This week in grocery, Instacart taps AI as supermarkets test shoppable content and new formats.
OpenAI, creator of artificial intelligence (AI) chatbot ChatGPT, announced Wednesday (March 1) that developers are now able to integrate the bot into their products, with one of the first companies to do so being Instacart.
The AI company noted that the grocery aggregator will add to its app the ability for consumers to ask questions related to recipes and inspiration, with the responses featuring shoppable suggestions. The feature will be added “later this year.”
With this, the chatbot will have the opportunity to reach the 42% of men and 28% of women who purchase groceries online using a same-day delivery site such as Instacart, according to data from PYMNTS’ study “The ConnectedEconomy™ Monthly Report: The Gender Divide,” which draws from a survey of more than 2,600 U.S. consumers.
Granted, ChatGPT has sparked concern among some.
Most recently, a report Thursday (March 2) by The Wall Street Journal (WSJ) said Apple has delayed the approval of an update to its BlueMail app that uses the technology due to concerns that it could generate content that’s not fit for younger users. Additionally, a recent CNN report noted that JPMorgan Chase has restricted its global staff’s use of the technology because of compliance concerns around the use of third-party software. Additionally, in January, a report noted mixed reviews from companies using the system.
As supermarkets look for new ways to drive eCommerce engagement, specialty grocer The Fresh Market, which has 160 stores across 22 states, announced the launch of a commerce-integrated digital-only magazine, iterating on the retailer’s previous print publication.
The digital content includes recipes and explainers, with buttons to purchase the foods that are mentioned, in addition to shoppable videos.
“Our new digital-only shoppable magazine marks our largest and most immersive magazine experience ever, allowing our guests to make both every day and special occasions memorable through a wide variety of recipes, meal solutions, and fresh deals,” Kevin Miller, the retailer’s chief marketing officer, said in a statement.
The announcement comes on the heels of the retailer announcing last month that it is expanding its partnership with video commerce solution provider Firework. Many leading grocers, including Kroger, Walmart, Amazon and Albertsons, have been leveraging connected commerce, integrating shoppable features into educational or entertainment content, to drive digital sales.
As grocers look to seize on consumers’ shift to eating at home amid inflation, some are turning to prepared meals in an effort to provide shoppers with a more affordable alternative to restaurant dining.
ShopRite, for instance, the New-Jersey-based Wakefern subsidiary with more than 300 stores across six East Coast states, recently opened its new Fresh To Table concept at three locations, offering prepared meals and other grab-and-go offerings, according to a press release emailed to PYMNTS. These include ready-to-cook products, heat-and-eat meals and some that are ready to be eaten as is.
Consumers have been purchasing more prepared food from grocery stores as economic pressures have made the cost of restaurant dining harder to shoulder. PYMNTS’ study “Digital Economy Payments: Consumers Buy Into Food Bargains,” which drew from a July survey of nearly 2,700 U.S. consumers, found that 37% of consumers bought prepared food on their most recent grocery trip, up 7 points from the 30% of consumers who had done so back in November 2021.
ShopRite is not the only grocer looking to benefit from this shift. Kroger shared on a call with analysts Thursday (March 2) discussing its fourth quarter 2022 financial results that inflation has had its benefits from the grocer’s Home Chef prepared meals business.
“If you look at our Home Chef and products related to that, a customer can get a meal for one third to one fourth of what it costs going out,” CEO Rodney McMullen said.
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