According to a study by fresh grocery platform Invafresh, 37% of grocers believe that technology can help them enhance the customer experience.
The study, “2022 Grocery Innovation Study,” surveyed more than 100 grocery decision-makers on how technology is impacting their businesses. According to the study, 64% of grocers believe that digital-first grocers such as Amazon Fresh do pose a threat to their business. However, respondents said their biggest challenges are those brought about by COVID-19; specifically, 58% of grocers surveyed said inflation was one of the biggest threats to their business, followed by supply chain disruptions (48%), and labor costs and availability (43%). Tim Spencer, the president and CEO of Toronto-based Invafresh, said in the report “(Grocers) are compelled to choose technology to address these issues and are increasingly aware of its benefits in reducing costs, optimizing processes, and in improving both product variety and their customers’ in-store experience.”
When it came to technology, Invafresh also found 48% of respondents cited overall cost reduction measures and 43% said a rising preference for fresh food and maintaining its quality were the main reasons for automating grocery store operations. Other reasons for automation included increasing margins (28%) and reducing food waste (27%), both were seen as the biggest challenges that technology can solve for the grocery industry.