New York, New York (NetworkNewsWire) – Retail grocery listings
are still reeling from Amazon’s (NASDAQ: AMZN) plans to take over
Whole Foods (NASDAQ: WFM), but let’s face it, with grocers already
running paper-thin profit margins, it is the recently announced
U.S. expansion plans for German hyper-efficient supermarkets Aldi
and Lidl that had the grocery retailers already on edge. After all,
online shopping isn’t new, with WalMart’s (NYSE: WMT) Jet, Kroger’s
(NYSE: KR) HomeShop, and Costco’s (NASDAQ: COST) Shipt being just
some of the current home grocery delivery options.
Unlike most industries, where online shopping is the norm,
grocery shopping has been slow to change. Thus, despite the rapid
growth rate, home delivery accounts for slightly more than 1% of
the industry’s more than $700 billion in annual sales. It makes
sense, because, whereas most consumers trust the pizza shop to
deliver a consistent product, most shoppers don’t trust their own
family members to pick out their produce.
The industry’s challenge is to implement new technologies and
models to improve efficiencies and the broader shopping experience,
as well as improve the company’s street cred. For example, to lower
costs and reduce its carbon footprint, Wal-Mart began experimenting
with solar energy panels and Bloom Energy’s "Bloom boxes," which
efficiently incorporate a cleaner electrochemical process to
convert natural gas into electricity.
With that in mind, we’re going to look at five must-have
technologies/trends that grocery retailers should incorporate.
Refrigerant
Grocers use more energy than other retailers because of their
refrigeration demands, which remains one of their largest fixed
costs. Alltemp (OTCB: LTMP) recently created a new refrigerant that
maximizes performance via saving energy and increasing equipment
life while protecting the environment; after testing in several
Fortune 500 facilities, the refrigerant is now ready for
market.
Refrigeration, air conditioning, and heat pumps account for
about 10% of the global carbon emissions and energy consumption.
Case studies confirm that Alltemp’s refrigerant significantly
reduced the AMP draw to more than 40% from 10%. Alltemp’s test case
at a McDonald's restaurant location recorded a 23.7% kWh in
refrigeration savings, while tests at 7Eleven, which more closely
resembles the retail grocery model, reduced the refrigeration use
by 38.16%.
Additionally, government regulations and rising R-22 prices were
going to force millions of homeowners and business owners to
replace their R-22-based air conditioners, creating a massive
landfill nightmare and creating the financial burden of replacing
decades’ worth of existing units. Plus, the energy savings are
enough for some users to qualify for Energy Tax Credits.
Lighting
In many markets, daytime lighting costs can nearly be eliminated
by incorporating solar lighting tubes, while LED lighting can go a
long way to reducing lighting costs and improving the shopping
experience.
Community hub
The general store at one point in time was the community hub of
every American town; today’s grocers should embrace that important
role and actively reinsert themselves as the historical community
hub. Opportunities to do so range from offering cooking and
nutrition classes to helping landlords attract complementary
tenants so busy shoppers can order their nonperishable online,
attend a workout class or other activity, and afterward spend a few
minutes picking out their fruits and veggies.
Honest packaging
Grab a box of Cascadian Farms granola and I challenge you to
squeeze it, wherever you want, without pressing against the
contents. Unlike the traditional cereal offerings, which are in
huge packages, but only half full, most consumers want quality
ingredients in sustainable packaging.
Bio friendly packaging
Speaking of sustainable footprint, major improvements in
packaging materials will be the next wave of consumer interest.
Companies such as Coca-Cola have been introducing bioplastics into
their production process for a few years, with the ultimate goal
being a 100% bioplastic. Industry rival PepsiCo has also
experimented with edible packaging options. The “plant” bottle
should be a huge improvement by reduce its environmental impact
and, hopefully, reduce the negative health effects of BPAs and
other toxins related to common modern packaging.
Instead of food inflation through loss of quality, it’s time
that the grocers get in line with today’s trends.
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