Matt Shachter’s Post

This morning, I walked by several houses with grocery bags waiting for them at their doorstep.   Shortly after, I read in Supermarket News that 89% of grocers are unhappy with the profitability of their digital business!   Kinda crazy because it seems like a great opportunity.   So why are folks unhappy with their profits?   ✔ Inventory performance needs improvement.        ✔ 66% of grocers say customer acquisition cost is a problem.        ✔ 73%  of grocers' site delivery/logistics as a constant struggle.   That's why:     ✔ Despite inventory improvements, issues stall order fulfillment.   ✔ Acquiring customers is becoming costlier, and conversion rates are falling.    ✔ Delivery expenses take a large slice of profits.   So what's the fix?   ✅ Reducing the cost of fulfilling orders and delivery are the two biggest suggestions. However, implementing this strategy requires embracing an execution framework that focuses the front-line staff,  fosters team engagement, and builds a culture of accountability. Resolving these issues will help online grocers move from dissatisfaction to improved profitability. Full article in the comments. #retail #grocery #supermarkets #execution

For over 50 years, DSD has fueled grocery sales and profits. But with challenges like stockouts and labor shortages, it's time for a game-changer. Enter Total DSD Management! 🌟 We're streamlining operations, boosting efficiency, and fostering trust between retailers and vendors. Check out our infographic below to discover why mastering DSD receiving is crucial for a thriving grocery business! 💼📈 #GroceryRetail #DSD #Efficiency #RetailInnovation #RetailTech #StoreOperations #InventoryManagement #VendorPartnerships #grocery #groceryindustry

Here's a way for grocers to better compete with large retailers: balance value and convenience. As economic pressures mount, it's tempting for grocers to promote value above all else. After all, it's the flight to value that's helped Mass Retailers win a larger market share. But to compete with the pricing advantages that the big retailers possess, regional grocers and independents must be ready to adapt in different ways to how economic factors are influencing shopping habits. That means value, yes, but also convenience. Merely promoting the same prices online as in store isn’t enough when Mass Retailers are offering significant value on a per item basis. Instead, grocers should remember that consumers tend to show greater price sensitivity when considering individual items than when they evaluate the total cost of their online grocery orders. This presents an opportunity for regional grocers and independents to shift their focus from per item price to overall value by promoting the convenience being provided. The key is to always ensure you're delivering the memorable customer experience that you're promoting.

As you scale your brand, really think about your channel strategy. Think about where your core customer is shopping and how you are going to get the product to the retailer. Both of these pieces need to be considered as you scale your business. Every category will need a unique strategy on where to go and how to get there. I have sold into health and wellness for five years. Grocery and frozen for at least a decade. Maybe more. Even regenerative grains into retail, bulk, and foodservice and this was before regenerative was on trend... I guess that means I am a fire starter. All of these categories will find success by partnering with different distributors or in some cases direct. I have been gifted the opportunity to work with some amazing retail partners like Kroger, Target, Natural Grocers by Vitamin Cottage, Whole Foods Market, Wegmans Food Markets, Thrivemarket Ltd, INFRA and National Co+op Grocers. Every retailer listed will require a different strategy to gain lift off shelf. There is no cookie cutter formula to growing. I challenge you to dive deep and partner as best you can as you grow. Get support along the way so that you can get oriented to the natural products system and begin to make decisions based on profitable growth. #strategy #sales #Ihavenevergrownabrandthesamewaytwice

A great summary from the team at Grocery Dive on some of the major moves within #privatelabel as the #USA continues to increase its market share Amazon Stop & Shop Albertsons Companies Harris Teeter and Target #foodinovation #brandstrategy #groceryretail #foodanddrink #customerexperience #ownbrand #privatelabel #privatebrands #storebrands #responsiblesourcing #contractmanufacturing #exports https://lnkd.in/eFHPhQCa

What’s going to be the biggest challenge facing grocers over the next five years? According to the findings of the 2024 U.S. eGrocery 5-Year Sales Forecast from Brick Meets Click (and sponsored by Mercatus), increased competition from big retailers, especially Walmart, will continue to pose a threat to regional grocers and independents. Fortunately, the report doesn’t stop at merely identifying the problem. It also provides several other data points and projections that can be used by grocers to develop strategies for overcoming this challenge and reclaiming your market share, including: Focusing on improving customer experience and service quality rather than trying to compete on price points with larger retailers. Utilizing customer data to increase order frequency from MAUs, including personalized product recommendations. Investing in Pickup as the preferred eGrocery receiving method and marketing these services more aggressively to align with consumer demand for convenience, cost-effectiveness and control. Want to learn how to implement these strategies and position your grocery business for success over the next five years? Watch our latest webinar discussing this important annual report and read our full analysis by clicking here: https://mct.media/3w7a2bE

🚨 High-Value Private Labels: A Growing Threat to Regional & Independent Grocers 🚨 Walmart’s new “bettergoods” private label highlights a shift in grocery retail—private labels are no longer just budget alternatives but high-quality, high-margin products. With 21% of grocery sales now private labels, and chains like Aldi expanding rapidly, independent grocers face increasing competition. For those with limited resources, competing with these well-funded private labels can be challenging. However, strategic item placement, unique product assortments, and dynamic pricing can help bridge the gap. Discover how private labels are reshaping the grocery landscape and what it means for you: https://lnkd.in/dVVPAdkB #RetailTrends #Grocery #PrivateLabels #IndependentGrocers #RetailStrategy #Walmart #Aldi

Is Free BOPIS Worth It for Grocers? A university study concludes that the common grocer offering of Bopis Technologies (buy online, pick up in-store) for free is a money loser given the significant labor requirements. Do you agree that it won’t scale without fees or charging higher online prices versus those in-store? Read the full article here: https://lnkd.in/eNyxQZph John Hennessy "There is one more approach that’s a blend of Walmart’s automation and Trader Joe’s limited assortment. Sell online what shoppers want to buy online and do so with the support of automation." Ryan Grogman "The short answer is “no”, it’s not a viable long-term business model if the market remains the same. However, many of the grocers are still chalking it up to the cost of doing business and don’t want to lose business to a grocer down the street who offers the service for free." Georganne Bender "Trader Joe’s has the right idea: If it ain’t broke, don’t fix it. And Wegmans is smart to offer the service, but farm it out rather than burden team members with added responsibilities."

Over the past few months, grocers have become all too familiar with one specific term... Flight-to-value. The current economic situation is causing customers to buy their groceries from Mass Retailers, who — let's face it — have a pricing advantage over Supermarkets. But that doesn't mean the battle for the eGrocery market is over. Grocers who adopt these four strategies are finding success and taking back their market share: 1️⃣ Directly and consistently connect with customers both online and in-store. 2️⃣ Cultivate customer loyalty and reduce the tendency for cross-shopping. 3️⃣ Collect and utilize data to personalize shopping experiences. 4️⃣ Open avenues for additional revenue, such as retail media, and tap into the digital advertising market. While there are nuances to each of these four points, this is the high-level playbook regional grocers and independents need to maintain a competitive edge in the current market.