10 Trends Changing Omnichannel Grocery in 2022 - Industry Report and Forecast - Orckestra
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Industry Report and Forecast 10 Trends Changing Omnichannel Grocery in 2022
Abstract Going to the store, making online purchases, reserving pickup or delivery times — in your customer’s mind, it’s all the same thing — shopping. With digital and in-person commerce now intricately linked, the omnichannel grocery landscape evolves ever more quickly, accelerated by the pressures of the pandemic. Because these changes are also major opportunities for growth and efficiency, we invite you to consider these 10 trends changing omnichannel grocery in 2022. eBook | 10 Trends Changing Omnichannel Grocery in 2022 2 |
“The customer is always right.” That adage still holds true today. As an omnichannel grocer, your shoppers’ evolving needs and expectations will continue to challenge your status quo, but will also present unexpected opportunities for greater efficiency and growth. These opportunities can be hugely beneficial if you have the right tools in place. We encourage you to keep this idea in mind as you consider these 10 major trends changing omnichannel grocery in 2022. eBook | 10 Trends Changing Omnichannel Grocery in 2022 3 |
1 alues-Based Consumers Are Voting
V
with Their Wallets
Before putting their money down, customers in your physical and virtual aisles are
asking questions like:
How does the sourcing or manufacturing of this product affect the
environment?
How does this product impact the community that made it?
What are the vendor’s or manufacturer’s values?
eBook | 10 Trends Changing Omnichannel Grocery in 2022 4 |
To ignore consumers seeking to buy socially responsible products is to lose out
on a major sales opportunity. Consider these results from a global survey of over
10,000 consumers by Simon-Kucher & Partners, a global strategy and marketing
consultancy: 1
78%
of global consumers say that environmental
sustainability is important. They want to live
more sustainable lives.
of global respondents have changed their
63% consumption behaviours in modest to
significant ways over time in an effort to
live more sustainably.
50%
of consumers rank sustainability as a top-five
value driver on average across categories.
Thus, it is an important purchase criterion.
34% of all consumers report that they are willing to
pay more for sustainable products/services.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 5 |
Growing evidence shows that consumers are backing businesses with social
commitments. A recent Retail Industry Leaders Association (RILA) poll of consumers,
conducted in partnership with McKinsey, revealed that:2
33%
71%
stopped using a
brand based on its
social actions
would lose trust forever
in a brand that placed
profit over people.
This same sense of social responsibility has come to the forefront during the
COVID-19 pandemic. Consumers are shopping in their immediate neighbourhood to
support small independent stores that they fear might go out of business. Sales for
takeout from local brands (+25%) and national brands (+20%) rose significantly, while
those for global brands dropped (-8%).3
While sustainability claims that drive growth will vary across product categories,
keeping an eye out for products that make well-considered claims based on
consumer insights will help lift your top line.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 6 |
2 hoppers Expect a Seamless and
S
Consistent Experience from One
Device to Another
When your customer Diana moves from shopping on her phone during her coffee
break to her laptop in the evening, she wants to pick up exactly where she left off.
Additionally, Diana may want her order
delivered to her home between 6 p.m. and
8 p.m. on the day she places it; or, if that’s
not possible, she may want to pick it up on
her way home from work the next day.
Rebecca would rather place her order on
Wednesday for home delivery on Saturday Delivery confirmed
tomorrow between
before noon. And Jack wants to order 6pm and 8pm!
today and pick up tomorrow so he can
hand-pick fresh produce and complete his
order in-store.
Your distribution logistics must be flexible
and considerate of customers with widely
different preferences in how they receive
their orders.
It’s important to meet the expectations
of seamless functionality because a
consistent brand experience increases
trust among your shoppers, thereby
increasing your sales conversions and
customer loyalty in the long term.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 7 |
Consider the following findings based on the shopper data of 421 million baskets in
the U.S. and Europe, as collected by Symphony RetailAI’s customer base of leading
grocery retailers during Q1 of 2021:4
50%
of total revenue growth
Omnichannel
shoppers
came from online sales, shopped more often.
up 20% from before the pandemic.
7 out of 10
Omnichannel shoppers spent
up to 20% more online shoppers returned and
compared to in-store-only bought again within Q1 2021,
consumers. up from five out of 10 in Q1 2020.
As a quick fix for meeting the increasing demand in online grocery shopping, many
grocers decided to delegate their online grocery experience to third-party delivery
services, such as Instacart and Shipt, which take charge of order fulfillment from the
online store to home delivery.
In the process, these grocers lost control of their brand as well as ownership of
customer data, and put their customer relationship at risk.
But online grocery is all about convenience and getting the experience right. That
means helping customers book an order at the time they want it, preparing it
effectively, managing pickup and delivery slots, and delivering the order on time.
This level of performance will help ensure more repeat customers.
Thus, leading grocers seeking to maintain their competitive advantage over the long
term must own the entire grocery experience.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 8 |
3 I mproved Personalization Is
Changing the Face of Retailing
Shoppers love personalization. They react favourably and spend more when
retailers present them with related products and value-added upsells. Consider the
following survey results from a U.S. study on personalization in retail:5
Consumers are
110%
They’re also
more likely to add
40%
additional items to their basket more likely to spend more
when their shopping experience than they originally planned.
is highly personalized.
Show your shoppers how well you know them. With a unified view of the customer
across all channels, you can provide relevant and helpful information that:
ö Features personalized products.
ö Provides recommendations (e.g., special offers, gift ideas, items from wish lists
or abandoned carts).
ö Proposes shopping services that respond to customer needs.
The importance of this personalization is most likely to increase in 2022 as
your shoppers find certain products to be unavailable due to the continued
unpredictability of the supply chain. To minimize shopper dissatisfaction and store-
switching, grocers will want to offer suitable substitutions based on knowledge of
their customers.
Substitution should not come as a surprise to the customer. That’s why Orckestra
allows the customer full control over their substitutions - it’s all within the online
storefront. To support your store associates, Orckestra provides a pick-and-pack
application allowing them to easily follow customer guidelines, minimizing the risk of
error and increasing customer satisfaction.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 9 |
4 Mobile Ecommerce Is Hitting the Gas
To keep shoppers engaged as they move through their customer journey, their
mobile experience needs to be fast and easy.
But many shopping storefronts are not optimized for mobile devices. According to
the Baymard Institute, an independent web UX research firm, the ideal checkout flow
has 12 to 14 form elements (blanks to fill out and buttons to press). Yet, the average
U.S. checkout flow contains 23.48 form elements.6
The good news is that mobile wallets, which store a shopper’s credit card
information, are making life easier for shoppers.
Another step toward a fast and easy mobile experience is the rise of the Progressive
Web App (PWA), which is a native app and web app hybrid. PWAs have the following
qualities:8
ö Reliable: They load instantly, even in unreliable network conditions.
ö Fast: They respond quickly to user interactions.
ö Engaging: They feel like a natural app on the device.
A PWA can sit on the user’s home screen and offer a full-screen shopping
experience. If desired, it can even drive user engagement by sending push
notifications.
Thanks to PWAs and an API-based architecture dedicated to the grocery vertical,
Orckestra blends into your customer’s interfaces. It’s important that grocers choose
a solution with expertise in the grocery vertical so as to avoid costly customizations
down the line. The grocery pedigree of a modern commerce platform guarantees a
faster time-to-market and an overall lower total cost of ownership.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 10 |5 ustomer Service Is Becoming More
C
Proactive
When customer experience is what you build on to differentiate your brand,
customer service cannot be regarded as a cost centre.
Instead, it needs to be seen as a driver of wallet share, customer retention, and
customer delight. In a Microsoft survey of 5,000 people from Brazil, Germany, Japan,
the United Kingdom, and the U.S.:9
59%
of respondents said they
70% 59%
of 18-34-year-olds of global respondents
had higher expectations
said they had higher said they actively used
for customer service
expectations compared three or more channels
today compared to a
to a year ago. for customer service.
year ago.
To get a sense of how customers feel about shopping in your stores, check your
online reviews. For many consumers, reading reviews has become a key part of their
customer journeys. Consider these findings:10
82%
O N LY
97%
of consumers read
online reviews for local
53%
of people would consider
of consumers that
read reviews also read
businesses’ responses to
businesses. using a business with reviews.
less than four stars.
Bottom line: It’s important to implement a process for monitoring and responding to
customer reviews.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 11 |other shoppers
rate this
suggested
substitution
on special
this week
need basil with
your tomatoes?
An omnichannel commerce platform enables your customer
service and marketing teams to do the following:
ö otify customers immediately about errors or problems and go the extra
N
mile to improve a shopper’s experience – such as offering the possibility to
substitute an item at the time of fulfillment.
ö Assess and address any latent problems your customer may be experiencing.
ö otice purchase patterns that provide you with opportunities to cross-sell or
N
upsell.
ö rovide helpful services or product recommendations that complement your
P
shoppers’ purchases.
ö utomate tasks that the shopper would normally have to carry out manually,
A
such as scheduling pick-up and delivery appointments.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 12 |6 hysical Stores Are Delivering New
P
Shopping Experiences
Because online shopping is easy and convenient, you need to give your customers
equally compelling reasons to visit your stores. Consider the following suggestions.
Make your stores safe shopping spaces
Due to COVID-19, shoppers may feel varying degrees of discomfort and anxiety
when visiting stores in person. You can build shopper confidence through practices
such as the following:
Requiring protective face coverings
Altering the layout of your stores to support social
distancing
raining in-store staff on safety protocols and techniques
T
for approaching shoppers to defuse any potential
escalating conflicts
Limiting in-store traffic
ffering touchless payment, drive-through windows,
O
and contactless delivery
ommunicating proactively via email with your
C
customers regarding your response to the pandemic.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 13 |Offer new payment solutions
Increasingly, shoppers are detouring the check-out line to scan
their own purchases, either at a self-check-out terminal or from a
smart shopping cart.
Modify the format of the store
Over the last decade, the size of stores has consistently
decreased, mainly to manage costs and profitability. Currently, the
average grocery store is 38,000 square feet, with smaller stores
ranging from 12,000 to 25,000 square feet, or even smaller in urban
markets.11 These smaller formats enable people working from
home to have closer access and offer grocers new real estate
opportunities to consider.
For grocers, the omnichannel transformation is leading to new
store layouts. Features may include automated picking areas,
customer pickup counters, online ordering kiosks, and more drive-
up options.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 14 |Showcase products and promotions that are only
available in-store
Through your site and communications, ensure that your
customer knows that some items/experiences are only available
in-store:
ö tock products (e.g., seasonal items) that are only available
S
in-store.
ö ffer services, via partnerships with third-party providers
O
(e.g., culinary schools, service providers, floral bouquets,
etc.) that complement your product offering.
Make sure that shoppers discover something new with
each visit
Keep your stores looking fresh by playing with your layouts and
refurbishing displays every so often.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 15 |7 rocers Are Preparing Fresher, More
G
Convenient Meals
The pandemic’s restrictions on public dining helped increase home cooking and the
grocer’s share-of-wallet. To maintain their shoppers’ new habits, grocers are going
beyond prepared meals and deploying fresh approaches, such as the following:
ö Installing kitchens for meals freshly prepared on the premises and available to
order online.
ö artnering with local restaurants to prepare
P
in-store meals that are available as online
menu options ready for pick-up or
delivery.
ö dding custom salad bars or salad
A
robots, smoothie machines, and
options for meal-in-a-bag or
pre-packaged meal ingredients
that are ready to cook.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 16 |8 rocers Offer More Private-Label and
G
Non-Food Items
With inflation casting its shadow on the economy, more price-conscious shoppers
may turn to a grocer’s private labels. For years now, grocers have burnished the
reputations of their private labels, which used to be lower-quality imitations of well-
known brands. Today, a quality private-label brand offers grocers the opportunity to
spotlight the product online and in promotions, and drive profitable share growth.
As shoppers look for more convenience in
the post-pandemic world, grocers can take
advantage of the trend by promoting more non-
food items in the endless aisle of their online
offering.
Bigger grocers, for example, are adding items
from well-known brands in housewares, beauty
and baby care, apparel/accessories, electronics,
and home/office supplies. Their store-within-a-
store concepts also contribute to this expansion
of their product range.
Modern commerce platforms allow customers
to benefit from these new offerings, whether that
be a ready-cooked meal, diapers, or a bouquet
of flowers. Thanks to integrations with fast, third-
party delivery services (think Uber or DoorDash),
customers can also receive their order within
the hour. It’s an opportunity for grocers to
diversify and create new points of interest and
engagement with loyal customers.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 17 |9 Simplify Your Retail Life with AI Automation and AI technologies have become invaluable tools for reducing costs. For example, a typical grocery store could save 55% to 65% in total hours of operation with the aid of available automation technologies such as electronic shelf-edge labels, tailored self-service technology, shelf-scanning robots, and partially automated backroom unloading. In addition to its OMS, Orckestra’s pick & pack app for grocers lets you empower your store associates with a tool that allows them to optimize their time and fulfill orders more quickly and efficiently. See how it helped this customer. eBook | 10 Trends Changing Omnichannel Grocery in 2022 18 |
10 ustomer Needs Demand New
C
Fulfillment Strategies
Customers want convenience. Omnichannel retailers need to respond by offering
convenient pickup or delivery options that keep customers happy.
Grocers with the right order fulfillment system can offer delivery options such as:
Ship-from-store
Ship-to-store for when the store selected does not have the
inventory (only for non-food products)
Curbside pickup for contactless retrieval outside the store
Reserve online/pickup in-store
Same-day pickup or delivery
Shipping with varying options for speed and cost
(e.g., express, two-day, free)
For example, eMarketer forecasted that in 2021, 150.4 million consumers in the U.S.
would make at least one purchase using curbside pickup. That’s up 29.8% compared
to 2018’s figure of 115.9 million consumers.14 That’s not surprising considering curbside
pickup benefits both shoppers and retailers.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 19 |For your grocery customers, curbside pickup offers all the convenience of online grocery shopping. Since shoppers pick up their own items, they never have to worry about potential delivery delays. Curbside pickup also relieves you of all last mile logistics and costs. Shoppers feel safer and save precious time to take care of their family. Being satisfied and less stressed, they are more likely to maintain their loyalty. Ever quicker delivery times are inextricably linked to convenience and have become paramount for staying competitive. According to McKinsey, free shipping for two- or three-day delivery is now the baseline of expectations for 90% of American consumers online.15 Ultrafast delivery has boomed in some major urban markets, such as New York City. Expect similarly rapid deliveries to roll out to other major centres, and potentially, regionally. eBook | 10 Trends Changing Omnichannel Grocery in 2022 20 |
Riding the Trends to Success
Given these 10 trends, the challenges of responding profitably to the needs and
expectations of omnichannel customers may seem daunting. It is true that, to
continue to thrive, you can’t ignore the gap between what your shoppers want and
what your existing technology can deliver.
We can help you bridge that gap.
Our experts are available to help you take the first steps to building your
omnichannel fulfillment strategy and accelerate your digital transformation by
providing first-class customer experiences.
Contact us today!
eBook | 10 Trends Changing Omnichannel Grocery in 2022 21 |REFERENCES
1. Simon-Kucher & Partners. Global Sustainability Study 2021: Consumers are key players for a sustainable future.
Retrieved from https://www.simon-kucher.com/sites/default/files/studies/Simon-Kucher_Global_Sustainability_
Study_2021.pdf
2. McKinsey. (2020). Retail speaks: Seven imperatives for the industry. Retrieved from https://www.mckinsey.com/industries/
retail/our-insights/retail-speaks-seven-imperatives-for-the-industry
3. Accenture. (August 2020). How is COVID-19 changing the retail consumer? Accenture COVID-19 Consumer Pulse
Research—Wave 7.
Retrieved from https://www.accenture.com/_acnmedia/PDF-130/Accenture-Retail-Research-POV-Wave-Seven.pdf
4. Redman, Russell. (June 23, 2021). Omnichannel shoppers pay off for grocery chains.
Retrieved from https://www.supermarketnews.com/consumer-trends/omnichannel-shoppers-pay-grocery-chains
5. Boston Consulting Group – Google. (2019). Business Impact of Personalization in Retail Study—Customer Survey. (n =
3,144), U.S.
Retrieved from https://image-src.bcg.com/Images/BCG-The-Next-Level-of-Personalization-in-Retail-June-2019-R_tcm9-
221168.pdf
6. Baymard Institute. (2021). 46 Cart Abandonment Rate Statistics. Retrieved from https://baymard.com/lists/cart-
abandonment-rate
8. Google. (2019). Progressive Web Apps.
Retrieved from https://developers.google.com/web/progressive-web-apps/
9. Microsoft. (2019). State of global customer service report.
Retrieved from https://info.microsoft.com/rs/157-GQE-382/images/EN-US-CNTNT-ebook-2018-State-of-Global-
Customer-Service.pdf
10. Brightlocal.com. (December 11, 2019). Local Consumer Review Survey.
Retrieved from https://www.brightlocal.com/research/local-consumer-review-survey/
11. Duffy, Steven. (January 28, 2021). Small Formats’ Big Future in Retail.
Retrieved from https://progressivegrocer.com/small-formats-big-future-retail
12. McKinsey. (August 2020). Perspectives on retail and consumer goods, Number 8.
Retrieved from https://www.mckinsey.com/industries/retail/our-insights/perspectives
13. IBM Corporation (2019). The coming AI revolution in retail and consumer products.
Retrieved from https://www.ibm.com/thought-leadership/institute-business-value/report/ai-retail-consumer-
products?mhsrc=ibmsearch_a&mhq=ai%20%26%20retail
14. eMarketer. (March 29, 2021). Click and collect, an already popular option, finds a new gear.
Retrieved from https://www.emarketer.com/content/click-collect-already-popular-option-finds-new-gear
15. McKinsey (2020). Retail speaks. op. cit.
eBook | 10 Trends Changing Omnichannel Grocery in 2022 22 |About Orckestra
Orckestra helps retailers and grocers accelerate their digital transformation by
providing first-class customer experiences and growing sales. Our headless
omnichannel commerce platform has built-in order management and fulfillment
capabilities which cater to sophisticated business requirements and distribution
models in a cost-efficient, scalable, and flexible way.
Our API-first platform includes a complete set of online shopping experiences and
omnichannel fulfillment capabilities. Enterprise-level business needs are quickly
evolving; order management has become an indispensable functionality conducive
to a positive client experience. We offer improved inventory and order management:
our solution enhances product visibility, which favours turnover, protects margins,
and results in increased revenue.
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Sales: +45 39157600
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Kyiv, Ukraine, 01030
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