We look ahead to spot the ‘game changers’ that will significantly impact retailers and suppliers in 2014.  Innovation has reached  supersonic speed, so be ready for transformational developments that will empower  shoppers to expect more from the industry.  By Cecile Riverain, Head of international research, IGD

 1.      Price comparison

 We all know that shoppers want to live better for less, and in today’s online world complete price  transparency is in the hands  of the shopper.

 Comparison sites are gaining momentum, particularly in countries with a thriving e-commerce culture, and  we don’t think it will  be long until it becomes a global trend. We have already spotted a growing number of  sites, in-store applications and smartphone apps that offer instant price comparison across competitors.

 Leclerc in France have created a price comparison app alongside in-store hubs for on-the-go, local  comparison within a 30km radius -  strengthening its leading position in terms of price perception. In the UK  and America, MySupermarket offers a ‘swap and save’ feature - prompting you to switch your products or r  retailer for cheaper alternatives - as well as price histories to help shoppers decide if a promotion truly is a  promotion.

 But how will price transparency affect your pricing strategies and promotions?

2.      Just for me

Personalisation and targeted marketing is a long talked about revolution that is finally coming of age, with profound implications for shoppers, retailers and suppliers.  As technology continues to advance, customers are expecting more intuitive and relevant solutions every time, which puts them in the driving seat.

The era of ‘hyper-local’ is upon us, with localised and timely deals for shoppers. Target recently launched a new promotional scheme called Cartwheel allowing shoppers to easily tailor their savings to suit the products they normally buy. This new level of personalisation provides broad appeal to promotions and makes shoppers lives easier.

Facial recognition in-store is also making headway. We are seeing a flurry of tests including Facedeals by Facebook which tracks shoppers based on their Facebook profile pictures, offering tailored discounts and suggestions once they enter a store.

3.      Google Glass

The fusion between online and offline worlds continues with smartphones and tablets now ubiquitous.

Google Glass is the gadget revolution that could really make seamless happen in-store with a new wave of augmented reality apps that will come to life thanks to the hands-free nature of the device.

Smart glasses will provide instant access to prices, reviews or nutritional information. Intuit, an American start-up is already developing a smart glass app that will allow users to make direct payments, just by tapping the side of the glasses with the receipt displayed on the eyepiece for confirmation.

Although we think widespread consumer adoption is still a few years out, early adopters will be keen to experiment with this technology.

4.      Size doesn’t matter?

As disruptive and agile start-ups continue to emerge, big business increasingly needs new tricks to compete effectively – scale is no longer an absolute advantage.

With low start-up costs for online businesses, new models and ideas can come to life faster than ever before. One new retail model established in 2013 that caught our eye is Good Eggs – a foodie’s paradise. Shoppers order their products online from a variety of local fresh produce, which is then harvested to order. Rather than holding stock, it is an aggregator for local companies and prevents store waste. It’s too early to say how successful they will be, but at only a couple of months old they have already expanded into 3 new cities

Developing better ways for shoppers to order groceries at home and on-the-go has also been gaining momentum, with retailers becoming an “anytime, anywhere” service. As part of this, click and collect has become a popular channel with future focus on adding capacity and developing more efficient fulfilment models.

Convenience for commuters is a big part of the latest click and collect drive, with multiple retailers looking to target shoppers during their daily journey to work. Asda, Tesco, Waitrose and Amazon are all looking to establish permanent click and collect facilities at underground stations across London, with same day collection for ultimate ease of ordering.

5.      The Currency of Trust

Trust is a tangible asset for retailers. There is no guarantee but over time, an ethical strategy can pay big dividends through shopper loyalty. 

Sainsbury’s is one retailer who has proved this through its well communicated ‘Value with Values’ philosophy. Its strong values-driven culture has certainly supported its recent success, which saw it post its 36^th consecutive quarter of like-for-like sales growth in January 2014.

The future is now

Many of the trends we identified in 2013 will continue to play out and reshape our industry in coming year. In 2014, we will see incremental changes to these long-term trends and new disruptive innovations will also create opportunities. Businesses that embrace predictable disruption will thrive so keep the shopper in your sight and don’t stand still...