Integration of physical and digital platforms is a must, Symphony RetailAI’s Chatterjee says.
“The critical element here is the ability to have inventory and price visibility across all channels,” he says. “Secondly, retailers need the technology to support pickers or transporters having their own version of a digital app. You see this with Uber, as the drivers have a different interface than what customers can see. That part of the technology for grocers is not enabled in most of the digital experiences today.”
What the Near Future Holds
What can we expect omnichannel to look like in 2019 and beyond?
“In the next two to five years, we’ll see roughly 70 percent of grocery shopping done through mobile or digital channels,” Chatterjee asserts. “Although the percentage of shoppers doing this now is quite small, its growth will be very, very fast. And ultimately, the digital delivery experience will dictate which retailers will win.”
Additionally, subscription services will grow to perhaps half or more of total digital orders, Chatterjee predicts. “Amazon does a lot of this, but others are not realizing the opportunity yet,” he says. “That needs to change.”
InContext Solutions’ Hardy predicts expanded use of head-mounted devices (HMD) for VR beyond Amazon’s recent Prime Day mall kiosk tests. “Next year, HMD are expected to have self-contained processing power, which allows them to be untethered from a PC and sold at lower price points,” he says. “This makes the hardware more affordable and portable for consumers, which should be the tipping point for adoption.”
Cuhaci & Peterson’s Duffy says that in less than two years, both large and limited smaller grocers will have operational digital stores. “Mobile commerce, or m-commerce, is an evolutionary next step for ecommerce. It acts as an accelerant to convenience… [and] convenience equals conversion,” he says. “Fully autonomous and reliable deliveries in all conditions won’t occur any sooner than three to five years.”
Micro-fulfillment, according to Duffy, is “an excellent example of jumping to the next curve. It harnesses enhanced robotic picking through AI-enabled computer vision, machine learning and advanced sensors, reducing human labor. While still in the early stage of development, it holds the promise of a rapid means to transform the image and function of conventional grocery. … Leveraging robotics for an array of stocking, scanning and logistics needs will become more prevalent in the back-of-house and sales area, and will enable the enhanced use of human labor for the sales experience.”