Grocery retailers, convenience stores, and pharmacies should watch the digital delivery space. Delivery services are investing heavily in grocery-related partnerships and acquisitions, creating a viable avenue for smaller retailers to invest in digital grocery.

How Paidy works: Paidy lets customers pay for purchases in monthly installments via bank transfer (no fees) or at a network of convenience stores throughout Japan. The company also has products like short-term installment plan Paidy 3-Pay and Paidy Link, which lets customers connect their mobile wallet to their Paidy account—PayPal was the first wallet to integrate the solution.

Amazon operates close to 600 physical stores in the US, the majority of which are locations of grocer Whole Foods Market, which Amazon acquired in 2017.

Retail and warehouse integration: A full-fledge omnichannel retail model where stores also double as procurement centers. Consumers can buy in-person or online and get express delivery to their homes. Online-to-offline (O2O) platform: A type of partnership between an online platform and brick-and-mortar grocers or convenience stores to have online orders delivered to consumers.

The delivery company has expanded into owning its own inventory with DashMart, a ghost convenience store that launched in 2020. More recently, DoorDash unveiled DoubleDash, which lets customers tack on additional items from convenience stores alongside a restaurant order, which the delivery provider picks up along the way. Overall, customer loyalty should become a key focus.

Consumers are constantly in search of convenience, particularly in the form of timesaving. In the past 12 months, numerous direct-to-consumer (D2C) meal plan services have emerged, offering consumers an alternative solution to home cooking without paying a dreaded visit to the grocery store—or spending time trying to figure out a recipe.

Baby boomers already know how to go to a brick-and-mortar store and buy things. So unless there’s an obvious benefit of convenience or better prices, they’re not rushing to master newer, more tech-heavy shopping methods.

Plus, consumers typically prefer the convenience of CVS pharmacy stores that offer more than just pharmacy services, according to Intermountain’s VP, Nanette Barensen. Intermountain has been paring down on clinical care-focused ventures, where it’s seen success.

In the case of grocery stores, money is lost whenever products aren’t replenished on the shelves. Grocers and convenience store operators including Schnuck Markets and Giant Eagle are using autonomous robotic systems from Simbe Robotics to monitor product placement and availability.

The rest are Amazon-branded stores, including Amazon Fresh (grocery), Amazon Go (cashierless convenience stores), Amazon 4-star (featuring products with a four-star rating or higher on Amazon.com), Amazon Books (carrying books and electronics), and Amazon Pop Up (shopping center locations that highlight various brands and trends). The ecommerce giant has cast a wide but shallow net in physical retail.

Though still in the early stages of rollout, 5G technology could bring about positive changes to the retail industry, as retailers seek to maintain their digital transformation efforts and bring consumers safely back into stores in 2021. Retailers will use their IT investments in 5G to enhance the customer experience, both in-store and online.

To emphasize its convenience, Google Pay is leveraging incentive programs, like its recent “Spring Challenge,” which allows customers to collect rewards for trying various Google Pay features. These features entice customers to explore all of its products, while retailer tie-ins—such as the new grocery circular integration tool—amp up convenience over store-specific rivals.

The retail industry is transforming at both physical stores and in digital. This report examines 10 trends that will most shape retail in the year ahead.