Helping grocers innovate
for smarter operations
today and in the future
An exclusive report for the grocery sector, prepared by
Zebra Technologies, outlining how grocers can equip their
employees with innovative technology to better serve the
customer and future-proof smarter operations.
REPORT OVERVIEW
INTRODUCTION
Introduction
Building smarter operations
As a recognised leader in location solutions,* Zebra Technologies
is perfectly placed to help grocers create a more agile, flexible
workforce to deliver more efficient operations for today and the
future. The grocery sector has an exceptionally large workforce:
Over 1.1 million employees in the UK** performing a multitude of
tasks at any given time, such as replenishing stock, operating
checkouts and increasingly picking online orders. Our experience
has shown that by equipping these employees with technology
configured specifically for the grocery market, grocers can work
smarter to better serve their customers.
Zebra has an award-winning portfolio of solutions, working with
grocers to develop first-in-class, forward-thinking solutions. This
report has been prepared based on our understanding of the sector,
leveraging insights and trends uncovered from Zebra’s Annual
Global Shopper Study 2022. The report will explore the changing
landscape of the grocery market and will evaluate how implementing
smarter technology can encourage better employee engagement
and enhance customer service.
By working with many of the largest retailers and grocers, we have
developed a unique portfolio of hardware, software and integrations.
These combine to deliver solutions that elevate employees across
the store to become product experts, encourage the adoption of
automation such as self-scan/service checkouts, and optimise store
operations. The result is a well-trained, agile workforce that can
work smart to better serve customers irrespective if they shop online
or in store.
Our analysis indicates that grocers could benefit significantly
in terms of reducing the cost to serve by adopting some of the
innovative grocery technologies outlined in this report. With
employees being a grocer’s biggest asset, engaging and upskilling
the workforce with modern, forward-looking technology would help
grocers fast-track their transformation to smarter operations.
We hope you find this report useful and welcome the opportunity to
partner through co-innovation, workshops, assessments and new
solutions that are highlighted throughout the report.
*Source: Gartner magic quadrant 2022
https://www.gartner.com/en/documents/4012884
**Source: Statista.com
https://www.statista.com/statistics/315887/food-retailing-workforce-in-the-united-
kingdom-uk/
1. The Evolving Landscape of Grocery Retail Operations
An overview of the grocery sector as it is today and how emerging
trends are changing the way employees are expected to work
to meet rising customer expectations. This section explores how
grocers must expediate innovation in new store technology to
operate smarter to stay competitive.
2. The Key Foundations of Smarter Grocery Retail
An exploration of the 4 areas of the grocery business that underpin
the success of implementing new, smarter technology for a better
employee and customer experience.
3. Innovative Solutions to Future-Proof Operations
A closer look at Zebra’s leading grocery solutions and how they
can provide grocers with the tools needed to motivate employees
and drive better, smarter working practices across the store.
4. Retail Maturity Model for Associate Performance
An introduction to Zebra’s new maturity model which enables
grocers to assess where they are today and where they need to
make improvements to ensure success for the future.
5. Next Steps
A summary of the report findings along with recommended
next steps.
What’s inside this report?
This report describes how grocers can implement
innovative technology to achieve smarter
operations for today and the future. It is broken
down into 5 sections:
CONTENTS
WHAT’S INSIDE THIS REPORT
4 4
An exploration of why innovation is key for smarter grocery
operations in order to stay competitive
Grocers are pivoting their operations to invest not only in the latest technology but also in their employees to ensure
better retention and to drive customer experience.
Grocery employees previously had defined roles, such as manning checkouts or restocking shelves. But this
increased demand for convenience means store employees must now switch between a range of tasks:
• Picking online orders
• Handing over click and collect
• Delivering goods
• Advising customers on the store floor
In recent years, market disruption has triggered significant changes in the grocery sector. Changing shopper
behaviour coupled with supply challenges such as rising fuel costs are having an impact on what is expected of
employees in store. Customers now demand more choice and convenience in the way they shop for food, be it
in-store, delivered at home or through click and collect.
This significant change in an employee’s role within grocery has caused disruption as they are now required to
work over and above their previous roles. In a sector where employee tenure is exceptionally short, grocers must
implement an innovative strategy to motivate and retain employees, stay competitive and keep control of the cost
to serve.
Maximising customer service while controlling costs has been aided by the increased adoption of automation
in-store. Self-scan, self-service, cash-free payments and contact-free experiences are already expected by
consumers in store. Grocers must ensure they continue on the path to automation innovation to stay ahead.
This increase in automation sparks a further change in employee roles in store. With less time manning checkouts,
employees can switch to other tasks giving rise to more opportunities for training and upskilling. If grocers
capitalise on this shift in employee duties and invest in employees through technology and training, the nature of
the grocery workforce could change significantly in the coming years. Employee retention and loyalty could be
achievable, which positively impacts customer experience and reduces the cost to serve.
69%
of customers prefer
a blend of in-store
and online shopping
60% 73%
of customers prefer
stores that allow
click and collect
of customers prefer
having items delivered
rather than picked up
GROCERY INNOVATION
THE EVOLVING LANDSCAPE OF GROCERY RETAIL OPERATIONS
5
Foundations to Grocery Transformation
To future-proof success, grocers must implement innovative technology today in order to dampen the effects of
market movements and customer challenges. The increasingly high expectations of shoppers are the main driver for
change in grocery — from the multitude of delivery and in-store shopping options to the need for more information
on products, prices and sustainability measures. Today’s customer demands have caused a seismic shift in the
responsibilities of employees, with a huge impact on employee satisfaction and engagement.
Grocers need to put their employees at the heart of the store operation and invest wisely now in the core of their
business. We have identified four key areas where innovation is critical for grocers to enable their employees to
deliver the success they seek:
Employee
Experience
Merchandising
Loss
Prevention
Fulfilment
of Orders
The expectations placed upon employees has risen and they are now required
to perform many roles in store. This can lead to confusion and inefficiencies
if employees do not know what is required of them and when. By investing in
technology that informs and empowers the workforce, grocers are investing in their
employees, which leads to better employee experience.
Shoppers expect to see continuity across the product offering in-store or online,
and grocers must ensure that product availability is consistent. The biggest
challenge, however, is ensuring there is always the right allocation of employees to
serve these customers regardless of how they choose to shop. By using technology
that can alert store staff of fluctuations in e.g., the volume of online orders, they will
be able to switch between tasks to meet the changing demand, therefore working
smarter and more agile.
With many more outlets delivering groceries to consumers, the risk of declining
profit margins is increased as operations become more complex. By providing
store employees with better tracking technology that relays comprehensive stock
information, store losses can be minimised through better stock rotation and
replenishment of products purchased online.
As a result of rising customer expectation to be able to shop flexibly, fulfilling orders
has become more intricate and time-consuming, adding additional pressures to an
already complicated operation. However, fulfilment-driven solutions are trailblazing
the grocery technology advances. Equipping store employees with technology
that enables them to pick, pack and deliver quicker and as required will allow store
operations to be streamlined to meet changing customer demand.
Grocers must adopt a digital-first mindset to keep pace in an industry that constantly evolves. Streamlined workflows,
more inventory transparency and an empowered workforce — all enabled by technology — combine to create a better
customer and employee experience.
GROCERY INNOVATION
THE KEY FOUNDATIONS OF SMARTER GROCERY RETAIL OPERATIONS
6 6
Zebra’s Solutions for Smarter Grocery Retail Operations
Zebra offers solutions aimed at grocery employee engagement. With a technology suite that makes employees more
informed, Zebra’s solutions enable them to work cross-functionally, stay motivated and do a better job overall.
For grocers to achieve smarter operations, they must put innovative technology at the heart of their operation,
empowering their employees. Due to Zebra’s experience in the grocery sector, we have developed strong grocery-
focused solutions that motivate and enable employees to do a better job to deliver exceptional customer service.
Zebra’s solutions for an agile workforce
Empower shop-floor employees to
swap seamlessly between tasks
as customer demand requires with
minimal supervision.
Better connect employees across
the store to have all information on
products, stock levels and in-store
situations to better serve customers.
Accurately forecast and schedule
labour-based upon expected
footfall to ensure employees are
utilised, motivated and engaged in
their role.
Task Management Tools Communication Tools Workforce Management Tools
Zebra’s leading technology for inventory management sparks
innovation across the four key foundational areas ensuring:
Zebra’s solutions for better inventory management
Ensure employees have
visibility of product levels
so they can prioritise
restocking shelves ahead
of an increase in footfall
in-store and picking
orders online.
Visibility across inventory
platforms permits
continuity in pricing,
promotions and offer both
online and in-store.
Tracking SKUs accurately
means grocers can
forecast demand and can
better serve customers.
Understand stock loss at
an item level — where it
happens and why — and
develop processes for
employees to minimise it.
On-shelf Availability Merchandising
Compliance
Inventory Accuracy and
Visibility Loss Prevention
SMARTER GROCERY OPERATIONS
INNOVATIVE SOLUTIONS TO FUTURE PROOF OPERATIONS
7 7
Introducing the Zebra Retail Maturity Model for
Associate Performance
Enabling associates to better serve customers and deliver a great store experience
Store employees are the front line. They need tools and data at their fingertips to deliver the best possible customer
experience. From helping with on-the-spot product enquiries to serving at checkouts or pickup points, store
employees must become grocery experts.
Never keep a customer waiting
Today’s shoppers don’t have time to waste buying food, especially in check-out lines. Prevent lost time for customers
and potential lost sales with fast and convenient check-out options. Accelerate customers shopping trips by moving
customers out of line and out the door quickly, while still feeling like they’re your top priority.
Accelerate technology adoption
Equip your employees with technology to better support customers and drive improved results. Make it easy with
grocery-ready solutions that provide full visibility to the store operations and enable employees to serve customers
better with accurate information across all SKUs.
Zebra’s wealth of experience in the grocery sector enables grocers to implement solutions that help them better
understand what motivates shoppers and develop innovative ways to elevate customer engagement. Zebra’s
purpose-built solutions help grocers make every interaction count where it matters most – on the front line of the
business, on the store floor.
Using Zebra’s new maturity model, grocers can assess where to make improvements in the customer experiences
delivered by their employees:
INNOVATIVE SOLUTIONS
RETAIL MATURITY MODEL FOR ASSOCIATE PERFORMANCE
ZEBRA and the stylized Zebra head are trademarks of Zebra Technologies Corp., registered in many jurisdictions worldwide.
All other trademarks are the property of their respective owners. ©2022 Zebra Technologies Corp. and/or its affiliates. All rights reserved.
Ensuring Smarter Operations with
Digital Technology Across the Store
The possibilities are endless with Zebra
Grocery transformation is a constant process, but the speed at which the industry is now
changing is truly unprecedented. How can grocers adapt to meet these changes? By
working smarter and driving better outcomes. The only way to do this is by optimising each
and every retail touchpoint through smarter digital transformation.
The best partner is the one with decades of experience. The best partner is Zebra.
This report has been prepared exclusively for the grocery sector and uses information
available in the public domain combined with exclusive information and thinking from
Zebra Technologies.
To discuss the contents of this report, or for a general discussion on how Zebra can
support grocers on the quest to innovate and implement smarter technology in operations,
please connect with the Zebra account manager.
To learn more, please visit
www.zebra.com/retail
NA and Corporate Headquarters
+1 800 423 0442
Asia-Pacific Headquarters
+65 6858 0722
contact[email protected]
EMEA Headquarters
zebra.com/locations
contact.emea@zebra.com
Latin America Headquarters
+1 847 955 9494
la.contactme@zebra.com
Mark Thomson
Retail Industry Director EMEA
mthomson@zebra.com
www.zebra.com
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