Aaaaarrrrggghhh! This has NOTHING to do with loyalty! Why do we keep clinging to that hope? It’s over. Loyalty won’t be back. Red thumbs won’t change that sad reality.

You can’t research a whole bunch of reasons why people shop at different stores and then call it loyalty. It all gets down to cost-benefit analysis. Recently my wife laid out where she was going shopping — Store A because they had ground beef cheap and the ice cream bars were on sale; Store B because that’s the only place that has the sharp cheddar she likes; Store C for produce because it was near where she was going to get her hair cut. Loyalty in action? Absolutely not. Did the benefits outweigh the cost of travel, time etc.? Apparently so.

Next week it will be Stores D through G.

It makes total sense. Our relationship with grocery stores is not based on the monogamous vows of marriage!

We use and like different stores for different reasons. And have different needs on different occasions, which necessitates the use of multiple stores.

This underlines two things. First, the need for grocers to develop points of difference. Second, that it’s very difficult for any retailer to be all things to all people!

Agree with all that maintain that contemporary shopper choice is no longer about loyalty, but rather about being in better position than a competitor to solve a shopper’s problems or serve their needs on a particular trip.

To address the question as to how retailers can leverage this behavior, I believe it begins with understanding what a particular retailer is positioned to do best. Some are conveniently located or more efficiently organized to serve the time poor, less price sensitive shopper, while others on the other end of the spectrum do a better job of providing better prices, albeit less conveniently offered. From there it is a matter of commitment on the retailer’s part to be the best at whatever viable niche they have determined to be theirs. As with all things in retail, owning a niche is easier said than done, but expecting shoppers to be loyal for any significant length of time is yesterday’s thinking.

I’ve long struggled with the disconnect between emotional “loyalty” and repeat purchase behavior, which can sometimes, but not always, coexist in the same shoppers. If we accept the term for argument’s sake, we can more easily consider some of the points raised by this research.
It is certainly possible for one household to be simultaneously “loyal” to Safeway, TraderJoe’s, Costco and Starbucks (for example), based on each channel’s ability to satisfy a portion of pantry needs or trip missions. Each of those retailers can only view a fraction of the household’s entire purchase behavior, which can make it challenging to understand and respond their preferences.
Those fragmented households may also fall into demographic clusters – life stage, economic, etc. – that may also influence their grocery shopping habits.
These are just some of the reasons why assessing shopper relationships based solely on levels of spending is insufficient in the modern marketplace. Gaining just an incremental 1% of a shopper’s wallet may be the definition of victory in this context.

While we all work in the “retail world,” it’s important to think about this from the shopper perspective. They don’t think about “loyalty.” They are not “fragmenting their loyalty,” the fact is grocery retailers are not meeting their needs. And not a single grocer likely can. So, shoppers seek different things from different retailers. This could mean a shopper believes “Publix has great produce,” “Kroger has lower prices” and “I stock up on a few things at Costco, including prescriptions.” Carving out a niche is important to attract shoppers and be known for something.

Loyalty means very different things to consumers when it comes to grocery, and like so many other segments, convenience is king. Whether in the form of product assortment, price, quality, or delivery method, they are all factors in every grocery shoppers decision on where to buy. Grocers need to rethink what loyalty means and identify new ways to drive traffic. What tactics work will, of course, vary by demographic and age groups. Younger shoppers may want better delivery options and mobile order and pickup. Other shoppers may want personalized discount offers. The key is not to rely on just one or two tactics and provide a mix — that will keep shoppers coming back! And don’t forget to think about the quality of the experience in-store once you get those shoppers to come in! One bad experience will certainly turn that customer into a non-loyal customer!