retail news in context, analysis with attitude

CBRE Group, a Los Angeles-based real estate services group, is out with an analysis of where it believes the US grocery industry is going over the next decade, with some key takeaways:

• CBRE believes the checkout line will disappear, made obsolete by technology advances.

• It believes that most mainstream grocers will expand into the c-store business, seeing growth in convenience-driven formats.

• “Collaborations,” the study says, “will expand grocers’ offerings in an effort to add higher-margin merchandise and services in their stores to counter the steep costs of last-mile delivery.”
KC's View:
Not surprisingly, since CBRE is a real estate company, it believes that “though grocery e-commerce will certainly rise over the next five years, online share will be much lower than most other retail categories and real estate demand will remain strong.”

I think that while this may be true, the bricks-and-mortar stores that remain viable will be the ones that work to redefine the experience. They can’t be yesterday’s stores, and they will have to successfully integrate elements of the digital experience into the physical store.