If 2020 was the year of upheaval for the grocery industry, 2021 has been a year of change. Consumer shopping patterns and preferences, technology enhancements, the economy—virtually every aspect of the grocery industry—all took surprising twists and turns as the global pandemic entered its second year. Here are some of the major headlines from an unprecedented year for grocers nationwide and what they mean for you and your grocery business:
A shift back to in-store shopping
As vaccination rates increased and cases and hospitalizations stemming from COVID–19 fell, consumer grocery shopping behavior shifted once again to the in-store experience. “As we look forward, our research reveals that many shoppers anticipate returning to shopping in stores for food and groceries across a variety of formats,” Brian Numainville, a principal of The Feedback Group, said in a statement this summer. “As a result, it is important for stores to provide the best possible experience to welcome food shoppers back and retain them.”
Remodels/renovations/rebuilds reach record highs
As shoppers began to do more of their grocery shopping in store this year, stores large and small made the decision to begin investments to better showcase products, expand product offerings, and make it easier to check out. With more people once again comfortable eating in restaurants, many grocery businesses also expanded their ready-to-serve, easy-to-prepare, and hot meal offerings to remain competitive and provide convenient, healthy options for their shoppers. The in-store experience remains the No. 1 factor influencing a store’s financial performance and overall success, despite the growth of online shopping, according to a recent survey by Raydiant. In this survey, 90% of consumers said they are more likely to return to a store and 61% are likely to spend more if they have a positive shopping experience in-store.
Providing an in-store experience that delights your shoppers will turn an ordinary outing into a special treat, one that they will look forward to and repeat often.
But shoppers continue to shop online for the convenience
The COVID-19 outbreak convinced shoppers nationwide to try online grocery ordering. And they liked it … in a big way. In 2020, e-commerce quickly became a popular option for shoppers trying to limit exposure to COVID-19. In 2021, shoppers began venturing out to stores to shop in person, but many continued to take advantage of grocery pickup or delivery at least some of the time for convenience, according to The Food Industry Association (FMI). In fact, about 52% of shoppers surveyed in 2020 by the FMI said they had purchased groceries online, a share that climbed to 64% this year. FMI data shows that shoppers of every generation are taking advantage of online grocery ordering options at least some of the time.
With shoppers interacting with your store in a variety of ways, a focus on the customer experience, both online or in-store, should remain a top priority for grocers in the coming year.
Even after the global pandemic winds down, consumers want contactless payments
Stores nationwide moved beyond the credit card and cash payment options to allow for touchless payment options at checkout. It’s simple: Surveys show that consumers are willing to switch where they shop for groceries so that they can use touchless payment options. According to Radyiant’s “State of Contactless Payments 2021 Report,” 57% of shoppers prefer to do business with a store that offers contactless payment options. As with online shopping, consumers initially were looking for a way to reduce exposure to COVID-19 at checkout and they were won over by convenience.
And they demand personalized/customized offers/promotions
Without personalization, you could be presenting your customers with a high share—as much as 80-90%—of items that simply aren’t relevant to them. In order to foster customer satisfaction and loyalty, shoppers want to feel like their grocery store ‘gets’ them and presents them with offers and promotions that matter most to them and their shopping habits. In a survey by PYMNTS and ACI Worldwide, 63% of shoppers say loyalty programs have a major impact on where they shop for groceries. The good news is that the technology to create an effective loyalty program—and loyal shoppers—has never been easier or more affordable.
With an effective loyalty program in place, you will better understand the wants and needs of your shoppers, retain your customers, and attract new ones as well.
How we can help
Staying on top of trends and making the right strategic investments and decisions takes real time and effort. At UNFI Professional Services, we can help you both in-store and online, providing your shoppers with a customer-focused experience that meets all of their individual needs.
Let UNFI Professional Services assist you with all of your goals for the year ahead. We offer many options for store remodels and updates, online shopping and delivery, diverse payment options, and customer loyalty programs. Let’s talk! E-mail us at PSsales@UNFI.com.
We’re exploring the trends shaping the grocery industry in a three-part blog series. Stay tuned for the second installment in this three-part blog series, “What is in store for the grocery industry in 2022?” on January 10.
We’re exploring the trends shaping the grocery industry in a three-part blog series. Stay tuned for the second installment, “What is in store for the grocery industry in 2022?” on January 10.