SymphonyAI Retail CPG, a division of SymphonyAI, has released global shopper research revealing significant changes in online and in-store shopper behavior, emphasizing the need for retailer agility based on real-time customer insights. The analysis, based on over 58 million shopper baskets of actual purchase data across the U.S. and Europe, indicates a rapid decline in online grocery shopping. The study found that 52% of e-commerce grocery shoppers have abandoned the online channel over the past year. Of those customers, 60% have returned to the brick-and-mortar stores, while 40% have completely stopped shopping with the retailer.
The loss of former online customers has impacted e-commerce revenue growth, with a 14% net decline in the total number of online shoppers offsetting new shopper acquisitions. However, the study reveals that the decline is not primarily driven by customers forced online during the pandemic but by those who transitioned to online shopping after the pandemic. Retailers need to understand these shifting dynamics and evolving customer needs to succeed in the online channel.
Furthermore, disappointed online shoppers who return to brick-and-mortar locations are proving to be less valuable customers, with a 16% reduction in overall spend compared to their previous online shopping habits. On the other hand, shoppers who engage in both online and in-store grocery shopping, known as omnichannel shoppers, have become vital to retailers. These shoppers, accounting for over 71% of online households, contribute to positive sales growth and offer higher basket sizes compared to strictly in-store shoppers.
The research highlights opportunities for retailers to enhance digital engagement, drive incremental growth, and foster customer loyalty. For instance, households seeking private label products online generate revenue growth of more than 10%. SymphonyAI Retail CPG will present these findings and provide recommended actions for grocers in a webinar titled “The 2023 State of Grocery E-Commerce” on July 19.