Digital Transformation Powered by Big Data Analytics: The Case of Retail Grocery Business

Abstract

Companies are investing in big data analytics capabilities as they look for ways to understand and innovate their business models by leveraging digital transformation. We explore this phenomenon from the perspective of retail grocery business where evolving consumer attitudes and behaviors, rapid technological advances, new competitive pressures, laser thin margins, and the COVID-19 pandemic have accelerated the pace of digital transformation. We specifically analyze the role of big data analytics capabilities of the top five grocery companies in the United States in light of their digital transformation initiatives. We find that retailers are making major investments in big data analytics capabilities to power all aspects of their digital ecosystem—the online shopping experience for the digital consumer, digital store operations, pickup and delivery mechanisms—to enhance shopping experience, customer loyalty, revenue, and ultimately profit.