Tuesday, January 19, 2016

IGD Predicts Key Global Trends for Grocery Retail

  • Hybridization: “Retail ‘hybridization’ uses physical stores to bridge real-world and digital operations by offering pick-up points for online orders. It also describes the development of stores which offer both retail and foodservice, either through partnership with specialists or not,” he says.
  • Microconvenience: “After years of contraction the UK’s convenience store portfolio is expanding once more, with openings exceeding closures. Multiples such as Tesco Express and Sainsbury’s Local are driving this,” he says.
  • Go Faster, Way Faster: “Online retail continues to develop across multiple markets, with particular attention being devoted to quick and flexible fulfilment. Services such as Argos Fast Track and Amazon Prime Now are great examples of development in fulfilment streams; Argos offers same day delivery for small items to 90% of households, 7 days a week, while Amazon delivers food and drink in under an hour for £6.99, or under two hours for free to Prime members in certain locations, with a minimum basket spend.”
  • Robotrucks: “The U.K. is a leader in development of driverless vehicles and road tests have already taken place. Looking ahead, it is easy to envisage much of the work within food and drink supply chains being done by fleets of such vehicles – large ones on the motorway and small ones to cover the final leg to the shoppers’ door.”
  • Health: “Health and good nutrition are still high priorities, not just for shoppers but also for government. A new government Obesity Strategy is expected in 2016. It is not yet clear what it may contain, but it will presumably include measures intended to reduce calories consumed. This may be seen as a threat to food and drink businesses, but it might also represent an opportunity for innovation and product improvement.”


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