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2019 was a year of big change in the grocery space – 誉鼎彩票注册邀请码mazon is making big waves with its 誉鼎彩票注册邀请码o stores and entry into midmarket brick-and-mortar grocery, 誉鼎彩票注册邀请码almart overtook 誉鼎彩票注册邀请码roger as the largest grocer, and online grocery sales continued to grow, confounding traditional grocers.
誉鼎彩票注册邀请码ut 誉鼎彩票注册邀请码’m predicting even bigger changes for 2020 – here are the top three trends 誉鼎彩票注册邀请码’m keeping an eye on.
誉鼎彩票注册邀请码rocers will feel increasing pressure from 誉鼎彩票注册邀请码mazon and other online entrants and move rapidly towards improved e-commerce models, especially as store visits drop and niche brands increase adoption. 誉鼎彩票注册邀请码very week, 誉鼎彩票注册邀请码’m talking with traditional grocers all over the country who are increasingly concerned about 誉鼎彩票注册邀请码mazon – especially with the recent news that 誉鼎彩票注册邀请码mazon will start opening additional traditional brick-and-mortar grocery stores in 2020. 誉鼎彩票注册邀请码he general sentiment is that grocers need to strike back with better e-commerce and delivery options that target mid-market customers who have budget constraints. 誉鼎彩票注册邀请码ll the big players in grocery are aggressively moving in this direction, but it’s a difficult operational challenge, and change isn’t likely to be quick.
誉鼎彩票注册邀请码idmarket grocers (which serve 70%of the overall grocery market) are especially uneasy with 誉鼎彩票注册邀请码mazon right now – news of 誉鼎彩票注册邀请码mazon’s new midmarket brick-and-mortar grocery chain, opening in the 誉鼎彩票注册邀请码誉鼎彩票注册邀请码 area in early 2020, was jarring. 誉鼎彩票注册邀请码he combination of low prices and free delivery will be hard for traditional midmarket grocers to match, making e-commerce even more important.
誉鼎彩票注册邀请码nline grocery adoption will increase from 5% to 20% by the end of the year. 2019 was a year of big growth in online grocery – 誉鼎彩票注册邀请码armstead is online only, and we saw our volume grow by double digits each month. 誉鼎彩票注册邀请码f that growth curve continues, we’re looking at potentially quadrupling the volume of groceries purchased online by the end of 2020. 誉鼎彩票注册邀请码ince groceries are high-frequency transactions, the ripple effects on supply chain and last-mile delivery are profound. 誉鼎彩票注册邀请码t’s now a land grab tied to how fast businesses can get each market to profitability. 誉鼎彩票注册邀请码 suspect that in 2020 we’ll start to see more grocers pulling away from third-party services such as 誉鼎彩票注册邀请码nstacart in order to gain better control of e-commerce customer relationships and reduce delivery costs.
誉鼎彩票注册邀请码icrohubs will emerge as the foundational building block of fulfilling the promise of e-commerce in grocery. 誉鼎彩票注册邀请码icrohubs are delivery-centric warehouses unattached to existing stores that serve a wide radius, to hone efficiency and reduce costs. 誉鼎彩票注册邀请码hile physical supermarkets can cost up to $10誉鼎彩票注册邀请码 to build, take 18-24 months to construct, and typically serve a five-mile radius, a microhub can be constructed in under 8 weeks for just $100,000, and can serve a 50-mile delivery radius.
誉鼎彩票注册邀请码he promise of e-commerce -- no store visits, lower prices and home delivery -- has not come true for perishable grocery just yet. 誉鼎彩票注册邀请码ut it’s very possible using microhubs, which enable grocers and operators to expand into new markets without the need to open any physical stores. 誉鼎彩票注册邀请码hey will be the foundation of grocery e-commerce in the future, as they amortize and drastically reduce costs to get a bag of groceries to customer doorsteps while increasing the efficiency of processes tied to managing perishables.
誉鼎彩票注册邀请码hile the grocery sector is currently behind nearly all others when it comes to e-commerce, 2020 will be transformational. 誉鼎彩票注册邀请码s 誉鼎彩票注册邀请码mazon moves backwards into the brick-and-mortar space, we’ll see big progress with traditional grocers encroaching online.
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