What’s going to be the biggest challenge facing grocers over the next five years? According to the findings of the 2024 U.S. eGrocery 5-Year Sales Forecast from Brick Meets Click (and sponsored by Mercatus), increased competition from big retailers, especially Walmart, will continue to pose a threat to regional grocers and independents. Fortunately, the report doesn’t stop at merely identifying the problem. It also provides several other data points and projections that can be used by grocers to develop strategies for overcoming this challenge and reclaiming your market share, including: Focusing on improving customer experience and service quality rather than trying to compete on price points with larger retailers. Utilizing customer data to increase order frequency from MAUs, including personalized product recommendations. Investing in Pickup as the preferred eGrocery receiving method and marketing these services more aggressively to align with consumer demand for convenience, cost-effectiveness and control. Want to learn how to implement these strategies and position your grocery business for success over the next five years? Watch our latest webinar discussing this important annual report and read our full analysis by clicking here: https://mct.media/3w7a2bE
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Providing value to customers doesn't just mean lower product prices. Economies of scale allow bigger retailers to offer lower per-product pricing than most grocers can match. Instead of reducing profitability by trying to compete on price, grocers should focus on alternative ways to provide the value that consumers seek. Here's one idea... The recent Brick Meets Click/Mercatus Grocery Shopping Survey shows that Delivery saw a large increase in Monthly Active Users (MAUs) last month. This growth is linked to introductory membership offers from larger retailers and third-parties that include free delivery trial periods. To capitalize on this trend, grocers should consider extending pricing strategies to receiving methods to boost order consolidation and average order value (AOV). Adopting threshold offers that reduce delivery or pickup costs can align with the value-driven approach customers are taking, especially when timed to follow the end of trial periods offered by big retailers and third-party providers. For more data-driven recommendations like this, read our full analysis of the most recent eGrocery sales numbers and watch the latest episode of US eGrocery Sales Trends: https://mct.media/3KN4abh
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Here's a way for grocers to better compete with large retailers: balance value and convenience. As economic pressures mount, it's tempting for grocers to promote value above all else. After all, it's the flight to value that's helped Mass Retailers win a larger market share. But to compete with the pricing advantages that the big retailers possess, regional grocers and independents must be ready to adapt in different ways to how economic factors are influencing shopping habits. That means value, yes, but also convenience. Merely promoting the same prices online as in store isn’t enough when Mass Retailers are offering significant value on a per item basis. Instead, grocers should remember that consumers tend to show greater price sensitivity when considering individual items than when they evaluate the total cost of their online grocery orders. This presents an opportunity for regional grocers and independents to shift their focus from per item price to overall value by promoting the convenience being provided. The key is to always ensure you're delivering the memorable customer experience that you're promoting.
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Retail Grocery - 3 essential pricing strategies grocers must master for 2025 When it comes to 2025 challenges—and opportunities—that retailers need to get right, there is one that looms larger than all the rest Year after year, retailers spend incredible time and energy on something that often leads to reduced profits, wasted labor and missed sales opportunities. Analyst firm Forrester recently released its?2025 predictions for retail, noting that 2025 will be tough for every retail sector—with the lowest-margin categories, such as grocery, having the hardest time. Well, the last few years haven’t been a pleasure cruise, so if any sector is ready to take on whatever lies ahead, I’m confident grocers will rise to the challenge. And when it comes to 2025 challenges—and opportunities—that retailers need to get right, there is one that looms larger than all the rest. And that is pricing. #retail #supermarket #grocery #forrester #pricing #promotion #margin #cost #competition
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Retail Grocery - 3 essential pricing strategies grocers must master for 2025 When it comes to 2025 challenges—and opportunities—that retailers need to get right, there is one that looms larger than all the rest Year after year, retailers spend incredible time and energy on something that often leads to reduced profits, wasted labor and missed sales opportunities. Analyst firm Forrester recently released its?2025 predictions for retail, noting that 2025 will be tough for every retail sector—with the lowest-margin categories, such as grocery, having the hardest time. Well, the last few years haven’t been a pleasure cruise, so if any sector is ready to take on whatever lies ahead, I’m confident grocers will rise to the challenge. And when it comes to 2025 challenges—and opportunities—that retailers need to get right, there is one that looms larger than all the rest. And that is pricing. #retail #supermarket #grocery #forrester #pricing #promotion #margin #cost #competition
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I'm excited about the Reps are Local Too movement that officially launches a week from today! Sales reps provide essential services to independent retailers, and are an important element in our success. It's time to show them some support - find out what retailers (and vendors!) can do in this Specialty Shop Retailing blog post. #repsarelocaltoo #independentretailers #shoplocal #salesreps #retailing #smallbusiness
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Jade Street Consulting Inc. has been on fire lately. ?? In just a few months, we’ve landed some incredible retailer partnerships, and now we’re excited to announce that Weis Markets is officially on board! This partnership is a big deal for us—not just because Weis Markets is another major retailer but because it?is a perfect fit for our brand. The customer demographic overlap between Weis and?Giant Eagle, Inc.—another retailer we recently expanded with—is incredible. We know our products will resonate with this customer base, and we’re confident this will be another successful chapter in our retail journey. But this partnership isn’t just about the retailer. It’s also about the distribution muscle behind it. With C&S Wholesale Grocers, one of the top distributors in the country, now backing us, we’ve been anchored into a solid network that opens up even more doors for expansion. Having a distributor like C&S Wholesale Grocers onboard is a huge milestone, and it’s a direct result of our growing presence with key retailers like Weis. We’ve been flying at full speed: five retailer launches and four distributors in just three months. And as we close out 2024, we’re already in the Obvi sales kitchen cooking up new outreach strategies for 2025 to keep that momentum going. So, what’s your outreach strategy for next year? What are you changing to keep things pushing forward? #BecomingTheObviousChoice
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Pitching to KeHE Distributors? Here are your Dos and Don’ts Partnering with KeHE can open doors to 31,000+ retail stores nationwide, including Sprouts, Albertsons, and Target. Here’s what you need to know before you pitch to make the most of this opportunity! ? DO: Show Proof of Demand KeHE wants to know that your product will perform well on shelves. Show strong sales numbers from existing stores and regions to prove demand. ? DON’T: Jump in Too Early KeHE expects high fulfillment rates and efficient operations. Only approach them when your supply chain can handle larger, consistent orders without issues. ? DO: Tap into KeHE’s Marketing Programs From trade shows to specialized promotions, KeHE offers great tools for visibility. Joining these programs can help drive your brand’s success from the start. ? DON’T: Neglect Pricing & Margins KeHE’s fees and promotions can impact your margins, so be sure to calculate carefully and ensure your product’s pricing structure is ready to handle these costs. Expanding with KeHE is a big step for any brand, but preparation and timing are key. Has your company succeeded already? If so, tell us in comments. #KEHE #distribution #salesstrategy #CPG #foodandbeverage
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For over 50 years, DSD has fueled grocery sales and profits. But with challenges like stockouts and labor shortages, it's time for a game-changer. Enter Total DSD Management! ?? We're streamlining operations, boosting efficiency, and fostering trust between retailers and vendors. Check out our infographic below to discover why mastering DSD receiving is crucial for a thriving grocery business! ???? #GroceryRetail #DSD #Efficiency #RetailInnovation #RetailTech #StoreOperations #InventoryManagement #VendorPartnerships #grocery #groceryindustry
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Here's why grocers should increase the integration of Pickup into their service offerings.. Pickup sales are poised for the fastest growth among eGrocery receiving formats, with a projected increase of 5.4% through 2028. Unlike Delivery, Pickup isn’t as saturated and better aligns with current consumer drivers such as value, convenience, and control over shopping experiences. To get ahead of the curve, grocers can enhance and promote their Pickup services right away. To learn more about the growth potential of Pickup and other key projections for grocers, read our analysis of The 2024 Brick Meets Click U.S. eGrocery 5-Year Sales Forecast and watch our webinar: https://mct.media/3w7a2bE
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Did you know that 1 in 5 grocery items sold in 2023 were private label? According to the Private Label Manufacturers Assocation (PLMA), private label saw a record setting 20.7% of total unit sales. Retailers are increasingly looking for ways to differentiate themselves and combat costs. That's where we come in ... we use our experience, relationships and retail data to help you build, get in the door and position great brands to win in private label. Reach out to learn more! #grocery #privatelabel #retail
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