Through a special arrangement, presented here for discussion is a summary of a current article from the Retail TouchPoints website.
Big box and dollar store retailers are boosting sales by offering fresh, frozen and packaged foods. While this may seem like a threat to grocers, the vast majority (83 percent) of consumers still prefer to shop at traditional grocery stores, according to PwC. However, many are seeking better shopping experiences.
Nearly 60 percent of respondents said customer coupons are the best way to simplify the shopping experience, while 83 percent said they want more flexibility in how they earn and spend points via grocery loyalty programs.
As part of the report, Front Of The Line: How Grocers Can Get Ahead For The Future, the survey of more than 1,000 U.S. consumers found respondents preferred specific grocery stores based on two factors: proximity to their home (68 percent) and competitive pricing (67 percent). However, 52 percent of respondents said the in-store experience is a major feature that brings them back to a store.
To have a more compelling and relevant grocery shopping experience, 30 percent of consumers said they would like to use store-provided devices and kiosks. More than half of respondents said they'd like to integrate mobility into future shopping trips.
PwC suggested five areas in which grocers could "enable change":
- Tailor your brick-and-mortar stores: With populations expected to shift to the South and West regions of the U.S. and increasingly relocate to major cities, consider locations closer to your target segments' home and work. Think wider aisles, more parking, easy-to-reach products, and a smoother check-out process.
- Personalize your marketing strategies: Build up trust through transparency. With some segments willing to pay a premium for organic and sustainably sourced products, make sure the products you have in these categories are immediately identifiable. Add storylines about the food's origins. Focus on local foods and community, as well as sustainability.
- Empower your staff: A staff capable of offering alternative product suggestions and recipe tips that align to shoppers' lifestyles, budgets, and health goals can differentiate your store as a source for knowledge.
- Transform your technology: Consider apps that incent shoppers to check in when they visit your stores, or that help them learn more about your products.
- Reinvent your loyalty programs: Shoppers want flexibility and control in how they earn and use their loyalty reward points, such as earning and spending points inside or outside the store on things they're already purchasing.