Not only do grocers have to keep up with emerging technology, but they must also stay up-to-date on consumer shopping habits. A recent report found nine in 10 households do most or all of their grocery shopping in person. While online shopping options are still on the rise, it appears that the brick-and-mortar store experience is still desired by many.
Preferences for in-store grocery shopping seem to be varied based on demographics, another survey points out. 58% of Generation Z customers expect to shop more in a physical location, which is the highest percentage compared to other age groups. Boomers, for example, have the lowest intent to shop in stores at just 32%.
The insights come as industry professionals invest more in millennial and Gen Z consumer experiences. Large retailers are exploring shoppable augmented reality (AR) content on apps like Snapchat. The “Snap Scan & Shop” lens would let Snapchat users scan a food item in a refrigerator or pantry with a smartphone camera to generate a list of recipes with product recommendations. Experts predict millennial and Gen Z consumers will make up 62% of global social commerce spending within three years.
While this is an exciting and convenient way to shop, key data suggests Gen Z shoppers care more about prices when purchasing groceries than convenience. Of those surveyed, 80% said price is the most critical factor. This means more Gen Z shoppers are willing to put in the effort to find lower-priced items and they believe this is easier to do in person compared to online.
Grocers have the opportunity to cater to Gen Z’s needs through rewards and promotions. 83% of those surveyed said added rewards and surprises inspire greater store loyalty and 82% said when rewards come paired with a special offer it can encourage them to spend the reward. Since data suggests Gen Z shoppers are less loyal to particular brands, these incentives are crucial to gaining returning customers.
Beyond price and savings, referrals are the number one way to gain loyal Gen Z customers. 68% of respondents are willing to refer a friend, and 41% said they would refer a friend to receive a reward. This makes sense as more stores are competing to gain loyal customers as grocery prices continue to rise. The key takeaway for retailers is to offer incentives that shoppers can use directly in-store and online.
Without smart technology, your brick-and-mortar store is at risk of falling flat. Don’t get lost behind your competitors. Use STCR’s omnichannel solutions to make your store more shopper-friendly while also streamlining front and back-end operations. Request a demo today to get started!
