Online Grocery Technology | The Shelby Report https://www.theshelbyreport.com/category/industry-news/technology/ Your source for Grocery news and Supermarket insights Fri, 02 Jun 2023 19:20:49 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://shelbyreport.nyc3.cdn.digitaloceanspaces.com/wp-content/uploads/2016/12/NEWshelbyMap-2016_500-59x59.png Online Grocery Technology | The Shelby Report https://www.theshelbyreport.com/category/industry-news/technology/ 32 32 Instacart Introduces AI-Powered Food Inspiration Search Tool https://www.theshelbyreport.com/2023/06/03/instacart-introduces-ai-powered-food-inspiration-search-tool/ https://www.theshelbyreport.com/2023/06/03/instacart-introduces-ai-powered-food-inspiration-search-tool/#respond Sat, 03 Jun 2023 13:00:52 +0000 https://www.theshelbyreport.com/?p=214753 San Francisco-based Instacart has launched Ask Instacart, an AI-powered search tool designed to assist with customers’ grocery shopping questions by offering personalized recommendations throughout the shopping experience. By using the language understanding capabilities of OpenAI’s ChatGPT API and Instacart’s own AI models and unique catalog data that spans more than a billion shoppable items across more […]

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San Francisco-based Instacart has launched Ask Instacart, an AI-powered search tool designed to assist with customers’ grocery shopping questions by offering personalized recommendations throughout the shopping experience.

By using the language understanding capabilities of OpenAI’s ChatGPT API and Instacart’s own AI models and unique catalog data that spans more than a billion shoppable items across more than 80,000 retail partner locations, the program invites customers to ask questions about what to eat and how to make it.

Ask Instacart is a reimagined search experience embedded in the search bar in the Instacart app, providing customers with product recommendations that are intuitively organized, as well as additional useful information about food preparation, product attributes and dietary considerations. The search experience also incorporates personalized question prompts into the search bar that anticipate customer preferences and inspires them to discover new products.

“A simple question like ‘What’s for dinner?’ is among the most complex for families everywhere to answer. From decisions about budget and dietary specifications to cooking skills, personal preferences, and so much more, Ask Instacart can help customers answer all of their food questions and deliver the ingredients for the perfect meal in as fast as an hour,” said JJ Zhuang, chief architect at Instacart.

“Whether it’s, ‘What’s the best fish for tacos?’ or ‘What should I make for a Memorial Day BBQ?,’ by supercharging Instacart search with generative AI we can create a truly inspiring experience that unlocks even more opportunities to engage and help customers as they shop online from their favorite retailers.”

With Ask Instacart, customers will be able to:

  • Better understand what ingredients or dishes pair well with others, like, “What kind of side dishes should I serve with lamb chops?”
  • Discover alternative ingredients that can be swapped for one another, like, “What fish is similar to salmon?”
  • Get more information on cooking techniques, like, “What are good sauces for grilling chicken?”
  • Generate lists of ingredients if they have a meal in mind, like, “What can I use in a stir fry?”
  • Learn more about item attributes so they can get personalized dietary inspiration, like, “What are dairy-free snacks for kids?”
  • Discover broader, context-specific inspiration for more open-ended queries, like, “What are the best veggies to roast?”

Further adding to the new experience, Ask Instacart will help match consumer needs – through the questions asked – with brand partners’ sponsored product campaigns, creating an even more convenient way for people to discover new products and access the products they already know and love.

The Ask Instacart launch comes as part of a growing suite of new AI-native initiatives from Instacart that we are working to roll out over the next year and beyond. In March, the company debuted an Instacart plugin for ChatGPT, which lets ChatGPT users express their food needs in natural language, with Instacart’s ability to make those needs shoppable with ingredients delivered to homes in as fast as an hour.

Since that launch, the Instacart plugin has been made available to all ChatGPT Plus subscribers, and Instacart has plans to launch additional plugins with Microsoft Bing and Google Bard in the coming months.

For more information, visit instacart.com/company.

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Aldi Introduces Instacart-Powered Virtual Convenience Store https://www.theshelbyreport.com/2023/06/01/aldi-introduces-instacart-powered-virtual-convenience-store/ https://www.theshelbyreport.com/2023/06/01/aldi-introduces-instacart-powered-virtual-convenience-store/#respond Thu, 01 Jun 2023 14:40:04 +0000 https://www.theshelbyreport.com/?p=214747 Batavia, Illinois-based Aldi has partnered with Instacart to introduce Aldi Express, a virtual convenience store.  From convenience items such as prepared foods, snacks and drinks to grocery staples and household essentials, Aldi Express gives customers access to about 2,000 popular ALDI items, delivered in as fast as 30-minutes. Aldi Express convenience delivery is available to […]

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Batavia, Illinois-based Aldi has partnered with Instacart to introduce Aldi Express, a virtual convenience store. 

From convenience items such as prepared foods, snacks and drinks to grocery staples and household essentials, Aldi Express gives customers access to about 2,000 popular ALDI items, delivered in as fast as 30-minutes. Aldi Express convenience delivery is available to customers from more than 2,100 Aldi locations across the country.

“We know our customers live hectic lives, and sometimes that means they don’t have time to make it to the grocery store – even for a quick trip. Through Aldi Express, we’re making shopping more convenient so you can satisfy a craving or get a missing ingredient in minutes,” said Scott Patton, VP of national buying.

“Together with Instacart, we’ll continue to find ways to innovate and make the online grocery experience even more effortless and accessible.”

Aldi began offering delivery services through Instacart in 2017. Instacart delivers from more than 2,200 Aldi stores and powers pickup for more than 1,500 Aldi stores nationwide. The companies expanded their partnership in 2018 to include alcohol delivery, and Aldi was one of the first retailers to accept EBT SNAP online through Instacart in November 2020.

“We’re proud to deepen our partnership with Aldi through the introduction of Aldi Express. With this launch, we’re making it easier for customers nationwide to get their favorite Aldi staples delivered faster than ever before,” said Ryan Hamburger, VP of retail at Instacart.

“We know how important it is to get what you need when you want it – whether it’s a last-minute delivery for a missing dinner ingredient, milk for the baby or simply wanting a late-night snack.”

To place an order and learn more about Aldi Express powered by Instacart, visit instacart.com/store/aldi-express/storefront or Instacart’s Convenience Hub at instacart.com/store/hub/convenience.

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Five Issues Omnichannel Grocers Need To Address This Year https://www.theshelbyreport.com/2023/05/31/five-issues-omnichannel-grocers-need-to-address-this-year/ https://www.theshelbyreport.com/2023/05/31/five-issues-omnichannel-grocers-need-to-address-this-year/#respond Thu, 01 Jun 2023 03:59:24 +0000 https://www.theshelbyreport.com/?p=214021 Sponsored content By Mark Fairhurst, VP of marketing, Mercatus Technologies Inc. As VP of marketing at Mercatus, Fairhurst leads the development of the company’s overall marketing and brand strategy and related programs. He’s also co-host on “The Digital Grocer” podcast and brings to the show a marketer’s perspective on the rapidly evolving grocery tech landscape. […]

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Sponsored content

By Mark Fairhurst, VP of marketing, Mercatus Technologies Inc.

Mercatus
Mark Fairhurst

As VP of marketing at Mercatus, Fairhurst leads the development of the company’s overall marketing and brand strategy and related programs. He’s also co-host on “The Digital Grocer” podcast and brings to the show a marketer’s perspective on the rapidly evolving grocery tech landscape. He applies a strategic lens focused on a continual search for the next big trends and best practices.

Fairhurst enjoys exploring not just how things are changing in grocery retail, but also why they’re changing – and where they’re headed. Prior to Mercatus, he held senior marketing positions at leading business software companies including GS1, Solera and Intelex. 

Five issues omnichannel grocers need to address this year

To achieve success in grocery retail, it’s necessary to operate a truly omnichannel business, one that spans in-store, online and mobile with equal facility and efficiency. An omnichannel business offers the choice and convenience that shoppers now demand, and omnichannel shoppers purchase more than single-channel shoppers – making it highly desirable to capture this market.

But a successful omnichannel enterprise requires grocers also to have ownership over the experience that is their customers’ shopping journey. With greater control of their e-commerce channels, grocers are empowered to preserve margins and grow customer loyalty by ensuring a consistent brand experience and importantly retaining all customer data.

Let’s look at some of the key areas omnichannel grocers need to focus on for the remainder of 2023, so you can better understand where you should channel your resources in the months ahead to end the year on a high note.

A mobile grocery shopping experience

With mobile increasingly becoming the preferred way to shop, it’s become a critical component of every grocery retailer’s omnichannel strategy. 

A grocery mobile app helps to build loyalty, improve share of wallet and win market share – as long as it provides an elevated level of convenience and delights customers. Essential features in a grocery mobile app include:

  • Modern mobile framework – This will enable best-in-class features and functionalities, smooth integrations with third-party apps, quick and seamless innovation to continue evolving with the industry and the ability to scale as needed. To watch for: frameworks with Application Programming Interface (APIs) integrations or Software Development Kits (SDKs), which support new functionalities that enhance the customer experience.
  • Seamless navigation – A great shopping experience requires an intuitive app that makes it easy to navigate the digital store and easy to build a basket, review the order and check out. The app should provide different ways to build the cart, such as accessing promotions, flyers or coupons from the home screen or by digitally strolling the aisles.
  • Robust content management system (CMS) – Shopping apps need to be constantly refreshed with new images, promotions, flyers, coupons, deals and private-label products. The app must also be aligned with your website and other channels – a must-have for a truly omnichannel shopping experience.
  • End-to-end ecosystem – Users need to be able to shop in the way that works best for them, which may include a single session completed on multiple devices. When your web and mobile platforms are seamlessly integrated, shoppers can conveniently continue their session on another platform without interruption. 

Now is the time to take a critical look at your mobile app and to ensure that you’re serving up the best possible mobile commerce experience for your grocery brand.

Personalization and customization

With inflationary pressures continuing, many shoppers are more cost conscious, and it’s likely they’ll remain so throughout 2023. At the same time, a plethora of grocery ordering options, with new entrants arriving constantly, means they have more choice. It’s more important than ever to find ways to retain your customers and build long-term loyalty.

Incorporating personalization into your omnichannel strategy is a proven way to do this, bringing more value to the shopping experience and solidifying customer loyalty. 

Personalization can add convenience to the shopping experience in many ways. For example:

  • Personalized product recommendations make it easier for customers to find their most-purchased products and add them to their cart in a single click.
  • Personalized searches offer tailored search results by predicting what a shopper might be looking for based on their purchase history. 
  • Personalized rewards and offers provide an attractive cost incentive that drives shoppers back to you, boosting your share of wallet. 

Personalization helps you establish a stronger relationship with your customers, one that’s built on trust. When you serve up information customized to each shopper, you tell them that you know them and want to help them — and that’s the basis of long-term loyalty.

Customer retention

While building long-term loyalty is the ultimate goal, you don’t want to lose sight of any customer attrition that may be happening. A good way to get a handle on this is by looking at cart abandonment patterns in your omnichannel experience.

It’s easier for shoppers to walk away from a shopping cart in the online world than in the real world. The result can be a loss of both revenue and customer loyalty – if they leave today, will they return tomorrow? 

Refining your omnichannel experience to discourage abandoned shopping carts should be an ongoing part of your strategy. There are some key steps you can take:

  1. Analyze metrics – Track where in the shopping experience carts are abandoned, so you can surmise why customers are leaving early, and target these areas for improvements. 
  2. Be up-front about fees – The checkout page is a common area for customer drop-off. Make sure you are transparent from the earliest point in the visit about the fees and extra costs to reduce abandonment due to checkout “sticker shock.” At Mercatus, we recommend that our clients encourage shoppers to book their fulfillment time slot up front, so they know what the actual pickup or delivery fee will be and are more likely to complete the order.
  3. Review fee strategy – You may also want to revisit your overall strategy for pickup and delivery fees. For example, are there certain days or times that you can reduce or eliminate fees to help fill slack periods? Lower or no service fees may be more important to some shoppers than getting their groceries faster. In the Omnichannel Shopper Behavior Report 2022 (Vol. 2) from Mercatus, for example, we found that just over half of shoppers would wait longer to receive an order to save on fees. 
  4. Create a seamless checkout – Whether they’re shopping on desktop, tablet or mobile, consumers want a quick and easy checkout process that’s free of surprises. The checkout flow needs to be intuitive, with the ability to review and easily change or add to the order, plus a range of payment options.
  5. Optimize your site – Shoppers can be turned off enough to leave if your site is slow to load or times out, if the search function makes it hard to find a desired product, if product descriptions or nutritional information are inaccurate or incomplete, or if a product photo doesn’t match the description. 

Assessing new trends

With the rapid pace of technological advances, there’s always something new and exciting emerging. Is it a flash-in-the-pan, or will it be an industry game-changer? That’s something grocery execs are constantly assessing. Mobile e-commerce, for example, has clearly emerged as a must-have – the numbers behind shopper uptake provide ample evidence in support of this. 

Over the past six months or so, there’s been a lot of hype about generative AI. It’s a disruptive force that has already been incorporated into major search engines, and tools such as ChatGPT have grocers pondering how they can incorporate it into their own platforms – if they should at all. 

It’s important to remember that it’s still early days, and there’s much more to be learned about how and when to use these tools safely and effectively. 

Tools like ChatGPT are being used successfully to write marketing content like emails and social media posts. Those who are using them well have mastered the skill of writing a prompt that gets the results they need. These tools can also be used for internal purposes, like educating employees about your business, or facilitating the work of help desk staff by enabling them to rapidly access information so they can respond to inquiries more quickly.

If you plan to use generative AI tools, you’ll need to ensure they’re not inadvertently releasing trade secrets, confidential company information or personal identifiable information (PII). Data and privacy must be vigilantly safeguarded. And while AI tools can speed up your workflow, be sure to check all output carefully. 

Monitoring KPIs

Measuring success requires, well, measurement. For 2023, it may be time to revisit what metrics you are collecting to ensure you have the key performance indicators (KPIs) you need to understand where you are succeeding on your omnichannel journey and where you need to improve. 

While some traditional metrics, like basket size, have a direct and equally meaningful equivalent in the digital world, others, like sales per square foot, do not. Here are a few of the KPIs of particular relevance to the omnichannel grocer, and which we recommend that our clients track:

  • Customer lifetime value (CLTV);
  • Cart abandonment rate;
  • Customer satisfaction score (CSAT); and
  • Fulfillment cost per order (CPO).

All of these are critical indicators of success and warrant careful attention.

Mapping a plan for the remainder of 2023

These are all important issues that grocers need to confront sooner rather than later. A key advantage of a first party grocery e-commerce platform is that you can control the factors that influence your omnichannel success. By developing a strategy now that addresses these issues, you’ll be on your way to a successful close to 2023 and a strong start to 2024.

Mercatus helps leading grocers get back in charge of their e-commerce experience, empowering them to deliver exceptional retailer-branded, end-to-end online shopping, from store to door. Our expansive network of more than 60 integration partners allows grocers to work with their partners of choice, on their terms. Together, we enable clients to create authentic digital shopping experiences with solutions to drive shopper engagement, grow share of wallet and profitability, and quickly adapt to changes in consumer behavior.

The Mercatus Integrated Commerce platform is used by leading North American retailers, including Weis Markets, Save Mart brands, Brookshire’s Grocery Company brands, Kowalski’s, Buehler’s Fresh Foods, WinCo Foods, Smart & Final, Stater Bros. Markets, Fresco y Más, Harveys Supermarket, Winn-Dixie and others. Mercatus is headquartered in Toronto, Canada.

To read more from The Shelby Report’s Industry Leaders, click here.

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New Seasons Market To Accept EBT SNAP Through Instacart https://www.theshelbyreport.com/2023/05/25/new-seasons-market-to-accept-ebt-snap-through-instacart/ https://www.theshelbyreport.com/2023/05/25/new-seasons-market-to-accept-ebt-snap-through-instacart/#respond Thu, 25 May 2023 17:18:46 +0000 https://www.theshelbyreport.com/?p=214502 Portland, Oregon-based New Seasons Market is accepting Electronic Benefits Transfer Supplemental Nutrition and Assistance Program for same-day delivery and pickup through Instacart. With this program, EBT SNAP participants will be able to use the  benefits to access groceries online for delivery or pickup from New Seasons Markets’ 18 locations across metro Portland. The program will launch at the […]

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Portland, Oregon-based New Seasons Market is accepting Electronic Benefits Transfer Supplemental Nutrition and Assistance Program for same-day delivery and pickup through Instacart.

With this program, EBT SNAP participants will be able to use the  benefits to access groceries online for delivery or pickup from New Seasons Markets’ 18 locations across metro Portland. The program will launch at the grocer’s 19th store, Fisher’s Landing in Vancouver, Washington, starting later this month.

This launch follows the U.S. Department of Agriculture Food and Nutrition Service’s most recent approval of New Seasons Market to accept EBT SNAP payments online via Instacart. With transportation often serving as a barrier to the grocery store, New Seasons Market and Instacart hope to increase their customers’ access to food from the region’s farmers, ranchers, growers and makers, as well as pantry staples.

“We are so excited to now accept EBT SNAP payment online with Instacart as it provides greater access to New Seasons Market’s high-quality, locally sourced foods for those who may have accessibility and transportation challenges,” said Erica Racette, director of e-commerce.

“We understand how important services like this are to our community, and we’re proud to be among Oregon’s first grocers to offer EBT SNAP payment online.”

Where available, EBT SNAP participants will now be able to shop from New Seasons Market through the Instacart website and mobile app. Once a customer profile is created, they can enter their EBT information as a form of payment in their profile. Customers will need a secondary form of payment for non-food items, such as taxes, tips and fees, per federal SNAP guidelines. 

Customers can enter their zip code to determine if they are near a participating retailer, and begin shopping and selecting items from retailers’ EBT-eligible products. Once items are added to their cart, customers will be able to select how much of their benefits they would like to allocate to the order. Orders for delivery and pickup can be placed by customers for receipt in as fast as an hour or scheduled several days in advance.

Instacart pickup is available at 15 New Seasons Market stores, and delivery is offered throughout the Portland-metro area.

For more information about EBT SNAP on Instacart, visit instacart.com/ebt-snap.

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The Save Mart Companies Launches Retail Media Network https://www.theshelbyreport.com/2023/05/23/the-save-mart-companies-launches-retail-media-network/ https://www.theshelbyreport.com/2023/05/23/the-save-mart-companies-launches-retail-media-network/#respond Tue, 23 May 2023 16:24:08 +0000 https://www.theshelbyreport.com/?p=214298 The Save Mart Companies is broadening its digital footprint by launching a retail media network with an expanded strategic partnership with Swiftly, a retail technology company that delivers omnichannel tools for enterprise retailers. The deepened partnership will accelerate and enhance The Save Mart Companies’ CPG relationships, creating lucrative advertising opportunities for supplier partners and benefit shoppers […]

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The Save Mart Companies is broadening its digital footprint by launching a retail media network with an expanded strategic partnership with Swiftly, a retail technology company that delivers omnichannel tools for enterprise retailers.

The deepened partnership will accelerate and enhance The Save Mart Companies’ CPG relationships, creating lucrative advertising opportunities for supplier partners and benefit shoppers with the launch of new, fully integrated Save Mart, Lucky and FoodMaxx websites.

The new websites provide advertisers and brands with an enhanced ability to target more customers and provide them with the value, personalization and the omnichannel experience they are looking for to drive more sales and units. This agreement is an extension of TSMC’s iOS and Android mobile apps.

“The Save Mart Companies’ digital transformation journey is foundational to the company’s growth plan, including omnichannel engagement, loyalty, and efficiency,” said Tamara Pattison, SVP and chief digital officer.

“Not only can we provide our CPG partners greater opportunities to expand their digital relationships with our growing customer base, but we can also enable them to drive greater performance and growth with improved targeting and measurement capabilities.”

According to recent Swiftly data, nearly 83 percent of consumers rely on some form of digital coupon, rewards app or loyalty program to help offset higher costs due to rising inflation and other economic challenges. In addition, more than 85 percent of consumers prefer interacting with brands using digital and physical channels.

“This partnership expansion marks a significant milestone as we continue to provide a dynamic digital experience while also enhancing capabilities for our retail and CPG partners to digitally connect with customers in a more personalized and efficient manner,” said Sean Turner, co-founder and CTO of Swiftly.

“The addition of website tools combined with the in-app experience allows TSMC to provide a more consistent and connected digital experience to their customers while increasing reach, engagement and loyalty.”

The new Save Mart, Lucky and FoodMaxx websites will launch with the following features and expanded capabilities: coupon clipping, retail media placements, loyalty/rewards experience, product browsing, weekly ads, sign-in and store locator, app carousel, run of site and run of category.

The Save Mart Companies is a California-based grocer that operates about 200 stores under the banners of Save Mart, Lucky and FoodMaxx in California and western Nevada. For more information on the company, visit TheSaveMartCompanies.com

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April eGrocery Sales Inch Up Versus Year Ago https://www.theshelbyreport.com/2023/05/15/april-egrocery-sales-inch-up-versus-year-ago/ https://www.theshelbyreport.com/2023/05/15/april-egrocery-sales-inch-up-versus-year-ago/#respond Mon, 15 May 2023 14:43:49 +0000 https://www.theshelbyreport.com/?p=214037 According to the latest Brick Meets Click/Mercatus Grocery Shopping Survey fielded April 28-29, overall eGrocery sales for April totaled $8.2 billion, up 0.9 percent versus a year ago. Year-over-year performance varied across the three key segments as delivery sales jumped 20 percent, pickup dipped 3 percent and ship-to-home plunged 19 percent. The strong gains for delivery […]

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According to the latest Brick Meets Click/Mercatus Grocery Shopping Survey fielded April 28-29, overall eGrocery sales for April totaled $8.2 billion, up 0.9 percent versus a year ago. Year-over-year performance varied across the three key segments as delivery sales jumped 20 percent, pickup dipped 3 percent and ship-to-home plunged 19 percent.

The strong gains for delivery during April were driven by a rebound in monthly active users and a higher average order value. Delivery’s MAU base grew 11 percent versus the prior year but finished up only 1 percent on a two-year stacked basis versus 2021 as the segment’s customer base fell 9 percent last year.

Over the past several years, the expansion of new delivery providers and service offerings has attracted additional customers by making it a more available and attractive way to shop, depending on the mission or occasion. In addition, delivery’s AOV rose about 5 percent on a year-over-year basis while the other two segments experienced a pullback in spending per order versus 2022.

April’s decline in pickup sales was the result of lower order frequency and a reduced AOV; this was offset somewhat by moderate growth in its MAU base (in the mid-single digit range). The decline for ship-to-home sales, on the other hand, was the result of a deterioration across all key shopping metrics, including continued contraction of its MAU base along with double-digit drops in both AOV and order frequency among active users.

“A macro view of the eGrocery market can reveal certain opportunity gaps, but it may also obscure key shopping dynamics within a particular segment of the market,” said David Bishop, partner at Brick Meets Click.

“For example, it’s difficult to see how little overlap exists between the households that use pickup and those that use delivery services or to know that pickup grew stronger in mass during April unless you’re able to dig deeper into the segment dynamics as we do in our monthly reports.”

Repeat intent scores also trended down in April for two reasons that should be particularly concerning for grocery operators. First, the likelihood that a customer will use the same service within the next 30 days for April dropped 530 basis points compared to last year, landing at under 58 percent, driven by a dramatic drop from the most-frequent customers (those who completed four or more orders with a service within the past three months).

Second, the repeat intent rate for mass declined nearly 300 basis points in April versus the prior year, but the repeat intent rate for grocery fell almost 900 basis points, leading to the largest gap recorded to date between the two formats and surpassing the record gap set in January.

Looking at repeat intent rates by receiving method reveals more concerning news for grocers. Grocery’s repeat intent rate for delivery orders has not only declined more than its rate for pickup orders, but it has also dropped dramatically compared to mass delivery services.

This decline, combined with the fact that delivery represents a higher share of online orders for grocery than mass, highlights the importance of controlling the quality of the customer experience. However, ensuring a good experience is often more challenging with delivery orders than for pickup because the distribution function is generally outsourced to a third-party provider.

“Given that customers vote with their wallet, the expanding gap in repeat intent between mass and grocery should be a red flag that warrants grocers re-evaluate all aspects of the customer experience,” said Sylvain Perrier, president and CEO, Mercatus.

“Customers’ expectations continue to evolve based on past experiences, which means it’s vital that grocers continue to improve the execution of various aspects, whether that’s a more personalized experience, fewer out-of-stocks or shortened wait times.”

Total eGrocery spending slid in April, falling 20 basis points to 12.1 percent versus last year. Excluding ship-to-home, since most conventional supermarkets don’t offer it, the adjusted contribution from pickup and delivery finished at 10 percent, up 40 basis points compared to a year ago, due to delivery’s strong performance for the month.

To further analyze current shopping behaviors, the April research wave asked where households bought groceries during the past month. For those households indicating mass, 69 percent reported online grocery activity in April, and for those specifying grocery (excluding hard discount), 54 percent reported online grocery activity.

As to where households bought groceries online, 73 percent of the households that mainly shopped with mass also ordered online from a mass service compared to 52 percent of those identifying grocery as their primary store who also ordered from a grocery service. “These early findings, and others, suggest that winning online goes beyond simply competing online, which future research will examine,” Bishop said.

For additional insights and information about the full report, visit the Brick Meets Click eGrocery Dashboard for April or the eMarket/eShopper page.

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Catalina Study Shows Price Hikes Despite Overall Inflation Rate https://www.theshelbyreport.com/2023/05/12/catalina-study-shows-price-hikes-despite-overall-inflation-rate/ https://www.theshelbyreport.com/2023/05/12/catalina-study-shows-price-hikes-despite-overall-inflation-rate/#respond Fri, 12 May 2023 18:41:20 +0000 https://www.theshelbyreport.com/?p=213974 For the first quarter of 2023, prices in several food and personal care categories topped the overall rate of inflation in the U.S. and Europe, according to the Catalina Shopping Basket Index. To compile its latest economic report, Catalina tapped into its Shopper Intelligence Platform to look at the aggregate price increase of 10 common […]

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For the first quarter of 2023, prices in several food and personal care categories topped the overall rate of inflation in the U.S. and Europe, according to the Catalina Shopping Basket Index.

To compile its latest economic report, Catalina tapped into its Shopper Intelligence Platform to look at the aggregate price increase of 10 common product categories in the U.S., UK, Italy, France and Germany compared to the same period in 2022.

inflation Catalina

“A number of factors have been driving up prices in Europe and the U.S., including the war in Ukraine, lingering supply chain disruptions and rising aluminum, ingredient, labor and energy costs,” said Sean Murphy, chief data and analytics officer at Catalina.

“In response, we’re seeing CPG marketers and retailers place more emphasis on promotions and price incentives, and we’re working more closely with them to earn the loyalty of value-conscious shoppers with highly personalized offers.”

Double-digit price hikes across U.S. and Europe

On average, yogurt prices rose the most in Q1 2023, up 18 percent, closely followed by frozen food (17 percent) and frozen vegetables (16 percent). The biggest individual country price jumps posted were for cereal in the U.S., up 21 percent from a year ago, and deodorant in Germany, which rose 27 percent.

Q1 inflation rate trends higher in certain categories

The Catalina Shopping Basket Index shows prices for these 10 common grocery items were at least twice the inflation rate for food at home reported by their respective governments.

For all countries surveyed, food prices rose on average 1 percent from Q3 2022, but are now stabilizing in Italy (6 percent), France and Germany, both 5 percent. UK food prices have continued to rise to 7 percent, with the U.S. dropping from 7.4 percent in Q4 2022 to 7.2 percent in Q1 2023. 

U.S. inflation rate for groceries slows in Q1

Inflation is hitting shopping baskets unevenly in the U.S. Cereal and yogurt had the biggest jumps, up 21 percent from a year ago. But the rate of inflation is slowing across categories, when compared with Q3 2022. All categories fluctuated no more than two percentage points, an indicator that inflation continues to slow in the U.S. But the Catalina Shopping Basket Index, which averages 16 percent, is higher than the Consumer Price Index’s 7 percent Q1 inflation rate for food at home.

“With the worldwide increase in inflation starting back in mid-2021, our insights about traditionally price-sensitive and value-seeking shoppers apply to even more consumers now. We continue to advise our customers that these challenging economic times are an opportunity for brands to fine-tune their omni-channel approach to deliver relevant offers and valuable incentives to help shoppers make the most of their dollars,” Murphy said. 

For more information, visit catalina.com.

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SpartanNash Deploys Simbe’s Tally Across 15 Stores https://www.theshelbyreport.com/2023/05/10/spartannash-deploys-simbes-tally-across-15-stores/ https://www.theshelbyreport.com/2023/05/10/spartannash-deploys-simbes-tally-across-15-stores/#respond Wed, 10 May 2023 14:42:09 +0000 https://www.theshelbyreport.com/?p=213759 Grand Rapids, Michigan-based SpartanNash has announced plans to deploy Tally, an autonomous inventory robot, in 15 grocery stores in Michigan and Indiana. After a successful pilot in select D&W Fresh Market stores, SpartanNash is implementing Simbe’s solution in additional Family Fare and Martin’s Super Market stores. The real-time data intelligence that Tally provides helps ensure items are stocked and […]

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Grand Rapids, Michigan-based SpartanNash has announced plans to deploy Tally, an autonomous inventory robot, in 15 grocery stores in Michigan and Indiana.

After a successful pilot in select D&W Fresh Market stores, SpartanNash is implementing Simbe’s solution in additional Family Fare and Martin’s Super Market stores. The real-time data intelligence that Tally provides helps ensure items are stocked and priced.

“Tally’s speed, accuracy and automation enable our associates to save time in inventory tracking and spend more time on the floor serving store guests,” said Tom Swanson, EVP of corporate retail.

Tally is a quiet, slim robot that travels store aisles throughout the day, leveraging 3D computer vision technology to collect accurate shelf data. It can capture 15,000 to 30,000 products an hour, ensuring they remain in-stock, in the correct location and with the accurate price.

“When we first started working with SpartanNash, we knew this was a partner that recognized the powerful role technology can play in enhancing in-store operations and, as a result, the customer experience,” said Brad Bogolea, Simbe Robotics co-founder and CEO.

“It’s been so rewarding working together to further deploy our retail solution. We’re excited to continue providing powerful insights for SpartanNash to help improve the shopping experience for store guests and Associates.” 

This announcement follows the company’s recent pilot with food technology platform Afresh Technologies.

“SpartanNash is positively influencing our store guest experience through new-to-world technology innovations such as Tally to help us in our mission to deliver the ingredients for a better life,” said Masiar Tayebi, EVP and chief strategy and information officer.

For more information about the company and its banners, visit spartannash.com/grocery-retail/banners.

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Associated Food Stores, Symbotic Implement Automation System https://www.theshelbyreport.com/2023/05/09/associated-food-stores-symbotic-implement-automation-system/ Tue, 09 May 2023 19:16:57 +0000 https://www.theshelbyreport.com/?p=213736 Associated Food Stores has entered into a commercial agreement to implement Symbotic’s A.I.-powered robotic warehouse automation technology in its Utah distribution center. Symbotic’s end-to-end automation system, with robotic case pick capabilities, will allow AFS’ distribution center to improve a variety of retail-facing experiences, including overall supply, expanded selection and delivery of products to stores. “We appreciate the […]

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Associated Food Stores has entered into a commercial agreement to implement Symbotic’s A.I.-powered robotic warehouse automation technology in its Utah distribution center.

Symbotic’s end-to-end automation system, with robotic case pick capabilities, will allow AFS’ distribution center to improve a variety of retail-facing experiences, including overall supply, expanded selection and delivery of products to stores.

“We appreciate the partnership with Symbotic, which enables us to cast an exciting vision for future growth and long-term relevance with the shoppers and retailers we serve,” said David Rice, AFS president and CEO. “Their expertise and professionalism allowed us to make what could have been a difficult decision, incredibly straightforward.”

Glen Keysaw, AFS VP of distribution, said, “We believe implementing the Symbotic system creates great opportunities for our distribution center team members to grow their skill sets and expand their future opportunities with the company. Due to the proactive efforts of our management team, all current team members at the distribution center will have jobs going forward and the distribution center will continue supporting current and future independent grocers throughout the Intermountain West.”

Associated Food Stores was established in 1940 when 34 independent retailers joined together to battle high supplier costs and competition from large chain stores. That fighting spirit has continued to help the grocery wholesaler grow over the last 75 years. With a focus on independent retailers, AFS has changed the way these retailers operate and allowed them to prosper. AFS serves about 450 retailers across the Intermountain West.

“We are pleased to welcome AFS as a customer and look forward to working with them to transform their distribution center,” said Rick Cohen, Symbotic’s chairman and CEO. “We are dedicated to ensuring our A.I.-powered robotics platform helps customers increase efficiency, reduce costs, enable new capabilities and improve worker satisfaction.”

For more information about Associated Food Stores, visit afstores.com.

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Cadent, Catalina Expand CTV Advertising Partnership https://www.theshelbyreport.com/2023/05/05/cadent-catalina-expand-ctv-advertising-partnership/ Fri, 05 May 2023 15:39:36 +0000 https://www.theshelbyreport.com/?p=213489 Cadent and Catalina have signed a new multi-year agreement establishing Cadent as Catalina’s preferred platform for executing linear, addressable and connected TV ad campaigns for consumer packaged goods brands and Catalina as Cadent’s preferred CPG data, audience and measurement provider. Cadent and Catalina will support shared and new customers through this expanded partnership as they grow their business through data-driven linear […]

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Cadent and Catalina have signed a new multi-year agreement establishing Cadent as Catalina’s preferred platform for executing linear, addressable and connected TV ad campaigns for consumer packaged goods brands and Catalina as Cadent’s preferred CPG data, audience and measurement provider.

Cadent and Catalina will support shared and new customers through this expanded partnership as they grow their business through data-driven linear TV and CTV advertising, which continue to expand. Since first forming a strategic alliance in 2020, the partnership has experienced 900 percent year-over-year growth in a tight market, as advertisers aim to deliver successful scale and reach. In 2022, partnership campaigns drove an average sales lift of 25 percent.

To do so, Catalina is leveraging Cadent’s expertise in TV advertising and Aperture Viewer Graph technology to help brand advertisers maximize their media budgets and drive higher return on ad spend. Meanwhile, Cadent is leveraging Catalina’s ability to target and measure CPG brand and category buyers to target households during the purchase cycle.

Additionally, the companies are providing brand marketers with Catalina’s Responsive Media solutions that re-engage shoppers who have seen a TV ad with an in-store or digital coupon to incentivize those who have not yet purchased the advertised product during the campaign flight window.

Cadent’s cross-screen TV advertising technology and Catalina’s deep consumer insights and purchase-based measurement capabilities can now provide CPG marketers with unique solutions and unmatched reach for its end-to-end brand campaigns. Cadent’s Aperture Viewer Graph covers nearly 100 million U.S. households and overlaps with Catalina household IDs in the US by nearly 95 percent.

“Cadent is thrilled that we continue to grow our partnership with Catalina to provide our CPG brand customers with best-in-class audience targeting and measurement solutions,” said Mari Tangredi, SVP, audience solutions at Cadent.

“This partnership highlights the impactful work we can deliver by combining Catalina’s valuable consumer insights with Cadent’s Viewer Graph, end-to-end platform technology and TV advertising expertise, empowering marketers to activate strategic cross-screen campaigns more effectively and efficiently.”

Already, Cadent and Catalina have been jointly recognized as winners of the 2022 AdExchanger Award for the “Best Data-Driven TV Campaign.”

The campaign was executed for shared client Applegate and delivered household-level, targeted CTV ads to 4.2 million buyers, optimizing for performance based on purchase behavior in real-time. The custom, sequential omnichannel campaign aimed to attract new Applegate triers to its portfolio of natural and organic meats, re-engage lapsed buyers and encourage cross-category purchases.

“At Applegate, we are always looking for new and innovative ways to connect with our consumers and deliver on our mission of ‘Changing the Meat We Eat.’ Our partnership with Cadent and Catalina is a great example of thinking differently,” said Molly Scerra, senior brand manager for Applegate.

“By leveraging their data-driven TV advertising model and in-store Responsive Media, we delivered targeted and measurable campaigns that drove results, including a 25 percent in-store sales lift. We’re thrilled to have been a part of this award-winning campaign, and we look forward to continuing to work with Cadent and Catalina to innovate and elevate our marketing efforts.”

To learn more, visit catalina.com.

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