{"id":985918,"date":"2022-07-12T11:55:54","date_gmt":"2022-07-12T11:55:54","guid":{"rendered":"https:\/\/www.capgemini.com\/?post_type=research-and-insight&#038;p=711536"},"modified":"2024-09-09T09:18:53","modified_gmt":"2024-09-09T09:18:53","slug":"reinventing-grocery","status":"publish","type":"research-and-insight","link":"https:\/\/www.capgemini.com\/in-en\/insights\/research-library\/reinventing-grocery\/","title":{"rendered":"Reinventing grocery"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-reusable header heroReusable  \"><div class=\"header-bgs\"><picture><source srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=2880&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=2880&amp;quality=70 2x\" media=\"(min-width: 1500px)\"\/><source srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=1440&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=2880&amp;quality=70 2x\" media=\"(min-width: 992px)\"\/><source srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=1024&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=1024&amp;quality=70 2x\" media=\"(min-width: 768px)\"\/><source srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=768&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg?w=768&amp;quality=70 2x\" media=\"(min-width: 0)\"\/><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Capgemini_Reinventing-Grocery.jpg\" class=\"header-img header-img-d\" alt=\"Capgemini_Reinventing-Grocery\" style=\"object-fit:cover;object-position:50% 27%\" loading=\"eager\"\/><\/picture><\/div><div class=\"heroPictureCardHeaderShape\"><\/div><div class=\"container\"><div class=\"row\"><div class=\"col-md-12\"><div class=\"box\"><div class=\"boxTagWrapper\"><div class=\"tagInfo\"><div><span class=\"box-tag\">point of view<\/span><\/div><\/div><\/div><div class=\"box-title\"><h1 data-maxlength=\"34\">Reinventing Grocery<\/h1><\/div><h2 class=\"reasearchInsightTitle\">5 realities defining the new era of connected commerce for grocers<\/h2><div class=\"inner-row-insight download-btn\"><div class=\"col-md-4 downloadFiles addPadding\"><a class=\"button-download--small\" type=\"download\" href=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Reinventing-Grocery_POV.pdf\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><span>Download report<\/span><span class=\"type\">2 MB  pdf<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-intro-para undefined section section--intro\" id=\"introParaWrapper\"><div class=\"intro-para\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-1\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/in-en\/insights\/research-library\/reinventing-grocery\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/sharing\/share-offsite\/?url=https:\/\/www.capgemini.com\/in-en\/insights\/research-library\/reinventing-grocery\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div class=\"col-12 col-md-11 col-lg-10\"><h2 class=\"intro-para-title\">The global disruption of the last two years brought a series of uncomfortable firsts to consumers in the U.S. and around the world. For many, that included placing their first online grocery order.<\/h2><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\" id=\"quoteWrapper\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"row\"><div class=\"col-12 col-md-11 col-lg-10 offset-md-1 offset-lg-1\"><div class=\"article-text article-quote-text\">\n<p>What started as a unique novelty soon became the norm \u2013 and some industry experts and analysts even suggested that once consumers recognized the convenience and simplicity of online grocery shopping, it would push traditional stores to the brink of irrelevance.<\/p>\n\n\n\n<p>That idea turned out to be a myth. The most recent report from the Capgemini Research Institute, What Matters to Today\u2019s Consumer: 2022 consumer behavior tracker for the Consumer Products and Retail industries, confirms as much with the survey revealing that nearly 6 in 10 grocery shoppers (57%) still go to the store to purchase the bulk of their groceries.<\/p>\n\n\n\n<p>But even while interest in shopping the physical store remains strong, there are significant shifts at play within the grocery industry. Here we take a closer look at our research findings and help grocers separate fact from fiction and embrace change in the new era of Connected Commerce.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Web-banner_Myth-vs-Reality_01.png\" alt=\"\" class=\"wp-image-712276\"\/><\/figure>\n\n\n\n<p>The leading finding from our recent survey reveals something of a contradiction: consumers are eager to return to stores \u2013 but e-commerce growth remains strong.<\/p>\n\n\n\n<p>Total e-commerce sales in the U.S. for 2020 increased by 32.4% and accounted for 14% of total sales, up from 11% in 2019. However, the retail sector, as a whole, grew 15%. This suggests that even though e-commerce growth is strong, its share within the overall market declined slightly. Couple this with the fact that a majority (72%) of consumers expect to resume significant interactions with physical stores in the longer term after health and safety concerns subside, and you can see why the future of retail is a mix of physical and digital \u2013 or what we call \u201cphygital\u201d.<\/p>\n\n\n\n<p>The reality is that consumers don\u2019t need or want to choose between channels. In fact, it\u2019s become increasingly rare for consumers to interact exclusively on one channel. Shoppers are  leveraging a multitude of channels \u2013 in-store, online, mobile app, even the metaverse, depending on their schedule, the weather, or just their preference.<\/p>\n\n\n\n<p>With this in mind, retailers must create an experience that transcends channels and meets the consumer at their precise moment of need, be it physical, digital or somewhere in between.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Web-banner_Myth-vs-Reality_02.png\" alt=\"\" class=\"wp-image-712277\"\/><\/figure>\n\n\n\n<p>Retail giants have built their empires on two- day delivery, but our survey reveals that today\u2019s grocery shoppers measure delivery times in mere minutes, not days. The new consumer expectation is that they\u2019ll be able to have a very fast fulfillment window \u2013 two hours or less \u2013 regardless of channel of purchase.<\/p>\n\n\n\n<p>One positive note for grocers from our survey is that the majority of shoppers understand that fast delivery comes at a cost. Our research shows that shoppers are willing to pay 3.3%, on average, for two-hour delivery on a $30 order \u2013 implying that fast trumps free for most shoppers. <\/p>\n\n\n\n<p>So how do grocers increase delivery speeds and preserve margins? At present, most grocers are using traditional stores to fulfill a majority of orders. However, leveraging a variety of models, such as dark stores, micro-fulfillment centers, third-party delivery services, the gig economy and so much more, can lead to greater cost efficiencies and improved delivery times.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Web-banner__Myth-vs-Reality_03.png\" alt=\"\" class=\"wp-image-712278\"\/><\/figure>\n\n\n\n<p>The rise of UberEats, Wolt and other delivery services, as well as ready-made meals and meal kit subscriptions, has changed the face of dinnertime in millions of households. For grocers, this means that they aren\u2019t just competing against other grocers, but other retail categories.<\/p>\n\n\n\n<p>The modern grocer isn\u2019t just a simple seller of pantry staples \u2013 it\u2019s a purveyor of food and a host of other incidental items that the customer needs. Consumers want the grocer to stock their whole house. That means fulfilling traditional grocery orders, offering home meal replacement kits, delivering ready-made meals, as well as other household necessities like paper goods, cleaning supplies, baby care items, and toiletries.<\/p>\n\n\n\n<p>Increasingly, consumers also expect grocers to fulfill these needs in a variety of locations and scenarios. That can mean delivering light meals and snacks to kids at after-school activities, providing refreshments for a business meeting, dropping off dog food at a pet hotel or even diapers and wipes at daycare.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Web-banner_Myth-vs-Reality_04.png\" alt=\"\" class=\"wp-image-712279\"\/><\/figure>\n\n\n\n<p>Relying on a weekly circular included in a print newspaper has become obsolete \u2013 and not just because of waning newspaper readership.<\/p>\n\n\n\n<p>The reality is that AI\/ML technology, coupled with digital signage and connection to the back-end ERP tool and inventory system, make it possible to enable dynamic pricing based on any number of factors \u2013 excess stock, expiration dates, even changes in the weather forecast.<\/p>\n\n\n\n<p>Dynamic pricing is an all-around win. It means better margins for the retailer, lower prices for the consumer, and less waste for the environment. Plus, for retailers that leverage digital signage, dynamic pricing doesn\u2019t have to mean spending hours manually changing tags or signs.<\/p>\n\n\n\n<p>By the same token, with the right data, offers need not follow a One:Many approach. With advances in digital technology, it is possible to proactively share personalized offers with customers based on their unique shopping behaviors, preferences, and anticipated needs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/05\/Web-banner_Myth-vs-Reality_05.png\" alt=\"\" class=\"wp-image-712280\"\/><\/figure>\n\n\n\n<p>Our survey revealed that many shoppers have paid a premium for the products and brands they perceive as sustainable. But there\u2019s a catch: They don\u2019t expect to have to do so in the future.<\/p>\n\n\n\n<p>In June 2020, we found that 63% of consumers said that sustainable products should not be more expensive than similar products that are non- sustainable. This percentage increased to 72% in our current research.<\/p>\n\n\n\n<p>For retailers, this may mean selecting products that are sustainable, but priced competitively. That may include stocking hyper-local products to reduce their carbon footprint or playing an active role in the circular economy. It can also mean offering services, such as carbon offsetting or bike delivery, that improve sustainability.<\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>With consumer behaviors changing rapidly, it can be difficult to separate myth from reality and accurately invest in the future of your grocery business. That\u2019s why it\u2019s critically important for grocers to leverage data to get a clearer sense of the evolving needs of their shoppers \u2013 whether they are in-store or online, shopping for a large weekly order or placing a delivery for tonight\u2019s dinner, looking for specialty items or sustainable options.<\/p>\n\n\n\n<p>Because the reality is that the world of grocery has changed \u2013 and grocers who continue to evolve will find success in the new era of Connected Commerce.<\/p>\n\n\n\n<div class=\"wp-block-cg-blocks-autocloud-form undefined autocloudform is-style-purple-theme\"><div class=\"section--autoCloud-form\"><div class=\"wrapperAutoCloudSection\" id=\"linkToForm\"><div class=\"container\"><div class=\"row\"><div class=\"col-md-12 col-lg-6 left-img align-self-center escaper-left\"><\/div><div class=\"  col-md-12\"><div class=\"autoCloudForm\"><h4 class=\"formHelpText\">Contact us<\/h4>\t\t<div class=\"mf_forms__container \">\n\t\t\t\t\t\t\t\t<form id=\"mf_form_714989_1580673155\" class=\"mf_form__form row needs-validation\" action=\"\" method=\"post\" enctype=\"multipart\/form-data\" data-nosnippet>\n\n\t\t\t\t\t\t\t\t<input type=\"hidden\" name=\"form_id\" data-validate=\"number\" class=\"mf_form__id\" value=\"714989\" \/>\n\t\t\t\t<input type=\"hidden\" name=\"form_title\" class=\"mf_form__title\" value=\"\" \/>\n\t\t\t\t<input type=\"hidden\" name=\"wp_rest_nonce\" class=\"mf_form__wp_rest_nonce\" value=\"80bb278139\" \/>\n\n\t\t\t\t<input type=\"hidden\" name=\"mf_form_conditional_logic\" class=\"mf_form__title conditional_logic\" value=\"\" \/>\n\t\t\t\t\n\t\t\t\t<input type=\"hidden\" name=\"mf_form_fields_country_dpo_field\" class=\"mf_form__title conditional_logic mf_form_fields_country_dpo_field\" value=\"\" \/>\n\n\t\t\t\t<!-- Anti-spam field -->\n\t\t\t\t<input type=\"text\" \n\t\t\t\t\tname=\"website_url\" \n\t\t\t\t\tclass=\"mf_field__url\" \n\t\t\t\t\tautocomplete=\"off\"\n\t\t\t\t\ttabindex=\"-1\"\n\t\t\t\t\taria-hidden=\"true\"\n\t\t\t\t\tstyle=\"position:absolute;left:-9999px;width:1px;height:1px;opacity:0;pointer-events:none;\" \n\t\t\t\t\/>\n\t\t\t<\/form>\n\n\t\t\t<div class=\"mf_form__success\" tabindex=\"0\" role=\"alert\">\n\t\t\t\t\t\t\t\t<p>Thank You! 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Please try again.<\/p>\n\t\t\t<\/div>\n\t\t\t\t<\/div>\n\n\t\t<script>\n\t\t\twindow.MF_CONFIG714989 = {\"714989\":{\"errors\":[],\"redirect\":\"\"}};\n\t\t<\/script>\n\t\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-learn-more learnMoreBlock updated-new-sample-amal\"><div class=\"container\"><div class=\"content-title\"><h3>Learn more<\/h3><\/div><div class=\"row\"><div class=\"col-md-4\"><div class=\"box\"><div class=\"box-wrapper\"><a class=\"box-title\" href=\"\/insights\/research-library\/what-matters-to-todays-consumer\/\" target=\"\" rel=\"noopener noreferrer\"><div class=\"box-img-wrapper\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/02\/Capgemini_research-insights_2022-consumer-behavior-tracker-for-the-Consumer-Products-and-Retail-industries.jpg?w=500&amp;quality=70\" srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/02\/Capgemini_research-insights_2022-consumer-behavior-tracker-for-the-Consumer-Products-and-Retail-industries.jpg?w=500&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2022\/02\/Capgemini_research-insights_2022-consumer-behavior-tracker-for-the-Consumer-Products-and-Retail-industries.jpg?w=1000&amp;quality=70 2x\" class=\"box-img\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"lazy\"\/><\/div><h4 class=\"titleWithoutLink_learnMore\">What matters to todays consumer<\/h4><\/a><\/div><\/div><div class=\"box-inner\"><p class=\"box-desc\">2022 consumer behavior tracker for the Consumer Products and Retail industries <\/p><\/div><\/div><div class=\"col-md-4\"><div class=\"box\"><div class=\"box-wrapper\"><a class=\"box-title\" href=\"\/industries\/consumer-products\/\" target=\"\" rel=\"noopener noreferrer\"><div class=\"box-img-wrapper\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/08\/Capgemini_Industries_Consumer-Products.jpg?w=500&amp;quality=70\" srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/08\/Capgemini_Industries_Consumer-Products.jpg?w=500&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/08\/Capgemini_Industries_Consumer-Products.jpg?w=1000&amp;quality=70 2x\" class=\"box-img\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"lazy\"\/><\/div><h4 class=\"titleWithoutLink_learnMore\">Consumer products: Building and maintaining brand loyalty in times of disruption<\/h4><\/a><\/div><\/div><div class=\"box-inner\"><p class=\"box-desc\">Building and maintaining loyalty, even in these uncertain times, requires companies to address both parts of the equation: meeting customers when and where they want and connecting with shoppers on a personal level within their daily lives.<\/p><\/div><\/div><div class=\"col-md-4\"><div class=\"box\"><div class=\"box-wrapper\"><a class=\"box-title\" href=\"\/industries\/retail\/\" target=\"\" rel=\"noopener noreferrer\"><div class=\"box-img-wrapper\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/10\/Capgemini_Industries_Retail.jpg?w=500&amp;quality=70\" srcset=\"https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/10\/Capgemini_Industries_Retail.jpg?w=500&amp;quality=70 1x, https:\/\/www.capgemini.com\/wp-content\/uploads\/2021\/10\/Capgemini_Industries_Retail.jpg?w=1000&amp;quality=70 2x\" class=\"box-img\" alt=\"\" style=\"object-fit:cover;object-position:50% 50%\" loading=\"lazy\"\/><\/div><h4 class=\"titleWithoutLink_learnMore\">Retail<\/h4><\/a><\/div><\/div><div class=\"box-inner\"><p class=\"box-desc\"><strong>Changing consumer demands drive digital transformation<\/strong><\/p><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\"wp-block-cg-blocks-wrapper-people-slider section section--expert-slider 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