Welcome to the first edition of our 2021 Compete magazine. I am sure you, like many others, are glad to get 2020 behind us. Although it was a very good year in the grocery industry, it was quite challenging as well.
As I reflect back on 2020, one of the things I miss most is the relationships we have built over the years. Whether with our members, our vendor partners, or our teammates, “it’s just different!” The WebEx/Zoom/Teams world is just not the same as the face to face relationships that we all have grown up with. The importance of looking someone in the eye, shaking hands and telling stories. Our challenge today is to make sure that we find new ways to keep the relationships strong internally with our teams and externally with our customers. People want to know you are there to help, that you care, and most importantly, that they can trust you.
This edition of Compete will cover many programs, services and solutions that can help you continue to build those relationships. Whenever I have a chance to be in one of our member stores, I always try to look at how the customers in that store are acting. Just by observing, you learn a lot about what they’re thinking, what they’re drawn to and so much more. Many of us have probably done this for years with our customers, but over the past year, many of the habits or gut instincts we’ve relied on have seen some major changes.
COVID-19 has changed our grocery world. That’s why we decided to focus on the mind of the shopper in 2021 in this issue of Compete. In order to service customers, you have to think about what’s going on in their mind, how their habits have changed and how we as grocers can help.
One of the major changes we have seen is less people actually stepping foot in our stores on a regular basis. Most retailers are seeing customer count down but average basket size up. Customers are just not shopping as much or as many stores as they used to.
Additionally, we know that online shopping and digital engagement has taken huge steps forward over the past year. So, when we can’t see the shopper, we have to look at how they behave and react online. What’s in their online basket? Are they buying more? Are they more likely to buy certain products? These are all important questions to ask because customers want an easy experience when they order online and if you haven’t started ecommerce yet, now is the time to start! For those stores that do have online shopping, have you taken a close look at what the customer experience is like? If not, you need to. Many retailers have changed their landing page for their website to be their online shopping platform. You need to tell your story and let them know you can be anywhere they are to solve their needs, online or instore.
As we have also seen over the past year, health has become even more important than it was pre-pandemic. We knew customers were moving to healthier items, healthier ingredients and more clean eating, but now that Americans are even more concerned about their health – it’s important to let your customers know that you provide thousands of items that cater to their healthy needs. Healthy isn’t just what you eat, it’s also hand sanitizer, cleaning items, masks, etc. Don’t assume customers know this, you have to tell them and then make it easy for them to find these items. Make sure to check out articles on seafood, citrus and VMC’s programs in this issue.
And finally, I would be remiss if I didn’t mention how important value is to the 2021 consumer. We’ve seen the job market take many turns and we know that many people are looking to cut back on their expenses where they can. Make sure when your customers think value they think of your store. Value has never been more important in building the customer relationship than it is today. Your customers need to know you are doing everything you can to help stretch that dollar.
One of the easiest ways to do that is to have a robust store brands program. In this issue of Compete, you will see a number of tactics from the AWG store brands team. I urge you to look into these recommendations and to make sure you’re taking advantage of everything you can from store brands. It’s truly one of the best tools you have in your AWG toolbox.
Here’s hoping that 2021 provides you plenty of opportunity to continue to build those relationships and take great care of your customers and your teammates. Your AWG Family is here to help.
Hope to see you soon,
Jeff Pedersen
EVP Sales & Support
