Technology has reached a tipping point in the supermarket sector which will help define the winners and losers in the next decade. Consumers are now expecting a Amazon like experience inside bricks and mortar stores. The new catch phrase for retail is bricks and tech which demonstrates the future reality of in store shopping expectations. The supermarket sector is torn between a very successful business model that has slowly developed over decades and the reality to reinvent the old business model to incorporate the new buying mannerism of consumers of today and tomorrow.
The assumption is that by the end of 2020 more than 80% of Publix shoppers will bring a smart phone or device with them while shopping. Removing customers over 80 and customers financially challenged from the mix, more than 90% of Publix shoppers will have access to Publix apps on a smart device.
The goal of this research document is to offer a technology road map for the consumer facing technology segment with little disruption to the current store operations and without investing millions in unproven in store services and products.
Publix is the top traditional supermarket brand in Florida as wells as in many states in the South. It's customers are extremely satisfied with all aspects of the buying experience. The business model is successful and strong and store operations, employees and customers are best in class.
Publix is not a price leader but has supplemented price challenges with a unique promotional strategy of BOGO and a strong Publix product brand. The supermarket warehouses (Costco, Walmart, Target) are general perceived as price leaders as well as some smaller chains focused on low price.
Publix employees are second to none is this grocery sector. A customer engagement program focused on publix consumer facing technology has many similar characteristics of the current employees engaging customers about products and services. Publix customers are mostly unaware of the many tools available to them with Publix apps and a huge opportunity exists to increase customers adoption rate. A Publix customer actively utilizing the suite of features of the Publix app is more likely to be a brand advocate and committed to Publix long term. Technology savvy employees will provide more value to the in store shopper as well as position Publix employees as the Smart technology service folks.
Many experts believe that Amazon and Walmart will be major disruptors in the future of the traditional supermarket space. Technology driven businesses will reinvent the in store shopping experience in the same way department stores and traditional retailers have been effected. Meeting future consumers in store shopping expectations will be a major initiative for traditional supermarkets without the investment resources of the national chains.