Evolution of the Grocery Industry: Adapting to Changing Consumer Needs
The grocery industry is undergoing significant changes driven by factors like busy lifestyles, technology advancements, and shifting consumer behaviors. To stay competitive, grocery businesses are embracing e-commerce, customization, and convenience. Trends include consolidated loyalty programs, climate change impacting the supply chain, and industry consolidation. Traditional grocers are responding by redesigning stores, introducing ready-to-eat meals, and emphasizing local products. The industry is evolving to meet the demands of modern consumers.
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1 Grocery Industry: Smart shopping for the future GROCERY INDUSTRY LEADING PROFESSIONALS SHANNON SNADEN, KATHLEEN BOSKILL, ALE BERMUDEZ, MORGAN HARPER MONTREAL, QUEBEC JANUARY, 2018 HC
2 Root factors Busy lifestyle, smaller families Access to internet and mobile widely available Need for double income families Access to internet and changes in consumer s behavior were key to the disruption CONVENIENCE AND OPTIONS Changing structures of jobs (less 9-5, more gig economy) High stress and instant gratification Less employment stability, economic uncertainty HC Haskayne Consulting Convenience and customization are important as there is less time for preparing meals
3 Disruption E-grocery Grocery industry Grocery- As-A- Service Technology HC To stay competitive, grocery must be agile and proactive in response to changes Haskayne Consulting
4 Trends in grocery Loyalty programs becoming consolidated Recognizing changing preferences of baby boomers Supply change challenges ex. Global warming - unpredictable weather such as California fires, droughts, floods impacting ability to get just-in-time supply chain Industry consolidation Ex. Safeway purchase of Sobeys to grow market share HC Haskayne Consulting
5 A budding industry KATHLEEN HC Haskayne Consulting
6 How might we have reacted? Do nothing it won t affect me just a trend Invest heavily in tech and data analytics Merge/Acquire another grocery chain Horizontal Integration (rooftop greenhouse for fresh foods) HC There were four choices as to how we could have reacted Haskayne Consulting
7 Grocery s reaction to the changing needs of consumers Changed store layout having ready meals near frontGyms, cooking classes, meals to go in-store Gyms, cooking classes, meals to go in-store Marketing on importance of buy local which encourages customers to shop at their locations Self checkouts, pick and scan, cashier-less stores In-store HC Traditional grocers have made in-store environment more appealing and convenient Haskayne Consulting
8 Grocery s reaction to the changing needs of consumers Home deliveries Click and Collect Options Recipes on the websites, blogs Product recommendations E- Commerce HC Traditional grocers have embraced an omni-channel model Haskayne Consulting
9 Grocery s reaction to the changing needs of consumers As A Service models Subscription models from traditional grocers, such as Superstore s President s Choice box HC Traditional grocers are evolving and embracing new trends Haskayne Consulting
10 New competitive landscape Subscription services: full meals or ingredients Good Food Hello Fresh Skip the Dishes Tech companies interacting with grocery stores: Amazon & Whole Foods Mergers and Acquisitions Safeway and Sobeys Automatic checkout Amazon and pay HC Haskayne Consulting
11 Into the future SHANNON & KATHLEEN HC Haskayne Consulting
12 Reasons for our choice Embracing generational preferences and changing demographics Understanding that our customers have busy lives, longer work days, or working from home with flexible hours Recognizing trends of convenience, sustainability, higher quality, healthier foods Increasing importance for data analytics HC Profitability and maintaining market share will be key Haskayne Consulting
13 Roof-top garden Greenhouse production of hydroponic lettuce, herbs, tomatoes Allows for horizontal integration of supply chain Reduces friction in getting perishable foods to store and reduces concerns regarding food safety from highly controlled conditions HC Making the store a beautiful destination, with the freshest produce Haskayne Consulting
14 Smart Shopping Cart Personalization and customization is huge What if you could have a personal shopper when choosing your groceries? Smart cart: Plug in your smartphone to the handle of the cart, as you put in ingredients a notification will let you know: What else might pair with your food choices Advise on healthy alternatives Check you list and remind you if you forgot something Calculate your bill as you move along HC Smart Cart is your personal grocery shopping expert Haskayne Consulting
15 Robotics and AI Warehouse Instore HC Haskayne Consulting
16 A budding industry KATHLEEN HC Haskayne Consulting
17 How might we have reacted? Do nothing it won t affect me just a trend Invest heavily in tech and data analytics Merge/Acquire another grocery chain Horizontal Integration (rooftop greenhouse for fresh foods) HC There were four choices as to how we could have reacted if Haskayne Consulting
18 Grocery s reaction to the changing needs of consumers Changed store layout having ready meals near frontGyms, cooking classes, meals to go in-store Gyms, cooking classes, meals to go in-store Marketing on importance of buy local which encourages customers to shop at their locations Self checkouts, pick and scan, cashier-less stores In-store HC Traditional grocers have made in-store environment more appealing and convenient Haskayne Consulting
19 Grocery s reaction to the changing needs of consumers Home deliveries Click and Collect Options Recipes on the websites, blogs Product recommendations E- Commerce HC Traditional grocers have embraced an omni-channel model Haskayne Consulting
20 Grocery s reaction to the changing needs of consumers As A Service models Subscription models from traditional grocers, such as Superstore s President s Choice box HC Traditional grocers are evolving and embracing new trends Haskayne Consulting
