retail news in context, analysis with attitude

Phononic is out with a new study into the competitive sets and consumer behaviors seen as having the greatest potential impact on the supermarket industry … and, no surprise, Amazon is at the top of the list.

Some excerpts:

• “When asked to identify the biggest grocery disruptors, over half of food retail executives (54%) pointed to Amazon, two in five (41%) identified Walmart, and one-quarter (25%) said online food delivery services, while smaller numbers believe it’s Kroger (10%) and Target (8%).

• “A common offering among these top disruptors is home delivery. While two-thirds of Americans (66%) have yet to try a food or meal delivery service, one-third have. Despite increasing delivery and e-commerce options, overall four in five Americans (82%) say they like shopping in the typical grocery store.”

• “Three in five food retail executives (60%) say their organization does invest enough in in-store technology, and seven in ten (70%) say, when it comes to implementing new technologies to improve customer experiences, their organization is proactive. Despite a view of proactiveness, almost half of food retail executives (49%) say grocery stores haven’t yet figured out how to use technology like other retailers have. Half of consumers (50%) agreed with this statement.”

• “Looking ahead five years, almost nine in ten food retail executives (85%) say it is likely more physical stores will be offering ways to auto-replenish basics; four in five (81%) say it is likely that there will be pop-up supermarkets in urban and rural areas to make it easier to shop; almost two-thirds say it is likely that supermarkets will become more of a community social gathering place with bars and restaurants (65%), and that the majority of supermarkets will be checkout free (64%).”
KC's View:
The one I have the most trouble with is the third point … it just seems to suggest a level of denial about the kinds of investments needed to make the store differentiated, relevant and resonant.