Online: three trends to watch in 2022

We have just published our online trends 2022 report, available to subscribers. For those of you that are not subscribers, here is a few of our key trends to look out for:

1. Online-offline friction

Retailers will continue to use technology to support all shoppers. However, to improve retailers’ profitability, we will see friction developing between online and offline shopping.

Retailers can improve their online P&L and provide a higher order accuracy by rationalising their assortments and channelling demand into profitable, fast-pick products. Shoppers are already ordering from limited assortments for same-day or within the hour deliveries. Online shoppers also experience limited assortments as store ranges are funnelled by retailers’ algorithms. Finally, we’re already seeing retailers offer in-store-only deals to drive footfall and improve total profitability. For instance, Sainsbury’s offers exclusive in-store discounts when shoppers use their SmartShop scan and go app.

2. Content is king

To compete with the likes of Amazon and differentiate versus other bricks and clicks retailers, as Bill Gates wrote back in 1996, content is king.

Today, retailers can rely on algorithms to be more competitive on price and choice. They can partner to provide quicker more convenient deliveries. To stand out, drive frequency, loyalty and sales, online content is key. In 2022, we’ll see more retailers offering entertainment, live streaming, and enhanced product content. Albertsons is partnering with Firework to offer short video content and cooking experiences.

3. Quick will stick

Quick commerce players deliver groceries and essentials in less than one-hour. It has been one of the fastest growing segments of the food and consumer goods industry, helped by significant financial investment. It will continue to grow and attract more shoppers. Quick commerce retailers will create super apps, expand personalisation options, launch private label ranges and drive loyalty through membership schemes. In an already crowded market, there will be acquisitions and failures resulting in a few dominant players.

If you’d like to view all five trends, learn more, and see the latest examples from around the world, then subscribers can read the full report.