For groceries, the shift towards online shopping, is both a curse and a blessing. The former because of obvious reasons, but the latter is because of the opportunity it now gives to the most innovative companies to restructure their order. The in- store experience will now need to be made more attractive to help stymie the flow towards a purely online mode. The grocery business has always been a tough one, with thin margins, perishable products’ handling, different temperature requirements and the high fixed costs. The competition has now increased, with discounters making a major dent. A range of technologies are being used to improve the customer experience and the digital marketing. The likes of Amazon Go for example are making use of robots. Putting tenants in stores is one of the ways of reducing overhead costs. The value needs to be unlocked by retailers from products across the portfolio. The UK and France will be two countries that will main their leadership positions when it comes to innovation in the retail business.

Source:https://www.mckinsey.com/industries/retail/our-insights/the-future-of-grocery-in-store-and-online

Uploaded Date:31st December 2018