Retail Trends to Watch in 2022 Part I - Grocery Business
No question but that the pandemic has effected a radical shift in consumer habits and expectations. In this two part blog, Naveo Commerce CRO Tomas Granö shares insights on this period of massive disruption and digital transformation
By Tomas Granö, CRO
It’s clear that the pandemic has permanently altered the way consumers shop. Priorities have shifted and today, convenience is not only desirable, it is expected. Grocers must now invest in solutions that meet the needs of their consumers, harnessing the power of new technology to keep up with growing expectations and stay ahead of the curve. As we look to the year ahead , we’re likely to see the continuation of convenience, but what else does the grocery sector have in store?
1. Businesses to harness the power of consumer data
Supermarkets typically have access to large customer databases, especially as consumers now shop online more regularly. In 2022, huge focus will be put on the vast amounts of customer insight that these brands have achieved over the last two years. This rich data, aggregated from grocers’ transaction engines, apps and websites, presents them with the opportunity to offer their customers truly personalised shopping experiences – fusing together convenience and customisation. By personalising their services, e.g., suggesting popular recipes or recommending options based on previous baskets, supermarkets can offer a value-added service and gain a competitive edge.
2. Subscription grocery is the next big trend
3. Sustainability must be a key priority
We’ll be looking at this in more detail in part II, but suffice to say, consumers want a stronger focus on sustainability. This doesn’t stop with retailers. They want grocers to respond accordingly too. Many are aware of the role the food sector plays in climate change; the production and transportation of livestock, crops, and food are responsible for about 25 percent of worldwide greenhouse gas emissions. As the gatekeepers for consumers, grocery retailers have an obligation to respond to this problem, by listening to their customers and incorporating sustainability into their business strategy. In the coming years, it is likely that we will see supermarkets streamline their home delivery services to reduce green-house gases, optimising last mile planning and rolling-out more sustainable fleets. For those organisations actively demonstrating that they are taking sustainability seriously, customer trust and loyalty will build. Therefore, sustainable practices will not only be beneficial for the planet, but also for revenues.
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