Grocery stores are no longer just places to shop — they’ve evolved into hybrid hubs, bridging the physical and digital worlds.
Alongside customers browsing the aisles, grocery store employees are busy picking and packing online orders for same-day delivery. This shift is driven by rising consumer demand for convenience, with platforms like Instacart, Uber Eats and DoorDash expanding beyond meal to grocery delivery. The trend is just part of a larger digital transformation sweeping through the retail and commerce landscape, redefining how groceries move from shelf to doorstep.
Today’s customers expect seamless integration between online and offline experiences. While many grocers aspire to achieve a unified commerce strategy, some face challenges in identifying the best path forward.
Unified commerce in the grocery sector focuses on integrating all sales channels — online, in-store, and mobile — into a single, cohesive brand platform. This approach ensures consistent customer experiences, such as real-time inventory visibility, smooth transitions between shopping channels, and centralized data for more informed decision-making. For grocers, unified commerce includes connecting systems for inventory, payments, fulfillment and customer engagement. By doing so, they can align their digital and physical strategies, meeting the rising demand for convenience and transparency.
Online grocery shopping is no longer a niche, according to a recent U.S. consumer survey. It’s mainstream, with 69% of consumers now shopping digitally for groceries, and 47% purchasing 25% to 50% of their groceries online. This behavioral shift underscores the need for grocers to adopt omnichannel capabilities. Meeting customer expectations requires:
- Speed and transparency. 60% of respondents prefer home delivery, highlighting the importance of fast fulfillment and real-time order tracking.
- Seamless integration. A unified experience across physical and digital channels is now essential to remain competitive.
Grocers face the dilemma of relying on third-party platforms like Instacart and DoorDash, or investing in a digital transformation strategy that puts their own websites and apps at the forefront of the customer shopping experience. To stay competitive and minimize the burden on their often-limited digital teams, they can adopt a pragmatic composability approach to create flexible, modular web systems that evolve with their needs. This approach allows for the gradual integration of new technologies without major overhauls on their website.
This strategy can enable:
- Expanded assortments. Seamless integration of third-party vendors or marketplaces, increasing product variety without adding to inventory overhead.
- Optimized fulfillment. Enhanced fulfillment options such as curbside pickup or home delivery.
- Improved customer experience. A more personalized and streamlined shopping journey across digital and physical touchpoints.
In a competitive landscape, retaining customers is crucial, with 68% of consumers prioritizing free shipping, and 53% valuing loyalty awards. Grocers need a unified commerce strategy that integrates their digital platforms with in-store experiences, putting more control over the customer journey in their hands. A digital transformation strategy that includes seamless online and offline touchpoints, paired with loyalty programs, can boost customer retention. Offering personalized rewards, both online and in-store, creates a consistent experience, increasing engagement and fostering long-term loyalty.
Real-time inventory synchronization across digital and physical channels is essential for grocers to maintain accurate stock levels at every touchpoint, reducing the likelihood of stockouts and minimizing customer frustration. According to 45% of consumers, real-time order tracking is a critical feature. This strategy not only enhances operational efficiency, but also meets growing consumer expectations for immediate and reliable updates, particularly important during high-demand periods like holidays. With accurate stock visibility, grocers can ensure that customers receive their orders on time, whether it’s for home delivery or in-store pickup.
As digital grocery shopping becomes more mainstream, grocers must optimize their click-and-collect and home-delivery systems to meet the demand for convenience. Seamless integration between online orders and physical fulfillment ensures efficient operations, helping grocers manage high order volumes while offering fast, reliable services. This integration also enables grocers to offer multiple fulfillment options.
To enhance the customer experience with unified payments and checkout, grocers should focus on integrating payment systems that provide a seamless, consistent experience across all platforms, both online and in-store. Simplifying the checkout process by enabling quick, secure payments, such as digital wallets, mobile payments, loyalty points and contactless options, reduces friction. This is especially crucial, as 69% of consumers consider price their primary factor when choosing an online grocery service. By making the payment process easier, grocers can increase satisfaction, loyalty, and reduce cart abandonment.
The grocery industry is evolving rapidly. Grocers must adopt a unified commerce strategy in order for their artificial intelligence-powered inventory systems and optimized delivery networks to be utilized to their true potential. Grocers who act decisively in this era of choice and convenience — embracing “concierge commerce” — will not only meet today’s demands, but also anticipate tomorrow’s opportunities.
Dani Jurado is executive vice president, North America with VTEX.