65% of Grocery Retailers Lack Real-Time Supply Chain Data

A comprehensive study of U.S. grocery and non-grocery retailers with annual revenues exceeding $500 million has laid bare the critical link between data readiness and financial performance. And it found that companies failing to effectively leverage data are significantly lagging behind their more data-savvy counterparts.

The report, “Data-Driven Advantage: How Grocery and Retail Merchants Can Accelerate Growth,” a collaboration between PYMNTS and Carat from Fiserv, surveyed 390 executives to assess their capabilities in accessing and utilizing real-time sales and other business-critical data. The findings underscore that in today’s dynamic retail landscape, the ability to collect, analyze and share data across departments is no longer optional but a fundamental requirement for sustainable growth and maintaining a competitive edge.

The report highlights significant disparities between retailers based on their “data readiness,” defined as the ability to access data that is accurate, timely, secure and in a format that supports decision-making.

Notably, data-ready grocery and non-grocery retailers reported more than five times greater revenue growth in the past year compared to those who were less prepared. This advantage is further amplified by the presence of companywide analytics teams, with grocery firms with such teams experiencing nearly double the average revenue increase of those without.

However, a significant portion of the industry struggles with data silos and a lack of dedicated analytics capabilities, hindering their ability to gain holistic insights and capitalize on market trends. Furthermore, access to real-time data, particularly concerning sales and the supply chain, remains a major challenge for a majority of retailers, despite nearly three-quarters recognizing its critical importance.

Key findings from the report illustrate the consequences of this data divide:

• More than five times the revenue growth: Data-ready grocery and non-grocery retailers reported over five times more revenue growth than their less data-ready peers, underscoring the tangible financial benefits of effective data utilization.
• Limited data sharing: More than half of retail and grocery merchants face challenges with data sharing across departments, preventing a holistic view and hindering strategic decision-making.
• Real-time data gap: Over 65% of grocery and retail merchants lack access to real-time supply chain data, even though more than 70% deem it crucial for business decisions, highlighting a significant operational blind spot.

Beyond the core findings on revenue growth and data access, the report also details the numerous negative consequences reported by retailers lacking timely and usable data, with nearly all surveyed executives (99%) experiencing issues such as errors, delays and missed business opportunities.

The lack of data readiness also impacts a retailer’s ability to innovate, expand their customer base and even manage their supply chains efficiently, leading to potential issues like excess inventory costs. Ultimately, the report emphasizes that becoming data-ready requires addressing both organizational silos and technical limitations to not only survive but thrive in an increasingly competitive market.

Article courtesy of PYMNTS.com.