To expand fulfillment capabilities, grocers such as Ahold Delhaize, Wakefern, and H-E-B have partnered with microfulfillment center (MFC) technology players like Dematic, Takeoff Technologies, and Swisslog. To enhance their capabilities in the short term, grocers have responded by implementing three specific strategies.įirst, some grocers are building partnerships with technology companies. Meanwhile, grocers are considering how to allocate capital across multiple parallel efforts, including supply chain resilience, store remodels, digitalization, and talent acquisition. Two-thirds of respondents expect to lose some share in the shift to digital, and more than half believe it will be difficult to attract the necessary talent to support digital growth (Exhibit 6). Our research revealed that retailers feel some trepidation. Keeping pace with e-commerce growthĪs consumers have shifted toward e-commerce, two-thirds of retailers don’t feel well prepared to meet the dual challenges of delivering on growth while achieving profitability. Each of these “new” offerings has been accompanied by changing consumer behavior. Similarly, club retailers encouraged consumers to buy in bulk, and the rapid growth of discount and value grocery, featuring a predominantly private-label offering, defied the conventional wisdom that consumers wanted only consumer-packaged-goods (CPG) brands. The mass-merchant category now accounts for about 26 percent of the market. For example, the rise of mass merchants with 150,000-square-foot stores created a different in-store experience than the one offered by the traditional neighborhood store. Over the past couple of decades, the emergence and adoption of new offerings and channels have spurred significant changes in consumer behavior. This degree of channel shifting within the grocery sector has precedents.
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