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Insight of the Day: Consumers Switch to Cheaper Retailers but Hesitant to Leave Grocers

Consumers are becoming increasingly price-conscious, willing to switch to cheaper retailers to save money. However, when it comes to grocery shopping, they exhibit a different behavior. According to PYMNTS Intelligence research, here's the breakdown:

1. Retail Products:

- 52% of consumers have switched to merchants with lower prices when buying retail products.

2. Grocery Products:

- In contrast, only 44% of shoppers have done the same for buying groceries.

3. Factors Influencing Grocery Shopping:

- Consumers consider various factors when purchasing groceries.

- Proximity plays a significant role, with one in three grocery shoppers citing it as the most influential factor when selecting a merchant.

4. Grocers' Loyalty Efforts:

- Kroger, an industry giant, is actively investing in digital transformation.

- Their focus is on enhancing both customer and associate experiences.

- Initiatives include:

- Delivering fresh products.

- Improving brand quality.

- Enhancing the digital experience.

- Offering loyalty discounts, fuel rewards, and personalized offers.

- By leveraging data sciences and AI, Kroger aims to serve tailored offers to customers at the right time.

5. Demand for Promotional Offers:

- Personalized card-linked offers are highly sought after in grocery shopping.

- Consumers value savings and incentives provided by grocers.

In summary, while consumers may explore cheaper options for retail products, their loyalty to grocers remains strong, especially when factors like proximity and personalized offers come into play

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