History will make the case that 2016 was one of the most unique, exciting, turbulent and disruptive years — to supermarkets.
So much happened. Home delivered goods grew. More products hit the shelves and updated packaging occurred.
Now as we turn the page to 2017, I would like to follow up my previous post regarding the Five Emerging Trends for Supermarkets in 2017 with Five predictions that may occur in the supermarket industry in 2017.
Amazon will buy at least 2 supermarket chains. The retail giant is disrupting the industry by planning to open 2,000 grocery stores in the next ten years; a huge undertaking. I believe they are going to have to buy existing supermarkets that has the infrastructure in place and re design them on their business model. It will reduce costs and have them open up faster.
The cereal box will change. The box is paper thin and boring so I think that a new design will be developed that will pique interest to millennials, who are choosing other alternatives for breakfast because cereal is too messy. When you walk down the cereal aisle supermarket enthusiasts love a well merchandised cereal aisle with boxes lined up, which is why the one manufacturer who bucks the system with a stronger box or one where one that offers benefits, besides added sugar, will pave the way.
Consumers will pass on food with too much sugar and salt. The trend making healthier choices to eat better will force food manufacturers to continue putting products that are healthier on the shelves.
Artificial Intelligence (AI) is going to inform us how and what we eat. A smart device like the Amazon Echo or Google Home will suggest a shopping list for us based on prices, location and type of food we want to eat. You can use these devices to create a shopping list, — what next may be the device will track what you eat by calories, sugar, saturated fat, etc. You want a 2,000 calorie diet per day, as your AI device. Maybe you are fasting and need a 700 calorie set up for the day, your AI device will help you pick food to eat. The impact of AI is only starting and will continue growing
Tiny RFID chips will be placed into food manufacturer packages. This will revolutionize the industry because big data will track where food is going. Also, this will help food manufacturers inform supermarkets to rotate products that are shelves too long and save supermarkets money in terms of inventory
Supermarkets continue to compete for your dollars. Thus it is those who are willing to try things and shake up the industry may make the difference in terms of being ahead of the pack.
Happy Grocery Shopping in 2017.