Processes implemented to enable grocery pickup and delivery during the pandemic are costing grocers too much and are inefficient. A study conducted by Incisiv for Wynshop showed that 86% of grocers were dissatisfied with their online profitability. And, the same study projects a $14 million margin loss per $1 billion in sales by 2025 due to the change in revenue mix between in-store sales and online sales. As consumers continue to opt for online shopping, the issues grocery retailers are encountering will only be exacerbated if they don’t find a way to improve efficiency and profitability in online sales.
The grocery executives surveyed revealed a laundry list of issues of concern regarding their online sales including:
How do you stabilize operations and prepare yourself to ensure that when the next curveball comes your way, you’re ready to not just muddle through the crisis, you’re ready to grow? Simple. Grocers must invest in technologies that can pivot with them and handle new challenges as they come. It’s about being proactive rather than doing damage control.
The ideal technology should:
The grocery sector will continue to face ongoing challenges in the aftermath of the global pandemic. Grocers must embrace technology to navigate uncertainty, enhance efficiency, and ensure consistent profit margins. By investing in adaptive solutions and preparing for the future of grocery shopping, they can position themselves for success in the ever-changing landscape. The key is not just to survive but to thrive in the face of evolving challenges.