Rethinking grocery strategies in the digital age
Consumers have been migrating their shopping online for years in categories like books and electronics, and they are shifting their grocery spend as well. Given the pace of change and the economics of the industry, adapting to this new environment is not simple for grocers to do. While leveraging advanced analytics in all aspects of the operation was once a unique strategy for a few elite players, it is now a critical tool for all players in driving profitable growth.
Rethink strategic approaches now
Digital disruption is at it again. This time it’s upending the retail grocery industry as shopping online for groceries gains traction, leaving traditional brick-and-mortar retailers scrambling to keep pace amid a new and rapidly unfolding landscape.
In the last year alone, consumer interest and adoption in online shopping for groceries has made a sizable jump.
In fact, according to KPMG’s 2018 Grocery Retail Consumer Perception Survey, 48 percent of consumers currently do some, or all, of their grocery shopping online and 59 percent plan to do so in the future.
Given the structural economics of the industry, grocery retailers already saddled with thin margins are being further challenged to counter the digital advantages of their tech-savvy counterparts. While there is no one cookie-cutter solution for success, grocers that focus on the consumer segments they serve, innovate their in-store model, and seize the advantages of new tools and technologies will be better positioned to move forward.
In this paper, we
Katherine Black, KPMG’s U.S. Consumer & Retail Strategy co-lead provides further commentary in this video on the three key tactics CPG executives need to consider in order to keep their organization relevant.