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Why Grocers Can Use a Marketing Measurement Facelift

Industry-wide changes are making growth in the grocery sector more difficult. From price wars and aggressive new competition to increasingly demanding omnichannel consumers, grocers have many new challenges to master. For many, this means adjusting the way they engage with consumers to ensure that they’re attracting new customers while making sure their best customers keep coming back for more.

Grocers Must Determine Millennial Employees' Motivations

Sure, much has been made of Millennials – and, right behind them, the emerging Gen Z cohort – but what does their presence in the workplace mean for the retailers who’ll be hiring from their ranks in ever-growing numbers? Margi Prueitt, executive director of the Produce Marketing Association’s Center for Growing Talent, in Newark, Del., puts the case succinctly: “By 2025, Millennials will make up 75 percent of the U.S. workforce, and unlike Boomers, they work to live, not live to work. Most companies’ HR strategies are designed for Boomers, not Millennials.”

How Grocery Retailers Can Reinvent Their Loyalty Programs

Most loyalty programs within grocery follow a standard formula. It starts with getting physical cards in the hands of customers. Customers then scan their cards every time they check out, because they will qualify for the lower shelf-sticker price on items they buy, and maybe there are special coupons that customer can apply to their purchases as well. All discounts and coupons are typically funded by the brands the customer is selling. The grocer sees such a program as helping customers save money, and if customers can save money, they’ll be more loyal to the chain. There are two notable exceptions to this herd mentality, however. First is Publix Super Markets, a major Southeastern chain, and second is Whole Foods Market, a national upscale chain now under Amazon’s control. Both have proved that loyalty goes way beyond a card-based program for discounts and coupons.

As cashless stores grow, so does the backlash

Hembert Figueroa just wanted a taco. So he was surprised to learn the dollar bills in his pocket were no good at Dos Toros Taqueria in Manhattan, one of a small but growing number of establishments across the U.S. where customers can only pay by card or smartphone. Cash-free stores are generating a backlash among some activists and liberal-leaning policymakers who say the practice discriminates against people like Figueroa, who either lack bank accounts or rely on cash for many transactions. Figueroa, an ironworker, had to stand to the side, holding his taco, until a sympathetic cashier helped him find another customer willing to pay for his meal with a card in exchange for cash.

Multicultural consumers changing grocery shopping

Over the next several decades, the U.S. grocery retail experience will increasingly be shaped by multicultural consumers, based on population growth and current shopping behaviors, new research from CPG sales and marketing firm Acosta finds. Net U.S. population growth is estimated at 98 million from 2014 to 2060, with the Hispanic population projected to rise by 64 million in that time, according to Acosta’s first “Multicultural The Why? Behind The Buy” study, released this week. Growth is forecast at 22 million for the Asian-American population and 18 million apiece for the African-American and multi-racial segments, while the Caucasian/Non-Hispanic population is expected to decline by 16 million.
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