As door-to-door food prices soar and retailers absorb some of that price hike to avoid losing shopper loyalty, many are looking for other ways to boost their profit margins. Some, for example, are expanding their marketing opportunities for brands, offering higher-value in-store and online placements to boost ad revenue.
One such strategy comes in the form of on-site video advertising. Lightbox, an out-of-home video network, announced on Wednesday (June 29) the expansion of its retail media business to 2,800 supermarkets across the United States at grocers, including owned by Albertsons and The Kroger. Co-owned brands.
“The demand for these audiences is very high, and it’s something our team has been working on for over a year,” Lightbox CEO Greg Glenday said in a statement. “We didn’t want to dip our toes in the water, we wanted to think big. These are high-frequency destinations – with US consumers going to the grocery store an average of 1.9 times per week – and the screens provide an invaluable connection point for advertisers to reach audiences in brand-safe environments. .
Supermarkets aren’t the only retailers taking advantage of the increased engagement offered by video marketing to boost sales. Multinational meal kit company HelloFresh announced last week the launch of a video series on the Twitch live-streaming service, Unleash the Feast, featuring culinary content centered around the service’s meals.
The launch leverages contextual commerce to drive sales outside of high-intent digital ecosystems, such as the brand’s own online store.
“We’re excited to engage with consumers and fans on Twitch by creating entertaining and original content that they can see and interact with,” said Jens Reich, CMO and GM of HelloFresh US, in a statement. communicated.
Kroger invests in 35,000 square foot dairy farm expansion
Also in response to this rise in food prices, shoppers have abandoned national brands for lower-priced options such as private label products.
Seeing this shift, The Kroger Co., America’s largest pure grocer, is investing in its own selection of brands. The company on Friday (June 24) announced a $70 million line expansion at dairy producer Tamarack Farms Dairy in Newark, Ohio, to produce aseptic dairy products.
“Kroger is fresh for everyone, and that means we’re committed to sourcing and manufacturing only the freshest, best products,” said Doug Blacksten, Kroger senior director of supply chain and manufacturing. , in a press release. “This cutting-edge innovation at Tamarack Farms Dairy underscores that commitment, enhancing our ability to deliver high-quality dairy products to Kroger customers.”
PYMNTS research found that grocery shoppers opted for lower-priced options such as private label products. Results from the May U.S. edition of PYMNTS’ Digital Economy Payments study, “Digital Economy Payments: How Consumers Pay in the Digital World,” found that average consumer spending on groceries fell between March and April even as the prices of the food they purchased continued to rise.
Read more: PYMNTS Data Shows Consumers Are Turning to Grocery Brands and Low-Cost Merchants
The study, which draws on a census-balanced survey of more than 3,000 U.S. consumers in April, found shoppers spent an average of $95 on their last grocery purchase when surveyed in April, down 14% from March’s $110. Since the amount of food consumers need each day has not decreased, this trend indicates that consumers are likely switching brands to more affordable options.
The Consumer Price Index for All Urban Consumers (CPI-U), released by the US Bureau of Labor Statistics (BLS), found that food prices overall increased by 10.1% d year-over-year in May, and food-to-home (i.e. groceries) prices rose 11.9%.
Save Mart robotic delivery pilot nears completion
As retailers and delivery services continue to struggle with a tough job market for drivers, it looks like any test of robotic fulfillment is bound to succeed. However, it appears that is not the case.
The Save Mart Companies, a California-based grocer that operates about 200 stores under multiple brands in California and Nevada, which had trialled robotic grocery delivery in Modesto, Calif., in partnership with self-driving vehicle company Starship Technologies, shows that this method of execution is not an infallible success. The test is no longer underway, local newspaper The Modesto Bee reported on Wednesday.
A spokeswoman for The Save Mart Companies, Victoria Castro, told the outlet that Starship “made the decision to leave Northern California” a few weeks ago. Additionally, she relayed that a message on the Starship app, through which Save Mart shoppers used to place their orders, read: “Temporarily closed. We are sorry that we are unable to ship from this merchant at this time.
The test had been ongoing since September 2020.
News outlet Grocery Dive reported that when asked for comment, Starship sent a link to an announcement about “internal changes” at the tech company, including layoffs and closures of some sites. The company attributed the changes to “dramatic downward shifts” in “the global economy and investment market”.