Grocers Push Boundaries On Digital Content With Instacart's Chatbot

As supermarkets test shoppable content and new formats with Instacart, the grocery company taps into artificial intelligence for the first time.

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It was announced Wednesday (March 1) by OpenAI, the company that created the artificial intelligence (AI) chatbot ChatGPT, that developers are now able to incorporate the bot into their products, and Instacart is among the first companies to do so.

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It was noted by the AI company that the grocery aggregator will be able to incorporate the ability for consumers to ask questions related to recipes and inspiration within its app, along with shoppable suggestions being provided in the responses. It is expected that the feature will be added "later this year."

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Using this chatbot, the chatbot will have access to 42% of men and 28% of women who purchase groceries online using a same-day delivery service such as Instacart. According to PYMNTS' study "The ConnectedEconomyTM Monthly Report: The Gender Divide," which draws on a survey of more than 2,600 consumers, the report shows that 42% of men and 28% of women do so.

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Some people have expressed concern about ChatGPT.

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Apple has delayed approval of an update to its BlueMail app that uses the technology due to concerns that it might generate content not suitable for younger users, according to Trade Algo. Moreover, a recent CNN report noted that JPMorgan Chase has restricted the use of third-party software by its global personnel because of compliance concerns regarding the use of third-party software as part of its business model. The system has also been met with mixed reviews by companies using it, according to a report in January.

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The Fresh Market Launches Shoppable Digital Magazine

The Fresh Market, a specialty grocery retailer in 22 states with 160 stores, has announced the launch of a commerce-integrated digital-only magazine, a continuation of the retailer's previous print publication, as it searches for new ways to engage its customers on the Web.

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In addition to shoppable videos, the digital content includes recipes and explanations, along with buttons to enable users to purchase the foods that are described.

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“With our new digital-only shoppable magazine, guests will be able to make both everyday and special occasions memorable through a variety of recipes, meal solutions, and fresh deals, making it the largest and most immersive magazine experience we have ever had.” Kevin Miller, chief marketing officer of the retailer, explained in a press release.

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As part of the announcement, the retailer announces that it is expanding its partnership with Firework, the video commerce solution provider, after announcing last month that it is expanding its partnership with the company. In order to drive digital sales, many leading supermarkets, including Kroger, Walmart, Amazon, and Albertsons, have leveraged the power of connected commerce to incorporate shoppable features into educational or entertainment content.

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ShopRite Launches ‘Fresh to Table’ Concept to Gain Share From Restaurants

In an effort to provide shoppers with a more affordable alternative to eating out at restaurants during these times of inflation, many grocery stores are turning to prepared meals in order to capitalize on the surge in consumers eating at home.

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For instance, ShopRite, a Wakefern subsidiary with over 300 stores spread across six East Coast states based out of New Jersey, recently opened three locations offering its new Fresh To Table concept, which offers ready-to-go meals and other grab-and-go items, according to a press release sent to PYMNTS. Some of these products are ready-to-cook, some are heat-and-eat meals, and some of them can be eaten right out of the package.

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Economic pressures have made it harder for consumers to afford restaurant dining, which has resulted in more prepared food being purchased from grocery stores. In its survey of more than 2,700 U.S. consumers conducted by PYMNTS in July, the study “Digital Economy Payments: Consumers Buy Into Food Bargains” found that 37% of consumers purchased prepared food on their most recent grocery trip, an increase of 7 points from the 30% of consumers that did so in November 2021.

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Aside from ShopRite, there are plenty of other grocers that are looking to reap the benefits of this shift. 

The grocer's Home Chef prepared meals business has proven to be very successful, Kroger said on Thursday (March 2) during a conference call with analysts discussing its fourth quarter 2022 financial results.

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CEO Rodney McMullen said that customers can get a meal for a third to a fourth of what it costs going out with Home Chef.