Each year, InternetRetailing starts to look ahead to the coming new year in a series of predictions. Joe Heather, regional general manager for Northern Europe at Deliverect, explores what retailers and grocers worldwide can expect in the new year and beyond.
The lines between restaurants, grocery, and retail are blurring as new opportunities are being created to drive growth and additional revenue streams. As retailers and grocers continue to adopt digital ordering solutions, shoppers can anticipate increased convenience, alongside a wider selection of products right at their fingertips.
Meanwhile, retailers themselves will benefit from heightened brand loyalty that comes with the prioritisation of convenience. With shoppers’ wallets tightening––and the definition of value changing each year––retailers and grocers will need to connect with consumers in different ways to remain relevant in a crowded marketplace. Whether it be via convenient product selection or collaborations with other brands, maintaining devoted customers is the key to success in the new year and beyond.
The days of traditional grocery shopping are behind us—2025 will be a year of growth and innovation in the retail and grocery sectors, but success will lie in optimising operations through digital solutions, innovative ideas, and keeping pace with the redefining of value and loyalty.
Collaborations with delivery platforms
As shoppers continue to juggle personal lives, work, and other commitments, a trip to the grocery store can feel daunting and time-consuming –– especially since the average full-time worker in central London spends 2.7 days per week in the office. While third party delivery platforms––like UberEats, Deliveroo, and Just Eat ––continue to dominate the restaurant industry, 2025 will bring about an even larger reliance on these apps for grocery orders and doorstep deliveries.
Retailers and grocers that integrate with delivery platforms will have the opportunity to reach a broader customer base while attracting new shoppers through exclusive online deals and loyalty programs. That said, as retailers embrace technology to stay competitive, the shift into e-commerce is not without its challenges. Retailers are facing obstacles surrounding things like inventory updates (60% of consumers who shop for groceries online at least once a month experience their preferred items being out of stock), order fulfilment, and pricing. These issues can lead to order cancellations, customer dissatisfaction, and lost sales opportunities, ultimately damaging the digital grocery shopping experience –– and store owners and operators are leaning into technology offerings to solve for these obstacles.
UK-based convenience chain One Stop, for example, has streamlined its on-demand delivery operations across over 800 stores by implementing a solution to digitize the entire grocery process. The solution has enabled the retailer to receive and manage all orders and catalogues in one central location, track performance, and even access data from third-party apps, effectively improving operational efficiency. Today, One Stop has automated many of its previously manual processes, boosting online sales by 100% while providing a 30% reduction in missing items and inaccurate orders. By leaning into technology, One Stop has become better equipped to provide excellent customer service and experiences, enhancing brand loyalty and satisfaction with each online order placed.
Retail, QSRs, and cross-brand partnerships
Hungry customers are bombarded by options, which can sometimes be overwhelming. To reach new markets, retailers and quick-service restaurants (QSRs) will continue to merge for cross-brand partnerships to entice consumers (think: suggesting complimentary purchases like the best wine from a local shop to go with your pasta dinner). By collaborating, retailers and QSRs can expand their reach and connect with customers who may have never shopped at either establishment before, creating a new audience with the potential to become loyal, long-term patrons. For example, Chick-fil-a fans can purchase their favorite sauces in value sizes to enjoy at home, all without having to travel to a physical location. Cross-brand partnerships like this give shoppers access to the food they love, on their own terms and at their convenience
The power of cross-brand partnerships on delivery apps lies in the ability for brands to leverage shared data analytics, enhancing the customer experience with every click and purchase. By using insights and data gathered through these platforms, retailers and QSRs can refine their operations, scale effectively, and strengthen connections with consumers, all while diversifying revenue streams and broadening their customer base.
That’s a wrap! Unfortunately, it’s not Chicken Caesar
When all is said and done, retailers and grocers are embracing technology as a means to connect with a wide variety of shoppers while increasing their growth and brand awareness in a saturated marketplace. As operators prepare for 2025, it’s imperative that those listen to their customers’ needs and desires to thrive in the new year and beyond. Whether it’s adopting new software, collaborating with a brand, or offering a simple ready-to-eat meal on a delivery app, creating a cohesive system that helps foster brand loyalty and value will drive success and prosperity.
Joe Heather, regional general manager for Northern Europe at Deliverect
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