Retail Outlook 2020: Top 5 Trends
The grocery retail sector grows and develops every year, but only some market participants are able to maintain their position or improve results in current competition conditions. Technology which aims to both improve the shopping experience and make store operations more effective is playing an increasing role in this industry, making more funds available to improving offers for customers. Equally, businesses are becoming more actively involved in implementing environmental sustainability in everyday operations. Below are some of the most significant trends for 2020 which are expected to shape grocery retail in Latvia and around the world:
- Artificial intelligence arrives in stores: Retail is a sector which is unimaginable without digital technology: self-service checkouts, electronic price labels, digital scanners and other technologies are everyday things which customers see as matter-of-course. However, it is artificial intelligence which has the potential to change how we shop, how people are served in stores, and how store operations are run. Thanks to artificial intelligence, retailers can become more efficient, enabling them to spend money on better offers for customers.
- Extensive price reductions: Competition among retailers will increase at a higher rate in Latvia, while consumers become more cautious in their spending. This will increase pressure on prices, therefore extensive, all-encompassing price-lowering initiatives are anticipated in the market over the course of the next year.
- Retailers embracing environmental sustainability: Recognising environmental issues on a global level, business owners are becoming increasingly involved in various initiatives encouraging environmental sustainability. For example, the introduction of environmentally-friendly packaging, recycling, the reduction of food waste, and the introduction of energy-efficient technology are just some of Maxima Latvija’s environmental sustainability policy initiatives, and a range of different processes are implemented for each of these.
- Human-centric data analysis: The leading global retailers offer personalised offers based on data analysis based on deeper understanding of customer shopping habits. In 2019, alongside its Mazuļa klubs (Kid’s club), Maxima Latvija introduced its VIP club, which prepares a specially selected personalised product offer for clients according to their shopping habits. 2020 will also bring changes in the creation of clubs for specific interests.
- Smaller stores, more convenient locations. One of the deciding factors in store choice is location close to home or work. Therefore, our store chain in Latvia is becoming more densely located and dominated by small, convenient stores. For example, there are currently almost 200 Maxima stores in Latvia, of which 136 are Maxima X stores located in residential areas, and six more are Maxima Express stores specially created for office workers and guests of the city who prioritise the purchase of tasty meals and basic necessities quickly, conveniently and at a reasonable price.
More information:
Liene Dupate-Ugule
Head of Communications, SIA “Maxima Latvija”
Tel. 26425420
email: liene.dupate@maxima.lv