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Competitive Edge Examines Grocery e-Retailing

March 5, 2013 by Newsfeed Editor  


Whether you consider e-retailing an opportunity or a threat to your at-retail merchandising and marketing service business, it goes without saying that you should pay attention to how it is impacting the CPG industry and how products are brought to market. Food and grocery offerings have been a minimal part of e-retailing to date. In the latest edition of Competitive Edge, Willard Bishop Consulting takes a look at how the firm sees e-retailing evolving and the effects it will have on food retailers and manufacturers.

Competitive Edge tells us that leading players in the industry are making great efforts to make e-retailing work in the food retailing environment. This is probably due to the expectation that the practice will double over the next five years on a global basis.

So where does that leave our Association members, who specialize in performing sales building at-retail merchandising and marketing activities in stores? Competitive Edge lays out the current models for distributing products and a couple of opportunities jump out. The easiest and quickest model is store pick-up of on-line orders. Most retailers who employ this tactic need to fill orders by having associates pick from regular aisles or remodel their stores to include a pick-up area.

Another interesting aspect of this report is the impact that out-of-stocks play in the fulfilling of on-line orders. Dealing with out-of-stocks is costly on several different layers of e-retailing and cost of order fulfillment and delivery is a big hurdle to jump for retailers. They can pass the cost to the consumer, but too much will drive customers away. More and more tech savvy consumers expect delivery costs to be included and are considered table stakes for brand marketers.

Keeping pace with the future of retail is important for all of us. That is why World Association for Retail Excellence & Standards (formerly NARMS) has included the Changing World Track at the 2013 Retail Merchandising and Marketing Conference (RMMC). This track features several speakers and workshops designed to help you navigate the evolution of the retail industry. RMMC will be held on April 27-30 in Scottsdale, Arizona. Check out the Changing World Track and register by clicking here.


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