understanding the industry
Key Challenges
Extensive upfront research was crucial for this B2B project, as we needed to immerse ourselves in the industry, understand its stakeholders, and grasp the key challenges it faced.
A significant 58.6% of grocers experience out-of-stocks on a weekly (45.9%) or more frequent basis (12.7%). To combat this, one grocery leader expressed the need for:
“a better rotation of fresh food products so that we don’t have a shortage in the future.”
Grocery leader
Consumers hold high standards for fresh produce, with almost 75% expecting it to look enticing and delicious on the shelf, and nearly 70% expecting it to be consistently available. Over the past 1-2 years, 93% of grocers have witnessed an increased demand for fresh food, resulting in 84.1% investing in expanding their product offerings and 89.8% focusing on enhancing the customer experience in their fresh departments.
A staggering 59.9% of grocers rely on manual pen-and-paper documentation for at least one aspect of the ordering or forecasting process. These archaic methods lead to challenges such as organizing paper documents, transposing data, dealing with overstock due to inaccurate orders, and diverting resources away from crucial tasks that ensure product freshness and customer satisfaction.
65% of grocers have been affected by higher-than-normal employee turnover in the last 1-2 years. This has led to a loss of fresh knowledge/ expertise for over 52% of grocers, and nearly 80% of grocery leaders say it is: extremely difficult (8.3%), very difficult (28.7%), or somewhat difficult (42.7%) to hire and retain qualified individuals to staff their fresh department(s).
Simple systems which are easy to use are key.
A substantial 71.6% of consumers would be more inclined to support a grocery retailer committed to reducing food waste.
Grocery stores contribute to a staggering 43 billion pounds of food waste annually.
- Afresh report 2022
An overwhelming 89.2% of grocery leaders agree that increasing the accuracy of order quantities in their fresh departments would lead to increased sales, repeat customers, reduced food waste, fewer errors, and ultimately, improved profitability.