Price matters to everyone, but ease and convenience play an even bigger role in purchase decisions. Plus, retailers should consider revamping their apps to garner more sales and use their target audience to guide in-store and online strategies.
Here are five things retailers should consider to stay on top of their grocery game.
Last year, households earning $100,000 or more made up less than 30% of sales at Walmart and discount retailers, per Brick Meets Click and Mercatus. However, inflation has driven shoppers to dollar and discount stores.
While price and discounts play a huge role in grocery purchases, ease and convenience are even more important, according to February data from Pymnts.com.
But retailers can’t just count on one or the other to bring in customers. The winning grocery experience saves customers money, time, and frustration through a variety of features like click and collect, seamless redemption of rewards, or self-checkout options.
Digital grocery shoppers are spending more on grocer websites than with third-party intermediaries like Instacart or DoorDash, per February data from Incisiv and Wynshop.
Grocer apps make up a tiny piece of the pie, presenting an opportunity for grocers to grow their share of sales. To increase adoption, grocers should consider revamping their apps with better search capabilities, a focus on discoverability, and a more seamless checkout experience.
While baby boomers are most likely to visit multiple stores to get the best prices, Gen Zers are more likely to visit multiple stores for better-quality items or to get all of their shopping done in one place, per February data from KPMG.
It’s nearly impossible to cater to the habits of all generations at the same time, so retailers should think carefully about who their target audience is and curate their products accordingly.
There’s a decent chance Gen Z isn’t browsing your shelves at all.
Brands and retailers who want to encourage product discovery among Gen Z consumers should take to digital channels like search and social media rather than trying to promote items in-store.
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
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