You’ve seen the articles, heard the buzz words, the Grocery retail business is undergoing changes…. What does that really mean? And is it real?
Yes, it is real and if you aren’t listening and strategically planning how your business can evolve to meet the changes in consumer behavior – you may find yourself facing a gradually declining business. We aren’t just talking about a few millennials and Gen Xers ordering groceries online.
Think about how much technology has changed in the last 50 years, and even in the last 5 years. The way we, as a society, communicate is dramatically different. Can you imagine sending letters to all your suppliers to ask a question about product availability and waiting for their reply by mail… by the time that communication cycle is completed your needs for product have also completely changed. Today we communicate almost instantly and have been doing so for quite some time.
The speed in which we communicate, where, how and when we work, where and how we live our lives have all changed reflecting the rapid changes in technology. With this our expectations as consumers have also changed. We want and expect instant responses, instant gratification and our consumer transactions to be easy.
The trends are an increase in online shopping combined with offline service – this approach is showing up in several ways – online ordering of non-perishables delivered to your door, online fresh grocery delivery combined with physical store space – order and pick up at designated lockers- order and pick up on your way home.
There are some major players in the spotlight leading the way in this new grocer business model, and while it is not without difficulties, when they do figure it off where will that leave the rest of the brick and mortar grocers?
What will motivate consumers to want to come in to your physical location? Will it be a model incorporating an entertainment and novelty factor, so that the shopping experience is one they seek out because it is enjoyable?
If less consumers come into your store, what do you do with all that square footage? How do you shift your business offerings to align with consumer behavioral changes?
R3 can help you develop your strategic plan to evolve with these consumer changes. We can help you:
- redesign and re-allocate under used square footage
- develop additional offerings and merchandising strategies
- incorporate entertainment value in the shopper experience
- manage your social media / technology projects
- manage construction and remodel projects
- save money through energy efficiency, space efficiency and human efficiency
