As CPG marketers revamp their plans to reach consumers at home, they need to consider a new set of questions. What drives consumers’ online product choices? How is this shifting as COVID-19 unfolds? What role will ecommerce play in the future? Increasingly, CPG marketers must turn to AI-driven data that delves into the consumer motivations and the impact of pandemic-related openings and closings on sentiment.
Dark stores, even as a temporarily approach, can help offset the cost of underperforming stores and the expense of freight and logistics, especially in more densely populated areas. It also takes online fulfillment out of store operations, allowing retailers to concentrate on customer service and minimizing inventory confusion.
Dutch supermarket company Ahold Delhaize, owner of Giant and Stop & Shop, has acquired a majority stake in Bronx, NY-based delivery provider FreshDirect, giving it a leg up on ecommerce fulfillment as e-grocery is exploding amid the pandemic. Centerbridge Partners is also acquiring a 20% stake in FreshDirect.
Ocado, the UK grocery concern that has struck deals with grocers around the world to use its robotic fulfillment center technology, is being sued by AutoStore for intellectual property theft – with AutoStore in turn being investigated by Ocado for patent infringement. AutoStore filed the lawsuits in London and New York.
A new survey suggested that Walmart+ is seeing some good traction out of the gate in terms of subscriber sign-ups, but while some observers have questioned its findings it’s still an indicator of a level of consumer acceptance of the mega retailer’s answer to Amazon Prime.
While total e-grocery sales in the U.S. declined 20% in August vs. June to $5.2 billion, other factors indicate strength in the sector, such as growth in average order value and repeat usage intent, according to a survey by Mercatus and Brick Meets Click. AOV reached a high of $95, the survey found, 32% higher than a year ago.
Amazon has finally opened the doors of its hybrid Amazon Fresh store in the Woodland Hills section of Los Angeles, a futuristic blend of digital and physical challenging traditional grocers that had been put on hold this spring due to the COVID-19 crisis. Customers can breeze through checkout and navigate the store via Alexa.
As e-grocery adoption continues to grow, with 60% saying they had bought online in the past month, up from 52% in March, Walmart has surpassed Amazon as the most-shopped online grocer, according to weekly data published by Coresight Research. There was also a dip in those reporting avoidance of public places and malls.
E-grocery sales continued to spike upward in June, increasing 9% over May to $7.2 billion as pandemic-fueled consumer behavior followed a hockey stick pattern, according to a survey conducted by Brick Meets Click on behalf of Mercatus. 45.6 million households placed e-grocery orders in June, up from 43 million in May.
With states reopening for business, experts wonder how grocers will continue to adapt, and how ingrained online buying patterns will be. Jon Hauptmann, Senior Director of Retail Pricing and Analytics Solutions at Inmar Intelligence, discusses Inmar’s recent survey findings and what’s next in this MCM CommerceChat podcast.