Grocers are under renewed threat as online retailers ramp up their food options. But traditional food stores still have a vital card to play: freshness. Customers like seeing and experiencing food before they buy it, potentially giving physical stores a huge advantage. In our experience, moving from average to best in fresh food can drive a rise in supermarket revenues of up to 10 percent.
That gain is by no means automatic: Many customers are dissatisfied with grocers’ current fresh offerings. So, to take advantage of the opportunity, retailers must optimize the journey food makes “from farm-to-fork.”
Exhibit: “World-class fresh” requires good teamwork
Source: Oliver Wyman analysis