Top Technology Trends in Grocery Retail

While the grocery business is an essential part of everyone's lives, disruptive technologies, trends, technological advances, competitive pressures & ever-evolving consumer behavior and shopping preferences are changing the grocery business and experience faster than before. Some relevant statistics

• Online sales accounted for 3-4% of the US grocery market in 2019 and could increase to more than 10% by 2025.
• According to Forrester, 97% of grocery store customers find long checkout queues limiting, and 65% prefer self-service grocery kiosks to avoid lines and long waiting times.
• As per a report from McKinsey & Company, groceries are one of the select numbers of essentials, where online shopping is expected to exceed 35% going forward.
• McKinsey & Company also reports that 75% of consumers have adopted or tried new shopping trends since the pandemic started.
• E-commerce has altered customer shopping behavior and transformed the legacy landscape of brick-and-mortar shopping into omnichannel shopping. The speed of technology adoption has been accelerating faster than before. It took the television industry 13 years to reach 50 million users, the iPod took four years, Facebook took one year, and Twitter took nine months to get that number.

The Covid-19 pandemic showed how much society depends upon well-stocked, fully functioning grocery stores. The disruption has revealed many flaws and opportunities within this industry, and it seems to be the right time to innovate and reimagine the grocery retail experience. Industry leaders are leveraging technology to transform customer experience and to keep them engaged with the store brand.

Technology Trends That Can Power the Future of Grocery Retail

• Computer vision-based Machine Learning - The technology can be used to seamlessly track and estimate the intention of what a person is doing in the store. Such technologies have enabled grocery stores to have an utterly contactless store experience. Amazon Go Store sets an example in this technology trend. A customer can walk into the store using the in-store code selected on a mobile phone, shop for whatever is needed from the shelf & walk out without interacting with anyone. A receipt is sent on the phone with the payment charged to whichever payment method has been chosen in the account.
• AI and predictive technology - Physical stores are now adopting AI to enhance the shopping experience. Walmart makes for an excellent example willing to improve a customer's shopping experience. It discovered that using cameras and real-time data helped increase the efficiency of shelf stocking by 90%. AI and advanced analytics can help give stores information on individual buyers, their meal preferences, food allergies & even the motive behind their purchases, giving retailers an extensive understanding of the customer base. Predictive technology can help analyze the in-store inventory and accurately forecast the demand. It helps ensure no overstocking, which leads to reduced wastage and boosts profits.
• In-store navigation and smart carts - Smart carts equipped with intelligent screens can guide shoppers throughout the stores by displaying and locating items on the aisles. Customers can weigh items and skip the checkout lines by paying from the cart. Such technology streamlines the shopping experience and makes it autonomous and convenient for customers to shop and check out quickly. These technologies can help stores reduce overheads, increase revenue and even utilize the cart data to align layouts with shopper preferences. Kroger, a grocery chain, has started an intelligent grocery cart pilot program in Ohio, USA. The cart has a large touchscreen, connects customers to the platform's shopping list, and offers promotional information and wayfinding capabilities.
• Contactless checkout - Contactless payment solutions rose out of necessity, but shifting consumer behavior suggests that this convenient trend is here to stay. This method of payment was picked up during the Covid-19 period. This method includes touchless POS, self-scanning, and scan-and-go payment structures. According to Global Market Insight, the global self-checkout market is expected to surpass USD 4 billion by 2024. With touchless POS and payment systems in place, consumers can reduce their waiting time and exit asap.
• Location-based loyalty programs - Customers opting for GPS tracking can receive text alerts or app notifications on their mobile devices, offering promotions when they are near a store they frequent. Mobile phones and devices are the ideal channels for providing loyalty rewards and experiences.
• Inventory tracking - The technology to automate inventory management to navigate supply chain constraints and combat food wastage is gaining traction. Technology solutions like Pensa, using shelf scanning AI-powered machine vision, can accurately help demand planning. Such technologies can help ensure that food wastage is reduced or eliminated by accurately forecasting the demand and supply. An analysis by Rethinking Food Through Economic Data (ReFED) found the potential for business profits by wastage tracking and analytics platforms at USD 1 billion and for diverting 570,000 tons of food waste annually.
• Omnichannel - More and more grocers are now turning to omnichannel strategies to meet customer expectations and increase sales. With proper implementation, consumers can have a seamless experience whether they buy online or physically from the store. A report suggests that investment in an omnichannel strategy resulted in grocers getting 17% of total sales through digital efforts.

In conclusion Technologies like AI that can help accurately forecast demand, simplified checkout systems, and autonomous cleaning robots are some innovations helping build better, smarter grocery stores. Investments in digital innovations may have been optional before but have now become a necessity. For grocery businesses interested in learning more about technological trends and how to accomplish specific goals through digital innovation, connecting with a retail software design company can help them find the way forward.