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personalized offerings

Personalization: The important role it plays for Grocery Retailers

Personalization: Why is it important  for Grocery Retailers


In today’s hyper-local and hyper-personalized consumer demands, delivering a tailor-made and individualistic message becomes extremely important.

They can be put off by irrelevant messages and the likelihood of them seeking products elsewhere increases. They want to buy from innovative companies who create better experiences tailored to their preferences and previous behavior.

While grocery has often been a leader in data and personalization, the focus was not entirely on creating a genuine and valuable customer experience.

To keep up with the ever-changing customer expectations and to stay a step ahead, food companies need to facilitate a consumer’s needs before they arise, and the retailers that capture on this trend, are more likely to succeed in the future.

Personalized recommendations is not a new concept. Spotify creates playlists based on songs that a user has previously enjoyed and Amazon’s recommendations based on previous purchases.

Personalized recommendations are not news. YouTube is recommending which songs we should listen to next, Spotify is creating playlists based on songs we enjoyed in the past, what day of the week it is or time of day, Amazon is letting us know which books we might like based on what’s in our cart, but we feel frustrated if the recommendations feel impersonal.

In a society with a unique sense of self, search with the term “for me” is growing exponentially and food companies are looking for ways to create food recommendations that will not let the consumer down.

Grocery retailers have recognized the need for creating personalized shopping experiences as well, but are still struggling to implement every step of a connected and delightful consumer journey.

Leveraging both the data provided by the consumer and past purchase behaviors can help grocery retailers deliver more personalized and meaningful shopping experiences, thus increasing customer loyalty and basket size.

In the blog post, we will explore more about why consumers expect Personalisation from grocery retailers. 

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Technologies shaping the Supermarket of the Future

Technologies and Trends shaping the Supermarket of the Future

Food businesses will have to change to stay competitive – online, in-store, and at sorting and processing plants too.

The technological boom and the increasing adoption of Industry 4.0 among retailers are creating disruption across all industries. This change is coming to supermarkets which will have an immediate impact on the entire food industry supply chain. Technological innovations – both online and in-store along with the shifting consumer demands will re-shape the supermarket of the future.
Traditional brick-and-mortar supermarket chains are strengthening their own e-commerce capabilities to stay on par with their digitally native competitors. The global grocery e-commerce market is forecasted to expand from an annual value of 43 billion pounds to 135 billion pounds by 2025.

Another aspect that e-commerce players must note is while they are making efforts to establish a strong foothold in the US and European markets, they may face serious challenges because the existing grocery market is saturated and the margins are low. This indicates that the global growth in food e-commerce will be driven by Asia, where there is a willingness to purchase groceries online, along with rapid urbanization, low labor costs, and a newer retail market.

Rising consumer expectations

Widespread food shopping online and fast deliveries to customers’ front doors will only just be the tip of the iceberg in the new world. Computer codes and algorithms will further enable supermarkets to collect data about shopper preferences and habits and use this to personalize their offerings to customers. Recommendation engines further help nudge customers to make purchases similar or related to the products that they have already purchased or been looking for via the “Recommended for you” web pages.

The growing number of people with moderate incomes and lifestyles will become more aware of food safety and more curious about how their foods are sourced and screened. Moreover, food shoppers will develop higher expectations and become critical when buying fresh fruits and vegetables. More will want to know how fresh the produce is and whether or when it is ready to eat.

Consumers will further have the ability to check information about the origins and nutritional value of produce and will be able to see suggestions for recipes and food pairings. This will attract a greater number of customers while making each feel as if they are being provided with individual shopping experiences.

The ad-hoc demand created through the online ‘nudge’ will challenge the traditional food supply chain. Processing lines will need to know precise details about the food – where it is coming from and what is in the storage to meet the demand.

Technology to ensure quality and safety

Grading and inspection equipment – at point-of-origin, prior to shipment to the supermarket, or from the on-line dispatching warehouse – can ensure that the fresh produce has the desired size and ripeness without bruising or mold. In addition, sorting equipment at different stages in the supply chain will be able to provide essential information on sizing, quality and other quality markers.

Traditional supermarkets fight back against the online disruptors – and information about shoppers’ preferences and habits will be an important weapon. Consumer-facing technologies, such as shopping-cart-mounted devices or smartphone apps, will steer shoppers towards the aisles and shelves where they are more likely to make purchases. Sensors in the store’s shelves will keep track of the items customers put in their carts and bill their mobile payment system as they exit the store.

Looking ahead

Another likelihood is that supermarkets will remain the same size but change in concept, becoming destinations for click and mortar shopping. Retailers need to offer consumers a consistent omnichannel experience, stores will connect the physical and digital worlds. Here, consumers can see and feel products they might order online. Here, too, the online product offering could also be accessible via interactive screens.
These changes align with the forecast growth in consumer demand for healthier, high-quality produce, more choice, and greater convenience – a demand which will increase massively as household incomes rise in developing nations, bringing 70 million more people globally every year.

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Revolutionizing grocery retail with artificial intelligence

Revolutionizing grocery retail with artificial intelligence

While there is a lot of chatter around artificial intelligence and the potential it has to transform retail, it has the capability to impact the most fundamental shopping experiences: the grocery store. Most retailers are moving towards building a better grocery store experience, with the rise of subscription meal kits and competition from pure-play grocery delivery services. With the abundance of customer data and product information available, grocers today are in a special position to apply machine learning and AI in other areas of the business as well.

The grocery industry has a heavy reliance on the movement of perishable goods and with supermarkets struggling to plan, promote and sell goods in a short period of time, it is not efficient. Furthermore, there is a lot of food wastage that happens in this industry - while some of that waste happens in consumers’ homes, a good amount is also lost in the supply chain - anywhere between the farm and the store shelf. And with the various options for when, where and how to buy groceries, grocers compete on prices that are most likely to be profitable.

While grocers are faced with these challenges, they have a fairly good idea of their customer base, who they are and what they want to buy at what price point. With the data available, there is a lot of opportunities utilizing the data in the right manner. This is where AI comes in. Using machine learning capabilities and analytics, more grocers are leaning towards adopting this technology to strengthen the relationship with customers, as well as address some of the biggest challenges they are faced with today.

Leveraging the abundance of customer data

The grocery industry was one of the first industries to collect shopper buying data through programs such as loyalty programs and in-store promotional offers. These methods helped grocers gather information about their key shopper demographic as well as brand preferences. This information is already leveraged to provide discounts and special promotions, the new technology can help enhance the relationship between the grocer and shopper even further.

AI helps grocers to provide a deeper understanding of context and intent by answering the questions behind customers' shopping decisions. It also enables the grocers to parse the customer data and automate the ability to offer targeted promotions to each customer.

Enhanced inventory management

AI can change the entire way of managing inventory. AI can help stock shelves with the right mix of products and ensure that the supply chain is aligned to avoid out of stock products using point-of-sale information and inventory visibility.

Machine learning can build on grocers' rich customer data and combine that with contextual data such as weather, climate, holidays and events - providing a more accurate forecast compared to traditional methods.

Reducing waste

With better inventory management and data analytics, AI can provide better visibility on produce and perishables. Automation can help stores dynamically re-adjust orders based on demand or automate product promotions for the items that are not performing well or selling fast, and helping stores to protect margins, and reducing the amount of food that goes into landfills.

As AI and machine learning advances, grocers should begin to position their systems for a seamless transition towards a highly automated future.


AI must integrate into the commerce platforms and connect across systems to maximize its effectiveness throughout the business. While AI is a valuable tool for customer service, the impact of it will come through its ability to reward loyalty, understand consumer behavior, ensure reduced wastage and increase revenue for the retailers.

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