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The grocery battle: traditional stores or click and collect online grocers

(BUSINESS NEWS) Traditional grocers stand a chance if they can figure out two of customer’s biggest wishes.

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Traditional grocers can stand up to Amazon

AmazonFresh, Instacart, and Google Express have all thrived on a simple concept: why go to the store when the store can come to you? Now two grocery megabrands, Costco and Kroger, have teamed up with online delivery companies.

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As online and offline experience merge, is partnering with a digital giant the only way brick-and-mortar grocery stores can survive? Social commerce solution company, Bazaarvoice, argues that good old-fashioned grocers have more power than they think, and the battle to fill shopping carts is not over.

Modern vs. forward-thinking

As customers increasingly turn to online grocery services, many grocers have jumped into digital partnerships with the panicked goal of not falling behind.

On the surface, these companies may seem ahead of the game.

Companies like Costco and Kroger are handing off their shoppers to online delivery companies based on the assumption they can’t survive on their own, even though they have billions in revenue that could be used for independent innovation. Letting delivery companies latch on is how they intend to adapt.

Not exactly symbiotic

You can’t truly adapt if you’re co-dependent on another powerful entity, and you certainly can’t thrive. Companies like Amazon and Walmart function like parasites, feeding on grocers’ hard-earned customer bases and growing ever stronger: Amazon is projected to have 26% of market share this year, and Walmart is estimated to capture 15%.

The big guy doesn’t have to win

Although they may not realize it, grocers have advantages the digital behemoths do not: physical real estate and loyal customers with established shopping habits.

These advantages, when paired with a carefully planned ecommerce solution, could make for a more powerful digital grocery system than any that exist today.

So how did Amazon and Walmart get so much control so fast? Bazaarvoice attributes their success to two key steps.

Think like your customer

Amazon and Walmart are experienced in the consumer goods space, to say the least. Both approached the online grocery frontier knowing precisely what their customers wanted and how to win them online. So what do customers want?

Reliable information: Upon entering a store, consumers are faced with thousands of options–47,000 on average, compared to less than 9000 a decade ago.

Customers not only have more choices, they have more refined preferences, too.

Customers today care about health, wellness, and sustainability, making accurate information even more crucial. How do they know what information to trust? They consult the most credible source: other customers. Reviews and forums are full of unbiased information and real experiences that customers use to make purchasing decisions.

Seamless experiences: In general, customers don’t sit at home doing extensive research before heading to the grocery store. They often don’t know what they want to know about until they’re standing in front of it: 82% of consumers look up products in-aisle before buying them.

They want information and they want it immediately.

When grocers are equipped with product information and consumer reviews, ratings, and photos on their website or mobile app, the gap between “I want to know” and “I want to buy” narrows substantially. Customers demand seamless omnichannel experiences and instant access to rich information, and will abandon a brand who cannot provide this.

Let go of tradition

Many traditional grocers are hesitant to transition into e-Commerce, arguing their average customer is a demographic that doesn’t go online. Here’s the thing: millennials are not the only ones active online. Older folks with lower incomes actually make up a large portion of online food sales.

Tradition is great, but it’s not always the most convenient.

As the world changes, consumer behaviors change accordingly, and to win them over, grocers must change their own behaviors. These days, everyone from teenage boys to soccer moms to bingo champion grandfathers expect speed and convenience at every turn.

In the grocery world, that means the ability to buy groceries online and pick them up in-store.

This is a very simple way to improve the omnichannel shopping experience, yet many grocers have not embraced it. Walmart and Amazon both offer this “click-and-collect” option because they understand that crowded aisles, long lines, and out-of-stock items piss everyone off, regardless of their demographic.

The bottom line

The power is not in the hands of the online delivery companies. Nor is it in the hands of traditional grocers.

The power lies with the customer and whoever can satisfy the customer will become the industry leader.Click To Tweet

Traditional grocers need to think beyond the brick-and-mortar surrounding their goods and take responsibility for their own online presence rather than outsourcing it to some other company. The shopping industry is in flux and traditional grocers are perfectly capable of reclaiming their spot at the top. They already have the customer base, they just need to tap into its power.

#ClickAndCollect

Helen Irias is a Staff Writer at The American Genius with a degree in English Literature from University of California, Santa Barbara. She works in marketing in Silicon Valley and hopes to one day publish a comically self-deprecating memoir that people bring up at dinner parties to make themselves sound interesting.

Business News

Working from home could be permanent for many after COVID

(BUSINESS NEWS) Lockdown has millions of workers doing their jobs from home, and many will never go back to the office again. So how do you settle in for the long run?

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Facebook announced in May that they estimate to have about half of their staff working from home indefinitely, even after the pandemic ends. Twitter also made headlines around the same time with similar statements.

When staff work remotely, companies save on major expenses like rent, heating, and electricity. Nationwide (yes, the insurance provider!) recently closed five regional offices, simply because they no longer needed them, thanks to remote working. Talk about cost cutting!

It does beg us to ask: Why do we spend so much money on gas and so many hours in traffic to do things at the office that we can easily accomplish at home?

If you’re reading this right now, you probably have all the tools you need in order to do (at least part of) your job from anywhere: An internet connection and one or two devices, like a cell phone and a computer. That’s all you need in order to collaborate with people all around the globe. It’s honestly kind of surprising that mainstream work culture hasn’t caught up to this technology sooner, considering it’s been widely available for roughly a generation. And the stay-at-home orders have all but dispelled the myth that working from home makes employees less productive.

If these big businesses are eager to make the transition, it will set the tone moving forward for other industries. Undoubtedly, tech companies stand to seriously benefit from a broad shift to remote work, considering they provide the tools that make it possible.

However, there are considerable barriers to overcome before telecommuting can fully go mainstream. For one, it’s still hard to set boundaries between work & play from home, especially when you lack a dedicated office space. If you spend any substantial amount of time at work mindlessly scrolling through Facebook or watching cat videos on Youtube, then that habit is likely to follow you into the remote workplace (and don’t think I’m just throwing shade here, I’m guilty as charged).

There are also financial limitations that can prevent one from efficiently working from home. For example, if I normally use an office computer for my job, but don’t own a computer personally, who would be responsible for ensuring that I get a computer to effectively do my job during this crisis?

Regardless, whenever things go ‘back to normal’, wouldn’t it be great if working from home became a widely accepted option? Job opportunities would be more accessible to skilled candidates from areas outside of cities and tech hubs, those with chronic illness and disabilities that limit them to their houses, and parents with young children who need supervision and care.

If done equitably, we may end up seeing the new shift to remote work have a powerful, progressive influence on the way that we all get things done.

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Business News

Plastic bags are making a comeback, thanks to COVID-19

(BUSINESS NEWS) Plastic bags are back, whether you like it or not – at least for now.

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Single use plastic bags are rising like a phoenix from the ashes of illegality all over the country, from California to New York. Reusable bags are falling out of favor in an effort to curtail the spread of COVID-19. It’s a logical step: the less something is handled, generally, the safer it is going to be. And porous paper bags are thought to have a higher potential to spread the virus through contact.

It’s worth mentioning that single use plastic bags are considerably more
environmentally efficient to manufacture compared to paper, cloth, and reusable plastic bags. Per unit, they require very little material to make and are easily mass produced. It also goes without saying that they have a very short lifespan, after which they end up sitting in landfills, littering streets, or drifting through oceans.

In the grand scheme of things, it’s hard to deny that single use plastics have the potential to be as dangerous to humans as COVID-19. Coronavirus is a very immediate existential threat to us in the United States, but the scale of the global crises that stem from the irresponsible consumption of cheap disposable goods, also cannot be overstated. The Great Pacific Garbage Patch isn’t going anywhere. (And did you know that it’s just one of many huge garbage patches around the world?)

So… what exactly are we going to do about the comeback of plastic bags? Because to be honest, I used to work in grocery retail, and it is difficult and often unrewarding. So, I wouldn’t exactly love handling potentially contaminated tote bags all day in the midst of a pandemic if I were still a supermarket employee. You couldn’t pay me enough to feel comfortable with that – forget minimum wage!

I used to have a plastic bag stuffed full of other plastic bags sitting in my kitchen, like American nesting dolls, before disposable plastics fell from grace. (I’m sure some of y’all know exactly what I’m talking about.) This bag of bags was never a point of pride. It got really annoying because it just kept growing. There are only so many practical home uses for the standard throw-away plastic shopping bag. Very small trash can liners; holding snarls of unused cables, another thing I accumulate for no reason; extremely low-budget packing material; one could get crafty and somehow weave them into a horrible sweater, I guess.

I don’t miss my bag of bags. I don’t want to have to deal with another. Hey, Silicon Valley? Got any disruptive ideas for this one?

Even if we concede that disposable plastics are a necessary evil in the fight against COVID-19, the fact remains that they stick around long after you’re done with them. That’s true whether you throw them out or not.

I’m not trying to direct blame anywhere. Of course businesses should do their best to keep their customers and staff safe, and if that means using plastic bags, so be it. Without clear guidance from our federal government, every part of society has been fumbling and figuring out how to keep one another healthy with the tools they’ve got at hand. (…Well, almost every part.)

The changes to the state bag bans have been cautious and temporary so far, which is a small relief. But nobody really knows how much longer the pandemic will rage on and necessitate the relaxations.

I won’t pretend that I have a sure solution. All I can really ask is that we all be extra mindful of our usage of these disposable plastic products. Let’s think creatively about what we might otherwise throw away. We must not trade one apocalypse for another.

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Business News

Scammers are taking advantage of the unemployed

(BUSINESS NEWS) In a country that’s been stricken by higher-than-ever levels of unemployment, scammers have found a unique way to target this vulnerable demographic.

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With unemployment rates reaching unprecedented levels in recent months, it’s a fairly safe bet to say that there’s something that many of us currently have in common: we need a job. While these levels are slowly starting to decline, already down to 11.1 percent in June from an all-time high of 14.7 percent in April, the need for steady gainful employment is still great for many Americans. That’s what makes the newest scam making its rounds particularly vile.

There’s a common misconception that people who get scammed largely deserved their misfortune. Whether it’s presumed that they got greedy, they fell for something that was too good to be true, or they were looking for an easy way out, it’s both unfair and unkind to make these snap judgements of victims of scammers. When it comes to scammers, there’s only one party to blame for these wrongful actions — the scammers themselves.

And with literally millions of people looking for a job right now, these scammers have found a new round of susceptible people to target. It’s a fairly well documented fact that scammers have a knack for knowing who will be easy prey, and this latest scam is no different. According to a report from the Better Business Bureau (BBB), scammers have ramped up their efforts to separate desperate job seekers from what’s left of their meager funds.

This scam is nothing new, but it has surged in popularity with the sheer number of people looking for jobs in today’s economy. Dubbed the “employment scam,” it can take on many forms, but the end result remains the same. At the end of the day, if a person is bilked out of their money, then the scammer has won.

What does this scam look like, and how can you safeguard yourself from falling prey to it? Please note that anyone — from all walks of life, no matter your age, your sex, your race, or any other factor — can become a victim of a scam. The only way to protect yourself is to be aware of the scam and recognize the signs of it. If a potential employer asks any of the following of you, then there’s a good chance they’re a scammer:

  • You are required to pay the so-called employer for your own training up front.
  • You are expected to give up your banking/personal info for a credit check.
  • You are overpaid by a fraudulent check and told to wire back the difference.
  • You are told that you need to pay for expensive equipment to work from home.

Please note that these scammers can spoof legitimate companies. They may try to pass themselves off as real-deal businesses; they’ve even tried to emulate the BBB itself. And when you refuse to follow through with their demands, they will double down and might even become hostile and aggressive, resorting to threats and cajoling. It’s important to not cave in; once they start bullying you, they know the gig is up.

The BBB also notes that coronavirus has created a “perfect storm” for scammers, but there are a few things you can do to protect yourself. They advise that you avoid social isolation, as that can make you more vulnerable to scammers. When in doubt, seek out a friend’s feedback. Sometimes a reality check can make all the difference in whether or not you become a mark. Do a little bit of digging online before you accept an “offer” or share personal information. And finally, be prudent. No matter how many warnings the BBB puts out each year about scams, the only person who can really protect you from getting scammed is just one person…yourself.

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