How Retail Tech is Enhancing CPG Sales

onsumer packaged goods (CPG) companies are no longer just competing on price and product quality, they’re competing on how well they leverage technology to connect with shoppers, optimize shelves, and streamline operations. Retail technology has become a driving force behind CPG growth, enabling brands to gain real-time insights, improve customer experiences, and boost sales.

Here’s a look at key ways retail tech is shaping the future of CPG sales.

Shoppers are increasingly buying everyday essentials online, from pantry staples to personal care products. As such, CPG businesses are investing in their digital footprints and expanding their eCommerce capabilities to increase growth and boost their customer base. With eCommerce, CPG companies can expand beyond traditional geographic limitations, increasing sales by reaching more customers with fewer barriers. Investing in efficient eCommerce fulfillment ensures customers receive orders quickly and accurately.

Goya Foods recently launched a new website to help shoppers find recipe inspiration, placing an emphasis on the mobile experience since that accounts for a majority of the brand’s web traffic. The new website offers dozens of recipes incorporating the brand’s full range of products. Added features such as optimized recipe and product tagging and shoppable store finder features allow users to discover desired recipes and products, facilitating an easy purchase whether in store or online. Goya has been working to improve its digital footprint to bolster growth and allow consumers to find an expanded selection of its products. 

Consumer packaged goods companies are making more deliberate investments in artificial intelligence, generative AI and advanced analytics. Over half of CPG businesses have developed and are applying specific GenAI use cases, with the most promising applications in customer support, marketing content and market research, according to a KPMG survey. 

Gen AI is also revolutionizing how customers can find products. By leveraging contextual search, retailers can provide more accurate and relevant search results, helping shoppers quickly discover what they are looking for. Fifty-seven percent of retail and CPG companies running generative AI in production reported improved customer experience, according to a recent Google survey. Gen AI-powered tools are automating call transcription and summarization, generating smart replies, and responding to frequent customer questions faster. 

Even as eCommerce grows, many CPG sales still happen in-store. Retailers are increasingly adopting smart shelf technology powered by advanced technologies such as sensors and computer vision. These systems can detect when products are out of stock, track shopper interactions, and provide real-time data on what’s moving. Real-time visibility into inventory status and shopping behavior can help CPG businesses to better respond to customer demands and optimize shelf space utilization.

Technology companies are creating new solutions to give companies increased visibility and actionable insights to better manage on-shelf availability and optimize merchandising. Trax recently announced the launch of its AR-powered On-Device IR, a new solution for consumer packaged goods companies to understand and respond to shelf conditions in real-time. On-Device IR collects massive amounts of proprietary data and signals at the shelf, with no interruption from Internet connectivity or obstacles, so brands can make quick and cost-effective decisions about their store-level execution.

Behind every product on the shelf is a complex supply chain. Technology solutions help streamline logistics, from automated warehouses and smart inventory management to distribution management and predictive analytics that anticipate demand fluctuations. This efficiency reduces costs, minimizes waste, and ensures products reach consumers faster. 

As supply chain disruptions continue, CPG brands are prioritizing investments in transparency and real-time data to improve collaboration and minimize inventory impacts, according to a recent study by Crisp and CGT Magazine. Data management, collaboration, and response to shifts in demand are top pain points across most CPG manufacturers. The research shows that CPGs are highly motivated to enhance supply chain partner collaboration and invest in technologies to improve agility, with 84% planning to invest in real-time dashboards and 81% in advanced analytics in 2025. 

Retail technology is a necessity for CPG brands looking to stay competitive. By embracing innovative technologies, companies can gain sharper insights into customer behavior, optimize supply chain operations, and enhance their in-store and digital offerings to provide better shopping experiences.

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