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Why Multicultural Consumers Are Having a Big Impact on U.S. Grocery

As the U.S. multicultural population continues to climb, the preferences of U.S. Hispanic, African-American and Asian-American shoppers consumers will continue to reinvent the grocery shopping experience. That's according to the inaugural “Multicultural The Why? the Behind The Buy” report from CPG industry sales and marketing agency Acosta. “The growing multicultural population will drastically impact the grocery industry, and we have already noticed key differences between shopper groups,” noted John Clevenger, SVP/managing director, Acosta Strategic Advisors. “For example, multicultural shoppers recognize the link between food and their health, and are significantly more likely to buy natural and organic foods even though they are more expensive. Understanding these unique values and preferences is vital for manufacturers and retailers to win with this emerging consumer group.”

How Predictive Analytics Can Benefit Your Store

Predictive analytics is the science of forecasting future trends based on the study of current data, and it has become an integral part of digital marketing in all industries. The retail industry, especially, has embraced this science as a way to get ahead of their growing number of competitors. In the grocery sector, the competition is even more robust, with non-grocery players like Amazon and Instacart swooping in to capture consumers’ food spend.

Survey: Grocery stores need to ‘enter the modern age’

Many consumers think grocery retailers need to do more to modernize the shopping experience, according to new research from cooling technology provider Phononic. Of 1,118 consumers polled for the company’s 2019 Store of the Future study, 51% believe that if grocery stores don’t “enter the modern age,” more people will seek other ways to buy food. Similarly, 41% of respondents said grocery stores don’t leverage technology as well as other retailers, while 40% think grocery stores “haven’t changed in decades” and need to adapt to the modern age. “This should be a wakeup call to the industry,” Phononic's report said.

Cashing In on the Natural Foods Trend

An increasing number of Americans are embracing whole, unprocessed foods, and for good reason. Studies show that about 61 percent of adults’ diets in the United States are comprised of processed foods, even though these foods are proven to contribute to obesity, high blood pressure and other health risks. While quick and processed meals may be convenient, many people are unhappy with the detrimental effects that processed foods have on their health and are making concerted efforts to change their habits. According to the International Food Information Council Foundation’s annual Food and Health Survey, a growing number of 2019 survey respondents reported that they consciously tried to follow a specific diet in the past year, with clean eating and gluten-free or low-carb diets cited as the most popular.

Retailers face delivery disconnect

As food and grocery retailers grapple with unsustainable last-mile delivery models, a rising percentage of consumers seek free shipping for online orders, new research shows. According to the Capgemini Research Institute, retailers are absorbing a sizable chunk of last-mile delivery costs for online grocery orders. The average cost incurred per online order is $10.10, yet the average cost recovered from customers per online order is $8.08, the researcher reported in its “Last-Mile Delivery Challenge” study, released last week. Consumers are only willing to pay an average of $1.40 per online order for delivery.
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