Globally, the supermarket and superstore sector has had a profitable pandemic, benefiting both from the fact that grocery stores were exempt from lockdown regulations, as well as from a big surge in online sales. As customers became accustomed to shopping from the safety of their own homes, this trend has continued even as lockdown regulations have been lifted, suggesting a permanent shift in customer behaviour. While this explosion in online shopping does not mean the end of the physical store – as, after the easing of lockdowns we saw many consumers returning to brick-and-mortar stores, either in full or in part – the sharp rise in online shopping has not diminished to pre-pandemic levels.
It is easy to see how this new shift benefits consumers as they are able to shop in-store or online as circumstance allows. However, for retailers, this shift to online is not without its challenges. It is widely believed that few retailers – even a behemoth like Amazon – can make money from selling groceries online. The high costs of delivering bulky food parcels and the challenging task of collecting and processing returns from customers, which costs retailers more than a $1 trillion globally every year, according to online retail platform Shopify, is enough to send some retailers running for the hills, profitable channel or not.
Digital transformation now
What is true is that the digital transformation of shopping is here to stay, leading to changes at store level, as well as supply chain management and production.
As a result, omnichannel is poised to become the new buzzword in retail, joining both physical and digital strategies to form a single customer-focused shopping experience. To successfully implement this new approach, retailers need to invest in upgrading legacy technologies and accelerate their digital transformation. Retailers will need to be agile and proactive in reassessing their business models and the technologies to support this, which is where Magnus Consulting can be of assistance. An established global solutions-driven business that can help retailers bridge the great divide between brick-and-mortar and online strategies will transform your industry to meet the challenges of ever-changing consumer shopping behaviour.
A recent BDO survey of CIOs in the retail industry has highlighted digital transformation as their main driver, post-pandemic, with a key focus on improving customer experience, modernising IT infrastructure and optimising business processes. The long-term hope is that this digital transformation process will unlock operational efficiencies and diversify revenue streams – all good news items, should they succeed. With Magnus as your transformation partner, you can rest assured that your DX will be seamless, secure and add the differentiation in your sector that sets you apart.
Ahead of the curve
It is clear that the nature of retail has changed significantly quicker than many anticipated, mostly driven by the pandemic. It is also clear that those retailers that invest in the digital architecture that underpins this new paradigm will be best placed to take advantage of it. In an omnichannel environment, an integrated and intuitive digital customer experience will help attract and retain customers, while improving operational efficiencies, protect margins and shore up your cyber security. Invite Magnus to join you on your digital transformation journey, and experience what our knowledgeable and agile digital teams can do for you.
For more information, call Sherry on (+27) 11 083 5849, email sherry@magnuscs.co.za or visit www.magnuscs.co.za.
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