The rise in food prices has made many grocery brands face the toughest path in the grocery market. The entire grocery business industry is struggling due to food inflation. Consumers are feeling the heat of the grocery prices and many of them have planned to reduce their shopping.
The covid-19 pandemic has drastically changed consumers’ buying behavior as many of them have transformed grocery eCommerce stores to purchase grocery items. But still, strict lockdowns in several regions have seriously affected the growth of eCommerce grocery stores.
To bring back to form, we need to implement some advanced tech-driven strategies that can uplift your grocery eCommerce store. Before getting into those strategies we need to first realize what impact that food inflation made in the grocery industry.
How is food inflation impacting the grocery industry?
Are you into the grocery business? Then you should be more worried about food inflation as it is directly affecting your grocery store turnover. Check out how this inflation has affected the lives of your consumers.
- Rise in production and labor costs due to strict lockdowns and supply chain disruptions.
- Soaring shipping and transportation costs as there is a hike in gasoline prices and also a shortage of truck drivers.
- The hoarding of food products has caused a major impact on the shortage of food items in the market.
- The undernourishment rate has increased due to the shortage of food products and this has increased the mortality rate.
Reasons that force the grocery industry to transform
Many leading grocery eCommerce stores are struggling more to survive in the market. Every day they are trying to find innovative eCommerce solutions that will make their grocery eCommerce platform get more audience and better conversions.
If you are still running your brick-and-mortar grocery store then there are a lot of chances of losing the race in the highly competitive market. It is time to go for a digital transformation and start building an eCommerce platform for your grocery store.
Let us try to figure out the reasons why this grocery industry is forcing every entrepreneur to online to protect their grocery business.
Unstable market –market volatility is one of the main reasons that push grocers to have an online grocery portal. After the pandemic, consumers have shown a difference in their shopping behavior and there is a disruption in the supply chain too. Having an eCommerce grocery app will support consumers to place their orders online and can get them delivered to their doorstep.
New competition – all omnichannel merchandisers have started transforming their grocery business and many leading eCommerce brands like Amazon have acquired Whole foods and have stepped into the grocery market. So, the competition is going to be tough and you should be well-equipped to beat the competition for that you need a perfect online weapon.
Impressive customer loyalty programs – every grocer will know the importance of customer loyalty programs. This is the key tool to satisfy and retain existing customers with our business. To have an effective customer loyalty program, you need to rely on the perfect grocery eCommerce store.
Reviews influencing consumers – consumers always rely on others’ experience and 8 out of 10 consumers will check online reviews about the product before they decide to buy it. Likewise, they will also visit the eCommerce platform for groceries and then they will try to purchase through the platform. So, it is very essential to think about digital transformation.
New delivery models – There are many new delivery models like BOPIS, curbside pickup, and door-to-door are getting popular among consumers. They started experiencing these delivery models and are enjoying the convenience to the core. If you still stick to your physical grocery store then you are going to lose the major audience of your business.
Proven strategies for grocery eCommerce stores to beat food inflation
It is good to have a change of mind to build an eCommerce store for groceries. But you should not think that once you build the online grocery platform you will be able to catch hold of the market and also the audience.
That is not true and you need to put more additional effort into making your grocery eCommerce store unique from your competitors. You need to keep yourself updated with the latest trends that are getting a greater response from consumers. Let us analyze the result-driven strategies and trends that will support your grocery business to escalate.