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Food retail

The emphasis on the brick and mortar business can be seen in food retailers’ digital capabilities.

Food retail remains behind the top 10 industries. So far, the companies have emphasized their brick and mortar businesses. However, shopping is being done online more and more due to the recent emergence and success of innovative food delivery companies, which are still in their nascent phase in Finland compared with other European countries.

Citymarket  (grocery) takes the lead this year due to its digital marketing efforts. In fact, Citymarket  is the most advanced digital marketer across the Nordics. Prisma (grocery) does not fare that well in digital marketing but comes second due to its solid performance in all the other digital dimensions. Alko surprises us with its e-commerce capabilities, which outperform all the other Finnish companies in the study. Alko has a clear web store, where buying has been made easy and the customer is supported throughout the process. Lidl still counts solely on its brick and mortar stores and is clearly behind the other food retailers.

Food retailers perform well in only one dimension, which is mobile. They provide applications, where customers can browse recipes and create in-store shopping lists.

But when it comes to the other dimensions, food retailers are lagging behind the rest of the industries. In particular, digital product experience and social media leave a lot of room for improvement. Consumer products (food) is really active in engaging customers in social media, and it is therefore strange that the food retailers are not able to do the same.

Digital dimensions

Digital leaders

1 Citymarket   7      
2 Prisma   6.75      
3 Alko   6.75      
4 K-Market   6.75      
5 Alepa   6.5      
6 Lidl   5