Augmented reality (AR) is an exciting technology that superimposes digital elements onto the real world through your phone or tablet screen. Retail and grocery are industries where we’re starting to see serious AR innovation. Major chains are testing and deploying augmented reality apps and capabilities with some promising early results.
“AR has the potential to profoundly transform the retail experience in the years ahead,” explains digital commerce expert Neil Saunders. “Retailers should be paying close attention to AR developments and have a strategy in place to take advantage of this tech.”
AR Makes Finding Products a Breeze
In-store wayfinding apps like the one Marks & Spencer (M&S) introduced in 2022 called List & Go leverage AR technology to guide shoppers efficiently to the items they want to purchase. As Richard Price, M&S’ Food Technology director put it, “List & Go uses marker-based AR tech to display on-screen walking directions that lead customers to the products they’ve listed.”
Benefits of these AR wayfinding services include:
- Cutting down on wasted hunting time in stores
- Ensuring customers can swiftly locate the products they need
- Potentially reduced cart abandonment
“If you can’t find an item, you may well leave the store to try elsewhere,” Saunders points out. “AR navigation tools help ensure shoppers find what they came for.”
Seeing Discounts Come to Life
Some grocery chains are starting to test augmented reality voucher redemption systems that animate discounts and promotions right on your phone screen. Here’s how they work according to developers:
“Customers simply scan product barcodes to visualise connected promotions through an AR overlay. They can then redeem mobile coupons on the spot.”
The interactive and visual nature of these AR discounts aims to boost engagement and make choosing offers more fun.
Early data also indicates the concept is effective. For example, one AR voucher rollout saw over 80,000 scans and 40,000 taps from shoppers in a short period. Additionally, 81% of users came back to engage with the system multiple times.
Bringing Packaging to Life
Augmented reality also represents an intriguing way for grocery products to break free of packaging limitations. Shoppers can scan codes then access a world of multimedia content explaining a food or beverage item’s characteristics and background.
“AR unlocks an additional digital dimension to share details like sourcing info, sustainability facts, serving suggestions, and recipes,” remarks retail design professional Amanda Jordan. “This brings products to life while educating customers.”
Previewing Products in AR
Augmented reality allows consumers to visualize products in their own living spaces prior to purchase. For example, apps from brands like IKEA and Amazon enable you to place digital renderings of furniture and appliances in your home. You can check if that couch or fridge fits with your décor before hitting buy.
Retail analytics firm DataWeave found over 60% of shoppers want VR and AR tools for assessing products. “Our surveys show clear demand for preview and try-on capabilities,” notes DataWeave’s Maya Singhal.
AR also facilitates virtual clothing try-ons. From shoes to jewelry and accessories, AR gives shoppers confidence their style choices will suit them.
As online grocery shopping accelerates, using AR to showcase products remains severely underutilized according to industry publications. More grocers may look to leverage these engaging visualization options.
AR Ads Capture Attention
Augmented reality brings marketing campaigns to life in memorable ways. For example, Google’s AR “Swirl” ads embed interactive 3D product models.
Analysts have called these AR ads uniquely effective for consumer engagement. For instance, AR display ads for UK automaker MG Motor saw:
- 8 times higher interaction rates
- 70% viewability
- Average viewing time of over 75 seconds
Grocery brands like supermarkets can similarly adopt AR display ads to highlight new items and seasonal deals.
Fun face filters tied to AR-enhanced promotions also gain traction on social media. One animated Instagram effect created for a retailer garnered 50,000+ views quickly through viral sharing.
Is AR the Future of Shopping?
Augmented reality still lies early on the adoption curve, but shows enormous promise to reshape grocery retail. Surveys indicate high consumer demand for AR-enabled shopping tools. Plus, early rollouts from major chains are proving successful.
“Between promising consumer reception, lifting tech barriers, and measurable sales gains, AR likely becomes an essential retail pillar,” predicts tech analyst Thomas Howe.
While AR shopping remains in its infancy, grocers should absolutely have these immersive tech innovations on their radar. Smart retailers will run AR trials today to prepare for the future.
Conclusion
Augmented reality delivers interactive product experiences blending the digital and physical. As AR capabilities grow more advanced and mainstream, leading grocery retailers must craft strategies to take advantage for competitive differentiation.
Though still evolving, AR tech like wayfinding apps, virtual try-ons, and augmented packaging are already demonstrating value. The companies moving fastest to build out robust AR resources will gain an edge.
“AR represents a huge opportunity for grocery chains ready to embrace it,” concludes industry thought leader Brittany Walker. “The technology can make shopping more seamless while forging deeper retail connections.”
With smart implementation, augmented reality may quickly transition from novelty to necessity across retail. The time is now for retailers to explore and invest in AR innovations.
FAQs
Is AR technology expensive for retailers to implement?
For major chains, the cost is generally not prohibitive thanks to substantial budgets. Plus as AR matures, options are becoming more affordable for smaller retailers as well. “We see expenses dropping quickly as developer tools progress,” highlights tech firm Decoded CEO Maria Sanchez. “Soon AR integration will fit most budgets.”
Are retailers seeing good returns on investment from augmented reality campaigns?
Early test cases certainly seem promising. For example, the supermarket chain Lidl achieved ROIs exceeding 200% on multiple AR initiatives like product sampling apps. E-commerce experiments with AR visualizations are also paying off handsomely. “We have case studies showing AR driving double-digit sales lifts consistently,” says retail marketer Damien Kent.
Is specialized hardware required to shop or market using augmented reality?
In most situations, consumer smart devices like mobile phones can handle AR perfectly fine. “Modern computing power means no specialty gear needed,” explains Sanchez. “Standard smartphones and tablets handle advanced AR shopping and marketing with no issue.”
Are everyday mainstream shoppers embracing this tech or is it still too gimmicky?
Market research signals high consumer demand for AR shopping capabilities. Over two-thirds of shoppers say they would welcome AR tools for assessing products visually. Plus AR marketing also captures more attention. “Seeing counts of millions of AR engagements shows the tech is hitting the mainstream,” remarks Kent.
Could AR eventually replace physical grocery stores altogether?
While advanced future AR tech may one day simulate brick-and-mortar grocers via virtual reality, we aren’t nearly there yet. However, AR can provide some digital convenience while nicely complementing real-world shopping for today. “Think of augmented reality tech as enhancing grocery retail rather than replacing it currently,” advises retail futurist Jeanette Williams. “It adds unique value.”