Despite being the most frequent shopping activity, food retailing is behind the curve on consumer analytics. The sector needs to reshape grocery shopping into a customized rather than a commoditized experience. By investing in shopper identification, food retailers can improve in-store experiences, in-store labor models, food safety and transparency and customize promotional offerings to drive top-line growth (and more supplier negotiation power).
Company specific thoughts: “Proactively addressing the changing landscape”
Kroger and Sprouts Farmers Market are proactively addressing the changing landscape. Kroger is far ahead in consumer analytics with a rich and powerful customer data base that drives marketing spend efficiency. Sprouts has also implemented a digital platform with personalization capabilities and is an industry leader at managing produce inventory. Food retailers' increasing spending on data analytics enhances bargaining power against distributors. Better transparency of food movement through the supply chain decreases the reliance on third-party expertise.
Consumer: Up close
The future of the Consumer sector will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.