Friday, November 22, 2024

Grocers View AI as the Key to Reaching their Sustainability Goals, but Less than Half Regard their Current Use of Technology as Effective

Incisiva next-generation industry insights firm that helps retailers and brands navigate digital disruption, and Wynshop, the leading provider of digital commerce and fulfillment solutions for local store-based retailers, revealed the findings from the Grocery Doppio report Sustainability in Grocery: Progress Through Technology. Based on a survey of 841 shoppers and 173 senior grocery executives, the report reveals a high degree of interest in sustainability on both sides of the cash register, as well as a belief that technology plays a critical role in helping to achieve sustainable grocery goals:

  • 73% of shoppers say that they prefer to buy from grocers who have clear sustainability practices.
  • 78% of grocers believe that sustainable practices will help them differentiate from the competition.
  • 83% of grocers rate technology as vital to sustainability, while 87% believe AI can help meet sustainability goals.

However, only 41% of grocers say that they are currently leveraging technology effectively to improve sustainability, citing budget limitations, limited expertise, and lack of strategic direction as the top three factors holding them back.

More key findings from “Sustainability in Grocery: Progress Through Technology” report include:

  • Shoppers demand sustainability, but expect grocers to bear the cost
    • Shoppers seek sustainable practices in transparency (86%), product selection (79%), and packaging (63%)
    • Shoppers regard produce (83%), dairy and eggs (81%), and meat (74%) as key areas of sustainability impact
    • Only 13% of shoppers are willing to pay a premium for sustainability, however
  • Grocers see sustainability as a path to connect with Gen Z and reduce operating expenses
    • Grocers feel that sustainable practices will attract more Gen Z shoppers (83%) and store associates (71%)
    • 54% of grocers believe that sustainable practices will reduce their operating expenses in the future, through use cases like inventory waste reduction, transportation optimization, and reduction of energy usage.

The report also includes an analysis of 21 sustainability use cases where AI can make an impact, from demand forecasting and ethical sourcing to cold chain monitoring and packaging reduction.

Also Read : Decathlon Teams up with Centric Software to Boost Digital Transformation

“From the perspective of both consumer demand and emerging regulatory compliance, grocers are motivated to improve their sustainability practices,” said Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio. “However, they are grappling with ambiguous standards, an unresolved knowledge gap, and an unclear path to ROI, amidst challenging economic conditions.”

“Grocers are in agreement that AI and other technologies are critical to meeting the sustainability challenge and to reducing operating expenses,” added Charlie Kaplan, Chief Revenue Officer at Wynshop. “But the industry still needs more awareness of specialized technology solutions for many use cases, and a unified strategy to help them meet sustainable goals profitably.”

SOURCE : PRNewswire

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