Grocers Predict 10% Digital Growth in 2025
Wynshop, Inc.
Despite an expected surge in online sales, 93% of grocery execs cite profitability as a key challenge.
FT. LAUDERDALE, FL, UNITED STATES, December 3, 2024 /EINPresswire.com/ -- Incisiv, a next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, today released Grocery Doppio’s December 2024 Market Pulse report: “Profitability, Fulfillment, and Personalization.”
The report, based on a November survey of 127 senior grocery executives, reveals grocers’ predictions, worries, and investment strategies for their digital businesses in 2025.
As detailed in the report, profitability remains priority number one for 93% of those surveyed, despite a predicted 9.7% uptick in digital sales revenue. Much of the profitability worry is driven by the high cost of fulfillment, along with increasing consumer demands and outdated technology stacks, unable to support the demands of delivery, personalization, and retail media networks.
Highlights of Grocery Doppio’s 2025 Digital Grocery Outlook include:
Grocers are optimistic about digital growth in 2025:
• 37% of grocers anticipate a significant increase in digital sales in 2025, while 52% expect digital to remain stable. Just 11% expect their digital channels to contract in 2025.
Profitability is grocers’ #1 technology investment challenge for 2025:
• 93% of grocers cite e-commerce profitability as a major concern for 2025, followed closely by 87% who worry about fulfillment efficiency in their digital businesses. Accordingly, 83% of grocers intend to invest in back-end technology in 2025, while 72% will invest in fulfillment technology, and 69% in omnichannel integration.
• Out-of-stock/substitutions (71%) and customer acquisition costs (54%) also occupy grocers’ concerns.
Grocers will also invest in customer experience on the path to 2025 profitability:
• Digital coupons top grocers' priority of investment in customer experience (83%), seen as a way to drive value-conscious customers to increase basket sizes and repeat purchase. Retail media (72%) is also a key CX priority, to help monetize digital platforms.
• 59% of grocers will invest in retail media in 2025, while 53% will bet on AI-powered personalization.
"Shoppers continue to lean into digital grocery as part of their new normal,” said Gaurav Pant, Chief Insights Officer at Incisiv and Grocery Doppio. "This puts pressure on grocers to overcome profitability obstacles like fulfillment efficiency and outdated technology stacks."
“It has never been more important to have a strong digital foundation in grocery," said Charlie Kaplan, Chief Product Officer of Wynshop. "Digital coupons, retail media revenue, and AI personalization can help attract, retain, and serve omnichannel shoppers profitably, but only if the technology underpinnings are in place."
Grocery Doppio’s monthly reports are just one of the many resources available on Grocery Doppio—a free, independent source of grocery insights and data designed to help grocers jumpstart, accelerate, and sustain digital growth. Grocery Doppio combines research-driven grocery content, fact-based observations, and industry expert perspectives to identify improvement opportunities for grocery retailers.
Download Grocery Doppio’s December 2024 Market Pulse report: “Profitability, Fulfillment, and Personalization.”
About Incisiv
Incisiv is a next-generation industry insights firm that helps retailers and brands navigate digital disruption in their industry. Incisiv offers consumer industry executives responsible for digital transformation a trusted platform to share and learn in a non-competitive setting, and the tools necessary to improve digital maturity, impact, and profitability. More information is available at www.incisiv.com.
About Wynshop
Wynshop is an ambitious team of digital innovators helping grocers and other local store-based retailers grow wildly successful online businesses. Wynshop’s easy-to-use digital commerce platform enables efficient in-house picking, reduces fulfillment costs, and uses advanced AI to help retailers personalize the entire digital shopping experience and remain profitable. Learn more at www.wynshop.com.
Laurel Getz
Wynshop Inc
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