15, 2023 /PRNewswire/ — A new report from the Food Marketing Institute (FMI) reveals that consumers are increasingly prioritizing fresh food, but the ease of shopping is a key factor influencing their purchasing decisions. This trend presents a significant growth opportunity for grocery retailers. The report highlights that while consumers are drawn to the health benefits and quality of fresh food, they also face challenges in accessing it.
**Grocery Stores: The Convenience Revolution**
**Grocery Stores:
* **Convenience is key:** Grocers are increasingly focusing on convenience as a key differentiator in the grocery industry. * **Convenience drives sales:** Convenience is a major driver of unit sales volume for grocery stores. * **Competition for convenience:** Grocers are facing competition from online grocery stores and third-party shopping apps.
* Eighty percent of grocers surveyed are optimistic about Generative AI’s (GenAI) potential financial contribution. * GenAI can help grocers improve their supply chain efficiency, reduce waste, and optimize pricing strategies. * GenAI can also be used to personalize customer experiences, create engaging content, and enhance marketing efforts.
Consumers are increasingly turning to fresh, convenient options in the grocery store. This trend is driven by several factors, including the rise of busy lifestyles, the growing popularity of meal kits, and the increasing awareness of health benefits associated with fresh food. **Detailed Text:**
The modern consumer is facing a relentless pace of life.
This is particularly true for busy individuals, families, and those with limited time. **Here’s a breakdown of the impact of convenience on fresh food choices:**
* **Time constraints:** Busy schedules and limited time are major factors influencing fresh food decisions. Many people struggle to find time to shop for fresh ingredients, prepare meals, and cook.
The fresh food segment is a key differentiator for grocers, offering a unique opportunity to capture market share and build customer loyalty. Fresh food is not just about selling fruits and vegetables; it encompasses a holistic approach to food, including sourcing, preparation, and presentation. Here’s how grocers can leverage their fresh food strengths to thrive in the changing retail landscape:
This concern is understandable given the convenience and affordability of online shopping. However, grocers are not simply passive victims in this battle. They are actively seeking ways to improve their offerings and compete effectively.
An enduring problem: “what’s for dinner?” For grocers seeking a chance to create convenience beyond the middle aisles, a strong opportunity lies at the very start of the process: as consumers build their meal plans and make their shopping lists. GenAI may present a solution to help grocers capitalize on the meal planning moment. Over half (53%) of U.S. consumers surveyed say that figuring out “what’s for dinner” is one of their major pain points. Younger consumers including Gen Z (66%) and millennials (60%) are especially likely to call figuring out dinner a primary pain point. Similarly, households with children (62%) also struggle to plan evening meals.
This is a significant shift in consumer behavior, driven by the increasing popularity of meal planning apps and the rise of online grocery shopping. Millennials and Gen Z are more likely to use these tools, indicating a growing preference for convenience and efficiency in their daily lives. GenAI, with its ability to understand and respond to natural language, is well-suited to assist with meal planning.
Consumers are increasingly seeking convenience in their daily lives, leading to a rise in demand for quick and easy choices. This trend has impacted the grocery industry, prompting retailers to adapt and offer more convenient options. However, despite this shift, consumers still show a strong preference for their neighborhood grocery stores. This preference is rooted in factors such as trust, familiarity, and the ability to build personal relationships with store staff.
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SOURCE Deloitte