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The world’s largest brick-and-mortar merchant has acknowledged it is lagging in the quest to personalize through the use of shopper data. Now, perhaps due to Amazon’s purchase of Whole Foods, which could yield unprecedented in-store and online data models, Walmart is embarking on a “multiyear journey” to get its data in good enough shape to produce relevant personalized experiences.
“From one to 10 in our use of data, I would say we’re probably about a two,” Doug McMillon, president and CEO of Walmart, recently told attendees at its annual investor conference. “We use data to improve in-stock and replenish. We don’t use data to personalize.”
Walmart’s declaration isn’t kicking off the race toward data-enabled personalization, but it ensures it is not a race for amateurs. In addition to Amazon’s ambitious leap into expanded grocery analytics through Whole Foods, Kroger is using its data to reset and refine assortments, store by store, in an initiative called Restock Kroger. Albertsons, meantime, has expanded its work with analytics firm IRI to combine its in-store data with supply-chain data, enabling it to collaborate with vendors in real time.
Such efforts may be overdue. Grocers and food retailers have lost 29% of their market since 1992, according to a November report by market research firm International Data Corp. (IDC) and retail analytics firm Precima. That translates to $310 billion in lost annual revenue.
Shifting Dollars Mean Big Change
Where is the money going? To recreational venues, the workplace, universities and fast-casual restaurants, which are marketing catering services to families, according to the report. Among the findings:
- A quarter of shoppers (growing to 32% within two years) satisfy their grocery needs by shopping multiple stores.
- More than 40% of families shop groceries online at least once a month.
- Perhaps as a result, 79% of supermarket chains said they are changing their assortments and space strategies in the centers of their stores.
- Across age groups, shoppers expressed an interest in personalized prices, promotions and in-store experiences.
Yet most retailers that use advanced data insights, 55%, said they are not where they need to be with their analytical tools.
">It might not be able to put a price on trust, but Walmart is preparing to pay the fare for getting personal, and it could cost the entire food industry billions in shifting sales.
WalmartThe world’s largest brick-and-mortar merchant has acknowledged it is lagging in the quest to personalize through the use of shopper data. Now, perhaps due to Amazon’s purchase of Whole Foods, which could yield unprecedented in-store and online data models, Walmart is embarking on a “multiyear journey” to get its data in good enough shape to produce relevant personalized experiences.
“From one to 10 in our use of data, I would say we’re probably about a two,” Doug McMillon, president and CEO of Walmart, recently told attendees at its annual investor conference. “We use data to improve in-stock and replenish. We don’t use data to personalize.”
Walmart’s declaration isn’t kicking off the race toward data-enabled personalization, but it ensures it is not a race for amateurs. In addition to Amazon’s ambitious leap into expanded grocery analytics through Whole Foods, Kroger is using its data to reset and refine assortments, store by store, in an initiative called Restock Kroger. Albertsons, meantime, has expanded its work with analytics firm IRI to combine its in-store data with supply-chain data, enabling it to collaborate with vendors in real time.
Such efforts may be overdue. Grocers and food retailers have lost 29% of their market since 1992, according to a November report by market research firm International Data Corp. (IDC) and retail analytics firm Precima. That translates to $310 billion in lost annual revenue.
Shifting Dollars Mean Big Change
Where is the money going? To recreational venues, the workplace, universities and fast-casual restaurants, which are marketing catering services to families, according to the report. Among the findings:
- A quarter of shoppers (growing to 32% within two years) satisfy their grocery needs by shopping multiple stores.
- More than 40% of families shop groceries online at least once a month.
- Perhaps as a result, 79% of supermarket chains said they are changing their assortments and space strategies in the centers of their stores.
- Across age groups, shoppers expressed an interest in personalized prices, promotions and in-store experiences.
Yet most retailers that use advanced data insights, 55%, said they are not where they need to be with their analytical tools.
Read Again https://www.forbes.com/sites/bryanpearson/2017/12/21/walmart-is-investing-in-shopper-data-how-that-will-change-the-grocery-aisle/Bagikan Berita Ini
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