WHY IT MATTERS: Digital Transformation
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WHY IT MATTERS: Digital Transformation
Going digital in your business? I select the best posts and highlight the reasons why it matters. Like it? Click "recommend" + register to get the digest in your inbox: http://fmcs.digital/newsletter-signup/
Curated by Farid Mheir
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Online grocery reaches 5.5% of total sales

Online grocery reaches 5.5% of total sales | WHY IT MATTERS: Digital Transformation | Scoop.it

Online grocery spending continues to grow at a rapid pace, now making up 5.5% of total grocery spending in the U.S., according to a new study from advisory firm Brick Meets Click. Nearly 30% of U.S. households buy groceries online, and most of the near-term growth in online grocery spending will continue to come from this group of active online grocery shoppers.
Over the past year, online grocery shoppers increased their weekly online spending from 28% to 46% of their total grocery spend, the firm found. Their average order size increased from $62 in 2017 to $69 in 2018.
The report says that while grocers are well-positioned to meet the growing demands of online grocery shopping, Amazon, which has 77% household penetration, will continue to challenge other retailers when it comes to capturing online grocery spending – especially as it leverages iPrime membership benefits through Whole Foods.

Farid Mheir's insight:

WHY IT MATTERS: online grocery retail is the last industry to digitize and these figures seems to indicate that it is entering the world of "Real" business opportunity - after 25 years of hype!

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Robomart is the latest startup to try and unseat the local convenience store

Robomart is the latest startup to try and unseat the local convenience store | WHY IT MATTERS: Digital Transformation | Scoop.it

Now there’s Robomart, which wants to bring the groceries, baked goods and prepared foods of the supermarket aisle to your doorstep with a white-labeled service for wholesalers and big box retailers.

Farid Mheir's insight:

WHY IT MATTERS: retailers beware. Or maybe not. I've seen trucks come to parking lots of warehouses where I worked summer jobs for years - they also cover garage and other locations where there are workers but no time or no convenience store close by. This robomart may replace those and expand to convenience store after... 

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tinahold's comment, December 10, 8:42 AM
Cool!
Justin Lahullier's curator insight, December 11, 7:53 AM
Disruption is right around the corner for traditional business models!
Control de presencia's curator insight, December 12, 1:32 PM
Good
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Artificial intelligence for High Frequency Retail - Pricing, Inventory and Margins Optimization #AI #Retail #Grocery

Artificial intelligence for High Frequency Retail - Pricing, Inventory and Margins Optimization #AI #Retail #Grocery | WHY IT MATTERS: Digital Transformation | Scoop.it

Daisy Intelligence is one such artificial intelligence vendor. The Toronto-based company focuses on retail merchandise planning: promotion, pricing and demand forecasting optimization. We spoke with Gary Saarenvirta, CEO of Daisy Intelligence with the intention of finding answers to the following questions:
Why might grocery vendors or supermarkets need AI?
How can retailers leverage AI for optimizing merchandising decision making?

Farid Mheir's insight:

WHY IT MATTERS: the article presents possible use cases for AI in grocery Big Data analysis. 

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Obinna Odenigbo's curator insight, October 30, 3:55 AM
AI could be very useful in the retail industry. 
 
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Forget autonomous cars, the future is made of autonomous carts that follow you in the supermarket, tracking your path and capturing all kinds of data - 7Fresh JD.com #AI #China

Forget autonomous cars, the future is made of autonomous carts that follow you in the supermarket, tracking your path and capturing all kinds of data - 7Fresh JD.com #AI #China | WHY IT MATTERS: Digital Transformation | Scoop.it

The future of food retail is to be found in China. Following Alibaba, major competitor JD.com has also opened its technologically advanced supermarket: 7Fresh uses eCommerce technology and aims to open 1,000 stores.

Farid Mheir's insight:

WHY IT MATTERS: expect to see more robots in supermarkets in the near future - especially if you are in China 7fresh new high-tech supermarket. See a short description of the store here.

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How Amazon Plans To Use Whole Foods to Dominate the Retail Industry #amazon #grocery

How Amazon Plans To Use Whole Foods to Dominate the Retail Industry #amazon #grocery | WHY IT MATTERS: Digital Transformation | Scoop.it

But with the $13.7 billion acquisition, Amazon had bought itself a real shot at remaking the $800 billion U.S. grocery sector—the last frontier of e-commerce and a massive one at that. Some 20% of retail spending goes toward food, but only 2% of those sales take place on the Internet. “Grocery is the Wild West for online,” says Carrie Bienkowski, the chief marketing officer of online grocer Peapod. “The size of the prize is huge, and it’s growing.”

Farid Mheir's insight:

WHY IT MATTERS: the article is a great review of the reasons why Amazon acquisition of Whole Foods is essential and why grocery eCommerce is the final frontier for the online retailer. Very good recap fo the state of eCommerce today, and its remaining challenges and opportunities.

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The biggest challenge in #eCommerce today is delivery cost and timing: Amazon is in a great position to solve this one as are grocery retailers via @statista

The biggest challenge in #eCommerce today is delivery cost and timing: Amazon is in a great position to solve this one as are grocery retailers via @statista | WHY IT MATTERS: Digital Transformation | Scoop.it

Amazon spent $21.7 billion on shipping in 2017.

Farid Mheir's insight:

WHY IT MATTERS: Amazon spends 14.2% of its net sales to fulfill orders and 12.2% to deliver them to consumers. Thus a quarter of the costs of products sold is allocated to logistical costs and this is the biggest hurdle to eCommerce wide adoption. Amazon and other pure plays have a number of key advantages over established brick-n-mortar retailers (no retail store costs, no store employees, etc.) but they have to battle with order preparation and delivery which traditional retailers delegate to their customers as they push their carts in the store aisle. In that context, recent announcement of Sobeys to leverage Ocado's automated warehouse technology or recent Amazon announcement to create a parcel delivery solution that competes with FedEx and UPS makes sense. Any retailer thinking of scaling its eCommerce operation should thus make sure that its business model is viable regarding fulfillment and shipping - all other elements of eCommerce are not an issue.

- Amazon SWA service: http://fmcs.digital/blog/amazon-package-delivery-service-to-compete-with-fedex-and-ups-swa-ecommerce-disruption-retailapocalypse/ 

- Sobeys Ocado partnership: http://fmcs.digital/blog/u-k-s-ocado-taps-into-canadas-online-grocery-market-with-sobeys-tie-up-is-canada-mature-enough-to-have-automated-grocery-fulfillment-centers-ecommerce-robots/ 

- Ocado's technology: http://fmcs.digital/blog/video-shows-ocado-warehouse-technology-that-sobeys-has-acquired-to-prepare-grocery-orders-is-based-on-an-army-of-small-robots-working-on-3d-hive/ 

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Video shows Ocado warehouse technology that Sobeys has acquired to prepare #grocery orders is based on an army of small #robots working on 3D hive

Video shows Ocado warehouse technology that Sobeys has acquired to prepare #grocery orders is based on an army of small #robots working on 3D hive | WHY IT MATTERS: Digital Transformation | Scoop.it
1.7 million items a day across its four fulfilment centres
Farid Mheir's insight:

WHY IT MATTERS: On the heals of recent technology deals between Ocado and Carrefour in France and Sobeys in Canada, this paper and others explain how the technology works.

HUMAN-LESS WAREHOUSE

The technology is akin to a huge vending machine, where products are stored in compartments that robots can access when required. More important is that this technology can apply to any product you can buy online, not only grocery. In fact, figuring grocery item picking is probably the most difficult product category - with 3 temperature items (room, cold, frozen) and lots of small and delicate products (think tomatoes and meat). This will help reduce the cost and errors of web order fulfilment, and potentially speed delivery to make 1hr delays possible. When coupled with robot manipulation and self-driving delivery vans, the days of human-free order preparation and delivery is fast approaching.

RETAIL ARMAGGEDON

This will revolutionize the way we think of retail and distribution by making the store useless. The value chain will become produce-warehouse-home.

 

https://www.theengineer.co.uk/grocery-4-0-ocado-reshapes-retail-grocery-with-robotics-and-automation/ 

https://www.youtube.com/watch?v=iogFXDWqDak 

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Annie Mey's curator insight, February 5, 1:16 AM
Graphics Design's curator insight, February 5, 1:41 AM

In the event that you are good to go, custom vinyl banner design pulling in new clients could expand your pay. Flags are utilized to pull in the eye of potential customers like nothing else. Indeed, they are a basic device, have been previously and will keep on later on.

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How #instacart use #DeepLearning to sort #grocery shopping lists & improve picker productivity

How #instacart use #DeepLearning to sort #grocery shopping lists & improve picker productivity | WHY IT MATTERS: Digital Transformation | Scoop.it

Instacart is saving minutes per delivery by sorting shopping lists using deep learning. Emojis help to define the problem and outline both a simple and a more complex deep learning architecture.

Farid Mheir's insight:

WHY IT MATTERS

Grocery shopping is often tedious, as most grocery stores have a slightly different layout. Instacart sends human shoppers to pick orders placed online on their website. Mapping every single one of their thousands of stores is not an option. Instead, they have trained a neural networks on millions of orders to predict the best sort order for their shopping lists. And in the meantime save precious minutes in the order picking process.

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Hypnotic video shows thousands of autonomous crates flying through Ocado's robo-factory #grocery #robots

Hypnotic video shows thousands of autonomous crates flying through Ocado's robo-factory #grocery #robots | WHY IT MATTERS: Digital Transformation | Scoop.it
The 90,000-square-metre warehouse is the starting point for 190,000 customer deliveries every week
Farid Mheir's insight:

WHY THIS IS IMPORTANT

This is one of the ways eCommerce will evolve in the near future: robotization. Orders are prepared automatically, without humans touching them. Even for grocery. Especially for grocery. Because it is a high volume, low margin operation, grocery mandates automated preparation. Of course, this level of investment can only be afforded at very high volume, which is the case in the UK where Ocado's warehouses like this can deliver 190,000 orders every week. No other country has this level of grocery eCommerce but when they do (think Amazon Fresh in the US), robotic warehouses like this will become mandatory to stay in business.

The last missing link will remain, of course, the last mile: delivery. There, self driving cars and drones may offer a solution.

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Grocery Store Of The Future: 65 Startups Reimagining Shelf Stocking, Product Promotion, Shopper Tracking, And More

Grocery Store Of The Future: 65 Startups Reimagining Shelf Stocking, Product Promotion, Shopper Tracking, And More | WHY IT MATTERS: Digital Transformation | Scoop.it
The startups in this infographic have raised nearly $1.5B to optimize grocery store operations with AI, virtual reality and more.
Farid Mheir's insight:

WHY THIS IS IMPORTANT

Grocery is the last frontier for digital disruption, everyone knows (huge market but late adopter of digital, especially eCommerce see http://sco.lt/8ai7W5 http://sco.lt/6q1Ijx http://sco.lt/8Y94vh ).

But no one knows when exactly they'll get disrupted. Many are betting on eCommerce but from the looks of this report, we may see a lot of changes in our weekly trip to the supermarket, from shelf monitoring to augmented reality.

Then again, grocers are pre-historic in their use of technology because of low margins and a very repetitive shopping experience. We mostly always buy the same products and are looking at our store "experience" to be fast with low prices, not so much fun and experiential (see Amazon GO http://sco.lt/8MTY8X where there is no cash register to slow you down still needs to be cheap http://sco.lt/80HuqX).

So my bets are on the startups that enable faster grocery shopping at a low cost- all others I expect will have a hard time (sorry AR and VR startups...)!

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StartupVideoStash's curator insight, May 3, 2017 6:50 AM
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10 innovations that could disrupt grocery in 2017

10 innovations that could disrupt grocery in 2017 | WHY IT MATTERS: Digital Transformation | Scoop.it

The Internet of Things, artificial intelligence, droid delivery systems, mobile wallets and in-store gardens should be on every grocer’s radar in the year ahead.

Farid Mheir's insight:

WHY THIS IS IMPORTANT

WE always think of grocery as non technical and very hands-on, touchy-feely. This is becoming less and less so, a testament of the profound impact that digital technologies are having in our society at large.

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How technology is elevating the in-store experience | Canadian Grocer

How technology is elevating the in-store experience | Canadian Grocer | WHY IT MATTERS: Digital Transformation | Scoop.it
Selling groceries is an increasingly competitive business. What are retailers doing to stay in the game?
Farid Mheir's insight:

WHY THIS IS IMPORTANT

The retail stores will invariably change and this article explores some of the ways that this may happen: drive-thru stores, movement detecting sensors, digital shelves, social media interactions with stores to select products, scan-and-go or even better, grab-and-go without lines or cash registers. What will the store look like in the future?

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bert juriyam's curator insight, April 7, 2017 1:24 AM

Aviqua Wrinkle Complex

Anti Aging Cream Review is a Consumer testimonial which they may be no longer Forced or Paid To Do so, which means they could DO a negative or superb review freely about this product. So, Do Not Buy This Aviqua Anti Aging Cream Product Wian are at it once more – flooding Facebook newsfeed with Ellen Degeneres’ anti-ageing advertisements. The advertisements appear to be featured on people.Com, eonline.Com or ellentv.Com. When you click on at the advertisements, it takes you to completely exceptional web sites selling miracle anti-ageing cream. Some of those so-referred to as miracle wrinkle cream encompass: Hydroderm, Triple Effect Eye Serum, BioGeniste Wrinkle Reducer, Dermal Meds, Bellavei, Miracle Phytoceramides, Belle Complex, Hydradiance ete web sites are unlawfully the usage of Ellen’s name and photograph to peddle unproven products. Ellen Degeneres and Dr. Oz DO NOT endorse these products. In addition, the sites also mention how an ordinary mom use Ellen’s mystery to lessen wrinkles in just 14 days. This is the image the.

 

http://israelbigmarket.com/aviqua-wrinkle-complex-review/

pursuitsdrizzly's comment, April 8, 2017 12:52 AM
Amazing
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6 ecommerce categories that will take off in 2017

6 ecommerce categories that will take off in 2017 | WHY IT MATTERS: Digital Transformation | Scoop.it

Ecommerce continues to make gains among consumers, with more people buying products online than ever before. Indeed, eMarketer recently predicted that worldwide ecommerce sales would total $1.915 trillion in 2016, with $423.34 billion of that coming from North America. And the company forecast double-digit retail ecommerce growth through 2020.

  1. Grocery and fresh foods

  2. Health and wellness

  3. Pet products

  4. Artisanal/handcrafted goods

  5. Sporting goods

  6. Virtual reality

Farid Mheir's insight:

You have to wonder if 2017 will really be the year for online grocery shopping to take off... I've been saying it since 1996, and one year I will be right! ;-)

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Retail 4.0: The future of retail grocery in a digital world

Retail 4.0: The future of retail grocery in a digital world | WHY IT MATTERS: Digital Transformation | Scoop.it

If there’s one thing that always stays the same in retail, it’s change. Since the birth of the first modern supermarket in Memphis, Tennessee in 1916, grocery retail has gone through three transformational eras. The fourth, and arguably most challenging era—the dawn of digital and omni-channel retailing—is just beginning.

Farid Mheir's insight:

A look at the evolution of retail in the grocery industry, this paper provides insights on 7 key trends that impact retailers today.

 

WHY THIS IS IMPORTANT

The paper was written 4 years ago and is as relevant today as it was then. Are grocery retail CEOs listening? I fear not.

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Do You Have a Digital Merchandising Strategy? @Gartner gives 3 essential recommendations

Do You Have a Digital Merchandising Strategy? @Gartner gives 3 essential recommendations | WHY IT MATTERS: Digital Transformation | Scoop.it
How Kimberly-Clark and Rubbermaid improve their digital merchandising with detailed product information across many digital touchpoints.
Farid Mheir's insight:

Gartner research provides 3 recommendations of digital merchandising.

 

WHY THIS IS IMPORTANT

Merchandising is the least considered element of the digital eCommerce pillars (others are strategy, marketing, selling, fulfillment and support). This paper reminds us that eCommerce relies on detailed, accurate, and timely information about products because it is what consumers rely on mostly when making buying decisions. It is thus important to include merchandising activities as part of a balanced digital transformation roadmap.

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This startup wants to Kill off the center of the supermarket

This startup wants to Kill off the center of the supermarket | WHY IT MATTERS: Digital Transformation | Scoop.it
There’s no shortage of startups vying for share of stomach in the food delivery space. But while most of the competition focuses on delivering fresh goods, Thrive sells only non-perishables. Those products that makes up the center of the grocery store that go in the cupboard or medicine cabinet make up about half of a typical grocery bill, Green notes.

“It’s where no one else wants to play,” Green says. “Fresh food is a blood bath right now. We said, let’s look at the part of the grocery that really shouldn’t be in the grocery store.”
Farid Mheir's insight:

Thrive is a new online pure play eCommerce provider that uses Costco approach - small catalogue of products with lowest possible price and a yearly membership - to attack the supermarket's center of store products. All these items that sit on shelved in the grocery store. 

 

Not convinced they have a business model until they get very low cost local delivery as I believe UPS delivery of a bag of flour and olive oil may not be viable. However, trucks running weekly delivery routes to customers along a pre-defined schedule may stand a chance of making money - but that requires scale that Thrive does not yet have, even at 100M$ in volume.

 

But keep watching them, you may be surprised...

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Marc Wachtfogel, Ph.D.'s curator insight, March 14, 2016 7:05 PM

Thrive is a new online pure play eCommerce provider that uses Costco approach - small catalogue of products with lowest possible price and a yearly membership - to attack the supermarket's center of store products. All these items that sit on shelved in the grocery store. 

 

Not convinced they have a business model until they get very low cost local delivery as I believe UPS delivery of a bag of flour and olive oil may not be viable. However, trucks running weekly delivery routes to customers along a pre-defined schedule may stand a chance of making money - but that requires scale that Thrive does not yet have, even at 100M$ in volume.

 

But keep watching them, you may be surprised...

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How E-Commerce Is Finally Disrupting The $600 Billion-A-Year Grocery Industry

How E-Commerce Is Finally Disrupting The $600 Billion-A-Year Grocery Industry | WHY IT MATTERS: Digital Transformation | Scoop.it
Around 25% of millennials said they would pay a premium for same-day delivery.
Farid Mheir's insight:

Grocery eCommerce is small but may be in line to disrupt a huge industry?

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Food Tech Media Startup Funding, M&A and Partnerships: January 2015 | Food + Tech Connect

Food Tech Media Startup Funding, M&A and Partnerships: January 2015 | Food + Tech Connect | WHY IT MATTERS: Digital Transformation | Scoop.it
The new year kicked off with over $525 million pouring into the food tech and media sector through four acquisitions and twelve capital raises
Farid Mheir's insight:

Innovation landscape in the "traditional, slow paced" food industry may be about to change... no?

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Why Amazon Prime Could Soon Cost You Next to Nothing- More signs that Amazon is "flipping" the shopping model

Why Amazon Prime Could Soon Cost You Next to Nothing- More signs that Amazon is "flipping" the shopping model | WHY IT MATTERS: Digital Transformation | Scoop.it
A new report says Amazon makes so much money off Prime customers that the company could drop the annual fee by dozens of dollars and still come out ahead.


To put that figure in context: Amazon’s average operating income last year per each of its 182 million total customers came to less than $10. In other words, every Prime member is about eight times as valuable to Amazon as a non-Prime member. Put yet another way: More than one-third of Amazon’s profits before interest and taxes came from fewer than four percent of the people who buy stuff on Amazon.

Farid Mheir's insight:

This story brings forward an interesting aspect of Amazon digital transformation of shopping. Amazon goes beyond the online catalog shopping and into a membership model that moves one-time price sensitive shoppers into everyday ones where margins are much higher.


Doing so, Amazon increases volumes to bring economies of scale that make them even more competitive with established brick and mortar retailers, which are hard pressed to show the same profitability because they must have *both* a competitive supply chain *and* physical stores. Wow.

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Explaining the rise of curated shopping - can it "flip" the shopping model?

Another significant shortcoming for online retailers is that if a customer is unhappy with their choice, they rarely come back. For many years, large marketplaces such as Amazon and iTunes have addressed this issue with their use of customer reviews. However, there is now a growing trend that addresses some of the above and is a bit more convenient for shoppers: "curated shopping" lets retailers avoid some of the pitfalls, while improving the online shopping experience for their customers. Here’s a brief overview: 

  • Smart (and social) filters
  • Personal shoppers with a difference
  • The community advises
  • Personalised shopping magazines
Farid Mheir's insight:

Not sure that I agree that the curated shopping approaches are right but they do raise an interesting question: can the shopping model be "flipped" using digital means?


The current online shopping model is pretty much the same as the paper-based catalog or in-store shopping experience of the old days: browse a catalog, add items to a cart and then pay. The digitized experience can be more efficient (with searching, reviews, additional information, live help, etc.) but optimized does not mean transformed.


Can curated shopping transform the experience by having you pay first (for a curator's help), then receive products and return what you don't need or want? May not apply for apparel but maybe that grocery shopping would benefit from that flipped approach? Have an expert (diet guru, coach, famous chef) prepare recipes and a meal plan and automatically send you the appropriate items, along with the other things you need to run a house (cleaners, pet food, etc.).


What do you think?

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Peapod Attacks FreshDirect in Manhattan With Low Prices: Retail

Peapod Attacks FreshDirect in Manhattan With Low Prices: Retail | WHY IT MATTERS: Digital Transformation | Scoop.it
FreshDirect’s orange-and-green delivery trucks have ruled Manhattan’s double-parked streets for a decade, catering to New Yorkers too harried to schlep to the grocery store.

The growth will help Ahold reach its goal of tripling online sales to 1.5 billion euros ($2 billion) by 2016.

FreshDirect ... expects shoppers will remain loyal to the pricey fresh foods and ready meals that helped push sales to about $400 million last year.

Farid Mheir's insight:

Looks like NYC will be a key market for online grocers to compete. When will Amazon and Walmart move their "fresh" service from the west coast to the east coast?

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Curated by Farid Mheir
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