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Customer Experience in Grocery Retail: the Fresh Opportunity

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Grocery

Grow profitably and stay competitive

Enabling grocery retailers to profitably respond to demand factors across pricing, inventory and replenishment, daily

Better Customer Experience Through Better Product Availability

Profitable grocery retailing has always been about economies of scale. The ultimate goal for grocery retailers is not only to increase sales and revenue, but also to grow profitably and stay competitive. In a market with lowering margins, increased complexity, fierce competition and growing customer expectations, being able to quickly respond to changing market needs is key.

Challenges in Grocery Store Replenishment

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Demand uncertainty

Aligning demand planning and inventory with personal shopping missions is more challenging than ever, causing higher inventories, costs and stock outs.

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Growing execution gap

Poor replenishment decisions make it harder to align commercial strategy, such as waste or margin goals, with daily trading performance.

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Complexity

Complexity is challenging traditional supply chain and replenishment systems with increasing numbers of new formats, assortments, promotions and fulfillment models, leading to higher stock-out rates and manual interventions.

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Customer experience

Ensuring a seamless customer experience through better selection, local assortments and availability is a huge challenge in delivering brand promises in today’s omnichannel world.

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The Solution: Blue Yonder Replenishment Optimization

Blue Yonder Replenishment Optimization is a machine learning solution that allows automated store replenishment, reducing out-of-stock rates by up to 80% without increasing waste or inventory.

  • 10x increased availability
  • 80% out-of-stock rate reductions
  • 50x fewer manual interventions
  • Delivering waste reduction
  • Increasing efficiency gains
  • Enabling operational stability
  • Aligning with business strategy

More about Replenishment Optimization

Grocery retailers need to optimize and automate replenishment decisions on a daily basis, meeting growing customer expectations and ensuring a balance between stock availability and waste.

Price Setting Challenges in Grocery

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Strategic pricing

Need to align pricing decisions with the brand strategy, safeguarding the company’s strategic focus on revenue or profits.

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Market pressure

Agile price changes are required to compete with the ever-changing competitors’ prices in grocery.

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Increased complexity

Factors affecting price and demand, such as localization of competition, cannibalization or cross-effects need to be considered across more formats, assortments, stores and channels.

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Pricing and inventory execution

Need to accurately identify price effects on sales to align pricing decisions with commercial goals, such as wastage on fresh food.

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The Solution: Blue Yonder Price Optimization

Blue Yonder Price Optimization is a machine learning solution that delivers retailers optimized pricing decisions for every product, while improving revenue and margins by more than 5%.

  • Improved revenues up to 15%
  • Improved profits by more than 5%
  • Up to 20% stock levels reduction
  • Automating price adjustments
  • Optimizing high-level KPIs
  • Decreasing write-off rates
  • Increasing competitiveness

More about Price Optimization

Grocery retailers need price recommendations at a granular level
 – per SKU, per store and per day, with 
a strategic approach that sets them apart from competition and ultimately helps them increase revenue and profit.

Selected customers

Press release

Blue Yonder's Technology Delivers Improved Product Availability for Morrisons With Shelf Gaps Down 30%

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Studies

McKinsey: The secret to smarter fresh-food replenishment? Machine learning

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Customer Experience in Grocery Retail: the Fresh Opportunity

A global survey of 4,000 consumers shines light on customer experience in fresh and product availability

Learn more