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Industry NewsFood retailers missing out on revenue opportunities: Study

Food retailers missing out on revenue opportunities: Study


OSF Digital, a provider of digital transformation services, has released its 2022 Grocery Omnichannel Retail Index (ORI) findings in partnership with FMI, the Food Industry Association, and NRF, the National Retail Federation.

The 2022 Grocery ORI reveals progress in omnichannel best practices; however, the majority of food retailers are still behind in developing integrated, seamless, and personalized experiences across all channels. This year’s benchmarking study identified opportunities in the shopper’s journey that can reduce friction and drive additional revenue and higher margins for grocers.

Due to the pandemic’s impact on digital acceleration, food retailers have made significant omnichannel investments. The implementation of best-practices criteria adoption has increased from 58 per cent pre- pandemic to 65 per cent today. 

The Grocery ORI report’s key findings include:

Many food retailers are not optimizing the digital experience to increase shopping cart size: While all food retailers in the Grocery ORI allow customers to edit quantity in cart, only 20 per cent offer the ability to move items from the cart to a “save for later” status; whereas, in other retail verticals, the adoption rate is 40 per cent. The option of having “save for later” gives the customer a way to find a previously considered product and simply add it to the cart instead of having to spend time searching for it.
Only just over half (58 per cent) of food retailers recommend additional products in the cart before checkout, up from 35 per cent in 2019. Suggesting complimentary products or popular items bought together is an effective upselling tool to increase basket size and make the shopping experience more helpful for the customer.

“Food retailers suddenly had to become omnichannel masters in a short period of time and often had to piece together multiple, distinct programs and solutions to meet customer demands,” said Bernardine Wu, executive managing director of digital strategy at OSF Digital. “The latest Grocery Omnichannel Retail Index reveals that there are fragmented shopping experiences and therefore opportunities to develop a stronger seamless customer experience.”

View the full findings at The 2022 Grocery Omnichannel Retail Index. 

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