Retail grocery listings are still reeling from Amazon’s (NASDAQ: AMZN) plans to take over Whole Foods (NASDAQ: WFM), but let’s face it, with grocers already running paper-thin profit margins, it is the recently announced U.S. expansion plans for German hyper-efficient supermarkets Aldi and Lidl that had the grocery retailers already on edge. After all, online shopping isn’t new, with WalMart’s (NYSE: WMT) Jet, Kroger’s (NYSE: KR) HomeShop, and Costco’s (NASDAQ: COST) Shipt being just some of the current home grocery delivery options.
Unlike most industries, where online shopping is the norm, grocery shopping has been slow to change. Thus, despite the rapid growth rate, home delivery accounts for slightly more than 1% of the industry’s more than $700 billion in annual sales. It makes sense, because, whereas most consumers trust the pizza shop to deliver a consistent product, most shoppers don’t trust their own family members to pick out their produce.
The industry’s challenge is to implement new technologies and models to improve efficiencies and the broader shopping experience, as well as improve the company’s street cred. For example, to lower costs and reduce its carbon footprint, Wal-Mart began experimenting with solar energy panels and Bloom Energy’s “Bloom boxes,” which efficiently incorporate a cleaner electrochemical process to convert natural gas into electricity.
With that in mind, we’re going to look at five must-have technologies/trends that grocery retailers should incorporate.
Grocers use more energy than other retailers because of their refrigeration demands, which remains one of their largest fixed costs. Alltemp (OTCB: LTMP) recently created a new refrigerant that maximizes performance via saving energy and increasing equipment life while protecting the environment; after testing in several Fortune 500 facilities, the refrigerant is now ready for market.
Refrigeration, air conditioning, and heat pumps account for about 10% of the global carbon emissions and energy consumption. Case studies confirm that Alltemp’s refrigerant significantly reduced the AMP draw to more than 40% from 10%. Alltemp’s test case at a McDonald’s restaurant location recorded a 23.7% kWh in refrigeration savings, while tests at 7Eleven, which more closely resembles the retail grocery model, reduced the refrigeration use by 38.16%.
Additionally, government regulations and rising R-22 prices were going to force millions of homeowners and business owners to replace their R-22-based air conditioners, creating a massive landfill nightmare and creating the financial burden of replacing decades’ worth of existing units. Plus, the energy savings are enough for some users to qualify for Energy Tax Credits.
In many markets, daytime lighting costs can nearly be eliminated by incorporating solar lighting tubes, while LED lighting can go a long way to reducing lighting costs and improving the shopping experience.
The general store at one point in time was the community hub of every American town; today’s grocers should embrace that important role and actively reinsert themselves as the historical community hub. Opportunities to do so range from offering cooking and nutrition classes to helping landlords attract complementary tenants so busy shoppers can order their nonperishable online, attend a workout class or other activity, and afterward spend a few minutes picking out their fruits and veggies.
Grab a box of Cascadian Farms granola and I challenge you to squeeze it, wherever you want, without pressing against the contents. Unlike the traditional cereal offerings, which are in huge packages, but only half full, most consumers want quality ingredients in sustainable packaging.
Bio friendly packaging
Speaking of sustainable footprint, major improvements in packaging materials will be the next wave of consumer interest. Companies such as Coca-Cola have been introducing bioplastics into their production process for a few years, with the ultimate goal being a 100% bioplastic. Industry rival PepsiCo has also experimented with edible packaging options. The “plant” bottle should be a huge improvement by reduce its environmental impact and, hopefully, reduce the negative health effects of BPAs and other toxins related to common modern packaging.
Instead of food inflation through loss of quality, it’s time that the grocers get in line with today’s trends.
For more information and our full disclosure please visit http://www.stockcomm.com/ltmp
DISCLAIMER: Stock Communications Group, Inc (SCG) is a third-party publisher and news dissemination service provider that produces regular sponsored and non-sponsored reports, articles, stock market blogs, and newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. SCG is NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and SCG ‘s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. SCG has been compensated for the coverage of Alltemp and owns restricted shares. SCG also expects to receive cash compensation during the course of the agreement from a third party non affiliate, to cover some of the expenses
The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and based on publicly available information which is believed to be reliable. The included information is subject to change without notice. SCG is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC undertakes no obligation to update such statements.
NetworkNewsWire (NNW) Third-Party Content
The above article is Third-Party Content and the NNW website may contain additional Third-Party Content articles and other content submitted by third parties, including articles submitted through the NNW Premium Partnership Program. All opinions, statements and representations expressed by such third parties are theirs alone and do not express or represent the views and opinions of NNW or its affiliates and owners. Content created by third parties is the sole responsibility of such third parties, and NNW does not endorse, guarantee or make representations concerning the accuracy and completeness of all third-party content. You acknowledge that by NNW providing you with this internet portal that makes accessible to you the ability to view third-party content through the NNW site, NNW does not undertake any obligation to you as a reader of such content or assume any liability relating to such third-party content. NNW expressly disclaims liability relating to such third-party content. NNW and its members, affiliates, successors, assigns, officers, directors, and partners assume no responsibility or liability that may arise from the third-party content, including, but not limited to, responsibility or liability for claims for defamation, libel, slander, infringement, invasion of privacy and publicity rights, fraud, or misrepresentation, or an private right of action under the federal securities laws of the United States or common law. Notwithstanding the foregoing, NNW reserves the right to remove third-party content at any time in its sole discretion. By viewing this third-party content, you acknowledge that you have viewed, read fully, accepted and agreed to all terms of the Disclaimer at http://NNW.fm/Disclaimer