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Traditional t​​​o modern

In different parts of the world, many traditional grocery retailers are seeing their sales and margins fall and this is just the tip of the iceberg. We may even witness that half of traditional grocery retailers may disappear. The global retailer’s grocery industry is estimated to be $5.7 trillion. For grocers in developed and developing markets, both growth and profitability have been on a downward trajectory due to higher costs, falling productivity, and race-to-the-bottom pricing. One result: a massive decline in publicly listed grocers’ economic value. According to the McKinsey report, if traditional grocery retailers do not respond to the new disruption they will lose a substantial amount of their revenue to online and non-grocery channels. Three major forces have attributed to the disruption of the grocery industry, consumers’ changing habits and preferences, intensifying competition, and new technologies. Consumers today demand 24/7, anywhere buying experience at low prices. Millennial, which now constitutes the largest global demographic group, have especially high expectations. They need deals and discounts. They are more open to new products and experiences and they are comfortable with technology. The problem of traditional grocery retailers, they have to meet all expectations while keeping prices law. Adoption of technology and starting a digital transformation journey now will help traditional grocery retailers to overcome challenges.” The most successful grocers have embraced technology as the primary driver of commercial effectiveness and cost reduction across “says McKinsey


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