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Grocers seeking younger customers need to focus on technology and convenience.
According to the “Consumer Connect Q4 2019” study from retail market intelligence firm IRI, the number one factor that will attract Gen Z shoppers to a particular grocery store is technology that makes shopping there more exciting (57%). While a good assortment of prepared/easy prep meal solutions comes in a close second (56%), Gen Z also look for grocery store features including online purchase with in-store pickup (46%) and subscription services for frequently purchased items (33%).
Millennial consumers showed similar results – a leading 57% look for grocery stores with prepared/easy prep meal solutions, but high percentages also favor online purchase with in-store pickup (48%), technology that makes shopping there more exciting (47%), and subscription services for frequently purchased items (32%).
Grocers and other retailers selling CPG items should pay attention to their e-commerce programs. Study results show that while e-commerce only represents 14% of omnichannel CPG sales, it represents 63% of omnichannel CPG growth. During the 52 weeks ending Dec. 29, 2019, CPG e-commerce sales totaled $90.8 billion, up 28.5% year-over-year.
Examining what factors drive general store choice among all consumers, the study found top drivers include:
• Lowest everyday prices (94%).
• Good sale prices (94%).
• Convenient location (92%).
• Allows you to fill basic needs at lowest possible cost (92%).
• Quick and easy in-and-out (90%).
• Assortment that allows for one-stop shopping (86%).
• Strong loyalty card discount program (86%).
Other interesting results include:
• 57% of all consumers say their household financial health is good.
• 73% of all consumers say their household can easily afford needed groceries.
• 53% of all consumers say their household is making ends meet rather easily.