The business of getting people fed is undergoing massive disruption. Technology is driving rapid changes in consumer expectations and behavior. Technology companies are perfectly positioned to ride this wave. How can traditional, established grocery retailers keep up?
True omni-channel is happening in grocery
Consumers are increasingly expecting an on-demand, omni-channel experience from all providers of goods and services. In a study by Harvard Business Review that surveyed 46,000 customers of a major US retailer, 73% had a shopping journey that spanned across multiple channels.
Every grocery and food providing company, from startups to Walmart to Amazon, is aiming towards providing access to their service whenever, however the consumer wants. This includes everything from marketing to shopping to fulfillment.
But omni-channel is hard; for traditional grocery retailers and for consumers
There is no question that the larger, big box players have inertia and can easily have the upper hand in this battle. They have the infrastructure and the consumer-to-brand loyalty that they’ve earned over the decades. The problem is their infrastructures and business models just aren’t set up to move with the agility that technology companies can.
Not only that, but the most loyal customers of traditional grocery stores, who tend to skew older, aren’t used to using their phones to shop for groceries and are hesitant to disruptive services such as 3rd party grocery and food delivery.