Navigating a New Grocery Landscape

Share Post

More than one-third of online grocery shoppers don’t plan on changing their habits post-pandemic. Read the first post of our new blog series to learn why retailers need to embrace an eGrocery mindset — or risk getting left behind. 

If ever there was a time for retailers to seize an opportunity in eGrocery, it is now. Just five years ago, online grocery orders barely topped 1 percent of sales. Now, following 18 months of pandemic life, online grocery shopping has become habit and eGrocery sales will cross $100B this year, despite a flurry of restaurant re-openings and growing meal delivery services. 

A 2020 Coresight Research poll found more than 52 percent of consumers had bought groceries online in the preceding year, including more than half of whom reported being first-time online grocery shoppers. Now that the pandemic is beginning to fade, more than one-third of online grocery shoppers say they don’t plan on changing their grocery shopping habits once it’s over. 

The shift in consumer habits presents retailers with a massive opportunity to integrate grocery eCommerce and micro-fulfillment into stores and create a new channel for incremental sales. But simply having an eCommerce option available isn’t enough. 

As consumers navigate their daily lives using on-demand technology and services, their expectations around speed, personal preference and convenience have heightened. The ease with which customers can create orders, choose click-and-collect, or have their groceries delivered directly to their front door will determine where their store loyalty lies. Even price plays less of an important role as consumers trade cost considerations for the convenience of seamless ordering. 

That’s a reality independent and regional retailers should be concerned about. With the abrupt industry disruption stemming from the pandemic sending retailers scrambling to find an eCommerce solution, many stores turned to third-party delivery pick-up services (like Instacart) to meet customer demand. But, by entering into a partnership with these providers retailers a) lose control of the customer experience; b) sacrifice new revenue streams; and c) lose the significance of their hard-earned brand. Soon, customer loyalty and preference goes toward your vendor — and not to you.  

In fact, according to a 2019 Barclay’s report titled “Dissecting the Instacart Addiction,” more than 43 percent of Instacart customers would switch retailers if they weren’t in the Instacart Marketplace. And with major retailers, such as Walmart, Amazon, and Target all seeking to lay stakes in the industry, retailers must find ways to stand out from the crowd. 

So, how can grocery retailers compete? As brick-and-mortar retailers aim to acquire, engage, and retain the relationships of online grocery shoppers, building out their digital capabilities through a branded eCommerce platform is key to building their future. Failing to embrace an eGrocery mindset could mean at risk of getting left behind.  

That’s where we come in. 

We help retailers like you launch profitable eGrocery businesses

GrocerKey empowers regional and independent retailers to build profitable, sustainable grocery eCommerce businesses. We combine our comprehensive white-label eCommerce platform with advanced fulfillment technology and decades of retail operator experience to drive digital sales. We support our retailer partners with: 

  • Ability to drive incremental revenue through a turn-key retail media business managed by our services team, while offering brand and advertising partners a powerful combination of cross-channel media to engage shoppers. 

  • A real-time hub to manage, track, and analyze performance across all facets of the eCommerce business, and manage marketing and merchandising of digital properties, giving retailers data-driven insights down to the store level to deliver more efficient operations. 

By leveraging our technology and tools, our retail partners have grown online basket sizes to an average of $140 versus the $100 industry average and realized seven figure annual revenue potential per store — utilizing less than 32 square feet. In fact, we’ve helped retailers successfully launch an eCommerce business in 30 days or less.

When you work with GrocerKey, you not only get access to our technology but also our experienced team and resources. Over the next few weeks, we’ll be sharing key insights through our new blog series to help you compete in the new grocery landscape. 

We’ll dive deeper into eGrocery retail-specific topics, including: 

  • The Future of Micro-Fulfillment in Retail

  • Tips for Improving Picking Efficiency & Speed 

  • How Retailers Are Boosting Revenue with Digital Media & Merchandising 

  • Leveraging CPG Partnerships to Build Incremental Revenue
  • How to Get Started Building a Successful eGrocery Business Today

As you get to know us, we want to get to know you! If you’re ready to elevate your eCommerce business or have questions about GrocerKey’s personalized and branded eCommerce platform, contact our team or book a demo today.

More Updates

A woman picks up her grocery bags.

Optimizing Your Retail Stores for eGrocery Fulfillment

As consumers grow their appetite for online grocery, retailers must adapt to the shifting landscape — starting with how they fulfill orders from the store floor. The right combination of staging, equipment, and technology can help retailers drive efficiency and profitability for grocery operations.