Grocers have been making headlines for the many ways they have revolutionized the way we buy our food. 2019 was a big year for grocery stores and supermarkets, which is why it is the first topic of the new year.
Let’s dive in to some of the hot topics surrounding the ever-evolving grocery industry.
The Rise of Private Labels
Sales of private label goods continue to rise and are growing four times faster in the US than national brands. The number one reason why consumers look for private label brands is cost – they want to save money by purchasing “no-name” brands that offer the same quality as national brands. Private labels can sell for as much as one-third lower than name brands and for retailers, private labels provide better margins. National brands are facing a lot of competition with the rise of private labels.
Grocery and Alcohol Delivery
Nearly all major grocery chains have rolled out a grocery delivery and pick up option, however technology is making a major impact. From apps to online ordering, and curbside pickup to drone delivery, grocery shopping is becoming easier and easier for the customer.
New to the grocery delivery game is alcohol delivery. Not only is alcohol delivery an added convenience for customers, but it offers grocers a way to up their per cart sales. According to Instacart, the average basket size grows by 15% with the addition of alcohol.
‘Dark Stores’ and Fulfillment Centers
With the increasing demand for grocery delivery and pickup, grocery stores have to accommodate for the increased traffic and cost. For grocers offering services like Instacart, aisles are filled with as many workers fulfilling orders as there are shoppers. Grocers that utilize employees to fulfill orders are seeing costs rising with the increased need for more staff.
Some grocers are testing “micro-fulfillment centers” that are dedicated to fulfilling deliveries and pickups. Micro-fulfillment centers free up space in grocery stores and allow for the expansion of online order business.
The Most Popular Grocery Shopping Day of the Year
Black Friday and Cyber Monday may be the busiest shopping days of the year for retail, but what about grocery shopping? Enter, Turkey Wednesday. Eight grocers were included in a study of the traffic on this day, and all saw a major boost in sales compared to the rest of the year. Grocers should prepare for this influx in traffic – it is a great opportunity to increase revenue.
Who is #1?
Big news that was recently announced was the grocer ranked Top U.S. grocery retailer who beat out Trader Joe’s – H-E-B. A study done by Retailer Preference Index examined the $700 billion grocery industry and named H-E-B as the top U.S. grocery retailer against 60 grocers across the U.S.