Thanksgiving is almost here – one of the busiest seasons for grocers and CPG retailers. As we recap Groceryshop 2018, we also want to take a moment to wish you a profitable and happy holiday.
Interestingly, during the two weeks leading up to Thanksgiving, online grocery will play an even bigger role with a sales lift nineteen times¹ higher online vs. in-store. That’s a lot of turkey and stuffing in transit. Clearly the pressure is on like never before. Which brings me to the final key takeaways from Groceryshop 2018.
If you haven’t already, be sure to catch Groceryshop Takeaways Part One, where I discuss the first three observations from the conference, including:
#1: Why grocery retailers and brands are feeling an urgency to evolve.
#2: What it really means to be omnichannel in grocery.
#3: The rapid growth of grocery e-commerce.
Top Takeaways from Groceryshop 2018
#4: Private Label Prominence
At Groceryshop, Diana Leza Sheehan, vice president of Shopper Insights for Kantar Retail, said: “A concurrent evolution in all channels of retail are private label brands.”
Research from IRI supports this. According to a Consumer Connect survey conducted by IRI, 85 percent of shoppers are buying private label products frequently or occasionally. Reader Leader reports that private label is especially popular with younger consumers who are driven more by product benefits over brand names, with 92 percent of millennials choosing private label products to save money.
“Private brands are not all about price,” said Susan Viamari, vice president of Thought Leadership for IRI. “They are evolving with innovation and offer the quality, packaging, and assortment that shoppers are seeking. Consumers are looking for more choices, and those retailers and manufacturers who are adjusting their strategy to meet those needs will see greater success.”
With store brands becoming more popular, forward-thinking grocers and brands must consider how to streamline their private label offerings.
One way to accomplish this is with Master Data Management (MDM) for Recipe Management. We spoke with numerous retailers at Groceryshop about the benefit of streamlining the management of products created through their own recipes, in-store kitchens, and private labels. MDM enables grocers to properly manage ingredient, raw material, recipe, nutritional, and formula data, and generate final product SKUs that hold all the underlying product information. Managing private label products through MDM helps retailers rapidly launch new products, ensure transparency for consumers, and meet regulations around sharing nutritional details.
#5: Importance of the Physical Store
E-commerce may be on every grocer’s mind, but the importance of the physical store was also a hot topic at Groceryshop. The consensus? Despite the drastic growth of e-commerce, the physical store will remain integral. Research firm Acosta even predicts that online retailers will strategically move into brick-and-mortar spaces and form partnerships with established retailers to expand their reach.
What must change, however, is how retailers interact with consumers in the store. Blending channels and creating frictionless experiences can help increase foot traffic and satisfy changing shopper demands. According to Winsight Grocery Business, retailers should focus on reinventing the in-store experience to be more personalized and interactive.
EnterWorks is helping retailers recapture the essence of merchandising and product stories to create visual customer experiences through a unique approach called Storeytelling.
Through Storeytelling, we can apply virtual, 3D reality at scale – upgrading how merchants develop localized assortments, execute seasonal change-outs, and convey planograms or store sets. Storeytelling helps retailers and brands:
- Create differentiated customer moments by converging a store’s physical assets with online and mobile to generate a new shopping reality
- Empower the next generation of visual merchants through the seamless integration of augmented reality technology
- Leverage current technologies in end-to-end support for 3D visualization and tech such as category management, space management, and MDM (for products, customers, and physical/digital assets, mobile, and e-commerce)
- Provide an augmented reality for a retailer’s mobile application that provides a new wayfinding approach for customers who have yet to memorize all product locations
#6: Pay Attention to Trip Composition
Evolving trip composition is changing the game for grocers. A retailer’s consumer base is now full of millennials who hate the old way of grocery shopping, along with health-conscious meal planners and “shared shoppers.”
Consumers want the option to stock up on staples, make quick top-up trips, and browse and discover curated and specialty products. Shoppers are also increasingly buying products for the meal they are cooking that day, and desire to pick out fresh items themselves.
An increase in meal planning and stricter nutritional concerns have also become challenges for retailers. According to an FMI report on US Grocery Shopper Trends, when it comes to healthy eating, consumers desire to eat better and want food retailers to be their wellness allies.
Retailers need solutions that help them satisfy this myriad of shopper preferences, like EnterWorks Precision Eating.
Precision Eating can specify, evaluate, map, and filter food and beverage product data based on specific product attributes like recipe ingredients, nutritional content and additives, allergens, food preparation methods, personal preferences, health and medical requirements, diet programs and restrictions, product locations, product sources, and consumer locations. Then, communicate those results using planogram and augmented reality software on mobile devices.
Finally, congratulations to the ShopTalk team for launching a hugely successful Groceryshop conference! We were pleased to be a part of the event, and are excited to help Grocery and CPG retailers and brands meet the evolving demands of today’s shoppers.