The future is bright; the future is omnichannel
This year has been a year of significant upheaval for economies, societies, and organisations across the globe. Except for health care, no other industry has been more visible at the forefront of the world’s battle with COVID-19 than the grocery industry; working tirelessly to keep food on tables during this time of uncertainty, vulnerability, and isolation.
Perhaps not surprisingly, having been so close to the frontline of the pandemic, the grocery industry of today looks substantially different than it did earlier in the year. As non-essential retail begins to return to countries across the globe and most states, it’s time for grocery retailers to take stock of their achievements to date and start considering what the ‘new normal’ is going to look like and how grocery retailers can initiate a new strategy for meeting consumer demands and expectations moving forward.
Adapting to a new landscape
Firstly, since it began, COVID-19 has altered the way supermarkets of all sizes physically look and feel. Wider aisles, increased levels of cleaning and hygiene management, increased use of contactless and card payments, protective screens around checkouts and self-service areas, removal of self-service product dispensers, fewer stock-keeping units on-store, and more pre-packaged goods to reduce touch transmission of the virus. These are a range of physical adaptations to the grocery market; changes that will evidently be a part of the future of commerce.
Secondly, the pandemic has had a fundamental impact on the psychology of how and when consumers now purchase goods. A recent study from Adobe reported that the pandemic has accelerated the growth of e-commerce by as much as six years, leading to an increase in the overall share of mobile-first e-commerce and significant increases to relatively new hybrid approaches to purchasing, such as buy online, pickup in-store (BOPIS) and even curbside pickup.
Furthermore, there have been significant shifts in the number of visits consumers are willing to make to physical stores. This has resulted in increased basket sizes, underlining the consumer aversion to physical shopping trips and a willingness to spend more per visit to reduce the risks presented by public spaces and often the public transport needed to get to such locations.
As the traditional narrative around consumer psychology and spending habits continues to change to a more hybrid, pragmatic approach, the grocery industry will need to evolve to fit the new landscape it now occupies. This means grocers need to be taking decisive action to adapt to this new normal and what it will mean for the foundations of the industry from both a consumer and a supply chain perspective.
Aligning with consumer behaviour change
On average, it takes around two months before a new behaviour becomes automatic – while the time it takes to form an entirely new habit can vary widely depending on the type of behaviour, the person, and the circumstances. The last six months can certainly be classified as an exceptional circumstance, and we have all had plenty of time on our hands to form new habits out of necessity, such as switching to e-commerce and mobile commerce.
It is a safe bet to continue to believe that the changes to consumer psychology and the way that grocery as an industry has adapted to the pandemic is no short-lived flash in the pan. After all, who would discover a more efficient way of doing something, only to revert to an outdated, less effective way of operating? This sea-change is likely to be as representative of consumers as it is for grocery stores themselves.
While the boom in e-commerce and a general ability to pivot to options like BOPIS has certainly insulated much of the grocery industry against the very worst effects of COVID-19, there are a number of secondary challenges that organisations must be aware of. For example, grocery businesses need to be aware of the challenge that eCommerce has created from a fulfilment perspective. Offering BOPIS, curb-side pickup or even using stores as ‘mini-warehouses’ are great short-term options, however, the logistics of actually fulfilling these various alternatives can put significant pressure on supply chains if the correct strategy or technology is not in place.
The e-commerce boom is here to stay
With few signs that the eCommerce explosion accelerated by COVID-19 is going to retreat anytime soon and the increasing popularity of purchasing options such as BOPIS and curbside pickup, the grocery industry post-COVID-19 will need to focus on two key areas. These areas include putting a true, authentic omnichannel customer experience at the core of its offering, and having scalable and agile technology solutions that provide warehouse, DC, supply chain and transportation management teams with the flexibility and scalability to pivot and innovate in response to any new challenge.
While many in the grocery space have been watching the e-commerce business grow rapidly, e-commerce fulfilment represents a number of challenges too. Firstly, it represents a much higher cost to the business, meaning grocery retailers need to look at more efficient, often automated or robotic, picking solutions in their distribution centres and dark stores where possible. Secondly, e-commerce offers the consumer many more service options. Whether it’s delivery slots for home delivery, BOPIS, curbside collection or suggestions for items that are out of stock, all of these options require systems that can collaborate and communicate from a basic inventory level, right through to picking, transportation, delivery and customer communications.
The future is bright; the future is omnichannel
No area of global commerce has been left untouched by COVID-19, yet even now, there is an opportunity to reinvigorate and reshape the grocery industry landscape. Effective e-commerce and hybrid fulfilment methods, true omnichannel capabilities, and a relentless pursuit of customer experiences – be it through social media channels or physical in-store experiences – will prove crucial to business flourishment, as will a revised view of technology. Additionally, a willingness to be proactive and develop a strategy to shield your business from the impending winds impacting the grocery industry will be the differentiator for coming out on top.
Despite the challenges many in the grocery industry have faced over the duration of 2020, technology remains a top priority. As we finally look ahead toward a future post-coronavirus, ask yourself this; are the solutions you currently operate fit for purpose against what is now such a dynamic and fast-paced industry backdrop? Whether it’s digital self-service or pick-up or delivery alternatives, more effective inventory management, super-fast dark-site activation, or true omnichannel capabilities, solutions exist that can help you and your team navigate the challenges of the ‘new normal’ in the grocery industry.
The right software - one that can fulfill any type of order is critical https://t.co/KvxKbFoatd
— Warehouse Automation (@WarehouseAutom2) November 14, 2020
