Corona provides a digitalization boost in food retailing
The coronavirus pandemic has presented the food retail sector with enormous challenges - and at the same time accelerated the path to the digital future. One in three German supermarkets and discounters is now pursuing a comprehensive digital strategy. In comparison: last year, the figure was just 14%. These are the findings of the "Supermarket of the Future 2020" study.
For the study, Responsive Acoustics (ReAct), a company specializing in digital store management, conducted an expert survey among owners, managing directors and store managers from the German food retail sector in June.
Hoarding, social distancing and hygiene measures have led to both a rethink and a digitalization push in the German food retail sector. According to their own assessment, 32% are already pursuing a comprehensive digital strategy, while a further 48% are already implementing individual digital projects. In the previous year's study, only 14% had a genuine digital strategy, with just under half relying on individual digital projects.
"Many retailers were surprised by the rush of customers in March, were unable to fulfill all requests and also had problems with their supply chains. As a result, there was a lot of improvisation during the lockdown. The key to a more efficient organization and a stronger customer focus lies in digital store management - and it is precisely this potential that many food retail entrepreneurs now want to exploit," says ReAct founder Wilbert Hirsch in a press release.
Holistic digitalization: from merchandise management to the shopping experience
Digitalization affects practically every area of retail. The study participants named merchandise management (67%), shopping experience/better service (64%) and employee management (57%) as the three most important digital topics at present. "It is striking that the scepticism in the retail sector has given way and digitalization is now viewed more positively," observed Hirsch. "86% of retailers believe that digitalization will have a positive impact on the industry as a whole over the next three years. In 2019, only 72 percent shared this view."
Skepticism is also decreasing among employees. Last year, 60% of respondents cited the fears of the workforce as the biggest challenge for digitalization in food retail. Against the backdrop of the current positive digital experiences, this figure has shrunk to just 46%. On the other hand, no progress was made with regard to the continuing lack of technical requirements in many supermarkets and the continuing lack of IT knowledge among managers and employees.
"The coronavirus lockdown was certainly an exceptional situation. But during this time, the limits of traditional market management were mercilessly exposed, while the benefits of digitalization paid off for customers and employees alike," summarizes ReAct founder Hirsch.
