Where are grocers failing on in-store experience?


Doug Madenberg, Principal
Through a special arrangement, what follows is a summary of two articles from the blog of The Retail Feedback Group (RFG).
RFG’s annual “Supermarket Experience Study” found four areas where supermarkets are generally falling short of delivering compelling experiences in the store.
Demonstrating food expertise: This should be the ultimate differentiator for physical stores. It’s one thing to view items neatly organized on a website or app, say lemons or oranges. But it’s another to experience a beautiful citrus display in a store with the colors and scents, perhaps with whimsical signage introducing a Meyer lemon or a cara cara orange. Even better — having an engaged produce associate nearby to offer suggestions for use and preparation. Yet, our survey found 34 percent of shoppers don’t agree that their store has the expertise to help them select and prepare food. Staff availability was also the lowest-rated service attribute in our survey. Furthermore, only 39 percent noticed available staff anywhere in the store for sampling. That is just too low for a store that sells food!
Assortments missing several trending categories: While relatively satisfied with overall selection, consumers rated variety significantly lower in specific high-demand and differentiating categories, i.e., local, international/ethnic, natural/organic, allergen-free. Demand algorithms and item movement models should be supplemented with more input from shoppers in local markets to see how stores can better meet their needs.
Stores are still geared for the wrong time of day: Traditional supermarket shoppers are quite satisfied during the late morning hours, significantly more so than Aldi or Walmart shoppers. Yet, they are considerably less satisfied during peak time — 3PM and 7PM — the time when Aldi and Walmart outperform other day parts. Supermarkets need to figure out how to be at their best when in-store traffic is the highest.
Shoppers leaving without pleasant human contact: Over half (53 percent) of survey respondents were highly satisfied with their visit if they had a pleasant interaction, versus only 30 percent highly satisfied without one. Yet 71 percent did not have any pleasant human interaction on their visit. Almost three out of ten did not have a single interaction. Humans are social animals. We naturally seek company and community. So, it’s not a stretch to imagine that the physical stores that do survive and thrive will be the ones offering at least some pleasant social interaction with their customers.
- Delivering a Compelling In-Store Experience: Four Places Where Supermarkets are Missing the Boat – The Retail Feedback Group Blog
- Retail Feedback Group Study Finds Shoppers Continue To Score Supermarkets Highest In Quality And Variety; Aldi A Growing Competitive Force – The Retail Feedback Group
DISCUSSION QUESTIONS: Where do you see grocers falling most short on the in-store experience? Which of the shortfalls cited in the article is hardest to overcome?
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18 Comments on "Where are grocers failing on in-store experience?"
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Managing Director, GlobalData
In my personal opinion, I think many U.S. grocers leave a lot to be desired. The whole store experience feels tired and dated. There is too much product, usually merchandised in the most uninspiring of ways. There are exceptions – Publix, Wegmans, Market 32 by Price Chopper, AJ’s, and so on. But the big boys are pretty shabby in their approach! Food and grocery is a very visual category, but I am not seeing many capitalize on that.
Director, Retail Market Insights, Aptos
Managing Partner, Advanced Simulations
The problem with thinking that grocery shopping should be any experience at all is that we have so much data that says shoppers aren’t interested in having an experience. How many articles, how many surveys, do we see that say shoppers don’t have time to shop or much interest in shopping (hence the reason for BOPIS or delivery) and why self-checkout is so important? Shoppers choose the level of engagement they want – and not everyone in Connecticut chooses Stew Leonards. Better research should be able to segment the market into those who want varying levels of engagement. Then you turn around and decide who you want to market to, remembering that creating an experience costs the shopper.
President, founder and CEO Interactive Edge
Of course this comes down to money, especially for skilled and informed help. Help is not only hard to find in the grocery store, but chances are when you do find someone, they don’t know the answer to the question being asked. “Not my department” is the usual and terrible answer. Yes, there are numerous opportunities in the store for tastings, classes, etc., but if you can’t cover the very basic items like having at least a few knowledgeable, helpful personnel in the store to help customers, you’ve already lost your shot.
Principal, Retailing In Focus LLC
As shoppers’ tastes have broadened and their interest in cooking and foodie culture has grown, traditional grocers have chased these trends through expanded assortments. This makes navigating through a typical store more challenging than ever.
Some tough editing decisions — weeding out entire categories, not just individual items or brands — are long overdue. Time to “do less better,” not just in small-format stores like Aldi or Trader Joe’s.
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
Are we asking too much from the supermarket? After all, it is a grocery store where people come in to mostly buy stuff and get out. Everybody can’t be Wegmans, where people go not just to buy stuff and get out. And every grocer shouldn’t want to be a Wegmans.
If the grocer wants to get better, make it easier and more convenient to get in and out.
Co-founder, CART
Getting in and out isn’t necessarily mutually exclusive with positive human contact or visually appealing displays. I do think that speed is a necessary condition for most stores and not every retailer needs to be a Wegmans. But there’s strong competition in some markets and coming soon to others that necessitates grocers take a step to compete.
Professor, International Business, Guizhou University of Finance & Economics and University of Sanya, China.
I don’t disagree. Certainly, the ultimate in and out is a convenience store. And human contact is nice, but as I have written before, I have observed many times that shoppers have picked self check-out over manned lanes, even when the manned lanes had no line.
Principal, KIZER & BENDER Speaking
Global Retail & CPG Sales Strategist, IBM
The last, best opportunity for competitive differentiation is, in fact, the area where grocers score the worst in customer satisfaction. Is there a mystery here?
Professor of Food Marketing, Haub School of Business, Saint Joseph's University
Assortments reflecting trending categories is a difficult barrier to overcome. Potentially, the easiest is interacting with humans. Although this reflects hiring, training, etc. which takes time, resources and a commitment. This should be the ante for every retailer.
Chairman Emeritus, Relex Solutions
Principal, Mark Heckman Consulting
EVP Thought Leadership, Marketing, WD Partners
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
When it comes to grocery shopping, I don’t think consumers are overly demanding. We all want a convenient and friendly shopping experience – the table stakes for grocers. Any thing above that is gravy.
Most grocers are falling down by continuing to cut staff. When I visit most grocery stores, I am not greeted by any of the staff I run across and, oftentimes, if I need help I can’t find anyone to ask.
A grocer that stands out as providing a great experience is Trader Joe’s. Everyone is super friendly and they make every shopping experience fun. I can usually find someone to offer assistance when needed, and even when the stores are extremely busy, the checkout seems to be efficient.
Editor-in-Chief, CPGmatters
The area of human contact may be the most important of all. People respond to pleasant, well-informed store associates, be they clerks, sampling folks, customer service people, cashiers, or others. Such contact makes for a friendly and pleasant shopping experience. Ironically, grocers are moving away from human contact with their interest in and testing of cashier-less stores, robots in the aisles, robot brand ambassadors, more self-service kiosks, and who knows what other techno-nonsense to be unveiled in the future. When you lose the human touch, you lose the shopper.
CEO, The Customer Service Rainmaker, Rainmaker Solutions
Let’s try this as an off the wall experiment. Taking a page from the Walmart book, recently edited. Walmart has/used to have a greeter welcoming you as you enter and leave the store. Costco and other warehouse stores have it, but for different reasons.
Let’s create a goodwill ambassador position. A person walking the store greeting customers and asking if they can assist them in any way. (Not the clerk filling the shelf. That person does not want to be interrupted and is quick to answer a question possibly not even looking at you.) My vision is an employee strictly there as a roamer interacting with the customer. Any added thoughts?
Vice President - Industry sectors , Capgemini
Though I have practiced globally, I shop in India and at least from a local perspective, people still prefer the traditional mom and pop shops. Customers like to be addressed with a “namaste” and maybe even a polite enquiry about their health and that of their family. Sale at the marked prices is the norm (in grocery not when you buy vegetables from a street vendor) and customers happily pay this price because of the perceived personal touch. Imagine a supermarket in the US charging full price for anything (one only needs to look at the Saturday and the Sunday newspapers to realize how much discounting and couponing have become norm rather than an exception).