26 DECEMBER 2018 WINSIGHT GROCERY BUSINESS
Hybrids Rise From Retail Wreckage
We see more takeovers in 2019 as more
grocers shed stores that no longer meet
their performance requirements.
At the same time, grocers will
drive new ideas into these acquired
sites, addressing enhanced in-store
experience; fulfillment as center stores
see reduced space; meal solutions; and
wellness. There will be an emphasis on
flexible design solutions that would allow
for less costly remodels down the road.
We could see single sites or packages
of multiple stores purchased, and
they could be grocery or nongrocery
buildings, like Toys R Us stores.
Each site will be audited, and grocers
will evaluate the application of their
ongoing strategies and add new
ideas to answer customer needs.
New hybrids will blossom.
—Tim Morrison, senior partner, Little
Diversified Architectural Consulting
Grocery retail is going
through a significant
reinvention as we
continue to move deeper
into the age of the
who is shopping, how they
shop, where and when.
At the same time, we’re
seeing a competitive force
that’s driving lower cost
and improved shopper
In 2019, in order to
compete and succeed in
this time of disruption, I
see retailers ramping up
the focus on utilizing data
to better understand their
consumers and provide
an improved shopping
retailers have had access
to large amounts of data,
including POS, loyalty
information and social
media, but lack the proper
tools to analyze it.
With AI and machine-learning capabilities,
data can be effectively
used to optimize the
shopping experience and
satisfy consumers. For
example, as shoppers
continue to expect on-demand, multifaceted
ways to order groceries,
retailers’ use of auto-replenishment—based on
analysis of a shopper’s
purchase habits and
chairman and CEO,
By Jan. 1, 2020, it could very well be
clear that buy online/pickup in-store
(BOPUS)—not home delivery—will be the
winning model for grocery retail in the U.S.
Home delivery will likely continue to grow
and succeed as a niche offering, but only
in the limited number of markets that have
the characteristics to support it—i.e., high
population density and high retail prices.
By contrast, BOPUS will likely take off
in 2019 and the massive investments U.S.
retailers are making could really begin to
pay off. BOPUS is poised to win because
it’s fundamentally better suited to the
U.S. customer. Outside of major cities,
most families live in single-family housing
or multifamily homes that don’t have
attended lobbies to receive deliveries.
And scheduling a delivery two or more
days in advance is a hassle that most
shoppers would prefer to avoid. With the
convenience of picking up in-store ... we
believe BOPUS is poised to make steady
inroads in both breadth of consumer
penetration and number of trips. By the
end of 2019, the first phase of the grocery
e-commerce battle could be over, with
BOPUS having defeated home delivery.
—Joel Rampoldt, managing director, AlixPartners
I predict that mature retailers who have previously
relinquished their digital commerce experience to
fulfillment solutions will emerge with a renewed sense
of strategy and take back control to protect their brand.
Moving forward, they will explore the amalgamation
of best-of-breed solutions and invest in deep retail
shopper experiences by leveraging numerous sources
of data about each individual shopper.
—Sylvain Perrier, president and CEO, Mercatus Technologies
More Meals in Home Delivery
As the move away from
scratch cooking continues,
expect grocery home delivery
to include prepared foods
and complete meals, which
will require the development
of infrastructure of meal prep
and more delivery logistics.
Naturally Derived Solutions
CBD-derived products will
continue to rise in popularity
as the stigma of cannabis
declines and recognition of
its medicinal value grows.
Stocking up with full pantry
loads will soon be a thing
of the past in favor of
shoppers shifting to more
frequent fill-in visits.
Return to Premiumization
As the recession fades,
the value equation now
favors quality, convenience
and healthiness over pure
price. Big food makers will
rationalize product mix and
acquire relevant challenger
Retail Health Services
Will Further Expand
The convergence of the
worlds of healthcare and
food retailing will further
expand via new alliances
powered by technology.
Trends From Acosta’s Crystal Ball, continued
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