The factors causing ambivalence among global grocery shoppers are…
Increasing choice and a proliferation of discount grocers are among the biggest threats to grocery retailers around the globe.
On average, shoppers around the world have 5.5 easily reachable grocery stores available to them, with each shopper regularly using 3.3 different stores, suggesting a willingness to spread their spend across several stores when more choice is available, according to the “2018 International Loyalty Study,” from TCC Global.
The number one factor driving store choice globally is proximity (54%), followed by “easy to get to” (48%), product selection (41%), good value offers (38%) and “I always shop there” (38%).
Despite the data and insight advantages afforded to retailers by loyalty cards, they are becoming much less effective at retaining customers. A mere 5% of shoppers would switch to another retailer if their current store withdrew their loyalty card scheme. Seven in 10 shoppers globally said they want loyalty rewards that go beyond the traditional card and foster inspiration and guidance that can enrich everyday lives. This includes inspiring healthy meals and cooking, solutions to make life easier in the kitchen, encouraging healthier eating among kids, and providing fresh ways to explore foreign cuisine.
Key findings from the report include:
• 12% of Americans have switched their main store in the last year.
• Americans have, on average 10.9 easily reachable stores, and shop in 4.7 of those, visiting 43% of stores available to them.
• Trader Joe’s is ranked as second worst in the world for convenience. However, it is ranked as one of the top five for shopping experience and caring about customers.
• Hypermarkets and supermarkets dominate the main grocery shop, accounting for 72% of main shopping trips between them.
• Discount stores are the destination for 16% of main shopping trips. They are particularly prominent in Germany and Poland where 47% and 56% of shoppers complete their main shopping trips at discounters.
• Discounters are also leading the way in converting new shoppers into advocates and loyal customers, achieving the second highest Net Promoter Scores in grocery retailing. They scored (+55) compared to the more mainstream channels of convenience (+31); hypermarkets (+46) and supermarkets (+45).
“To see discounters acquiring so many new main shoppers is impressive and an indication of how their low prices and improving propositions is really paying dividends,” said Bryan Roberts, global insights director, TCC Global. “Shoppers’ increasing willingness to spread their purchases across a number of outlets available to them will create a degree of concern for some larger established retailers. Those that successfully move from being a mere provider of goods and services to be a partner organization that can enhance the lives of customers in other ways will fare better in the long-term battle for loyalty.”
On average, shoppers around the world have 5.5 easily reachable grocery stores available to them, with each shopper regularly using 3.3 different stores, suggesting a willingness to spread their spend across several stores when more choice is available, according to the “2018 International Loyalty Study,” from TCC Global.
The number one factor driving store choice globally is proximity (54%), followed by “easy to get to” (48%), product selection (41%), good value offers (38%) and “I always shop there” (38%).
Despite the data and insight advantages afforded to retailers by loyalty cards, they are becoming much less effective at retaining customers. A mere 5% of shoppers would switch to another retailer if their current store withdrew their loyalty card scheme. Seven in 10 shoppers globally said they want loyalty rewards that go beyond the traditional card and foster inspiration and guidance that can enrich everyday lives. This includes inspiring healthy meals and cooking, solutions to make life easier in the kitchen, encouraging healthier eating among kids, and providing fresh ways to explore foreign cuisine.
Key findings from the report include:
• 12% of Americans have switched their main store in the last year.
• Americans have, on average 10.9 easily reachable stores, and shop in 4.7 of those, visiting 43% of stores available to them.
• Trader Joe’s is ranked as second worst in the world for convenience. However, it is ranked as one of the top five for shopping experience and caring about customers.
• Hypermarkets and supermarkets dominate the main grocery shop, accounting for 72% of main shopping trips between them.
• Discount stores are the destination for 16% of main shopping trips. They are particularly prominent in Germany and Poland where 47% and 56% of shoppers complete their main shopping trips at discounters.
• Discounters are also leading the way in converting new shoppers into advocates and loyal customers, achieving the second highest Net Promoter Scores in grocery retailing. They scored (+55) compared to the more mainstream channels of convenience (+31); hypermarkets (+46) and supermarkets (+45).
“To see discounters acquiring so many new main shoppers is impressive and an indication of how their low prices and improving propositions is really paying dividends,” said Bryan Roberts, global insights director, TCC Global. “Shoppers’ increasing willingness to spread their purchases across a number of outlets available to them will create a degree of concern for some larger established retailers. Those that successfully move from being a mere provider of goods and services to be a partner organization that can enhance the lives of customers in other ways will fare better in the long-term battle for loyalty.”