settings. Increasing efficiency is important for your bottom line operational costs but can also attract customers that are looking for businesses that leverage sustainable practices.
Offering self-checkouts
Self-checkouts provide an easy way for customers with fewer items to ring up their own grocery orders while speeding up the overall check-out process for those with larger orders.
Self-checkouts or scan-and-go apps also limit the customer interactions for your employees. Offer a few self-checkout kiosks to enable customers making small purchases to get into and out of your store more quickly and transition your clerks to roles that marked your business and expand your customer footprint.
The Digital Supermarket Seems Here to Stay
The pandemic has accelerated the digital transformation in supermarkets. By understanding the trends and changes in shopping and marketing technology, you can stay ahead of the competition and enhance your customers’ shopping experience. Using technology can also help you lower your costs and gain efficiencies across your business that can increase your profit margins.
Make sure you have access to financial resources that maximize your purchasing power. From financing to small business expertise, American Express business solutions can help you locate the tools and technology to keep your market bustling.
This article is intended for general informational purposes only and does not constitute legal advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.