Perishable Solutions for Online Grocery
Hussmann is working every day to provide the most customer-focused solutions within this segment, especially perishable foods with an emphasis in the areas of Food Quality, Food Safety, Temperature Monitoring and Labor Efficiency,
The food retail industry has been in a phase of transformation the last few years and continues to evolve rapidly. Online grocery has seen tremendous growth driven by “digitally engaged shoppers”. According to research conducted by Nielson and FMI, sales are projected to reach $100B by 2025. It is also projected that 70% of consumers will purchase fresh food online.
Consumers are seeking hyper-personalization driven by convenience, but they expect high-quality perishable foods and are not willing to compromise on that. Naturally, retailers have been challenged to find effectives ways to serve the consumers while staying profitable.
Hussmann and parent company Panasonic have a broad and comprehensive product and technology portfolio to address many of the challenges related to perishable food management.
The Online Grocery value stream for perishable foods can be broken into these 5 main stages:
Tailoring to online.
According to research firm “Packaged Facts”, meal kits saw a 22% growth rate in 2018 and expects double digit growth to continue over the next 5 years. This has largely been driven by online shoppers.
When it comes to meal kits, they come in all shapes and sizes and carry various products. At Hussmann we have learnt that packaging plays a vital role in temperature management of perishable foods.
We have partnered with retailers to conduct testing of their meal kits and packaging to provide customized merchandisers to fit their unique requirements. These units offer flexibility with merchandising while maintaining highest levels of temperature performance.
According to a 2018 survey conducted by FMI, 89% of retailers said they plan to increase fresh food offerings and 49% said they would do that by reducing center store offerings.
Hussmann's latest MircoDS cases offer flexible and cost-effective ways to create fresh destinations inside stores where rack capacity is limited.
The MicroDS solution allows retailers to substitute DX refrigeration systems large refrigerant charge with a water loop system using PVC pipes and utilizing small refrigerant charge. Not only are these environmentally superior, they significantly reduce installation time and cost.
Some retailers are considering standalone distribution centers where in-store picking is interfering with shopper traffic or they need more effective operations to improve profitability.
Hussmann is collaborating with such programs and are providing refrigeration solutions for such centers to keep perishable foods at appropriate temperatures while making the operational and service elements simple and cost effective.
On the case side, Hussmann is developing merchandisers that provide more flexibility for stocking and distribution suited for such operations.
Many retailers have engaged 3rd party vendors to handle the picking process. Others are using in store labor for these operations.
Picking process can be stressful and labor intensive.
Aperion’s electronic shelf technology or ESLs, offers “Enhanced omni-channel experience” and “Reduced operating cost” for our food retail partners. Real time data can be tied into the store’s e-commerce platform.
ESL’s have visual identification that help operators easily identify the products and optimize the picking process. This has shown to improve picking time by an average 30-50%.
Whether a retailer has curb-side delivery option, or another means of delivery, there is a need for staging and holding of perishable products at proper temperatures.
Hussmann’s Roll in merchandisers designed to help the store personnel easily stock and stage multiple totes or boxes on rollers.
Hussmann’s Freedom line applications allow retailers to quickly transform these spaces into to food staging areas. Freedom line cases can be paired with their pre-charged refrigeration packages that can be easily installed in areas with no rack capacity. Setup time is greatly minimized and start up is greatly improved.
The ESL’s, when added to the merchandisers in the staging area, provide continued connectivity with online grocery process. Visual identification for fast service and efficient labor operations can be realized.
The final stage is delivery. In order to ensure highest food quality, temperature control and food safety have to be considered.
A recent new article in Supermarket news talks about how delivery costs are impacting retailers. Delivery accounts for as much as 41% of the total costs. The consumers are currently paying only around 80% of the costs. 99% of retailers find delivery to be currently a non-profitable solution.
Online Grocery is a tremendous opportunity with new,
ever evolving challenges. Rapidly learning, adapting and
developing solutions together is the key. Count on Hussmann
to be your trusted partner every step of the way in
helping you satisfy your shopper's expectations.
For inquiries regarding Pershable Solutions for Online Grocery, contact
Anand Rajagopalan, Channel Manager
909.548.2440 | firstname.lastname@example.org