Grocery serves two industry sectors with equal footings, first it is an integral
Grocery serves two industry sectors with equal footings, first it is an integral part of the food and beverages industry, and secondly, it is also catering to the interests of the retail industry in the same breath. Many institutional investors are looking up to this sector as an investment option because it deals with the immediate needs of an individual. Big marketplaces of the world are losing their sheen. The fourth P of the marketing which was "place" has been replaced by the concept of the "perception." The sales points connected to grocery section are still following the same old principle of the place.
Think about any disaster like condition, the first thing that they want to store is connected to the grocery items. It is true that most of the grocery shops have witnessed a decline in the profits; still, they have an existence and catering because the rate of the slowdown is in synchronization with the inflation. In the future, these points of purchase can enjoy the concept of the opportunity pricing in the market and cover up the deficits.
Many entrepreneurs are looking up to convert standalone grocery shops into retail chains and compete with the online retail industry with an added advantage of the place. It is a new business model seeking huge investments. Many experts believe that such ventures have the power to retain themselves in the current onslaught of online retail and make huge profits once the services connected to the online retail will reach its saturation point.
The future of this industry segment is not under any kind of doubts. It has the power to accommodate local products. Think about a marketplace where everything is online apart from these grocery stores. This simple presence can give them an opportunity to directly talk with a consumer. Many experts are looking up to a different kind of segmentation in the market where offline customers will seek certain places to enjoy the experience of the shopping. A cluster of the grocery stores can serve them well. These small units have the power to become an offline hub of the services in the coming future.