Retail and Foodservice 2025: The Future for Customers, Operators and Facilities
|Ed McKiernan | President, Emerson Retail Solutions
Emerson Commercial & Residential Solutions
Food retail and food service environments are quickly evolving. As retail stores and restaurants adapt to changing infrastructure and facility requirements, it is important that operators understand where the market is heading and the impact these changes will have on their operations.
To help operators prepare for the future, Emerson commissioned global research firm Euromonitor International to identify trends that will shape the grocery retail and chained foodservice markets through 2025, and determine what impact these developments will have on retail store and restaurant design and infrastructure.
Euromonitor International is the world’s leading independent provider of strategic market research. With more than 40 years experience, the firm has offices around the world, analysts in over 100 countries and market research on every key trend and driver.
The research firm identified five megatrends that will have the strongest impact on retail and restaurant operations and facilities management over the next eight years:
- Digital Shoppers
- Focus on Convenience
- New Retail Formats
- Experiential Retail
- Omni-Channel Proficiency
These trends were shared at the Emerson E360 Annual Conference and on a global webcast. Over the next few posts, we will also take a closer look at each one of these trends, beginning with the first one.
Trend: Digital Shoppers
Consumers are becoming more connected, and expecting a connected experience when they interact with brands or purchase products. Currently, 3 in 4 U.S. households own a smartphone, and 47 percent of digital purchases in the United States are made through mobile devices. As the wireless infrastructure strengthens, the Internet becomes omnipresent and the prices of devices come down, these numbers will continue to grow.
We are already seeing a shift with many retailers moving toward mobile engagement with consumers within the store to create a better shopping experience and a stronger customer relationship. Also, more retailers in the U.S. are offering mobile order and pay capabilities to simplify transactions. Some retailers are even going beyond mobile and offering conversational commerce, where for instance, a virtual personal assistant such as Amazon’s Alexa can deliver your item within a short period of time.
So, what should retail and foodservice organizations do in terms of facility management and operations to stay ahead of this trend and customer expectations?
- Facilities – Overhaul store layout (parking, checkout, dining area, etc.) to drive traffic and attract new trip types and consumers.
- Supply Chain – Align online and physical inventory and offer real-time tracking of sources and orders to encourage repeat consideration and engage and inform customers.
- e-Commerce – Implement digital order and payment platforms and offer a personalized, seamless experience to lower costs, reduce errors and increase customer satisfaction.
- Human Resources – Make sure you have the training that focuses on the right skillsets and staff appropriately based on the different service models to improve customer experience and create stronger brand loyalty.
- Customer Experience – Train customers for new protocols and offer a streamlined experience to minimize disruptions and serve more customers, faster.
Be sure to join us for our next post, which will take a look at the second megatrend: Focus on Convenience.