Livonia-based Valassis, a media solutions provider, today released insights on how grocery store owners can keep up-to-date in an increasingly digital market, where shoppers have more options than ever.
Following Amazon’s acquisition of Whole Foods and the expansion of click-and-collect shopping models, the grocery store industry is becoming more competitive.
“The grocery industry is certainly not exempt from the digital disruption faced by other industries as marketers look to win consumers’ attention and balance e-commerce and brick-and-mortar trips,” says Curtis Tingle, chief marketing officer of Valassis. “To be successful, grocers must cater to what their customers want – and that’s value. Marketers need to put consumers first as they adapt to rapidly changing consumer buying behaviors, whether it’s online or in-store.”
Valassis makes the following recommendations to grocers who want to stay ahead of the competition:
- Consumers want value: This includes products, customer service, convenience of pickup (online ordering and curbside delivery), and savings enabling grocers to compete on a number of levels. A store can offset expensive goods with a unique shopping experience or other added convenience.
- Digital and brick-and-mortar commerce must coexist: The brands that survive will be those that analyze consumer needs to create successful integrated strategies. Shoppers want to access in-store mobile offerings through platforms like RetailMeNot, but also want print coupons at home to plan their shopping trips and easily redeem savings at checkout.
- Deals must be available across channels: Coupons are the number one influencer of grocery purchases overall, according to research from Prosper Insights and Analytics. Also, Valassis research indicates half of value-seeking consumers would be more likely to shop for groceries online if they could use more coupons, with 66 percent of millennials agreeing. Shoppers are sending a clear message: coupons – both print and digital – are highly desired.
- Circulars influence grocery planning: Shoppers consume more media today while deciding what to buy, how to save, and where to shop. Fifty-six percent of shoppers review the traditional print circular at home as their top money-saving measure. Additionally, 31 percent review the circular in the store and 26 percent digitally. While the circular is widely used today, what is promoted will likely change based on the 2017 Advertising & Promotional Practices Among U.S. Grocery Retailers. Future versions will feature more perimeter categories, private brands, and deli/fresh prepared food.
More information about the 2017 Advertising & Promotional Practices Among U.S. Grocery Retailers can be found here.