In the United States, many traditional grocery retailers are seeing their sales and margins fall. This disruption is mainly due to consumers’ changing habits and preferences, new technologies and intensifying competition. As a result, there has been a massive decline in publicly listed grocers’ economic value.
More than 50% of the grocery sector’s economic profit vanished between 2012 and 2017
In this article, Quatrro highlights 3 essential actions for grocers to win in this dynamic environment
- 1. Adopting new technology
As per Nielson, “E-commerce will grow, but brick and-mortar will still dominate”. However, to stay competitive, traditional brick and mortal grocers will require a forward-looking perspective on how consumer behavior, technology and the competitive landscape are likely to change in five years or more. Small and medium grocery stores need to embrace technology to outperform those who are slow adopters. To implement new technologies, these grocers should partner with trusted advisors and service providers who can help them gain access to best in breed technologies at fractional costs and without large capex investments.
- 2. Embracing New Payment Options
According to a recent study, the number of people using web-wallets and their smartphones for payments will continue increasing and by 2019, it will exceed 300 million users worldwide. Therefore it is critical now, more than ever that, that grocers provide additional convenience and increase customer loyalty by offering their customers a wide range of payment options including the use of web wallets and mobile payments.
- 3. Keeping Good Financial Records
Proper bookkeeping allows grocery owners to precisely track their income and expenses, which is necessary for creating accurate financial statements, analyzing important financial metrics and understanding the overall health of their business. Managing payables is essential for any grocery store to boost or maintain their credit rating, and managing receivables ensures a positive cash flow which is possible only if the owner is maintaining their financial records in a timely and accurate manner.
Competitors are moving quickly, and they’re harnessing the power of technology to improve operations and relentlessly pull customers away from traditional grocery stores. It’s up to grocers to fight back—and perhaps partner with a trusted service provider to effectively compete in this rapidly changing market ecosystem.
Quatrro specializes in providing cost-effective finance and accounting, IT and payroll services to the grocery industry and with over 25 years of grocery industry experience, Quatrro ensures that our clients achieve their strategic goals while improving their bottom line and cash flows.