85th AnnuAl RepoRt of the GRoceRy IndustRy Please grade your company’s strategy for connecting with consumers at multiple touchpoints 12.1% 28.0% A We have a fully integrated strategy using in-store, online and digital channels B We’ve got a strategy that we’re executing C We’re just getting started D We don’t have plans for omnichannel 31.8% 28.0% Source: Progressive Grocer Market Research, 2018
store, online and digital channels. However, smaller grams with their ecommerce operations over the past chains are further behind than larger ones, showyear, including Northeastern club chain BJ’s Wholeing the advantages that third-party companies can sale Club, Minnesota grocer Lunds & Byerlys, and have in assisting where scale and resources might Midwest retailer-wholesaler SpartanNash. Other be limited: While about one-third (32.1 percent) of grocers nationwide, such as Jewel-Osco, Safeway, respondents with fewer than 50 stores (versus 79.6 and Stop & Shop, have even worked to bring digipercent of those with 50-plus locations) are executtal coupons to Supplemental Nutrition Assistance ing or running a fully integrated strategy, roughly Program (SNAP) participants. Meanwhile, retailers half (50.9 percent) said they’re just getting started. large and small have worked to expand mobile wallet Although last year’s report showed growth functionality across stores, including Walmart, Taronly in select omnichannel services being offered get and Kroger, while checkout-free technology has compared with the year prior, this year’s showed also expanded from giants like Kroger and Walmart robust expansion across the board. Mobile shopto independents such as Macey’s in Utah. ping apps saw the strongest amount of growth Aside from mobile shopping apps, all om— from 29.6 percent to 54.2 percent — which nichannel offerings other than click-and-collect corresponds with a shift in what grocers value saw double-digit growth over the past year. This in mobile devices over the past year. could be because click-and-collect saw strong Social media no longer seems to be the greatgrowth in last year’s report, meaning that groest value in mobile for grocers: Facecers have moved into more sophisticated book, which topped last year’s list, fell waters — for instance, in-store mobile dramatically in this year’s survey (59.1 product scanning (24.3 percent versus 8.5 percent to 25.9 percent), while order percent) and ordering kiosks (16.8 percent online/pickup in-store (42.6 percent verversus 2.8 percent) saw some of the most sus 27.9 percent last year); POS loyalty impressive growth, while delivery services card (32.4 percent versus 23.6 percent); — whether store-supported (28 percent ecoupons (55.6 percent versus 51.9 perversus 14.1 percent) or third-party (31.8 cent); and personalized discounts (27.8 percent versus 16.9 percent) — also had percent versus 23.4 percent) saw strontheir year in the sun, possibly due to Amager favor. Mobile wallets and scan-aszon’s ante-upping in the space: Walmart, of grocers are currently executing or running a fully you-go/bypass checkout, although not Target, Albertsons and Costco alone have integrated ominchannel represented last year, were selected by been working to expand same-day delivstrategy using in-store, online 16.7 percent and 17.6 percent of responery. Click-and-collect still grew, however, and digital channels. dents, respectively. with nearly one-third of grocers now ofSeveral grocers have been working to fering it, compared with just more than connect their loyalty and coupon proone-fifth last year.
56%
50
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