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Technology’s impact on grocery market expanding, evolving

Thursday, February 20, 2014
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The past few years have seen a significant degree of development and evolution within the grocery retail sector. Supermarkets in particular have embraced a variety of new technologies, which have allowed them to improve their operations and customer experiences, as well as increase their bottom lines.

The trend of supermarkets of all sizes embracing advanced retail technology and benefiting as a result is likely to continue well into the future, as Weekly Times Now recently reported.

Supermarket technology evolving
The news source reported that a recent study from business analysis firm Ibisworld revealed that supermarkets will continue to be a major force within the greater retail sector in Australia. Specifically, the report found that supermarket revenue is on pace to increase by an average of 2.3 percent annually through 2019, when total revenue will surpass $97 billion.

According to the study, technology is playing a significant role in driving this growth.

“The development of sophisticated online sale options, including phone and tablet options, is expected to further increase supermarket sales,” the report concluded, according to the news source. “With these functions also come convenient alternative pick-up and home delivery options, further attracting clients to use these supermarkets.”

Weekly Times Now noted that these options are especially appealing to consumers as the public becomes more tech savvy and faces greater time management challenges. By leveraging technological solutions, grocery stores in the region can not only enjoy a competitive advantage, but also increase customer loyalty and even frequency of shopping.

For example, the news source noted that Aussie Farmers Direct (AFD) developed a partnership with The General Store to enable shoppers to essentially gain access to a corner store experience on the Internet. Notably, approximately one-third of customers utilize the company’s smartphone app to shop, further emphasizing the way that shoppers’ habits are evolving with the use of technology.

Upgrading performance
Grocery e-commerce trends such as these are not confined to Australia. All over the world, supermarkets and other retailers are adopting technologies to upgrade the customer shopping experience. As a result, consumers are increasingly coming to expect firms to provide these options, and those that don’t may struggle to attract new customers or retain existing ones.

Groceries interested in embracing such solutions need to consider working with a third-party provider that can guide them through this complex process. Only with an experienced partner can these organizations hope to become and remain competitive in an increasingly technology-dominated industry.

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