Winning Back Customers: Blending Value and Convenience in Grocery Retail

Randy Crimmins, President of AisleOne, Mercatus 

To differentiate themselves from the competition and win back their market share, grocers need to do two things: adopt and adapt.

Consumer behavior is being increasingly driven by convenience and value. 

Customers are feeling the financial pinch of inflation, higher interest rates, and general economic uncertainty. As a result, we see a drive to value through both cross-shopping numbers and the increasing market share of larger retailers (offering lower prices). 

At the same time, the stabilization of the eGrocery market at a significantly higher rate than pre-pandemic suggests that customers have grown accustomed to the convenience that comes from shopping online. 

This should prompt grocers to adopt value and convenience into their core service offering. However, the grocer’s traditional high-touch, high-level in-store service shouldn’t be abandoned. Instead, it should be adapted to become part of the digital experience.

The best, most cost-effective, efficient way of adopting and adapting is by utilizing technology to provide contextualized commerce to consumers. That means enabling a holistic digital experience based on what matters to each individual shopper and timing these experiences to their specific shopping cycles. 

This level of predictive personalization is relevant, seamless, and connected to both online and in-store commerce. Adopting the most important consumer drivers and adapting the traditional service strength of grocers so that it fits the digital experience. 

The result — a blend of technology and tradition — is an overall service offering that larger retailers simply can’t match. 

Adopt and Adapt.