Aristotelis Panteliadis: The food retail market is changing rapidly - "Purely online" is a thing of the past

New consumer demands are leading to technological investments, "purely online" is a thing of the past, and those who do not invest in technology, people and flexibility will simply be left behind, said the Chairman & CEO at METRO AEBE, Aristotelis Panteliadis.

He also warned of significant changes brought about by the Gen Z and Gen A generations in a complex world full of complex regulations.

Referring to the food retail market, Panteliadis stated that it is changing rapidly, but "we can now, with sufficient accuracy, record the main trends taking shape in Europe."

As he said from the stage of the 22nd Cyprus Grocery Retail Conference presented by Alphamega Hypermarkets, the market is facing structural changes: The climate crisis will increasingly cause crises in the production of basic goods, packaging - as we know it - will be limited, while overly complex regulations and European bureaucracy act as a brake on innovation.

"Businesses are like ships and if you push them too hard, they change course and homeland," he stressed, expressing his concern about the lack of risk and entrepreneurial courage in Europe, in contrast to the old spirit of the Far West.

He placed particular emphasis on the next generations of workers, Gen Z and Gen A, who not only demand better conditions, but also take them for granted: Higher salaries, flexibility, bonuses, work-life balance, and even gyms and hair salons in the workplace.

New demands are inevitably driving investments in technology. From robots to advanced AI systems, the industry is turning to automation as a response to the difficulty of finding and retaining human resources.

Controlled immigration remains necessary, but instant translation technology promises to overcome language barriers and more easily integrate new workers in countries where basic English skills are not taken for granted, he argues.

Panteliadis also focuses his attention on consumer behavior. The shift towards ready-made and semi-prepared foods is clear, as is the superiority of platforms over the retailers' own e-shops.

Charging for services such as picking or delivery will now be based on actual cost, as customers learn to pay for what they ask for.

Technology, he pointed out, is first making its way into the back office, then into logistics, and then into customer contact. "Pure online" is now a thing of the past, as even pure online players are turning to physical stores.

Finally, he warned that in the next recession, unemployment will be more visible due to automation, while the next generation of artificial intelligence - Generative AI - will far surpass today's tools, making today's chatbots seem "naive."

Concluding his intervention, Aristotelis Panteliadis sent a clear message to the industry: The future does not wait for anyone and those who do not invest in technology, people and flexibility will simply be left behind.

(Source: InBusinessNews)