Grocery stores played a starring role in the pandemic—meeting shoppers’ needs for essentials, while supporting their hobbies, like baking, and habits, including eating at home. But even while sales surged, profits didn’t always follow suit. In fact, a number of factors conspired to compress margins: the hardening of the supply chain; behavioral changes, such as increased online ordering and trip consolidation; and revenue paid to third-party delivery services.
In this playbook, you'll learn the three things industry leaders say you should be doing to capture a larger share of wallet and reach new customers.
Read on for a sneak peek of the playbook...
Focus on profit, not revenue.
Even though sales have escalated, profits have not kept pace as consumers outsource the task of grocery shopping to others. Many people order online, and the rise of third-party delivery services has diminished grocers’ profits as they absorb high delivery-related fees. Other shoppers have turned to curbside pickup, forcing grocers to reallocate their labor model to accommodate the requests and complete a job that used to be self-service.
Grocers have implemented creative solutions to combat this issue. To learn more, download the playbook.
Proactively influence customer behavior.
As consumers’ grocery shopping patterns are upended, new behaviors emerge, chief among them a tendency to make fewer, larger “stock up” trips. Conversely, other shoppers make smaller, more frequent trips, often supplementing an online purchase of basics with a store visit to personally choose select items to ensure freshness, such as produce, meat and dairy. These two categories of shoppers provide grocers with the opportunity to reach those who might explore new loyalties, preferring to shop at the store that’s most convenient or offers the best pricing.
How can grocers connect with these shoppers? Access the playbook to learn more.
Use automatic tools that let you focus on your day-to-day tasks.
Employees have more to do than ever before as they work to meet high-maintenance safety protocols related to COVID-19. New sanitation procedures require redeploying staff to cleaning tasks, and many stores are even stationing attendants at the front door to check for mask compliance and visibly clean surfaces like carts and door handles. In addition, stores that have seen accelerated interest in their proprietary pickup and delivery platform now must pick merchandise themselves to fulfill online orders—and often deal with a barrage of complaints when third-party services don’t meet customer expectations.
Therefore, many brick-and-mortar grocery stores are turning to automatic digital tools to help improve their operations, with the FMI report finding that more than 80% intend to leverage technology to be more efficient.
To learn more about the ways grocery stores can prioritize profit, change customer behavior, and implement efficient solutions, download the playbook.
Complete the form to download your copy of the playbook today!