Digital Supermarket is an impeccable example of a seamless customer experience.
A supermarket is one of the rare brands to withstand the COVID-19 crisis. The enterprise had to transform and adopt contemporary business models rapidly to abide by the constantly changing government norms as well as consumer expectations.
Before the pandemic, introducing a new model in your system would take a couple of months and in some cases almost a year. The entire process consisted of planning and execution of a long-term strategy.
Today, retailers have accepted the reality that adopting the latest technology can keep them afloat and generate revenue. Avoiding this can lead to stagnancy and eventually run out of business.
Table of Contents
- Trending Aspects that Leading Supermarkets Are Keen to Innovate on
- The Birth of an AI-Based Supermarket
- Strategies to Win Grocery Supermarket Digitization Transformation
Tech leaders are on an uninterrupted journey of imparting knowledge on the future of retail. It’s time for conventional supermarkets to get inspired by pioneers, press on the accelerator, and adapt to the new retail landscape.
Retailers can now gain from the lucrative opportunities of digital conferences and meetings.
Analysis indicates that by MCKinsey, by 2026 there will be a major shift from traditional grocery retailers to modern channels and formats. A transition from $200billion to $700 billion in revenue is possibly expected by 2026.
This transition may have a radical shift in the business of traditional retailers in terms of sales, productivity, and space overcapacity.
Trending Aspects that Leading Supermarkets Are Keen to Innovate on -
A Digital Splash in Supermarkets
Walmart posted that they will experience a 97% surge in online sales. Walmart has also started investing in Supercenter upgrades with an aim to provide digitally advanced shopping spree to their customers. They have planned to upgrade 200 locations in 2021 and 1,000 stores in 2022.
Walmart has forecasted to surpass Wall Street’s earnings with 31 cents in the second quarter of the fiscal 2021. The former shared that they are likely to obtain 9% more sales gains than the later in the US retail landscape.
These upgrades consist of a completely different look and feel within the store. The interior and exterior will be a replica of their mobile app icon. When a customer visits the store, they will get a glimpse of relatable colorful iconography.
The store will also have a directory that motivates customers to download and use the app to enjoy a seamless shopping experience.
Lucrative Integrations and Partnerships
Walmart and Target have initiated an acquisition with Shipt to provide eCommerce fulfillments at varied store locations. They have also partnered with Postmates to enable last-mile delivery services.
The main aim to integrate eCommerce fulfillments with retail-store operations is to enable manpower optimization. When there is reduced footfall in-store, the staff can work on electronic orders.
Amazon also acquired Whole Foods Market and shared the news that the former will fill-in all the orders for the latter.
GAG Store with seven plus Supermarket chain and delighted to have a vast customer base approached Brainvire with aim to provide digitized solution for healthy and supreme quality products to their customers. We implemented an Omnichannel experience UAE groceries supermarket with ecommerce web and mobile solution, picker app and delivery app.
Smooth Access to Information
Retailers struggle to provide information in a concise format to their customers. Improper labelling fails to provide the much-needed details to customers.
On the contrary, a smart screen can provide all the necessary product details to your customers in a few taps. As a retailer, you have the opportunity to cross-sell and up-sell products and activate more sales from your customers.
Click and Collect
A few companies such as Waitrose and Asda utilize automated controlled lockers to store online orders that your customers can collect some time later.
Asda’s lockers can be activated with a QR scan from their app on the customer’s phone. Waitrose sends a PIN to their customers through a message. Customers can obtain deliveries when they share this PIN at the store.
Digital grocery sales will double over the next two years, breaching $50B by 2021 before accelerating further to $150B+ by 2025, at which point they will account for 14% of overall sales. The number of grocers who offer Click & Collect and Third-Party Delivery will grow 150% between 2019 and 2021.
Some retailers also allow customers to drive-in their cars to a certain location and ease their shopping process.
The digital marketing strategy can guide retailers in the right direction. Retailers are not completely clueless about their customer’s needs and can plan their campaigns calculatively. With ecommerce experience, retailers can improve their digital marketing strategies with personalized marketing tactics.
Content marketing and data-driven campaigns are the most lucrative digital marketing strategies. No wonder the ad spent has accelerated from £720m in 2014 to over £900m in 2020.
The Birth of an AI-Based Supermarket
Amazon is one of the leading companies in the world and has shared their thoughts on future supermarkets. They aim to provide more convenience to their customers with the help of smart technologies such as Artificial Intelligence and Machine Learning to name a few.
Their focus is to offer customers a convenience store shopping spree. The company’s first physical store is known as Amazon Go; this store allows customers to simply pick-up products of their choice and walk-out of the store.
Customers can simply skip the concept of check-out stop and queues. The intuitive technology along with the smartphone app, intelligent cameras, high-tech entrance, and shelf sensors can automatically track their purchases.
All the products get listed in their account automatically and they can use the payment system for secure payment.
Since a decade, retail giants such as Amazon suggest AI-powered supermarket concepts. It now seems that the idea is actually getting transformed into a reality and the traditional concepts are likely to take a backseat.
Strategies to Win Grocery Supermarket Digitization Transformation
Online grocery is no longer a new practice neither in the retail industry nor for the customers. However, the current development and investment in this industry are quite exceptional for grocery shopping app development and grocery delivery app development.
Though it is considered to be a supply-driven market, it is more likely to move in the direction where retailers lead it to. There is a tremendous rise in consumer expectations but they are still at the initial stage.
Retailers have the power to lead customers and they can win in e-grocery with the following recommendations -
- Determine core elements- Retailers can set an aspiring goal for customer proposition with the help of available data. Identify the core elements that can differentiate your omnichannel from the rest. Work on features that set you apart and highlight them in your services. Ethnographic research and quality analysis can help you to trace key elements.
- A reliable-forecasting model-Create a dependable and secure demand-forecasting model to track current and future market requirements. Examine current market demand and predict its scope in the future. Modern analytical tools, ratio of clicks versus delivery offerings etc. can help you to recognize future demands.
- Redesign the roadmap to optimal fulfilment- Search for different models, technologies, transportation models, and delivery speeds that work for your customers. An ideal combination of all these parameters will help to design a perfect e-grocery ecosystem suitable for all your customers. This will help you to increase the number of satisfied customers.
- Upgrade your tech stack- e-grocery gives you an opportunity to upgrade your tech stacks and IT systems. Create an IT plan inclusive of all essential elements that are suitable for your customers. Choose a reliable grocery app development company that can provide you a flexible tech stack and provide you the right operating model.
- Keep digital at the core- While upgrading your operating model and the firm make sure that you loop digital aspects in it. An omnichannel can help streamline the eCommerce team, reporting structure, and several other activities. It can help save cost and ensure optimal use of resources.
What are you waiting for? Get to know more about digital supermarkets from Brainvire experts and we will pave the way for you in leading e-grocery app development!
- Digital Transformation of Retail Grocery, by Forbes
- Analysis for shifting traditional shopping experience to online, by McKinsey
- How Tech will Transform Shopping in 2020, by Forbes
- Digital Commerce in Supermarket Aisle, by Deloitte
- Amazon to Buy Whole Foods for $13.4 Billion, by New York Times
- Industry benchmark: State of digital transformation in grocery, by AT&T