We won’t always be purchasing our fruits and veggies the way we do now.
In the last 18 months, the grocery industry has undergone a rapid transition as we see large players overhaul their customer experience to cater to the speed and convenience that consumers have come to expect.
With nearly 20% of retail spending going towards food, but only 2% of transactions happening online, we’re expecting a quick re-acclimation with digitally savvy consumers moving their grocery shopping online.
The elephant in the produce section here is Amazon, whose acquisition of Whole Foods sent shudders through aisles grocery incumbents. Luckily, with 3rd party offerings like Deliv Fresh, grocers are able to quickly adopt the highest levels of the consumer experience. Here are 3 new trends in the grocery industry, including the adoption of same-day delivery:
Grocers Partnering with and acquiring meal kits
In the battle over the future of food purchases, grocers are making moves to gain a competitive advantage on convenience and reliability. Meal kits are the perfect example of this shifting trend, providing an out-of-the-box solution for a fresh, home cooked meal.
What we’re beginning to see is grocers partnering with meal kit companies to offer their brands within the grocery store. Not only does this solve for the increased logistics of shipping fresh food from warehouses and reduce the cost of the goods that make up the meal kit, but also gives grocers the ability to offer differentiated items in their stores.
Last month, meal kit company Gobble announced a partnership with Walmart to sell its products through Walmart’s e-commerce site and Albertsons acquired popular meal kit, Plated, late last year.
Online stores with same-day delivery
When it comes to the future of groceries, customers have voted with their wallets by spending more money on online purchases every year. We shop and buy nearly all other types of retail online, making it no surprise that consumers are now beginning to expect it of their food purchases.
Amazon spearheaded this trend with their Amazon Fresh marketplace, where Prime customers became acquainted with ordering online and same-day shipping for everything from almonds to milk gallons. After Amazon purchased Whole Foods and further integrated vertically, retailers have began creating their own online experiences and outsourcing their same-day delivery needs to Deliv.
For example, Walmart, who partners with Deliv in a number of markets across the country, has recently announced the expansion of grocery SDD to over 100 US markets. Walmart owns the entire customer experience by offering same day delivery with Deliv and other 3rd party delivery solutions—an important relationship for national and local grocers alike.
Aside from incumbent retailers, independent grocery apps are on the upswing, with players like FoodKick by FreshDirect delivering food and cold alcohol with same day delivery powered by Deliv. Similarly, Peapod takes an digital-first approach to delivering groceries with a focus on a simple and effortless customer experience.
Using groceries as the centerplace of the in-store experience
Whether it is Amazon Go stores, which give us a glimpse into the future of retail, or Alibaba’s Hema stores, who are an equally exciting look into retail, larger tech players are using the grocery store as a destination for an entirely new in-store experience.
The idea of blending online and offline experiences is particularly interesting in the case of the Hema stores. The 25 Chinese retail locations offer grocery shopping, dining, and entertainment, creating a comprehensive retail experience that gets users offline and into stores.
Overall, the importance of convenience and choice will only increase as retailers continue to compete for consumers’ loyalty. From the latest trends to future of on-demand groceries, the next year is sure to have all sorts of exciting developments in store for us all!