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Is Home Delivery in The Grocery World Threatening Your Business?

The grocery business is changing. Amazon Prime members can now get discounts at Wholefoods, Walmart is expanding it’s buy online and collect in store model, and now Loblaw has announced plans to expand it’s ecommerce services.

Loblaw is expanding its premium home delivery service by the end of 2018 to 16 markets in Canada by year’s end from 11 today.

Most of Loblaw’s customers spend more in a click-and-collect order than home delivery. With the new offering, this is bound to change. This should also have a positive effect on Loblaw’s labour and inventory costs, whilst increasing customer satisfaction with their provider. Loblaws has partnered with Instacart for this expansion, one of the fastest growing grocery delivery services in Canada.

If you are in the grocery business, what is your strategy to counter the new home delivery services provided by the major supermarket chains? If you need help, contact us.

 

Can malls and big stores be saved?

big brands

Well folks, it has finally happened. Nearly every major department store in the USA and Canada, including Macy’s, Kohl’s, Walmart, and Sears, have closed or intend to close hundreds of stores.

This is due to more competition and lower profit margins and the continuing rise of ecommerce.

When an anchor store like Sears shuts down, it may also lead to a “downward spiral in performance” for shopping malls.

How Can Brick and Mortar Retailers React?

Many believe that there is no way to stop the retail decline, but there may be a few solutions for the big stores in the age of Omnichannel marketing:

  1. Diversify – the old retail model has failed to adjust to modern realities and the shopping habits of the modern consumer.
  2. Follow Amazon’s lead – they say if you can’t beat them join them. Most big retailers have great online stores but cannot compete with Amazon. It may be time for the big retailers to adopt the “Amazon model” in fulfillment, pricing and customer experience.
  3. Review what your customer’s needs and values are: Millennial and Gen Z consumers in general have vastly different needs to the older generation that viewed shopping in terms of visiting a store.  They want products are ethically made, with fair salaries paid, environmentally friendly and authentic.

    If you are looking to diversify, or need help with reviewing your business model, we have experts who can work with your company to help you survive the “Amazon onslaught.”  Alternatively, we can also help you transform from a brick and motor business to an efficient and profitable pure play model.

    Contact us to discuss.

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