IDDBA 2023: Shopper data matters more as margins tighten

There is a proverbial fork in the road when it comes to automating grocery store operations, according to Stephen Midgley, vice president of marketing for Invafresh, a Toronto-based grocery tech company. 

Grocers can subscribe to an ignorance-is-bliss mindset or embrace technology, which will not only help their business to thrive but also prevent running afoul of new government regulations, Midgley said at a What's in Store Live Workshop on Monday at the 2023 International Deli Dairy Bakery Association Expo in Anaheim, California. 

In a world where grocery retailers are increasingly grappling with tightening margins and a highly competitive marketplace, it’s time to embrace a world that’s free of spreadsheets and pen and paper, he said, adding, “In this world, tech is key and driving change.” 

He told Winsight Grocery Business in an interview that the deli, dairy and bakery sections are considered by many to be the most complex areas of a supermarket. That’s why it’s critical for grocers to “deliver a fresh experience to help drive incremental revenue and help reduce food waste, so they are basically building demand through accurate forecasting," he said. 

“If someone goes into a grocery store, they don’t go, ‘Wow, that’s an amazing packaged pasta aisle—unbelievable.’ But when you look at fresh, it’s all about the experience,” he said.

And each one of those sections has its own particular challenges and nuances, Midgley explained. 

Bakery and deli entails recipe management, for instance, and while that may seem less complicated than the organizational needs of other areas of the store, it’s one where grocers can find themselves running afoul of U.S. Food and Drug Administration (FDA) regulations, he said. 

Caesar salads made in the store could become a major headache for grocers in case of a recall, he said. “Romaine lettuce is infamous for being recalled because of contamination,” she said, explaining in the interview that recent changes to the Food Safety Modernization Act require traceability of Romaine lettuce within 24 hours, if requested by the FDA. 

That means grocers could face fines for failing to trace the product back to its source of origin. “That’s extremely difficult to do if you’re living in the world of spreadsheets and pens and paper. That’s really why automation is required,” he said. 

Quick traceability is not only a new government mandate, it’s also becoming increasingly important to consumers, as is sustainability, Midgley said. These both require maintaining data more efficiently. 

Many grocers facing labor shortages also have less time to commit to back-office work that they could be using to help customers. For that reason and more, grocers must focus on accurate data to find efficiencies and improve their internal systems, he said. 

“Data without action is worthless,” Midgley added. “Data is about having the right info at the right time, so you can make the right decisions.”

His presentation echoed the ideas of others at the conference. On the opening day of the conference, IDDBA Vice President of Marketing Whitney Atkins and Heather Prach, the association's VP of education, emphasized the importance of grab-and-go sections of the store. 

“Fifty-five percent of shoppers want easier shopping in the grab-and-go, so make sure these items are stocked throughout the day and night,” Prach noted on Sunday.

Strong data can help make that a reality while also cutting down on waste and improving sustainability, according to Midgley.

“Of all the challenges that retailers face today, sustainability is maybe the hottest topic, and that will only intensify as we go forward because of regulatory oversight, but also because consumers are increasingly demanding to know where products come from,” he said.