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LS Retail | 28 January 2020

6 trends shaping the future of supermarkets and grocery stores

6 trends shaping the future of supermarkets and grocery stores
6 trends shaping the future of supermarkets and grocery stores
9:31

Supermarkets and grocery stores are undergoing a rapid transformation, driven by a combination of technological advances, changing consumer expectations, and the need to remain competitive in a challenging market. As we look toward the future, several key trends are emerging that are reshaping the way we shop for groceries and interact with stores. Here are six of the most important trends that are set to shape the future of the grocery industry.

1. Sustainability and the circular economy

Sustainability has been on the agenda for grocery stores for years, but today the focus is shifting toward more innovative and ambitious approaches. Beyond reducing plastic packaging and encouraging recycling, many retailers are now embracing the concept of the circular economy, where waste is minimized through the continuous reuse of resources.

This approach is gaining momentum in supermarkets that offer refill stations for household products like detergents, cereals, and oils. Instead of relying on single-use packaging, consumers are encouraged to bring their own containers and refill them, reducing waste and their environmental footprint. This trend is especially appealing to eco-conscious shoppers who are looking for ways to live more sustainably. Carrefour, for instance, is a leading example of this shift, offering bulk refill stations across its stores in Europe, allowing shoppers to buy everyday items without unnecessary packaging.

The circular economy model is more than a trend—it is becoming a vital part of grocery shopping as consumers demand greater responsibility from the brands they support.

2. Health and wellness as a core focus

Today’s consumers are more health-conscious than ever before. Whether it's choosing organic, plant-based products or seeking out foods with specific health benefits, shoppers are increasingly focusing on what they eat and how it impacts their well-being. This shift has led to a broader range of health-focused products in grocery stores, from functional foods with added vitamins or probiotics to plant-based alternatives that cater to vegan or flexitarian diets.

Retailers have responded by expanding their health-focused product offerings and creating sections dedicated to wellness. Whole Foods, for example, has curated shelves filled with functional beverages, protein bars, and natural supplements designed to support physical and mental health.

Moreover, as health and wellness become more important to shoppers, product discovery has become crucial. Many consumers look for guidance when navigating new and unfamiliar health products. Retailers can facilitate this through color coding, exciting displays and special areas, as well as clearer labeling and digital tools that recommend products based on a shopper’s previous purchases or health goals. 

In Iceland, supermarket chain Krónan offers customers all they need to make a new healthy recipe every week. The printed recipe, and all the ingredients for the dish, can be picked up in fridges placed everywhere throughout the stores. Other grocers are trying out features such as digital signage that offers extensive product information, including products’ origins and nutritional properties. This trend aligns closely with the increasing desire for transparency in food labeling and the demand for products that support healthy and eco-responsible living.

3. The convenience of self-checkouts and ScanPayGo

Convenience has always been a cornerstone of grocery shopping, and in recent years, the demand for quicker, more efficient shopping experiences has only intensified. Self-Checkout stations, once a novelty, are now a standard feature in many supermarkets, allowing customers to scan and bag their items themselves, reducing wait times at the checkout. But the evolution doesn’t stop there.

Mobile solutions like ScanPayGo are taking convenience to the next level. With ScanPayGo, shoppers can use their smartphones or other mobile devices to scan items as they move through the store, paying directly through the app without ever needing to queue at a checkout. This technology not only speeds up the shopping process but also empowers consumers with more control over their experience.

These tools help retailers optimize labor resources, reduce bottlenecks, and provide a frictionless shopping experience that meets the growing consumer demand for efficiency.

4. Local and hyper-local sourcing

In recent years, global supply chain disruptions have highlighted the importance of sourcing locally. For grocery stores, this has translated into a renewed focus on supporting local farmers and producers, bringing fresher and more sustainable products to their shelves. Consumers, in turn, have shown a strong preference for buying local, both for environmental reasons and to support their local economies.

Supermarkets that focus on hyper-local sourcing are thriving as shoppers seek out regional specialties and seasonal produce. In Germany, Edeka has embraced this model, offering local products that cater specifically to the tastes and preferences of different regions. Similarly, Kroger in the U.S. has partnered with local farms to bring fresh, locally sourced products to its customers, reducing the reliance on long-distance supply chains.

Local sourcing not only supports the environment by cutting down on transportation emissions but also helps retailers differentiate themselves by offering unique, high-quality products that customers can’t find elsewhere.

5. Hybrid shop-and-eat concepts

The line between grocery shopping and dining out is blurring as more supermarkets embrace hybrid shop-and-eat concepts, offering customers the convenience of buying groceries and enjoying a meal in one location. Retailers like Whole Foods and Wegmans have capitalized on this trend, turning their stores into destinations by combining grocery shopping with in-store dining options, from hot food bars to sushi counters.

As retailers seek to enhance the in-store experience, many are expanding into hospitality and event management. Success in these areas requires a strong brand concept, deep customer insights, and a flexible technology platform that can manage everything—from retail operations and food & beverage services to coordinating limited-capacity events and classes—all from a single system. By doing so, retailers can not only expand their offerings but also deliver a cohesive and engaging experience to customers.

To further engage shoppers, supermarkets are incorporating pop-up events, workshops, and classes into their stores. Interactive experiences like cookery classes or tastings increase foot traffic and encourage customers to stay longer. These initiatives also offer opportunities for creative partnerships, as seen when Target teamed up with Chobani to host an in-store yogurt bar, blending two brands’ strengths for a unique customer experience.

Are you planning to host a successful event in store, and aren’t sure where to start? We have some tips on how to do it – and how you can use it to your best advantage.

6. Social commerce and digital community building

As digital and social platforms become more ingrained in daily life, grocery retailers are tapping into the power of social commerce to engage with customers. Social commerce allows consumers to discover, share, and even purchase products directly through social media platforms like Instagram, TikTok, and YouTube.

Retailers are leveraging these platforms to showcase new products, share recipes, and build digital communities that foster deeper connections with their customers. By creating engaging, shareable content, they can drive brand loyalty and increase sales. Walmart, for example, has embraced livestream shopping events where customers can view product demos and make purchases in real time, combining entertainment with eCommerce.

In addition to social commerce, building a digital community around shared values such as sustainability or health is becoming an important strategy for retailers looking to differentiate themselves and build long-term customer loyalty. These communities foster brand engagement and create a sense of belonging, which in turn drives customer retention.

Connecting every touchpoint with unified technology

To stay competitive, grocery retailers need a software platform that brings together all critical operations in one place, from front-end sales to back-office tasks. A unified system can manage everything—point of sale, eCommerce, self-checkouts, mobile apps—seamlessly, eliminating the need for separate systems that can lead to integration issues, errors, and downtime.

With LS Retail software solutions for grocery stores, retailers can streamline processes like inventory management, customer loyalty programs, and sales, ensuring smooth operations and consistent customer experiences across all channels. This integrated approach reduces complexity, improves efficiency, and helps stores respond quickly to the demands of today’s fast-moving retail environment.

 

Need help taking your supermarket business to the next level? Need a system that will support you as you grow and expand into new categories and industry verticals? Contact us: our team of experts is here to help.

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