Future of Grocery

In: Business and Management

Submitted By numberonefood
Words 9825
Pages 40
Retail 4.0:
The Future of Retail Grocery in a Digital World
Parag Desai

Ali Potia

Brian Salsberg

The Future of Retail Grocery in a Digital World

Introduction

I

f there’s one thing that always stays the same in retail, it’s change. New stores open, others go out of business. Market leaders experiment with larger or smaller store formats. They change the layout in their stores and launch new private brands on their shelves. Loyalty programs are tweaked, new offers and affinity programs designed. Supply chains become more automated and efficient, resulting in increased product availability and improvements in inventory management.But in reality there are few really big innovations in retail. Most of the change we see year after year is relatively incremental. True transformation in this sector comes along only once every few decades. And when these transformational events occur, they nearly always create new winners and leave a trail of casualties in their wake. To understand whether today’s innovations represent seismic industry shifts, it’s useful to recognize the three preceding
“ages of modern retail”. This report focuses on the grocery sector, but we also draw on the best practices and experiences of leading retailers in different categories from around the world. For the purposes of this article, we’ll peg the birth of modern retailing to the 20th century and begin with what we call “Retail 1.0.”

Retail 1.0: Birth of the modern supermarket
Retail 1.0 had its start at the beginning of the 20th century. In the grocery business, Piggly Wiggly was arguably the earliest and most influential innovator, offering the first true self-service grocery store—at least in America. In 1916, at a time when grocery shoppers presented their orders to clerks at a desk who then gathered the goods from the
store…...

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