Table of Contents IDC Retail Insights Opinion In This Study MethodologySituation Overview Business NeedsDon't Hold Your Breath Until It Gets Easier to Be a GrocerManagement ChallengesGrocers Cannot Stand Still NowThe Best Practices Marketing Strategies Sync with Media PatternsOperational Improvements Go DigitalMarket Demands on Distribution StrategiesFuture Outlook How Do Grocery Business Objectives Match Up to IT Investment Plans?Essential Guidance Actions to ConsiderLearn More Related ResearchSynopsisTable: Comparison Between Grocery Business Objectives and IT Investment Plans Figure: Overall Sales Performance in the Most Recent Fiscal Year Figure: Capital Spending Trends in the Next 12 Months Figure: Marketing Tactic Effectiveness by Metric for the Past 12 Months Figure: Marketing Investment Growth Plans in the Next 12 Months Figure: Economic Environment's Impact on Go-to-Market Plans Figure: Store-Oriented IT Project Priorities over the Next 12 Months Figure: Current Mobile and Self-Serve Capabilities Figure: Capabilities Planned for Implementation in the Next 12 Months Figure: Plans for Leveraging Mobile Devices in the Next 12 Months Figure: Likelihood of Supply Chain Technologies Being Operational by Time Period Figure: Supply Chain Actions/Investments in Process Figure: Effect of Changing Market Dynamics on Distribution Strategies
Best Practices: Grocers Fighting Fire with Fire — 2011 Survey Results Reveal Strong Technology Investment Trends
This IDC Retail Insights report discusses the findings of the 2011 IDC Retail Insights/RIS NewsSupermarket Benchmark Study. Leslie Hand, research director, IDC Retail Insights, reports: "It is clear that as the dust settles post-recession, grocery retailers are responding to the mandate to reshape the customer experience in store and now also online in response to omnichannel shopping patterns. Technology remains for many grocers a key lynchpin in their overall business strategy and is taking an even larger role in shaping all aspects of grocery operations."
Technology budgets are growing for a majority of grocers, as they seek to innovate, transforming for a strikingly different competitive landscape, given pressures from drugstores and general merchants that are broadening grocery assortments. The drive for value, freshness, and convenience underpins most changes in shopper behavior in the post-recession grocery landscape and gives large retailers an edge, but nimble merchants that quickly adapt assortments and target promotions to high-value consumers can outflank low-price-only players.
All indications point to a continued drive to lean and smart operations, taking waste out of processes, systems, and products, but not without a plan to reinvest savings in innovation, particularly in customer-facing capabilities — in marketing, operations, and distribution.