This year, food retailers are bringing the out-of-home experience into homes, making e-commerce profitable, and helping customers to be healthier. At least that is what research firm IGD predicts for 2021.
Four trends for 2021
After a year as overwhelming and disruptive as 2020, what should supermarkets focus on now? Despite the continuing uncertainty, non-profit research agency IGD recognises four trends in the western world.
1. Digital Upgrade
In 2021, IGD expects to see new digital technologies that require little capital investment and are easy to update. By collaborating with external technology providers, the rollout of these new tools will be faster. As a result, more retailers will start using machine learning and artificial intelligence, even at store level, to increase sales and customer satisfaction.
In that respect, there is a lot to learn from Walmart, which is testing all kinds of new gadgets in a hypermarket in Shenzhen, China. The retailer’s data insights are that strong, it can accurately identify potential shoppers, predict what they want and offer them personalised deals.
2. E-commerce escalates
E-commerce is also escalating, and this time, it will finally be profitable. As the big winner of the pandemic, the spectacular growth is now slowing down slightly, but its contribution will remain higher compared to pre-pandemic times. Not only customers but also retailers have adapted with increased capacity and better shopping experiences.
It also means retailers are now willing and able to reduce operational costs, thanks to more automation and better online processes. Customers get pushed towards click&collect, while at the same time, companies are working on fast delivery options such as same-day delivery or delivery within a few hours. In that respect, smart cooperation is of great importance. For example, Carrefour recently concluded a strategic partnership with the Canadian company Food X Technologies, to help them with a more efficient and profitable e-commerce system.
3. Food as a solution
Now that everyone has to cook at home, and evenings out aren’t an option anymore, refreshing meal ideas could be a gift from heaven. At least, that’s what IGD thinks: lockdowns forced retailers to focus more on tangible solutions (both in-store and online) to help shoppers conjure up inspiring meals. In 2021 and beyond, supermarkets will continue to try to grab market share from the out-of-home channel.
Furthermore, health and well-being have naturally become more important to everyone in 2020. Therefore, many retailers felt compelled to promote a healthier lifestyle, using a wide range of activities. The Canadian franchise supermarket chain Loblaw even launched an app, giving Canadians free access to nurses and dieticians who offer advice and support. Users who meet their health goals receive rewards. But this trend goes beyond Canada, as supporting both physical and mental health will continue to be a priority in the future.
4. Sustainable recovery
Although packaging made a brief comeback due to the pandemic, according to IGD, its reign is coming to an end again. Awakened by a mysterious virus from China, companies and society are rapidly becoming more aware of the need to operate and live more sustainably. As climate change remains a top priority, the researchers expect retailers worldwide to continue with sustainable initiatives.
This includes reducing plastic and food waste. For instance, British supermarket Asda promises that package-free and loose products won’t be more expansive than its packaged equivalent, a statement that will most certainly make a difference in the fresh food department. On a human level, IGD expects to see more initiatives to further improve trust, loyalty and engagement with customers, staff and the community.
