Top 2011 Retail Trends in the Grocery Industry
As we embark upon a New Year, we are optimistic about the direction the grocery industry is heading. Despite the economic downturn; we are seeing continued success with our grocer clients. However, success has not happened over night - grocery retailers have had to come to terms with a new breed of shoppers- he/she is smarter, more price conscious and relies on social media and mobile devices for their everyday needs. Over the last year, we have put our ears to the ground to listen to client needs, hopes and dreams for understanding this brave new consumer and embracing the next wave of grocery technology. Following are some of our top predictions for the retail and grocery industry in 2011 based on our conversations:
- Grocers will continue to do well in 2011. Even though discretionary spend will increase, consumers will continue to eat at home and grocers will continue to do well.
- Grocers will compete for consumer loyalty. Customer loyalty has become more fragile as consumers have become more price conscious; grocers will compete for the loyalty on pricing and value. Relevant deal of the moment will emerge!
- Grocers will focus on effective package sizing and micro-merchandising. Smaller basket sizes at the grocery stores have led grocers to change their strategy. Innovative assortment mix, package sizes, promotional bundles will be a focus area.
- There will be a dramatic shift in thinking about IT. Grocers are looking for new models of engagement to reduce costs and improving efficiency. IT will drive innovation in digital, mobile and social commerce. Use of new gadgets, self-service kiosks will be used for line busting and efficient check out. Regulatory compliance space will be a new area of business focus using IT.
- Analytics and CRM will be a focus: Outcome of the digital information overload will lead grocers to invest in analytics and CRM space. Information assimilation leading to business decisions will be an important factor.
What do you predict for the grocery industry in 2011? We would love to hear what you think - please feel free to share your thoughts below.
We are looking forward to a great 2011, and hope yours is the same. We are very proud to start our year by recently being recognized as #1 among leading Retail IT Services Providers by the prestigious RIS IT Services LeaderBoard: http://www.infosys.com/newsroom/press-releases/Pages/retail-IT-services.aspx.
