The Digital Grocer is a show dedicated to discussing digital commerce issues, insights, and tips for grocery retailers hosted by Sylvain Perrier.
Celebrating 125 years of service to grocery retailers, California Grocers Association is recognised as a leading resource in government and industry relations for grocery retail. Grocery stores are a huge part of our communities and can easily be impacted by legislative changes every year. In the latest episode of Digital Grocer, hosts Sylvain Perrier and Mark Fairhurst are joined by Doug Scholz, Senior Vice-President and Chief Operating Officer at California Grocers Association. Advocating for a state with over 39 million people, California Grocers Association works at the state level to actively engage elected officials. Our trio discusses the scope of new laws impacting grocery retail every year and how California Grocers Association is at the forefront of taking action to support grocery businesses, especially smaller retailers who are unlikely to have their voices heard by state legislators. Tune in to the full episode now! And don't miss Sylvain and Mark in Palm Springs for the California Grocers Association Strategic Conference from September 24-26, 2023. Learn more at https://digitalgrocer.com/ Listen on Apple - https://podcasts.apple.com/ca/podcast/digital-grocer-podcast/id1385167503 Listen on Spotify - https://open.spotify.com/show/0F69PEWiu0WbHiHpoJnOZu Listen on iHeart - https://www.iheart.com/podcast/1300-digital-grocer-podcast-84279013/See omnystudio.com/listener for privacy information.
Digital Grocer hosts Sylvain Perrier and Mark Fairhurst are back for season 6! In this first show of the season, the duo discusses the latest research findings from Mercatus' grocery eCommerce forecast, published in partnership with Brick Meets Click. They reveal how the grocery eCommerce forecast will impact grocery retailers' ability to retain customer loyalty. The show features Joel Percy, Regional Director at Eagle Eye, and formerly Director of Loyalty Marketing at Loblaw Companies Limited, who shares his thoughts on key elements defining grocery retail loyalty today. Throughout the segment, Sylvain and Joel discuss how retailers can bring value to their customers through Eagle Eye's promotional platform, personalizing the customer experience to meet modern shoppers' expectations, and the factors that retailers should consider when looking for a promotional platform. Learn more at https://digitalgrocer.com/ Listen on Apple - https://podcasts.apple.com/ca/podcast/digital-grocer-podcast/id1385167503 Listen on Spotify - https://open.spotify.com/show/0F69PEWiu0WbHiHpoJnOZu Listen on iHeart - https://www.iheart.com/podcast/1300-digital-grocer-podcast-84279013/See omnystudio.com/listener for privacy information.
The beards are back with Between2Beards tales from the road. This time Sylvain Perrier and Mark Fairhurst are on the west coast and travelled out to Coquitlam, BC to visit a brand new Save-On-Foods location that recently opened September 1 2022. Come along as they check out the new grocery store design and layout, and the 16,000 sqft on site MFC that will fulfill online orders come November 2022. (Thanks to Jamie and the store staff for a great tour!) The Digital Grocer hosts compare this store model to ones they've seen in the US, and how they think hybrid store and MFCs models could be the future of regional grocery.See omnystudio.com/listener for privacy information.
Coming off a 3 part series exploring recent macro economic grocery trends, hosts Sylvain Perrier and Mark Fairhurst, are joined by Michael Davidson, President and CEO, Buehler's Fresh Foods. On this podcast episode, Sylvain, Mike and Mark discuss how regional retailers are handling the changes in the grocery industry, while competing against larger, national grocery retailers and mass merchandisers. Some of the key topics covered include: what regional retailers are doing to minimize the inflation impact on customers, how grocers are dealing with labor shortages, the shifting consumer preferences with the grocery industry due to inflation, the current economic climate and how retailers might adjust their plans for 2023. Further the trio discuss the possibility of a recession in 2023 and the major challenges needing to be overcome by grocers. Finally, they end the episode with a great segment on what grocery retailers do to encourage consumers to stay loyal in the current economic environment. The conversation is informative and provides insights into how regional grocers are responding to challenges like inflation and possible recession. So, listen in now! Learn more at https://digitalgrocer.com/ Listen on Apple - https://podcasts.apple.com/ca/podcast/digital-grocer-podcast/id1385167503 Listen on Spotify - https://open.spotify.com/show/0F69PEWiu0WbHiHpoJnOZu Listen on iHeart - https://www.iheart.com/podcast/1300-digital-grocer-podcast-84279013/See omnystudio.com/listener for privacy information.
Welcome to part 3 in a three part Digital Grocer podcast series discussing the macro economic trends influencing the grocery industry. In part 1, Mark and Sylvain were joined by Zac Wilson, Director of eCommerce at Raley's Supermarkets to discuss geopolitical challenges, rising interest rates, and how the pandemic has evolved consumer expectations. In part 2, they were joined by John Lucot, retired President and COO of Giant Eagle, where they discussed grocery inflation, the impacts on retailers and how to respond. In this episode, Sylvain and Mark are joined by Claire Fan, an economist from the office of the CEO of Royal Bank of Canada to discuss the discuss the Canadian and U.S. economy and how current events are affecting grocery consumers, as well as what is happening from a geo-political perspective and how that will impact the economy and grocers in general. Some of the interesting and valuable topics covered in this episode include: current macro state and trends with the Canadian and U.S. economy, how inflation is surging globally and what that means for grocers, how consumers are responding to the economic situation and the impact on consumer spending, strategies that grocery retailers are implementing to combat inflation and economic challenges, how the Russia and Ukraine war will impact North American consumers. And finally, what grocers should expect from the economy going into 2023, and advice for business leaders and how they can respond and adjust their plans for the future. This episode provides valuable insights for anyone interested in learning more about the current state of the economy and its impact on the grocery industry. So, listen in now! Learn more at https://digitalgrocer.com/ Listen on Apple - https://podcasts.apple.com/ca/podcast/digital-grocer-podcast/id1385167503 Listen on Spotify - https://open.spotify.com/show/0F69PEWiu0WbHiHpoJnOZu Listen on iHeart - https://www.iheart.com/podcast/1300-digital-grocer-podcast-84279013/See omnystudio.com/listener for privacy information.
Today, we are diving deep into Part 2 of a 3 part series where expert grocery ecommerce hosts, Sylvain Perrier and Mark Fairhurst, discuss the effects of grocery inflation on retailers and what is happening behind the scenes in terms of merchandising and operations. In Part 1: Grocery eCommerce: Post-pandemic insights and strategy, the hosts were joined by Zac Wilson, the Director of eCommerce at Raley's Supermarkets, where they discussed what has occurred coming out of the Pandemic, how Rayley's responded, the early impacts of inflation and how it is effecting ecommerce, and how that has affected grocery delivery and pickup. In this episode, Sylvain and Mark are joined by John Lucot, retired President and Chief Operating Officer of Giant Eagle where the conversation centers around how can retailers respond to grocery inflation, how CPG expectations and consumer behaviors are changing due to inflation, whether or not inflation benefits grocery retailers, and how retailers should prepare to go from inflation to potential recession. The episode details strong advice for grocery retailers today that are dealing with the current market circumstances. This is a must-listen episode for anyone operating a grocery business. Learn more at https://digitalgrocer.com/ Listen on Apple - https://podcasts.apple.com/ca/podcast/digital-grocer-podcast/id1385167503 Listen on Spotify - https://open.spotify.com/show/0F69PEWiu0WbHiHpoJnOZu Listen on iHeart - https://www.iheart.com/podcast/1300-digital-grocer-podcast-84279013/ See omnystudio.com/listener for privacy information.
Grocery eCommerce: Post-pandemic insights and strategy with Zac Wilson, Raley's Supermarkets Mark and Sylvain are joined by Zac Wilson, Director of eCommerce at Raley's Supermarkets. Throughout the episode, they discuss: Geopolitical challenges, the Federal reserve raising the interest rates, the shift in how the pandemic has evolved how consumers experience and interact with grocery ecommerce, changing consumer expectations and demand in post-pandemic environment, how inflation has impacted basket sizes, and overall changes in customer grocery fulfillment preferences. See omnystudio.com/listener for privacy information.
In this episode of the Digital Grocer, Instacart's IPO is on the table and there is much speculation as to its strategy and who would consider acquiring the grocery delivery platform. This week's guest is Rick Watson of the Watson Weekly podcast and also CEO and Founder of RMW Commerce Consulting. Instacart's current position in the grocery retail space, its platform strategy, company valuation, and potential IPO scenarios are discussed. The headwinds that Instacart must overcome, such as high costs, competition from Amazon, and the need to invest in new technologies, are analyzed. Instacart's competitive advantage, key partnerships, and growth plans are also discussed. Instacart's IPO will be a major test for the company and will likely have a significant impact on the grocery industry. See omnystudio.com/listener for privacy information.
Instacart is an online grocery platform that many people have been wondering about when it comes to the company's long-awaited IPO, and what this will mean to the industry. Hear why we know the IPO is around the corner, despite what Instacart has said recently. In this latest episode of the Digital Grocer podcast, Sylvain Perrier and Mark Fairhurst discuss some first-hand information they have about Instacart's upcoming filing. Online grocery sales numbers for March 2022, as well as latest insights into consumer preferences also are discussed. Online delivery has definitely gained a larger share of the eGrocery market due to convenience being the key driver behind consumers' growing adoption of this channel but how long will this last? See omnystudio.com/listener for privacy information.
Sylvain Perrier and Mark Fairhurst are back for Season 5 of Digital Grocer! In Episode 1, David Bishop joins them as they all become secret shoppers and explore how Amazon Fresh uses convenience as a key selling point. While reviewing several store experiences, the team examines the grab-and go technology and how Amazon prices its products in-store versus online. Lastly, the they talk in depth about the Amazon Fresh strategy to build up their grocery retail business by looking into what makes them stand-out against traditional food industry players. Don't miss all of this and more in this first episode of the Digital Grocer podcast new season. See omnystudio.com/listener for privacy information.
Sylvain and Mark wrap up their 3 week West coast tour. After finishing up at NGA and Groceryshop, they made their way to Palm Springs, Los Angeles, Riverside California, and the San Francisco Airport Marriott where this episode was recorded. Our hosts touch on a few timely topics including: The extremely tight labor market, the competition for talent and the upstream impact on critical components of the supply chain and the downstream impact on grocers' ability to staff stores Raley's acquisition of Basha's and the interesting blend of company cultures Inmar's acquisition of Aki Technologies and the rise of in-the-moment consumer targeting Barclays follow-up report, Dissecting the Instacart Hangover, uncovers declining consumer satisfaction and loyalty to Instacart as delivery provider competition heats up grocers improve their first party channel experiences Instacart's CRO jumps ship and joins Walmart and what this could mean to regional grocers See omnystudio.com/listener for privacy information.
Sylvain and Mark hit the road for the first time in 18 months. The first leg of their journey is Las Vegas attending Groceryshop Conference and Tradeshow as well as the National Grocers Association event. Listen in to hear their thoughts on the respective shows, attendance and what hot topics are being discussed on the show floors, up on stage and in one-on-one conversations with grocery retailers. See omnystudio.com/listener for privacy information.
This week on Between2Beards, Sylvain and Mark talk about Publicis Groupe, one of the largest marketing and communications companies in the world, announcing it will acquire CitrusAd, an Australian retail media company, and place it within the Epsilon data business. What are the implications for other retail media companies like Criteo, Quotient, Inmar and Instacart as they look to build their own digital advertising solutions? In the past few months, CitrusAd has announced that its technology will power new ad platforms launched by Target, Tesco, the British grocery giant, and the ecommerce fulfillment company GoPuff. CitrusAd is also partnered with Mercatus and powers CPG sponsored ad placements on the Mercatus grocery eCommerce platform for retailers like Weis Markets, Smart & Final and soon Stater Bros. Markets, among others. See omnystudio.com/listener for privacy information.
Sylvain and Mark kick off a new series called Between2Beards, where these two bearded leaders share insights on hot topics this week in grocery. This week, it's all about Instacart's latest ex-Facebook hire, Fidji Simo. While Instacart is a dominant player in the grocery space, what does adding another ex-Facebook exec to their c-suite say about the direction their business is going? Tune-in to Between2Beards, a Digital Grocer show, to find out. See omnystudio.com/listener for privacy information.
David Hardiman-Evans, SVP, North America for Ocado Solutions, dials in from the UK to speak with Sylvain and Mark about how grocery technology is reshaping the landscape. David talks about Ocado's origins in 2000 as an online-only company, which aimed at the outset to find a different way of operating. Their approach includes an emphasis on aggregation, automation and grocery technology, for the purposes of optimizing operations and delivering a compelling customer experience. Much of the benefit to Ocado's grocery retail partners is around cost reduction, which is necessary to run a sustainable online business. David illustrates with the following example: “What are the benefits on the economic side? Well one, with greater visibility over inventory control, better forecasting, you can drive much lower waste, for example. Typically in the grocery industry, waste is running at two and a half to three and a half percent of sales. Certainly in our own experience in our UK retail business, it's running at 0.4% of sales, so very significantly less. And that for many grocers is the difference between running a profitable and unprofitable business.” In terms of customer experience, David notes that products can be fresher than the shopper could get when going to the store themselves. Sylvain asks what retailers need to do to adapt to these changes in grocery technology. David observes that it's often a shift in mindset, which then leads to a forensic approach to each part of the value chain, and provides some examples. The conversation turns to a comparison of the markets and the grocery shopping experience in North America versus Europe, including both the differing attitudes towards pickup and delivery, and the similarities between customers in all markets. In particular, David addresses shifting attitudes towards grocery delivery as that technology improves. Sylvain asks about the technical maturity of Ocado's grocery retail partners. David observes that they tend to be leaders in their markets, with strong supplier relationships, great brand recognition and solid customer trust. “They know their customers well, and they have good understanding and knowledge of customer behavior and trends in their local markets.” Another very powerful trait, notes David, is that Ocado's partners are all forward thinkers. Instead of thinking reactively about how to protect their position, they look at what they can do to drive the opportunity. Tune in to the full episode for more insights into online grocery fulfillment, automation and more. Check out more great episodes in season 4: Grocery Retail Valuation with Dan McCarthy Grocery delivery marketplace dominance with Rick Watson Grocery retail strategy and execution that grows shopper loyalty See omnystudio.com/listener for privacy information.
Sylvain and Mark begin by discussing two big developments in the grocery industry. One is Amazon's launch of “pay-by-palm” technology at Whole Foods. The other is the entry into the market of what Mark calls “pure eGrocery” companies — online companies that sell food direct to consumer. The pair look at the example of Misfits Market, which recently raised $200 million in series C funding, speculating on the implications for other industry players as well as how the valuations are derived. To shed some light on the issue of valuations is this week's guest: Dan McCarthy from Emory University, whose research interests include customer lifetime value and marketing finance. Dan has popularized a valuation methodology known as “customer-based corporate valuations,” or CBCV. What is CBCV? In Dan McCarthy's own words: “It's really helpful to know what total revenue is, but it's even more helpful and more diagnostic to be able to break it down into all of the underlying customer behaviors that brought that revenue about. Customers being acquired, staying with the firm, placing orders, having some spend associated with the order and then having that spend flow through into variable profits.” Dan's research suggests that by assessing revenue durability this approach can uncover value that's not always evident from traditional financials — or conversely, identify overvaluation. To illustrate how this plays out, he compares two online marketplaces, luxury goods retailer Fartech and ridesharing company Lyft. Dan McCarthy also notes that this approach is starting to gain traction, with more analysts and including customer disclosures in some form in their reports. Sylvain wonders whether there are barriers to using this model. Dan replies that data availability is a potential barrier for grocers. The conversation then turns back to those food retailers with very large valuations. Sylvain asks what's driving these valuations. Dan McCarthy says it's in part a function of the nature of grocery: “The market size that we're talking about here is going to be tremendous because we are talking about people buying food and obviously people spend not only a lot of money on food, but it's also a very regular purchase.” When customer lifetime value is large, and the model scales well, these companies can use the concept of network effects to sell their story, and a virtuous cycle sets in. Discover how regional grocers can use CBCV, even if they don't have full customer data, by tuning into the podcast. Did you like this podcast? Check out these other great shows and subscribe for notifications on upcoming shows! Grocery delivery marketplace dominance with Rick Watson Steve Dennis Essential Strategies for Retail Leaders Why Grocers Need to Measure Customer Lifetime Value See omnystudio.com/listener for privacy information.
Mark and Sylvain start by covering the latest news in grocery. Canadian grocer Sobeys' acquired regional grocer Longo's in another move by this fast-growing retailer. And in the US, the NGA urges investigation of large US grocers for “illegal and anticompetitive business practices.” As we consider how the market continues to evolve each month, Mark quotes David Bishop from Brick Meets Click who noted the two key success factors for regional grocers. "Why is it that a shopper goes to a local regional grocery as opposed to a large mass merchant chain?...It's two things. It's their product assortment, and their customer experience. If you can't deliver on your product promise, you're going to have a challenge. And it's just, your shoppers are going to bleed to those chains that can deliver." So what does that mean for regional grocers on the Instacart grocery delivery marketplace? Rick explains the value for grocers in balancing their own website with other channels like Instacart, instead of offering only their website or outsourcing completely to the marketplace. “Walmart, maybe Kroger can shut off Instacart, everyone else, I'm not sure you want to shut off Instacart. I think for the optimized retailer that really understands their customer, that has great product, if you can, long-term, get Instacart to 30% of your online volume, to me, that's your target. Any more than that, you're too beholden, any less than that, I think you're missing opportunity.” And for regional grocers looking to balance and grow both channels, Sylvain notes the success one of our grocery retail clients Smart & Final has had with this strategy. “I find this really smart, is the product that they're seating on those marketplaces is also a little bit different than what they're selling online in their own website. So they're getting people hooked, there's the convenience and they're using it to drive more traffic to their own .com as well.” As the discussion continues around Instacart's advertising capabilities, Rick estimates that Instacart will become the fourth largest advertising platform in North America. As CPGs continue to move advertising spend online, how can grocers capture that spend? How will Instacart's dominance in the advertising space impact grocery retailer trade dollars, and in turn their business overall? Tune in to the full podcast to dig into what impact Instacart will have in the grocery advertising space, and how the industry might shift and evolve with it. Did you like this podcast? Check out these other great shows and subscribe for notification on upcoming shows! Grocery retail strategy and execution that grows shopper loyalty Supermarket Trends for 2021 Rick Watson on why Walmart joined the Instacart Marketplace See omnystudio.com/listener for privacy information.
Sylvain and Mark kick off this show with a chat about hot industry news: Marc Lore is leaving Walmart and Instacart is hiring a veteran from Goldman Sachs as CFO. The duo then welcomes back to the show David Bishop, Partner, Brick Meets Clicks, who's here today to share key results from his firm's latest survey: State of the US eGrocery Market, November 2020. David points out that: “customer satisfaction is a leading indicator for repeat purchases. And it also tells us a lot of other things around the fulfillment methods and areas of opportunity that the retailers can really explore to continue to grow the business in a more sustainable way.” In this episode, David shares his technique of “interrogating insights” to reveal the truth behind the stats: “the real question is, do we believe the forecast going forward? How much confidence do we have in that? And that comes only from really interrogating insights. …you really have to start by asking the right questions and then understanding what those insights mean.” The first slide to be interrogated looks at online shopping rates, which in David's hands offer up important insights around acquisition and growth moving forward. Among them: “We need to keep in mind, it's going to be harder to steal away customers from other retailers. And the simple reason is the other retailers are going through a very similar process where their customers are maturing. We now have the bulk of customers who are actively shopping online with grocers past their fourth order. And at that point, their likelihood to repeat is near certainty. It's 95%. The number of people who are considered first time orders … it's close to 15%. It used to be around 25% a year ago. And that's really key for driving top line growth because a lot of the growth accrues from onboarding that first time customer and bringing them to the more established fourth or more order. So it's an orientation where there's this kind of subtle shift from a thematic standpoint, from growing via marketing on the internet to really focusing on merchandising with your existing customer.” Sylvain asks David what are the key things that retailers need to recognize in today's online consumer? David's response: “the expectations that customers have at your stores are being influenced by [their] experiences at others.” The next graph compares customer experience scores for ship-to-home, delivery and pickup. David notes that while the “perfect order” rating for delivery was nearly equal to ship-to-home, pickup lagged significantly. Why? To get to the bottom of this, David then deconstructs the third graph, Customer Satisfaction scores. He analyzes two friction points that customers encounter more with pickup than delivery: “Selected preferred time slot” and “received order in a timely manner.” Combining a customer-centric viewpoint with his insider's knowledge of the retail grocery business, David unlocks insights around the strategies and executions grocers can use to increase CuSat ratings and grow customer loyalty: Investing in pick productivities and proactive geolocation and communication tools to reduce friction on the customer. “this is a retention tool. This is a way to maintain the satisfaction, especially if you realize that in some malls, someone's stopping at the Target, doing their drive up, and then driving right down to your store and having a terrible, long experience that's five, six, seven minutes long. If that happens, people aren't going to be as forgiving, going forward.” The real magic lies in the way David dissects the stats, revealing strategic insights that can help you improve your pickup program and grow shopper loyalty. Check it out by tuning into the the episode. See omnystudio.com/listener for privacy information.
This week, Delivery Drivers Inc (DDI) CEO Aaron Hageman joins us on The Digital Grocer podcast. As the pandemic sparks continued growth in the grocery delivery industry, Aaron shares how grocers can quickly and easily scale their own delivery service and how DDI can help. The need for contactless grocery services has caused a growing demand for delivery. As retailers handle record-high order volumes, many have relied on third-party providers like Instacart to scale up quickly. And even grocery giants like Albertsons have made the decision to replace their drivers with gig economy workers through these third-party apps. So with a rapidly growing gig economy in the delivery industry, Aaron Hageman joins us to share how retailers can own their delivery experience and benefit from a provider who can quickly scale a quality fleet of delivery drivers. DDI helps grocers achieve this through: Strategic Planning: looking at data, analytics, resourcing and predicting market trends. Technology: automation, speed an accuracy And acquisition Tactics: “It's not as simple as running an ad on Craigslist, or Indeed, or these types of things. So it's a multi-pronged approach, one driven by a lot of things we might associate typically with marketing campaigns, SEO, search rates, and pay-per-click campaigns, and going to social media for driver recruiting, the same way we may take some of our businesses to social media to buy customers.” When it comes to ensuring delivery drivers are upholding grocers' brand experiences, Aaron emphasizes the importance is not in drivers wearing branded uniforms, but instead that drivers are upholding how grocers communicate with shoppers and that the quality of experience is maintained. Tune in to the full podcast to learn more about how Delivery Drivers Inc helps grocers scale up an owned delivery experience and what key questions retailers are asking. See omnystudio.com/listener for privacy information.
Supermarket Trends for 2021. What supermarket trends can we expect to see in 2021? Sylvain shares more insights on his top 10 predictions for the coming year and how grocers can plan for success. This year has been like no other, and research from Incisiv and Brick Meets Click have demonstrated just that. As we've seen with our retail clients on the Mercatus platform, order volume hit new record highs at Thanksgiving. And it's already breaking records again leading up to Christmas. One thing is for sure in 2021: grocery eCommerce isn't going anywhere, anytime soon. Sylvain notes, “We're seeing customers that historically have not bought online, buying online, not only once, not just for the sake of convenience, but for the sake of safety and that's just going to continue.” How can regional grocers harness their new online traffic, converting new and existing shoppers into long-term customers? Recognize Amazon and Walmart as real competitors for market share Harness transaction data to strategize next steps Commit to an action plan that can be truly executed. And most importantly, differentiate your brand As Mark notes, there needs to be a focus on customer experience. “Not a lot of regional grocers have $300 million to spend on a fully robotic fulfillment center. But what they can do is look at their operations and understand what it would take to deliver the best customer experience possible. And differentiate yourself on that experience.” We dive into the top supermarket trends for 2021 and Sylvain shares more insights on each, commenting on another trend not mentioned on the list: voice commerce. Discover why we don't predict this medium will take off in 2021, by tuning in to the full podcast. See omnystudio.com/listener for privacy information.
The supermarket industry has undergone massive change in 2020. Retailers are focused on convenience, as shoppers demand contactless grocery services like curbside pickup and home delivery. But what are the costs of this convenience? Benjamin Lorr, author of The Secret Life of Groceries, joins The Digital Grocer podcast to share his insights from research in the field. Sylvain and Mark kick off the episode by covering the latest news in grocery. Canadian retailer Metro has announced a new investment of $15M to build out dark stores. Loblaws will be testing autonomous vehicles in partnership with Gatik. Meanwhile, Kroger is building their 10th CFC with Ocado, furthering their investment in efficient fulfillment to improve eCommerce profitability. As we consider the massive investments made in eCommerce and offering essential online shopping services in 2020, Benjamin critiques the core driver of eCommerce: convenience. “I think that anyone who looks at the grocery industry for even half a moment sees how much energy is going into making things convenient and efficient...A lot of the most negative consequences that I came around up to totally exploited labor...But it's all driven by an incentivized system where the people... they're working so hard to get an edge in their own niche that these are ripple effects off of it.” Just how far can the race to convenience go? Mark notes, “Amazon's built Prime on the basis of convenience and you can see this brinkmanship when it comes to between Walmart and Amazon, get it in two hours, get it in one hour, get it in 30 minutes. How fast is fast enough?”. Tune in to the full podcast, where we discuss more supermarket industry insights and secrets uncovered in Benjamin Lorr's research for his latest book. See omnystudio.com/listener for privacy information.
Dave Abbott, CMO at Brookshire's Grocery Company, joins the Digital Grocery Podcast to share eCommerce lessons across multiple retail verticals, from apparel to home improvement, to now grocery. What element has remained true across each vertical? The brick-and-mortar experience is still key. Sylvain and Mark begin by covering the most recent news in grocery and big tech. Notably, Amazon's new Shopper Panel, where they offer compensation to shoppers for submitting receipts, to collect t-log data on their competitors. As we consider how other verticals relate to grocery retail today, Dave joins the conversation. He notes a common thread in certain verticals, where eCommerce represents a small percentage of sales, but websites are vital to the product research and decision-making process for shoppers. “The website is an enabler and information provider for the grocery store, just like it was in home improvement. So in that regard, it's actually very similar. When we look at our investments from a marketing perspective, we have to think about, holistically, what is the end to end journey of that customer, both interacting with the store and the website, and make our investment decisions accordingly.” When asked what is central to the online shopping experience, Dave explains why it can't just be about convenience. “You don't get that excitement when you get the box on your front door. It commoditizes the whole experience, if you will. And I think the brick and mortar experience done well is still going to be a center of attention.” The pandemic has certainly had major impacts on the grocery industry. As a retailer serving shoppers across Texas, Dave shares the importance of offering an essential service at this time. “You would be shocked about how many letters we received say, "You're lifesavers." And they really mean that. It's not like, "Oh, you saved me a dollar on my purchase," that you're a lifesaver. No, they literally feel that we're making them safer.” Tune in to listen to the full podcast, and hear more lessons from Dave Abbott on eCommerce success factors across multiple verticals. See omnystudio.com/listener for privacy information.
This episode, food retail's tech giant takeover is on our minds. Is Silicon Valley going to save grocery retail or take it over completely? Sylvain and Mark consider what factors will impact grocery retail survival past the pandemic, as tech giants navigate the space. Three Factors Impacting Food Retail Survival The food retail industry is continually adapting to changes caused by COVID-19. Sylvain notes three important factors that will have lasting impacts on grocers, beyond the pandemic: Shoppers are trading down or trading out. Those who have lost their jobs are shopping with different retailers that offer lower prices. Shoppers are moving laterally. Concern for in-store safety policies, availability of stock and timeslots for delivery or pickup all impact this move. Trade Co-op dollars are going digital. CPG ad spend is increasingly moving online, as more shoppers shift to making all purchases online, including groceries. “And my fear is you're going to see an increase in bankruptcy in grocery retail, in the smaller tiers where they weren't ready for e-commerce, they may have lost... So, they succumb to the three variables.” AutoStore vs Ocado Sylvain and Mark go on to discuss the implications of the latest AutoStore lawsuit against Ocado. Will this block expansion of Ocado in North America? Would that block impact both Ocado and AutoStore's business opportunities with grocers looking to scale their eCommerce with MFCs and CFCs? Amazon's Stake in SpartanNash With Amazon's opportunity to acquire 15% stake in SpartanNash, we're raising the question of what this means for grocery retail. Amazon has a habit of acquiring businesses to learn, perfect, and then build their own. Are they using Spartan to build their own fresh and frozen distribution centers? Will they use SpartanNash to figure out private label and how to build brand trust with shoppers? “There's a lot of great Silicon Valley companies that are coming to the rescue of retailers to support them with true partnership and so on. But there are those like an Amazon that's just going to come to the table to crush and to dominate. Amazon, could they survive the trade down and trade out? I think 100% because they have other assets that can fund their grocery business to nauseum.” Tune in to the full podcast for more on the latest trends to watch in food retail, as consumers, retailers and tech giants navigate this evolving market space. See omnystudio.com/listener for privacy information.
Shopper Behavior has been fundamentally changed by the pandemic. Big moves by Amazon, Walmart and H-E-B are examples of how some retailers are responding to market demand. But are these moves right for every grocer's business? Our survey with research firm Incisiv revealed the key factors that determine retailer banner loyalty for 60K grocery shoppers across the US. Sylvain and Mark kick it off with a discussion about Amazon's new brick and mortar stores, equipped with contact-free and seamless checkout technology. Countering Amazon, Walmart announces their launch of Walmart+ and we consider why data might be driving their interest in socialmedia platform, TikTok: “It's been reported that a strong percentage of the TikTok users actually have an Amazon Prime account...it would give Walmart a big plus in what they could do with the data and being able to market to a consumer base that I don't think normally shops at Walmart.” H-E-B's new partnership with Swisslog marks their first investment into Micro Fulfillment Centers (MFCs), powered by AutoStore. As retailers consider MFCs for their businesses, Sylvain suggests looking at these criteria: Online order volume, consistency and disbursement across geographies Opportunity to amalgamate into an MFC location Last-mile costs, such as moving products to delivery pickup locations As of 2020, eGrocery's New Reality is: accelerated growth, well beyond pre-pandemic estimates. Projections from our survey data estimate online grocery will account for 21.5% of total grocery sales by 2025. It's clear that shopper behavior has fundamentally shifted. “What we realize is that from collecting data from 60,000 shoppers, a very small subset of people will go back to shopping in store.” When it comes down to what key factors determine lasting shopper loyalty to their local brick and mortar store, it's all about convenience: proximity, value & product selection. Sylvain notes just how much convenience impacts shopper loyalty. “When I talk to consumers who don't know what I do for a living, don't know that I work for Mercatus, they're new to e-commerce, the reality is after their fourth experience, it's extremely sticky. And the main driver is guess what? Convenience.” Learn what grocery shoppers today value in their online shopping experience. Listen to the full podcast for more insights and download the report. Enjoyed this podcast? You might also like: Rick Watson on why Walmart joined the Instacart Marketplace Autostore's Andrew Benzinger on Grocery Micro Fulfillment See omnystudio.com/listener for privacy information.
For our first episode of season 4, Rick Watson shares his insights on why Walmart has joined the Instacart Marketplace. What does this say about Walmart's position in the market? Is this a response to Amazon? Rick, Sylvain and Mark consider these questions and how this move will impact other grocers listed on the Instacart Marketplace. Hosts, Sylvain and Mark begin by considering recent key trends in grocery. The surge in eCommerce is easing off, shoppers continue to buy their groceries online. DoorDash has entered the space, offering last-mile grocery delivery and now their own direct-to-consumer convenience option, DashMart. Sobeys alsolaunched their new online grocery service, Voilà, which has stepped up the game in Canadian grocery. When asked why he thinks Walmart has joined the Instacart Marketplace, Rick shares three hypotheses: Instacart is leading online grocery sales ahead of Walmart, and Walmart is looking to gain ground. Walmart feels like they can't keep up with Amazon's digital investments. Walmart is conducting research for its own competitive intelligence. Sylvain adds to the list, noting Walmart's competitive advantage on price in the marketplace, and their need to scale delivery because of Amazon's delivery route density. The pandemic has pushed retailers to adapt and change to meet the new reality of grocery, Rick Watson notes that more could be done. “We definitely do see the importance of direct to consumer increasing, but it's still slower than you would think. Even with the acceleration in the pandemic, of buyer behavior.” What can grocers do to fortify their businesses, with a potential second wave of COVID-19 on the horizon? Tune in to the podcast for more insights from Sylvain, Mark & Rick If you enjoyed this podcast, check out: Rick Watson on Launching Grocery Marketplaces – Grocery Podcast S3 E7 Barclays Investment Bank's Karen Short on Dissecting the Instacart Addiction – Grocery Podcast S2 E3 See omnystudio.com/listener for privacy information.
Join us on Tuesday June 16, 2020 for a webinar where we’ll share insights and takeaways with David Bishop from Brick Meets Click on Grocery Pandemic Trends.Register to save your seat today. In our season finale, we’re joined by David Bishop from Brick Meets Click to talk about grocery pandemic trends in eCommerce. Central to our discussion are the findings from the May 2020 Brick Meets Click/Mercatus shopper survey. With online grocery sales growing 23% from April to May, reaching a record $6.6B in sales, it’s clear that adoption of grocery eCommerce is here to stay. Sylvain and Mark start by considering the significant events impacting the US, and the world, these past few months, weeks and days. With the immense shift that COVID has brought to the retail industry, Sylvain notes the importance of investing in digital commerce. ”When you think of the pandemic, retailers that rely on the exploration aspect of people coming into their stores, if they're not reinventing themselves, it's going to be a challenge.” As shoppers continue to make more purchases online, David notes the household penetration of grocery eCommerce since COVID: a staggering 33%, at 43 million households across the US. So where should retailers invest to increase eCommerce adoption? David suggests curbside grocery pickup. “When we get into delivery, it tends to skew toward older consumers or wealthier consumers. The pickup tends to skew towards the lower income households, and that has implications for what we’re now dealing with. And one more reason why we believe pickup is going to see a second surge from what we saw a year ago, as we deal with the financial calamity that is coming out of this health crisis.” Tune in to the full podcast and register now for the webinar on June 16 to hear more insights from our CEO Sylvain Perrier and David Bishop from Brick Meets Click on grocery pandemic trends. Enjoyed this podcast? You might also like these resources: Blog: COVID-19 and grocery retail: what grocers can do right now Blog: Should the foodservice industry open doors to new food retail markets? Podcast: How Raley’s responded to crisis: interview with Zac Wilson Podcast: Remarkable Retail – Essential strategies for retail leaders
This podcast, we're talking about grocery micro fulfillment with AutoStore Business Development Manager, Andrew Benzinger. What are micro fulfillment centers (MFCs)? How can they help you get groceries into your shoppers’ hands faster? We’re answering these questions and more! Andrew talks about how MFCs improve the shopper experience. Not only can they make fulfillment faster and more efficient for online orders, but they can also improve the in-store shopping experience for customers. A common issue for shoppers is congestion in-store from the increased number of pickers, especially from third parties. “How do we solve for that? One of the ways that we do is with an MFC is being able to remove most, if not all, of those pickers out of the store entirely, allowing those customers that do want to shop, without green shirts in the store, to have a really positive experience. I mean, think about a number of regional grocers, or even Whole Foods 10 years ago, they had beer taps and glasses of wine walking around the store. Pretty hard to do when you're bumping into third party shopping groups, or even your own shoppers clogging up the aisles. It's a long way from that elevated experience that a lot of people are trying to accomplish.” How have retailers using grocery micro fulfillment solutions been impacted by the COVID-19 pandemic? Andrew shares how AutoStore clients have seen unprecedented growth: “The volumes are through the roof, and we're seeing a few grocery companies, as early as last year, plan for three, five and 10% growth, and they hit that in the first day of March, which is pretty crazy.” Listen to the full interview to learn about how your business could benefit from grocery micro fulfillment with Autostore. Enjoyed this podcast? Check out more resources to help you improve your grocery eCommerce experience: Podcast: Coronavirus and grocery delivery: responding to market influx Blog: COVID-19 and grocery retail: what grocers can do right now eBook: Click-and-Collect: Steps to Building a Profitable Grocery eCommerce Program
Remarkable Retail will be available in stores and online for purchase on April 14. Order your copy now! This episode we’re talking about Remarkable Retail, a new book by retail industry expert, Steve Dennis. We’re joined on the Digital Grocer Podcast by Steve himself, to talk about how retail leaders can win and keep customers in the age of digital disruption. We consider what shifts have happened in retail that have led to digital disruption. But while digital commerce has been widely adopted, Steve notes that retail success lies in both digital and brick-and-mortar channels. “A lot of eCommerce works really, really well and you don't necessarily need a brick and mortar presence to make that happen. But shopping is inherently more experiential and that's what brick and mortar really, really excels at...very few customers are purely channel specific in their behavior. Digital drives physical. Physical drives digital. There's a ton of research that supports that now.” And that success is tripled when these channels are thought of as one whole customer experience. “Digital channels actually drive three times as many brick and mortar sales as they do sales that are transacted in the online channel. You just really have to think of digital as a way to engage with the customer. Some customers will choose to transact online. Some customers will use the digital channel to inform which stores they choose to go to, whether they buy online, pick up in store.” So what can leaders do to create a Remarkable Retail experience that builds shopper loyalty? Understand your shoppers and dissect their customer journeys Identify pain points of points of friction and root them out Focus on the part of the brand experience that is proprietary to your brand and build on that “Ideally, which is like literally what I mean by remarkable in the book, people will talk about you. What are those things that the customer really cares about that creates a story for them that they will ideally share with others?” To learn more about how retail leaders can create Remarkable Retail experiences, tune in to the full podcast. Enjoyed this podcast? Check out these resources on grocery eCommerce strategy: Blog: Playing the "Infinite Game" in Grocery Retail Blog: Surrounded: Growing threats to traditional Grocery Retail Industry Podcast: Competing with Amazon: The customer centric approach to grocery eCommerce
This podcast, we learn how Raley’s responded to crisis, in the wake of COVID-19. From new store policies on social distancing to contactless grocery pickup and delivery, Zac Wilson (Manager of eCommerce at Raley’s) shares how grocers can adapt to increased eCommerce demand from this pandemic. Zac shares the many ways in which Raley’s responded to the Coronavirus outbreak, including: Social distancing for shoppers and employees in-store Assembly line-style pick, pack and processing to optimize for online grocery orders Rapid hiring and onboarding of employees to support fulfillment and call centers Contactless grocery delivery and pickup Fortifying IT systems One of the impacts Zac notes, was a need to adjust their roadmap, “The concentration has been fully on the customer experience and team member experience. So we've ramped up all of our production around increasing capacities for the pickers and the associates inside the store on their devices. And then at the same time, also increased the capacities on our white label solutions and our vendor servers. So with the increase in volume, the one thing that we wanted to make sure that we didn't have happen is have the website crash or have our delivery partner, their systems crash as well.” We asked, what advice would Zac give to other grocers responding to COVID-19? You need to, “prepare yourself, your teams to understand that we have to continue to build for what's coming and also take care of our team members, take care of our customers, and most importantly, take of your families. So it's great right now that everybody's putting in the time and the energy, but at some point everybody's going to get rundown. So make sure to take care of yourself and then just continue to plan for what this looks like because we imagine coming out of this on the eCommerce side, our new runner rate being double what it was coming into it. So this is really the pivotal point in which customers are now going to choose to use that option more than they did before.” Listen to the full podcast to get a retailer's perspective on handling the COVID-19 outbreak, based on how Raley’s responded to crisis. To learn more about what your business can do in response to COVID-19 and how to prepare for the future, check out these resources: Blog: COVID-19 and grocery retail: what grocers can do right now Podcast: COVID and grocery eCommerce: retailers need to invest now Podcast: Coronavirus and grocery delivery: responding to market influx Enjoyed this content? Check out this grocery eCommerce resource: Blog: Surrounded: Growing threats to traditional Grocery Retail Industry
COVID and grocery eCommerce is today’s focus on the Digital Grocer Podcast. With widespread impact on the grocery industry worldwide, we’re addressing the important questions surrounding this pandemic: what is COVID-19? How has it impacted grocery retail? And why should retailers invest in owning their eCommerce experience now? Mark and Sylvain start by considering the progression of the viral outbreak, and response from the population and governing bodies over the past two months. As the population is encouraged to self-isolate and practice social distancing, we're seeing a massive spike in adoption of grocery eCommerce. "On the Friday, in three of our markets...we had in the space of 20 minutes, 10,000 new accounts being created." The uptick in online registrations will empower retailers to grow their eCommerce, but not if they have outsourced their eCommerce to a delivery-provider marketplace. “If you're a grocery retailer and you're not invested in owning your platform, guess what? You've accelerated someone else owning the relationship.” In anticipation that COVID-19 sales will be short-term and costly for retailers, retailers need to capitalize on increased eCommerce adoption and increase profitability of this line of business by taking ownership of the eCommerce experience. “So I think if you're a retailer, and you're not invested in owning the relationship and building out your platform, trust me, this is something that you need to be extremely mindful of. This will be the new normal...There's no avoiding it at this point in time. Now is the time to actually plan and solidify that strategy.” Discover what we learned are the three vital parts of grocery eCommerce you need to own today, from experiencing the Coronavirus outbreak. Enjoyed this podcast? Then you might like these resources: Blog Post: COVID-19 and grocery retail: what grocers can do right now Podcast: Coronavirus and Grocery Delivery: Responding to Market Influx
This week’s episode, we’re talking about the coronavirus and grocery delivery, and are joined by Guy Bloch, CEO of leading logistics delivery orchestration platform, Bringg. With the spread of the coronavirus (COVID-19) outbreak, grocers across all banners are seeing a massive influx in sales, especially through online delivery orders. Sylvain notes, "I'm watching these sales go online and kind of rapidly increasing in terms of size of the basket, frequency of the orders. And then we were asked to increase the number of time slots for delivery and for pickup. And you start to really think through as volume increases the complexities of orchestration, and if you're doing delivery, the number of delivery providers you may have that can get into really, really interesting science route optimization determining where the driver is, if there's going to be an affected refund because somebody didn't want something in their order or just returning the order in general." So how should grocers approach delivery? Guy stresses the importance of: Starting small, and scaling up delivery programs Owning your delivery program and; Communicating with your shoppers “Grocers need to ensure that they have the right communication and processes in place to provide full transparency to their customers. From when the order is being picked to the substitution management, that when it leaves the stores, until it arrives at the customers. And when the customer wants to return a damaged or unwanted item, if that experience is not smooth, you fall back again into that 84% of customers that will not forgive you." Listen to the full podcast to learn more about the coronavirus and grocery delivery, why grocers should own their delivery experience and what grocery CEOs should do today to ensure future success. Enjoyed this podcast? Then you might like these resources: Blog Post: Surrounded: Growing threats to traditional Grocery Retail Industry, featuring Brittain Ladd Blog Post: COVID-19 and grocery retail: what grocers can do right now
We’re joined this week by Rick Watson, marketplace expert and CEO and Founder of RMW Commerce Consulting. This podcast, we’re talking about marketplaces: how they work, what can we learn from Amazon and should grocers launch their own marketplaces? We start by talking about why FedEx walked away from last-mile delivery with Amazon, and how this impacts both companies. Rick speaks to this topic in the podcast, and regularly in posts on LinkedIn. The conversation turns to marketplaces and Rick offers his thoughts on how a retailer could benefit from launching their own. “…[A] marketplace is a supply chain tool, at the end of the day. It's a tool for more supply. If you have more demand than supply, then a marketplace is a fantastic idea. Because it will allow you to grow your market share by offering more selection to your consumers. Then you can become a one stop shop. Which allows buyers to come back, which allows you to acquire more supply and sort of start that flywheel.” While there’s opportunity, there is also risk. “One of the ways to think about a marketplace, it's always a race between selection and trust. Selection always has to lead trust because if you don't have the products up there ... you could have a trusted store where you have no consumers. So it's pointless. You need to always be on that bleeding edge of pushing the boundaries, getting more traffic, getting more selection. But then at the same time, you need to be running as fast as you can to improve quality and trust. I think the times where there are risks is that people forget about the second angle. Or they aren't investing quite as much as their consumers expect regarding quality and trust.” Listen to the full podcast to hear how grocers can succeed with the reverse-Amazon marketplace model. Want to learn more about how grocers can compete with Amazon? Check out these podcasts: NRF 2020 Competing with Amazon: The customer-centric approach to grocery eCommerce Grocers are sitting on the Holy Grail of shopper data
In our last episode recorded at NRF 2020, the team discusses major themes and takeaways from the conference. Two key topics were: the impact of grocery eCommerce on health and wellness, and how to identify a technology solution that will bring value to a grocery retailer’s business. Thinking back to the podcast interview we had with Ron Bonacci from Weis Markets, we consider his emphasis on the important part retailers play in their customers’ nutritional choices. Sylvain notes, “Grocery retailers are the first line of defence- and the first line of offence- in terms of your health. That’s fairly critical in this day and age. We’re not getting any younger and we’re dealing with an aging population.” And while a large part of the population is aging, we’re also seeing a shift in the population’s shopping behaviors. Mark points to how shoppers expect more from retailers nowadays. “Consumers are buying more online and they want to have the information, but they also want the tools to be able to do the thinking for them, so that it’s not a laborious process.” With so many new technology solutions emerging in the market, the team considers how to identify solutions that provide true value to a grocery retailer’s business. “When a piece of technology lands on [a retailer’s] lap, it needs to be really thought out. It actually needs to be extremely concrete and you need to be able to explain the value proposition clearly to a retailer on how it’s going to help them convince a consumer to add an extra item to the basket, lower their costs, and quite frankly help them increase margin, and ultimately revenue.” Tune in to hear the full podcast, live from the NRF 2020 exhibit floor! Catch the full NRF podcast series here: NRF 2020 Robotics, personalization and key trends in grocery retail across the globe NRF 2020 Interview with Weis Markets: Marketing fundamentals for grocery eCommerce Competing with Amazon: The customer-centric approach to grocery eCommerce Interview with Smart & Final: Grocers need to own the eCommerce experience Interview with GrocerKey: Why grocery product data matters
We’re joined on the Digital Grocer Podcast by Jeremy Neren, CEO of GrocerKey. Both being grocery eCommerce solution providers, we had the chance to talk with Jeremy about common challenges that we see retailers facing in eCommerce, including the need for clean product data. Jeremy shares his predictions for eCommerce grocery in 2020 and advice to a grocery retailer looking to get into eCommerce. Jeremy explains how GrocerKey approaches the issue of clean product data for retailers. “Product data means different things to different people…To us, it’s how do you standardize product data and how do you build really rich attributes that then lend themselves to a better customer experience.” Sylvain, Mark and Jeremy go on to discuss how product data and data governance affect three important aspects of the grocery eCommerce experience: Search Personalization The presentation layer Jeremy shares predictions for eCommerce grocery in 2020, noting a big movement he anticipates in the market. “One of the big things is the marketplace movement. I do think this is going to be a huge year for that. Just because there’s been so many retailers reliant on them that are starting to acknowledge that’s not the long term answer.” In closing, we asked Jeremy to share his advice to retailers looking to get into grocery eCommerce. “Taking a step back initially and saying ‘What are we truly trying to accomplish from a business standpoint?’. Not just setting up the technology and standing it up in a corner. That doesn’t accomplish anything for anyone. And I think really focusing on the fundamentals of what is the customer experience, not only on the technology side, but transitions all the way into the customer experience, when I come pick up my order or the order is delivered to my home.” Listen now to hear the full podcast and learn more about how grocery eCommerce solution providers in the market are helping grocers build successful eCommerce experiences for their shoppers. If you’re interested in learning more about product data, you’ll enjoy this podcast: NRF 2020 Interview with Weis Markets: Marketing fundamentals for grocery eCommerce
Ed Wong, EVP and Chief Digital Officer, at Smart & Final joins us on the Digital Grocer Podcast at NRF 2020. Ed shares the process of selecting the right grocery eCommerce solution for Smart & Final. He explains the unique challenges of serving both household and business customers and advice for approaching the specific requirements that come with that. When selecting an eCommerce provider, Ed explains two important requirements that Smart & Final had, “To control how we would want the customer experience to be, and be able to select a partner who’s going to be able to say ‘well, we’ve been there and done that’, versus, let’s say, engaging with one of the more legacy platforms where they would still need to configure and learn how to really adapt into grocery had been some of the initial requirements that we started with.” Control over brand experience was a major factor for seeking out a new platform. “For us, we had a very specific objective in mind in terms of what we wanted to do. We were operating under the Instacart’s powered by Instacart white-label platform and certainly I think as the evolution of, not just us, but also Instacart and the marketplace, I mean that was deemed appropriate for us to consider how to have a better control over our own brand experience, that we would want to maximize.” Sylvain and Ed talk about the unique challenges that come offering online shopping experiences for both household and business customers. Is offering B2B eCommerce just reduced functionality, or is there more to the story? Tune in to the podcast to learn more about how grocery retailers can find the best eCommerce solution for their business.
We’re back with another podcast from the NRF 2020 conference. This episode, we’re joined by special guests Tom Furphy from Replenium and Consumer Equity Partners and Kevin Coupe, The Content Guy at morningnewsbeat.com! We focus on the importance of retailers taking a customer-centric approach to grocery eCommerce to compete with - and survive against- retail giants like Amazon. When the conversation turns to the threat of a recession, Kevin suggests, “Maybe the key is retailers that are going to survive are going to be the ones who are not thinking transactionally. They’re thinking about relationships, thinking about margin.” Tom agrees, adding that the customer-centric approach was a major strategy at both Wegman’s and Amazon, where he worked in the past. “When you really do focus on the customer…you can rationalize the experience then from there and it’s so logical…Do you really want to force the customer to walk up and down a bunch of aisles, or if you’re shopping online to go through their past purchases or search and browse everywhere, and spend all that time, for these things that they know they’re going to get?…Don’t ask the customer to spend that time. Take that 15-20 minutes that they save, and show them some new products for discovery.” Kevin, Tom, Sylvain and Mark go on to discuss how technology can empower them to really connect with shoppers through replenishment and personalization. Tom explains, “A lot of the technology solutions today, they’re less expensive than the old enterprise world…the technology delivers a better customer experience and it delivers a ton of monetization throughout it as well. And it’s not monetization such that it detracts from the customer experience, it can actually improve the customer experience.” Listen to the full podcast now to hear more insights about the industry and how retailers can benefit from a customer-centric approach to grocery eCommerce.
In this podcast, we’re joined at NRF 2020 by Ron Bonacci, VP of advertising and marketing at Weis Markets. Ron, a pioneer in grocery eCommerce, shares incredible insights on the evolution of online shopping in the US. From his past launching and managing the Kroger Plus Card, to looking forward to what future technologies he expects will most impact retailers, this is a great podcast to learn more about eGrocery and how to plan for successful implementation. Ron recognizes the hesitation that retailers have with investing in eCommerce, but explains that there isn’t much of a choice for regional or mid-size retailers. “Well first and foremost, you’ve got to make sure that all levels of the company, from the top executives down, understand it and get it because the reality is in the grocery industry… If you’re not in eCommerce, you may perish… You’ve got to survive, and you can’t afford to lose 3, 5, 10, 12, 15% of your business in sales and give that away to your competition and then think that you’re gonna still survive in this space.” Ron and Sylvain go on to discuss some key marketing fundamentals of a successful eCommerce experience, such as: good quality product data search engine optimization search capabilities Listen to the podcast now to hear what grocers should consider for eCommerce strategy and long term vision, future technologies with great potential for grocery eCommerce and what’s in store for Weis Markets in 2020.
Live from the NRF 2020 expo floor, we’re joined by Supermarket Guru, Phil Lempert and co-CEO of Spoon Guru, Marcus Stripf! This episode, we discuss key trends at this year’s conference (robotics and personalization), as well as emerging trends in the US and European grocery market (click-and-collect, customer-centric experiences and delivery). We kick off the podcast observing the trends at NRF, what we’re seeing and how that reflects the current market needs. Phil notes the excitement around robotics, and where retailers should really be turning their attention to. “There’s too much attention being given to robotics…That’s not what a consumer wants. Yes, we’ve got higher labor costs than before. Yes, we want to be able to deliver in 30 minutes. But it’s not about robotics - that’s a tool. What we really need to do is focus on the consumer, and that’s what I’m looking for. To see what are those consumer aided products that can really change the life of a consumer versus the back room.” Marcus adds that there is a slow adoption of personalization in retail, as compared to other markets. “It’s becoming a broad use case now. We’re seeing personalization, curation entering areas like CRM, loyalty programs, recommendation engines, where people expect a highly tailored experience. You know, we see this with the likes of YouTube and Spotify and Netflix. Why don’t we get that in retail?” Phil, Marcus and Sylvain go on to talk about: what’s been happening in grocery in Europe, are US retailers truly innovating or just developing new technologies as distractions, and whether gig economy companies, like Instacart and Uber, are profitable or not Listen to the full episode to catch all of the interesting insights from our incredible guests and join us at NRF booth #1418 to meet them in person, January 12-14!
In this the season finale episode of the Digital Grocer Podcast, Sylvain and Mark discuss predictions for grocery retail in 2020 and why measuring grocery customer lifetime value is vital to a retailer’s business. Mark points to the shift that has been happening in the industry. “We started this podcast series with our friend Brittain Ladd, and he was talking about retailers being surrounded and having to play the infinite game and being more strategic. And I certainly hope that the retailers that we're encountering and talking to on a regular basis are really heeding that message and understanding that e-commerce online, offline, there is no division. It's all about a unified commerce approach. Shoppers are going to purchase where, when, how they want and you need to be ready to serve that.” Sylvain and Mark consider how grocery customer lifetime value (CLTV) is a critical part of a retailer’s business. “Once you start to understand those types of customers, that CLTV metric, you start to understand how do you market to those people…You can't be everything to everybody. In order to maximize your revenue, you need to cater to that segment that is generating the most value for your organization.” This is an episode you won’t want to miss! Tune in now to hear more about what’s in store for grocery retail in 2020 and the strategies and metrics retailer’s need to focus on to keep building and growing their businesses, both online and in-store. Check out some of the resources mentioned in this podcast: How grocers will serve their brands and the customer in 2020 (blog) Playing the “Infinite Game” in grocery retail (podcast) Interview with Barclays on “Dissecting the Instacart Addiction” (podcast) Measuring Success in Grocery eCommerce (eBook) Want us to cover a specific topic in next season's podcasts? Email us at happygrocer@mercatus.com with topic or special guest suggestions!
We’re joined this week by Zac Wilson, Manager of eCommerce at Raley’s. Zac shares his experience launching eCommerce, what were the biggest challenges and how grocers can set themselves up for success.Everything from marketplaces to dark stores, we consider what innovations and solutions will best serve grocers and their shoppers. But in light of an ever changing retail landscape, Zac emphasizes, “remember why we're doing the business and who comes first, it's the customer, you have to center everything around your customer, your clientele and the areas in which you operate in.”Tune in now for the full interview with Zac!Interested in learning more about the value of grocery eCommerce? You might like these resources: Understanding the Online Grocery Shopper (Blog): https://www.mercatus.com/blog/understanding-online-grocery-shopper-behavior/ 4 keys to eCommerce success (Blog): https://www.mercatus.com/blog/4-keys-to-ecommerce-success/ The risk in outsourcing your grocery eCommerce (Blog): https://www.mercatus.com/blog/equity-investment-report-highlights-the-risk-in-outsourcing-your-grocery-ecommerce/ (edited)
Rob Christian, CEO of Shophero, joins us in this week’s episode of the Digital Grocer Podcast. With extensive experience and knowledge in the grocery retail space, Rob offers his insights on how grocers should strategically approach their eCommerce experience. Rob notes that retailers need to undergo a grocery eCommerce culture change. “The [traditional] culture of grocery retail does not support the concept of people going on the computer and making a purchase.” He goes on to stress the importance of maintaining control over the shopping experience. As a retailer, deciding, “I can no longer lose my brand. I have to create a seamless shopping solution, so my customer comes to my site and they see my brand”. Tune in for the full interview. Rob, Sylvain and Mark discuss the role technology partners have in empowering grocers to get back in charge of their eCommerce experience. Find out how Mercatus empowers retailers to get back in charge and own their shopper experience.
This week, we’re joined by Dan Bourgault and Beccah Rybalsky from Replenium, a provider of intelligent product replenishment solutions that improve the way consumers shop for everyday products. Dan and Beccah discuss how Replenium helps levels the playing field for grocery retailers competing with Amazon’s service Subscribe & Save, empowering retailers to build customer relationships and loyalty, all while maintaining full control of customer data. Dan and Beccah note the power of shopper data and how grocers access to the conversion points in shopper data puts them at an advantage, especially when partnering with CPGs: “It’s one thing to have the data and be in control of it, but you’ve got to know how to use it. You got to know what to do with it. And you’ve got brilliant CPG partners who know exactly what to do with that and how to help you with it to help drive sales for you, as well as for them. And they will invest behind you on that.” Listen now to learn more about Replenium and key insights into how grocery retailers can compete with the likes of Amazon, Walmart and Kroger.
Wrap-up roundtable with Jeff Baskin of Radius Networks, and Jack Record of ShopperKit.
Groceryshop 2019: Interview with Bernardine Wu, CEO of FitforCommerce.
Groceryshop 2019: Straight from the Mercatus booth - part 2.
Groceryshop 2019: Straight from the Mercatus booth -part 1.
This episode features a wide-ranging conversation with Sylvain and Kevin Coupe, The Content Guy over at MorningNewsBeat.com. Sylvain opens the conversation by asking Kevin why retailers don't always think of themselves as a brand and don't use their own data to the greatest possible degree and using Walmart's evolution as an example. To a great extent, Amazon has woken everybody up to the value of customer data in growing customer affinity through suggestive selling. The conversation turns to a timely topic, which is the risks that come with using gig workers as an extension of the retailer's business and brand, including what will happen to the gig economy should the U.S. slide into recession. Lastly, the two touch on the nature of ecommerce giants Walmart and Amazon and their critical failing in not having enough people there who are merchants.
On this episode, we're joined by Karen Short from Barclays Investment Bank to discuss her team's research findings on the strong affinity shoppers have with Instacart and how that impacts grocery retailers' strategic business interests. In one example, when asked whether she felt that Instacart is a strategic fit for retailers or not, Karen comments: "More importantly, it was an instant solution, but longer term, the bigger and bigger Instacart gets, the less control you as a retailer have. And so you lose the control with the customer, you lose the customer data, or at a best case scenario, you're just sharing the data, but Instacart has data." Tune-in to this latest episode to hear more about the findings from the Barclays report. For a copy of the report, contact Karen Short directly at karen.short@barclays.com
Are you wondering what the California Consumer Privacy Act (CCPA) is and how it applies to you? Look no further, as we explore in a two-part episode, everything you need to know about CCPA and more. Sylvain Perrier and Mark Fairhurst are joined by Privacy and Security experts, John Tomaszewski and Ted Murphree from Seyfarth Shaw LLP. With CCPA expected to come into effect January 2020, retailers need to consider what is required to ensure they are compliant. Listen in for tips on how to prepare your business and set yourself up for success. Your chance to ask the experts!What would you like to know about CCPA? Submit your questions to happygrocer@mercatus.com, and we will answer them in the second part of our two-part CCPA episode.
Brought to you from the NGA Show floor, Sylvain Perrier and Mark Fairhurst discuss what key learnings independent grocers can take from the conference. We were excited to sponsor the Advancing Retail CART event, where the speakers included Sylvain Perrier, John D’Anna from Brookshire Grocery Company and Ron Bonacci from Weis Markets, among others. In discussing how independent grocers can strategically approach technological partnerships, Sylvain Perrier cites John D’Anna. “You have to really spend a good amount of time in understanding that picking a partner is not just picking a partner and connecting a bunch of technology, but it is implementing change management within your own business”. Listen in to hear more about the NGA Show 2019 and find out what important learnings grocers can take from this conference.
In this, the final episode of Season 1 of the Digital Grocer, Sylvain and Mark come full circle with Brittain Ladd who kicked off Mercatus’ podcast journey earlier in 2018. The grocery retail industry continues its rapid pace of change. In the last year alone, Albertson’s and Walmart have accelerated their robotics play, on the delivery side Kroger confirmed autonomous delivery using Nuro, and Amazon has announced plans to grow Amazon Go to 3,000 stores. The growth in eCommerce shows no sign of slowing. Quite the opposite. Grocery retailers are teaming up with third-party companies to extend their reach from the retail store to the consumers’ door. At the same time, retailers invested in their in-store pick-up, curbside, and click-and-collect services to expand their brand reach and cater to shoppers’ with greater convenience and value. The omnichannel grocery landscape is now valued at more than $1 trillion dollars with online grocers ringing up $21.6 billion in sales in past 3 years. It’s within this context that Sylvain and Brittain talk about strategic plays and predict big moves in the grocery retail market in 2019. On the topic of reclaiming your customer, the key questions they cover include: Who owns your shopper data? Are you teaching your future competitor your business? Are retailers losing their ability to innovate? What’s the purpose of your business? And is it too late to reclaim your brand from third-party platforms?