How is Inflation Affecting Grocery Stores?
There’s been quite a bit of discourse surrounding inflation, which is leaving many grocers asking, “how will this affect my grocery store?” Just last week the federal government showed food prices have accelerated at a faster rate in July despite overall inflation calming. Even shoppers expect soaring prices to not slow down anytime soon.
Higher prices, however, haven’t entirely stopped shoppers from spending money on the items that bring them pleasure. The IRI noted premium and super-premium imported beer, frozen dinners, and refrigerated drinks had a higher market share during the past several months than earlier in the year. Additional data shows there’s been a growth in foot traffic at grocery stores in July, beating the number of visits to discount and dollar stores.
So, while the trajectory of inflation may seem uncertain, there are still opportunities for grocery stores to keep their shoppers coming back for their favorite items.
Grocers are relying on technology to attract shoppers
Since consumers aren’t necessarily turning their backs on higher-priced items, smart grocery stores are finding ways to bring value back to the shoppers. One of the best ways to engage your shoppers and encourage store loyalty is to build a robust member or rewards program.
Great loyalty programs offer valued shoppers exclusive store discounts, rewards on gas, and personalized shopping recommendations. Some stores are even taking this concept to new heights by letting customers earn rewards redeemable for video games. This incentive helps distinguish the store from competitors by offering a reward not readily available elsewhere while also catering to a niche group of shoppers.
Another way stores can stand out is by staying on the pulse of new retail technology innovations. Large retailers are tapping into robotics to encourage shopping in parking lots. Mobile parking lot vending machines are a new innovation that is currently being tested out in specific stores. They encourage impulse purchasing of snack items while shoppers wait for pick-up orders. Though this is not widely available to grocers, it’s an example of how stores are utilizing technology to bring more value back to their customers.
Don’t let inflation stop your store’s growth. At STCR, our professionals are always on the pulse of emerging grocery trends and can provide strategic omnichannel solutions to boost your performance. Whether it’s upgrading your self-checkout options or implementing robust store management software, we can help increase store efficiency and ROI. Request a demo today to get started!