The grocery retail business has changed drastically over the years. The entry of the large retail chains and the popularity of online grocery stores have forced grocery outlets to rethink their strategies. The following are 10 predictions for online grocery retail that are in line with the latest trends:
1. Omnichannel is the future
Grocery outlets that had its businesses affected by online stores are now beginning to offer online solutions for their customers. This is because Omni channel or providing multiple pathways for customers is the future of retail. Brick and mortar retailers are now offering online purchase options for customers who can choose to pick up items they purchase at the stores.
This is convenient as most customers prefer to buy fresh produce like vegetables, meat, and fruits in person. This makes grocery shopping more convenient for customers.
2. In-store experience to increase
As a part of the omnichannel strategy, retailers are now offering a more luxurious in-store experience for customers. Food outlets in the store, entertainment hub within the store, use of apps for shopping in the store, and focus on niche areas like organic food are innovative ideas being implemented by grocery outlets. This would help customers get varied in-store experience and can help increase traffic to stores.
3. E-commerce will continue to grow
E-commerce has been growing rapidly, and so has online grocery shopping. A study has shown that nearly half of all shoppers buy some grocery products online. 59% of shoppers in the study have indicated they intend to buy groceries online in 2019. The online grocery market size in the US was $23.9 billion in 2018 and is estimated to reach $59.5 billion by 2023.
While Amazon still dominates this space with an 18% market share, Walmart, Kroger, and the others are competing hard.
4. Grocery delivery to pick up
A fast-growing trend is that of grocery delivery. Companies like mercato are offering solutions to customers to select the grocery products of their choice from the stores of their choice and it would be delivered to their home. Home delivery from different stores at the best prices increases convenience for customers and helps them to get the best products.
5. Inflation will affect prices
Rising costs are a major worry for grocery retail outlets. As a result, it is estimated that in 2019, prices could rise by 1 to 2%. In a market that is highly competitive, increase in prices could have consequences. Consumers may have to be ready to shell out a bit more for their grocery shopping this year.
6. Meal kit services to grow
Meal kits are fast and becoming popular. A meal kit is a package containing a meal that may be partially prepared. Meal kits can be used by customers to cook up a meal quickly. This is highly convenient for customers who come home tired after a busy day of work. A study showed that 19% of grocery shoppers had tried meal kits. It is likely to become more prevalent in 2019.
7. Farm to doorstep direct has arrived
A new trend that has emerged is of online grocers who get their produce direct from the farm and ship it to the customer’s home. There are no distribution intermediaries; it is straight from the farm and thus wholly fresh. This service is being used for milk and eggs, and it soon is likely to be used for other products as well.
8. Frozen food is back
Frozen food products were down in popularity over the past few years. However, they are making a comeback. With innovations like new flavors and formulation, the sale of frozen food products is likely to increase in 2019.
9. Organic and wellness products to grow
The popularity of organic food products grown without chemicals is picking up. Wellness based grocery products like health supplements are also growing in popularity, thanks to the increase in health consciousness.
10. Social media to be leveraged more
Retailers will reach out to customers using social media platforms like Instagram, Facebook, and YouTube. Online retailers are providing exclusive deals and offerings for social media customers. This will help retailers to engage with customers online and offer better service.
These predictions for online grocery retail are likely to dominate this space in 2019 and make a significant impact on the sector.
