The retail industry has seen four significant shifts since 1950 – the 50s and 60s were the eras of brands, 1970 – 1990 was the period of categories, from the mid-1990s customer, started ruling the market and since 2010 customers want everything with the click of a button.
It’s not just about good quality anymore, to sustain in the super-volatile market you should be able to get Japanese groceries delivered to your customers within a stipulated time.
Let’s look at the significant trends that are shaping up since 2019.
2019 Trends of the Grocery Retail
1. Rise in price
As per the United States Department of Agriculture, prices will increase by approximately 1% – 2% for online groceries delivered at home. The rising transportation cost will be the major contributor to this price rise. And, the burnt will be felt profoundly by the end users as to stay in the competitive market retailers will have to increase the price of products.
Nowadays, customers are extremely health conscious, and they do not mind paying extra for the best quality foods. So, it is imperative that with the increase in price, you also guarantee customer satisfaction and not lose your USPs.
According to IGD by 2023, the leading online grocery stores globally will generate a revenue of around 200 billion pounds. These companies have realized that customers do not just want fresh fruit, but they want it delivered to them at their convenience.
The technological advancement has entered this market too, and therefore, warehouse automation and AI are the prime focus in the upcoming years. Customers are shifting to online marketing because they find the mode to be convenient, so you have to make sure that your online portal is extremely friendly, and they can place their order without any hassle.
3. Online stores are here to stay
As per a recent study by the Food Marketing Institute, 20% of the total grocery market will consist of online grocery sales, and the market will have a sales volume of $100 billion by 2025.
While Amazon, Walmart is leading the market, Target and Kroger Pickup are catching up the pace pretty soon. To succeed in the online grocery retail market, a structural shift is required by the retailers from the very foundation. The market is no more about producing and distributing quality products, but it is about delivering an appreciated and personalized experience regardless of the shoppers’ place and time. This structural shift is only possible when retailers implement the online business module in their business.
4. Physical stores to go digital
Technology is about to play a vital role in the way shoppers shop in in-store groceries also. Even if you have a physical store, you have to make it digital friendly, as that is going to be the need of the hour. Customers feel that digitalization enhance their shopping experience. When they can browse the entire shop from their smartphones, why would they be interested in surfing through an aisle for a specific product?
So whether you are giving the option of placing the order remotely or not, you cannot keep your business away from the digital era for long. The traditional methods of shopping soon might become a story of the past, so start upgrading yourself to stay in sync with the trend.
5. A revival of frozen foods
Though the fact that customers are keen on purchasing health conscious products is still not a fad, according to a survey by Packaged Foods, the opportunity for frozen foods is ample – the current penetration is 99%, and it’s expected to be so for years to come.
Fresh frozen foods with clean labels and high-quality ingredients are appealing to customers, and they find them to be the new healthy options. The variety of flavors and options in frozen foods is another major cause of the boost in sales.
6. Grocery stores are sinking in the area
The concept of large grocery stores spread across a large area is slowly shrinking – since 2010, the average sale has shrunk by 15%, and it is forecasted to reduce further. Stores will be more like mini-malls with different third-party sellers within.
Simplifying your assortment and enabling customers to make their purchases quickly is going to help you in the future.