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Insights for the Food and Grocery Industry

Omnichannel grocery shopping dominated by digital, yet profitability challenges persist

Digital channels influenced 69% of grocery sales in 2023, but profitability remains a hurdle, resulting in $23 billion in losses due to item unavailability or a lack of substitutes in 2022. Research by Incisiv, in partnership with FMI (the Food Industry Association) and RELEX, emphasises strategic fulfilment as crucial for digital profitability. The report, “Increasing Online Profitability Through Strategic Fulfilment,” guides grocers to optimise availability, employ strategic fulfilment methods, and leverage AI to enhance margins. Top priorities for grocers include improving product availability (97%) and balancing workload (89%) using technology. The study underscores the need to align fulfilment strategies with evolving consumer expectations in the omnichannel grocery landscape.

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