Once considered a luxury good, shopping sprees for groceries and essentials are now a common occurrence. With the rise of online grocery shopping and the pandemic, some businesses are taking the opportunity to try something new. Is 7-11 seeking to become a major retail player in the grocery industry?
The COVID-19 pandemic changed how we interact with each other, how we shop, and how we eat. While the world focused on essentials like shelter, safety, and food, we started seeing a rise in popularity for non-essential items; specifically, leisure activities and luxury goods. The number of people going to the park jumped up by 60%, and the same can be said for museums and other cultural venues. Retailers saw an opportunity to capitalize on this trend and introduced a whole new range of items, from food to furniture and accessories, for online shopping during the pandemic. And while some businesses are reaping the benefits of the internet, not all are and the pandemic has highlighted the need for traditional retailers to adapt or die.
The Rise Of Online Grocery Shopping
As the world slowly opens up, people are discovering the joys of online shopping and how much more convenient and enjoyable it is compared to traditional methods. The online grocery shopping trend started with Amazon creating the Amazon Go store. The convenience of having a store in your neighborhood that offers all your essentials in one place, at a low price, is proving to be too much of a temptation for many shoppers.
In 2020, the retail industry suffered immensely due to the pandemic. With more time at home, people discovered the joys of cooking, and indulging in retail therapy became a way of life. Those that had sufficient supplies went on a spree buying essential goods, and luxury retailers saw a chance to increase their sales. The opportunity to reduce costs, deliver directly to your home, and cut out the middle man is proving too tempting to resist for many shoppers.
7-11 Looks To Adapt To The New Normal
It is no secret that conventional retailers are struggling to adapt to the new normal. The COVID-19 pandemic presented a once-in-a-lifetime opportunity to cut out the middle man and offer consumers what they want, when they want it. Traditional retailers have typically underperformed the market in the face of competition and technological disruption, but this pandemic gave birth to a new breed of company, formed by savvy shoppers who want only the best for themselves and their families.
Some businesses, like 7-11, saw the writing on the wall and decided to ride the wave of opportunity instead of get swept away by it. 7-11 stores, like other traditional retailers, saw a massive rise in demand for their staples during the pandemic. But rather than sit back and accept their place at the bottom of the retail food chain, 7-11 looked for ways to adapt and change. Even before the pandemic, 7-11 already adapted to the changing needs of its customers by expanding its offerings to include fresh produce, dry groceries, and snacks. Now, with the pandemic, they have decided to take their shopping experience to the next level by expanding their offerings to include online grocery shopping.
Why Is Online Grocery Shopping Important?
Being able to comparison shop for essentials online is incredibly convenient and allows for much greater flexibility. When food scarcity is a major concern, being able to comparison shop for essential groceries and daily staples is something that everyone can benefit from.
It is also the case that many people want to eat healthier foods and be more eco-friendly, so having the option of choosing organic produce or other eco-friendly products is something that can be greatly beneficial. With more people wanting to eat organic foods and reduce their environmental impact, online grocery shopping is a way of life that is likely to grow in importance.
What Does Online Shopping Mean For The Industry?
Being able to offer quality products at a cheaper price point is something that traditional retailers can benefit from. Many grocery chains were forced to close down their stores due to the pandemic, and while some have since reopened, their prices have increased, making it more difficult for families to afford the food they need.
However, by cutting out the middle man and offering consumers what they want, at a cheaper price, traditional retailers can save a considerable amount of money and become more attractive to a wider array of customers. While the industry as a whole has shifted to the online space, due to the pandemic, it is clear that more and more people are wanting to avoid going to physical stores.
So, while some businesses can flourish, and thrive, in the new normal, other businesses will have to work harder to earn the trust of their customers. Conventional retailers that want to survive in the long term must adapt or die, and the road to recovery will be a long and arduous one.