CFIN’s first Executive Roundtable looks at consumer demands and changing access to food, with input from Ken Keelor, CEO of Calgary Co-op, and Arjan Stephens, president of Que Pasa Mexican Foods and executive vice-president of Nature’s Path Foods.
How has technology such as ecommerce, QR codes and mobile apps changed how consumers access your products?
Ken Keelor: Technology has greatly improved the customer experience and allowed for two-way communication with our members, so we immediately know what our members are looking for and how we can help them with their day-to-day shopping decisions. For example:
- Digital communication was used by us throughout the pandemic for health and safety, as well as to share value/couponing/information/inspiration through regular communication such as social media channels, our flyer, website and member emails.
- Apps: Our Calgary Co-op app allows members to stay in touch, update their own personal information, receive valuable offers exclusive to them through our Mewards program and access to exclusive member pricing on tickets including the Calgary Flames and Hitmen.
- E-commerce makes it easy for our members to shop remotely and have their items delivered or picked up at a time and location that is convenient for them. Our shop online programs continue to evolve to offer even more convenience and choice on our Food, Wine Spirits Beer and Cannabis sites.
Arjan Stephens: Ecommerce has allowed consumers to access our products through several channels including online marketplaces, grocery delivery apps like Instacart and our website. This has shifted the way we think about user experience. We are focusing on content creation and search optimization to ensure we’re giving the customer a robust user experience, which includes easily searching and accessing our products. QR codes on products and packaging create an easy, rapid and touch-free transaction for consumers. There are about twice as many scans of barcodes at points of sale each day as there are Google searches. Our customers currently use them to purchase our products through Amazon Fresh stores in the U.S., and we are currently looking at how implementing QR codes on our packaging could provide more product and brand information, ultimately building another channel for connecting directly with our consumers. Additionally, the sunset of Google’s third-party cookie in 2023 makes analytics less accessible. QR codes can significantly help our business identify important customer data to inform our overall business.
What new experiences are consumers looking for when they shop or dine in person?
Keelor: Convenience, choice and freshness, along with local and healthy options. We are pleased to be re-opening our salad bars, curry and olive bars and self-serve kombucha stations. In many of our locations we have seating areas where members can enjoy a light lunch, coffee with friends, or a few moments to themselves. We are also pleased to see in-person events coming back, including our famous pancake breakfasts in the summer, our Grape Escape event in 2023, in-person tastings at our Wine Spirits Beer locations, and partnering with our vendors to offer unique sampling opportunities for our members. We are proud to offer a unique experience to members when they come into our stores and know that they are looking for more from us than just a simple shopping trip!
Stephens: When it comes to dining, consumers are looking for elements that support the storytelling aspect of a dining experience. This creates a unique, memorable experience that is shareable with their friends and on social media. These elements could be part of the food itself, the restaurant space, the customer service or other methods. Examples include unique food creations, robot-waiters, personalized chef cooking-at-table and more.
What will grocery stores look like in 2035?
Keelor: It’s hard to say exactly what stores will look like that far down the road but we certainly expect multi-channel shopping to continue to evolve with more choice, convenience, delivery options and support to help meal plan and budget accordingly. We have also seen a number of recent trends emerge from the pandemic that we expect will continue including:
- Bigger baskets, but less trips to the stores
- Less families shopping, more single-person trips for the household
- More focus on health and wellness
- More focus on value, budgets and “what do I need to prepare meals”
- Even more focus on locally sourced products
- Reduced assortment in some categories because suppliers have narrowed the number of lines they are manufacturing ie: paper category
Stephens: The future of grocery stores will be focused on providing experiences versus things. It will be a seamless online/offline mobile enabled, high tech, high convenience food shopping experience. Touch-free transactions will become commonplace and Augmented Reality (AR) and Artificial Intelligence (AI) will be indispensable. The grocery store of the future will enable customers to use apps to input dietary needs and taste profiles to be connected to products through advanced AR features providing audible information about the products selected, almost like having a personal assistance accompanying you to the store. There will be a large influx of plant-based alternatives to animal products created through 3D printing and AI technologies. Grocery stores like Alibaba’s Hema and Amazon Fresh are really just the beginning of the grocery store revolution.
If you have a digital solution to make supply chains safer and more agile, apply for our Food Innovation Challenge. Applications are due July 7th.
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