PUBLISHED DATE: 2022-10-27 00:29:58

7 Key Takeaways from GroceryShop 2022

What were the biggest themes from this year’s conference, and how can retailers and consumer packaged goods (CPG) leaders navigate new industry challenges?

Seven Major Themes

GroceryShop 2022 drew grocery industry leaders to Las Vegas, Nevada to talk inflation, customer data, e-commerce and more. As grocers are modernizing and adjusting to a post-COVID landscape, they’re rolling out a set of new technologies, products and ways of working that are changing the market. From the rich and diverse workshops, sessions, case studies and panels, these are the biggest industry themes we saw, and what retailers and CPGs should take away this year.

1. Retail Media Networks (RMNs) won this conference

One of the most significant trends this year was the development and expansion of revenue-generating advertising businesses to large and medium sized grocers. Retail media networks (RMNs) are systems that allow consumer products (CP) firms to advertise their products on specific properties on the retailer's website, emails, mobile and even in-store displays. This year, we saw numerous private rooms for Walmart Connect, Instacart and other top RMNs. The major topic of conversation was how retailers are able to build $100m worth of high-profit revenue from these businesses.

How retailers can maximize RMN success:

2. RMN data provides opportunities to reduce product waste

Many top retailers already have RMNs, but using these platforms to build out as much detail as possible in customer data is the north star. RMN competition and access to never-before-seen data is leading companies to re-evaluate their loyalty programs, personalization, media strategies and supply chain. Developing an activation strategy centered around personalized ads and offers will deliver higher engagement with these captive audiences. Premium loyalty and subscription models will further strengthen the connection between customers and the brand.

How retailers can decrease costs with RMN data:

3. E-commerce profitability remains a major challenge

Enhancing profitability emerged as a key conversation area and focus. With ~80% of grocery retailers dissatisfied with their e-commerce profitability, firms are zeroing in on data-driven insights, emphasizing “retail is detail.” Multiple sessions covered this topic, including Insider Intelligence, a large grocer and several large CPG firms. Publicis Sapient recently completed research that highlighted similar patterns. Our research revealed four successful methods to increase grocery profitability.

How retailers can increase e-commerce profitability:

Download our proven strategies to boost e-commerce profitability

4. Grocers are trimming the fat to combat economic pressures

Economic inflation is a growing problem for retailers, and they are looking for ways to save on costs. We had multiple conversations about cloud optimization, and how RMNs remain a major play to improve revenue. E-commerce platform consolidation is also critical—one company cited going from over 100 separate commerce platforms and related martech technology down to just 20. On the supply chain front, boosting supply chain resilience is critical, followed by supply chain strategy and digitizing supply chain operations, which was discussed by Walmart Connect executives. Finally, more retailers are looking to consolidate vendors, especially for commoditized support and monitoring work.

How retailers can cut costs to combat inflation:

See how Publicis Sapient and Salesforce partnered to help retailers integrate and consolidate their commerce solutions

5. Sam’s Club is using technology to digitize the in-store experience

An executive from this membership-only retail warehouse explained how they’re driving loyalty through in-store experience supported by technology, a growing industry trend. What makes them a leader in this space? Sam’s Club stores are highly focused on the membership experience. By sending free samples, they keep members part of the development process of their “Members Mark” private brand. They’ve also invested in front and back end technology, including self-checkout, scan-and-go, and in-store app experiences. All of these investments have led to amazing customer reviews, social media engagement and high NPS scores for each stage of their journey.

How retailers can bolster sales associates experience:

Learn how four other top retailers are digitizing the in-store experience

6. Instacart is becoming a fearsome grocery competitor

This grocery delivery and pick-up service is quickly preparing to IPO, and they have not seen demand soften even as COVID-19 restrictions are lifted. CEO Fidji Simo explained they’re positioning themselves as a mainstream product and service through a variety of new strategies:

How retailers can compete with Instacart:

7. Emerging technologies, like metaverse, haven’t gone mainstream

Emerging technologies took center stage, but most retailers are still in the beta testing stage and haven’t taken them mainstream.

How retailers should strategize for new technology:

Hilding Anderson
Managing Director of PS Ventures
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Kendra Koder
Senior Client Partner
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