Grocery Brands and Digital Transformation
Amazon investing in the grocery brands space. The convenience of ecommerce has forced brands to improve the customer experience in their physical locations. People will always shop in the supermarkets.
Kroger is the largest grocery chain in the U.S.. Also it is third largest retailer in the world. Kroger sold more than $105 billion last year. Kroger’s investments in technology are also above average for the grocery sector. Shoppers can buy groceries online and pick them up curbside.
Kroger also invested in British online supermarket Ocado with plans to use the company’s automation technology in warehouses. Groceries are also Amazon’s fastest-growing category.
While that growth may hurt grocers:
- individual food
- and beverage brands have an opportunity to blossom
- they have to match Amazon in terms of convenience
- delivery options are very important
- internet users want same-day grocery delivery. It is very challenging.
- apps, also play a big role in the perception of convenience.
Apps, an area where Cusson increasingly sees grocers investing, also play a big role in the perception of convenience. 44% of consumers had used a grocery app this year.
Beyond purchasing, apps provide several ways to streamline the shopping experience. Obtaining coupons being the most common.