There’s no doubt that the way we buy our groceries is changing. From the arrival of subscription groceries to new technology in our stores, there’s always something innovative that impacts how we get our food. This article breaks down all the latest retail trends and explores how they change the way we buy our food.
Subscription groceries
Similar to a gym membership, subscription groceries involve customers paying a monthly fee for regular food deliveries.
While the number of subscribers remains relatively low – only 0.5% of UK households currently subscribe to such services – it’s clear that this is an area of potential growth. One way supermarkets can improve their service to customers.
Investors agree as a recent survey by Deloitte revealed that almost half of the retailers surveyed said they were considering setting up a subscription service in the next two years.
One analyst from Mintel has suggested that even if only 5% to 7% of grocery shoppers sign up for such services, supermarkets will benefit from an increase in footfall and better customer engagement: “The average basket size of a subscription shopper is around 30% larger than that of the average non-subscription shopper,” he said.
Online is on top
The use of technology influences the way we shop, and an increasing number of food and drink brands are now using online as their primary platform for marketing.
According to a report by IGD, 49% of shoppers said they purchase food online at least once a week, with 48% saying they would choose home delivery if it were available locally.
This isn’t to say that companies aren’t still investing in their stores. After all, there’s still plenty of people who prefer to shop in person. Many stores are improving locations by making minor changes such as installing stainless steel corner guards to protect the shopfloor better while making it look more attractive to the consumer. There is an actual balancing act between managing the growth in online sales and ensuring physical stores remain modern and up to date.
New technology
As you walk around your local supermarket, new technologies are becoming increasingly visible. A new generation of self-service checkouts has helped improve the efficiency of stores. Still, it has also improved customer service by reducing queues and allowing staff to concentrate on other areas that may need attention.
Existing technology is also being adapted for grocery stores. Self-driving cars can now transport goods around warehouses, and soon they will be used in supermarkets for same-day delivery of products. Others use robots to pick orders or even transport carts around the floor, improving efficiency by freeing staff from specific tasks.
Click & collect
This is an area where retailers are being forced to innovate by customers themselves. While many have enjoyed the ease of click & collect for some time, it’s only recently that this service has become so popular.
The market peaked in 2015 when nearly 20% of all groceries were ordered online and collected in-store. A new generation of shoppers who grew up with technology and expect same-day delivery services has led to the rise of click & collect as a popular service to offer.
