Report: Food retailers' future success demands digital investment
A study from Aptaris and dunnhumby found 71% of food retailers think designing an app is necessary for successful digital grocery, according to The Shelby Report.
Among the most common digital investments are online recipes and a mobile-friendly website, currently offered by at least two-thirds of grocers. More than a third of food retailers presently offer additional features, such as online list building, digital coupons and digital-only promotions.
Online ordering capabilities, while found to be growing, are prevalent typically among only the largest operators today.
Going digital is a hot topic for grocers, who have been slower to adapt to e-commerce than other forms of retail. While clothing and consumer goods have been perfecting their digital retail presence for decades, many consumers still clip paper coupons and go into the physical store to do their grocery shopping.
According to Deloitte, digital interactions now influence 56 cents of every dollar spent in brick-and-mortar stores. In order to remain relevant and compete with the big retailers such as Amazon and Walmart, grocers are racing to get into the digital game with new promotions and information available on their websites and apps, as well as experimenting with online ordering capabilities.
Digital coupons — particularly those available on mobile devices — are of special interest to shoppers. According to media delivery firm and coupon specialist Vlassis, 72% of consumers check their mobile devices for coupons or offers while in-store. The percentage is even higher among millennials.
Loyalty platforms and advanced data analytics are enabling personalized customer promotions via email or mobile distribution. Grocers across the industry have stepped up their investment in digital. Kroger has carved out a niche in its digital grocery offerings. In addition to expanding online shopping with its ClickList service, the nation’s largest supermarket continually pushes the boundaries of grocery mobile app innovation. Albertsons has also invested heavily in improving its digital presence with new managers leading the store into new initiatives in delivery, store-focused digital loyalty programs and integration between mobile and desktop applications.
- The Shelby Report Grocers Invest In Digital Promotional Outreach