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Competing in the age of customer-centric grocery

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The Grocery and Mass Merchandise is in the midst of an intense, prolonged period of transformation. Yet emerging from this change is a once-in-a-generation chance to leap forward; for grocers to not just overcome today’s challenges, but to fundamentally reimagine the role they play in customers’ lives as they head into tomorrow.

For grocers to remain competitive today requires unceasing agility. For years attention was focused on making shops visually appealing, then overnight in the spring of 2020 that changed: providing a smooth online experience was suddenly indispensable. Now retailers are vying to find innovative ways to merge online and in-person experiences into new forms of seamless shopping — while at the same time meeting customers’ increased expectations. As geographic barriers are breaking down – grocers are now competing with chains, specialty stores, local farmers and markets on a scale never seen before. Todays connected customers have more grocery choices than ever — and they know it.

The good news for grocers is that demand is not going to go away anytime soon. People still appreciate access to a variety of fresh, healthy, safe and sustainably sourced foods and household essentials. But, what we see now is how the rules of engagement have changed:

  • 40% of current online grocery shoppers plan to continue buying all of their groceries and household essentials online
  • Choice matters more and more, with ways to buy groceries and household items encompassing online, subscriptions, delivery apps, marketplaces, and direct-to-consumer sales
  • Customers are less interested in accepting substitutions for out-of-stock products
  • Customers are sensitive to price —  56% of consumers are more cost conscious in 2021, with 26% wanting to save money and experience better quality.

How are grocers gaining the agility to compete in this new era? By putting digital at the heart of their operations. Our new Point of View, Digital Core for Grocery, explores the advances made possible with the added agility of a digital core. From providing unprecedented resilience in supply networks to helping retailers reimagine customer-centric shopping experiences, digital is changing the face of grocery.

Read more about the strategic advantages of a digital core solution in our Point of View: Digital Core for Grocery.

Click here to read our point of view.

CONNECT WITH OUR EXPERTS:

John Waymire, Executive Vice President, CPR and Wholesale Distribution, Capgemini

Josean Mendez, Vice President, Global SAP Partner and Ecosystem Lead, Capgemini

Elisabetta Spontoni, Vice President, Global Head of SAP Operations, Capgemini

Lindsey Mazza, Global Retail Lead, Capgemini

Randy Evins, Senior Principal / Industry Advisor SAP