Supply chain issues. Limited stock. Rising prices. Over the past twelve months, these phrases have become buzzwords in the retail industry. With inflation at the forefront of the news — and a massive 10% increase in grocery prices — sellers and shoppers are scrambling to find ways to focus on numbers that are now at a 40-year high.
Grocers now face a challenging situation not only dealing with the rising cost of products, but also tackling the habits adopted by shoppers when online shopping became essential during the Covid-19 pandemic. Interestingly, the bulk of these habits involve reliance on — and love — technological solutions designed to fit the new “normal.”
While current trends show that shoppers are giving up online shopping – in favor of shopping in-store – that doesn’t mean they are giving up their favorite mobile apps and Retail Technology Tools.
This means that grocers must be prepared to meet shoppers at the crossroads of in-store and online shopping. While it’s natural for us to separate online shopping and the convenience of an app-based purchase from the store experience, it’s simply wise to take advantage of what we’ve learned. We must seize the opportunity to create an integrated online and in-store shopping experience that helps shoppers meet the challenges of shopping – and rising food costs – with ease and confidence.
technology is here. It’s time to lean back.
So, how do we take lessons from the past couple of years to support and benefit clients with inflation soaring? We are evolving. We beat these trends and realize that technology can drive in-store sales, Loyalty building and creating new sources of income for grocers across the country.
First, grocers need to invest in digital solutions — specifically mobile apps Help shoppers find savings. With inventory at a higher price, it’s important to put local prices, available products, and digital coupons into the hands of your customers. By making sure people know what’s available in-store – and what they’re going to spend – you’ll provide a frustration-free shopping trip, reducing their risk of turning to competitors for a better experience.
Figures show that while today’s shopper relies more on mobile apps to make informed decisions, 90% of customers still prefer in-store shopping. In fact, online grocery sales in the US fell 6% in March, and those numbers will continue to grow. It’s time to reach out to those clients now…or someone else will.
This makes the next logical addition to your digital strategy: a loyalty program that connects you with your customers in a targeted, data-driven way. By adopting technology that tracks individual habits and preferences, you’ll be able to offer personalized suggestions, promotions, and savings that make the trip back to your store a no-brainer.
The bottom line is shoppers want value – especially now. All indications point to the fact that annual inflation could rise to nearly 15% depending on the product, with customers feeling the impact by the end of the year.
“It is up to retailers to move forward with this upward price trend and help shoppers identify new styles that will not be limited to Save the savings but encourage them to participate online and in the physical store. In fact, as prices continue to rise, the in-store shopping journey will become even more important as shoppers will no longer be able to afford the exorbitant premiums associated with delivery services,” says Henry Kim, CEO and Co-Founder of Swiftly.
Exceed the effects of inflation on your bottom line
Shoppers are not the only ones feeling the inflation crisis. As retailers raise prices to survive, it’s also important to look at how they can channel technology to generate additional revenue. The most reasonable solution is to claim its share of the $100 billion retail media market.
By controlling your Retail media software—and by partnering with the brands your customers trust–You bring dollars into your bottom line and reveal opportunities to pass on savings.
Besides revenue, the data you’ll collect from your retail media software can give you insight into the inventory you should invest in.
The big question
For many retailers, the big question is simply, “How do I build this kind of technology?” The good news is that it does exist. Companies like quickly It provides you with the same technology that a large retailer uses without any work for your team. These plug and play solutions are tailored to your specific needs and can be integrated with your existing POS system in a matter of weeks.
It is no secret that with the current rate of inflation, customers will become more aware of their shopping habits. By modernizing your practices, and evolving with available technology solutions, there is no reason why grocers should not only survive, but thrive as we navigate our new normal.
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