The Supermarket Slump: Why Grocery Is Behind On Beacons

Posted by GPShopper Press Coverage on Jan 26, 2015 11:21:00 AM
GPShopper Press Coverage

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Written by Nicole Spector

With its brimming aisles and whirlwind of coupons and limited-time offers, the average grocery store seems like it would be a golden fit for beacons. But the industry as a whole seems less than avid when it comes to getting serious about the technology. Only a handful of grocery stores are even flirting with it. 

Maya-MikhailovResisting Mobile

Maya Mikhailov, EVP and co-founder of mobile commerce platform and beacon provider GPShopper, asserts that with a few notable exceptions like “Kroger or Whole Foods,” and GPShoppers’ own grocery client, Lunds and Byerly’s, the grocery industry has been “a little slack in picking up mobile” in general.

“When you talk about mass market grocers, we haven’t seen a tremendous amount of mobile adoption,” Mikhailov says, pointing out that the resistance could be attributed to a wide variety of factors.

“Part of it could be because they’re used to using a very different type of advertisement. They’re used to the circular, or to posting a sign in the window —those type of ads.” Another reason could be chalked up to the thinness of a grocery store’s margins as compared to a clothing retailer’s, which Mikhailov says, typically “has very different margins to play with.”

When you take into account the underlying issue — that most grocery stores haven’t adopted much mobile technology — it’s obvious why they’re not leaping to beacons.

Beacons are not your first step in mobile marketing,” says Mikhailov. “A grocery store wouldn’t say ‘Oh, I’ve done nothing in mobile. I don’t have a mobile website. Let’s go to beacons.’”

Read the entire GeoMarketing article.

Topics: In-Store Experience, Retail Tech News, Mobile Retail Apps, Omnichannel Retail

About GPShopper

GPShopper is a mobile commerce platform and app developer for retailers, using technology to transform the total retail experience.  GPShopper is a Synchrony solution. 
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