Research shows that grocery retailers are reinventing customer experiences with unique strategies. For instance, adding in-store bars can boost sales as customers spend more time and money, increasing transactions and variety purchased. Although initial investments are high, the spillover effects on sales can lead to breakeven in just weeks.
Partnerships with third-party delivery apps present both opportunities and challenges. Despite increased online accessibility and lower investment costs, these apps can lead to decreased impulse buys and increased competition. This sales dispersion effect complicates inventory management and can affect profitability.
Subscription programs also elevate sales but come with significant logistical costs. High service costs threaten profitability, demonstrating the need for retailers to assess the economic impact carefully. Successful programs can see substantial increases in spending and order frequency, yet they risk cannibalizing in-store purchases. Tailored strategies are crucial for optimizing these innovations for sustained profitability.
👉 Pročitaj original: MIT Sloan Management Review
