RetailTEC: Lines between grocery, convenience and restaurants blurring

Grocery and convenience store professionals got a crash course in all things tech at the kickoff of Winsight’s first annual RetailTEC conference in Dallas on Monday, with presentations from industry leaders and a robust conversation between conference attendees.

Topics ranging from omnichannel shoppers and digital loyalty to artificial intelligence took center stage with presentations from Dave Weinand, chief customer officer at data analytics firm Incisiv, and retail strategist Art Sebastian, founder of c-store and grocery consulting firm Nexchapter.

Weinand presented attendees with the findings of Incisiv’s "Driving Digital Excellence in Convenience: 2023 Digital Maturity Benchmark" study, which revealed insights into convenience and grocery shoppers.

The study of customer trends showed that while digital sales have retreated from their pandemic-era highs, representing 14.4% of all grocery sales in 2022, 81% of all retail sales were digitally influenced last year. Those brands with a strong digital presence were most desirable to shoppers, irrespective of whether they were purchased through a digital channel, he said.

Nearly three-quarters of grocers said in the Incisiv survey that they believe digital shopping has made customers less loyal, and nearly nine out of 10 grocers (88%) believe a poor third-party experience, such as from a delivery service, negatively impacts customer loyalty.

Related:Retail leaders heading to Dallas for inaugural RetailTEC event

That makes loyalty hard to win and easy to lose, according to the report. Incisiv found that it only takes two bad experiences for a shopper to leave their preferred brand, but roughly seven positive experiences are needed, on average, for shoppers to adopt a brand, Weinand explained.

The research also highlighted the importance of cross-selling opportunities for grocers, showing that nearly half of shoppers (49%) have made unplanned purchases after receiving personalized recommendations through apps and online purchases. “Offering cross-selling product recommendations enhances the shopping experience by suggesting complementary items, simplifying choices and encouraging additional purchases based on shopper behavior and preferences,” the report noted.

The Monday forum also featured a presentation from Sebastian of Nexchapter, who as a former tech guru with Meijer supermarkets and Casey’s convenience stores, brought a nuanced understanding of both retail formats.

He said the traditional lines between grocery, c-stores and restaurants are blurring with the rapid rise of native digital players like Instacart and DoorDash. “DoorDash used to be just a food delivery company, and now they're delivering everything from every retailer,” he noted, adding, “Someone asked the question earlier, ‘What do we do if we don’t modernize and add tech?’ [Native digital players like Instacart and DoorDash] are going to continue to add technology and reshape how consumers live.”

He advised attendees to take a broad view of the restaurant, grocery and convenience industries to get a better understanding of the larger trends. “I've always thought that no matter where I worked, whether it was at Meijer or at Casey's, in grocery or convenience, it's always smart to lift your head up and look broadly and understand all the trends because again, everything that's happening around this impacts the business one way or another,” he said.

Had advised grocers and convenience store operators to start by determining the role of technology in their companies. “Step two, once you know the role, make sure you have an operating model. Do you have the right organizational structure? Do you have the right resources? Do the resources have the right job descriptions? Do you have the right meeting cadence to review the business impact of the technology?” he said.

RetailTEC is produced by Winsight, the parent company of Winsight Grocery Business.