The global pandemic has forever changed the grocery industry. So many changes in such a short period of time! If your head is spinning, you’re definitely not alone. Where is our industry headed now? What’s the best way to capitalize on changing times and consumer behavior? Here’s a look at some of the major trends that emerged in 2020 that have staying power in 2021 — and beyond:
Grocery pickup and delivery. There are still some skeptics in the grocery industry who wonder whether online grocery shopping activity will decline once the pandemic winds down. But research tells us that the pandemic has permanently altered some types of consumer behavior, and grocery pickup and delivery is definitely one of them, according to countless surveys and studies. Certainly, safety was the driving force behind the rise of online grocery shopping last year. But it’s the convenience and high marks, which shoppers give both pickup and delivery that continues to drive its growth. Simply put, consumers love online grocery shopping for reasons beyond social distancing and will do at least some, and in some cases all, of their shopping that way in the years to come.
Post-pandemic, 90% of e-grocery customers are expected to continue shopping online to some degree, according to a study by grocery e-commerce specialist Mercatus and research firm Incisiv. By 2025, it’s predicted that pickup and delivery will represent more than one-fifth of total U.S. grocery sales. That’s double current levels. The takeaway: Having a robust online shopping platform and marketing plan is critical.
Contactless payment options. his is another example of a trend that was accelerated by the pandemic but will certainly have enduring appeal. Like online shopping, the driving force behind the rise of contactless payments was safety, but shoppers have since become hooked on convenience. There are some significant risks with not offering your shoppers contactless payment options. A report from digital payments service provider ACI Worldwide and PYMNTS.com, for example, shows that 35% of consumers would be willing to leave their preferred grocer(s) for stores that allow them to pay in-store in a touchless manner.
The survey — which included 2,000 adult U.S. consumers, —also shows that contactless credit cards (43%) and contactless debit cards (39%) are the two most preferred touchless payment options, followed by digital wallets (30%), cards on file (25%) and QR codes (18%). At the very least, your store needs to be able to accommodate shoppers who want to use contactless credit and debit cards at checkout in the first half of the year.
The pursuit of value. Whether the global pandemic affected their household’s finances or not, shoppers are increasingly looking to get the most from their grocery budget. Nearly two-thirds of consumers reported switching purchase loyalty to less-expensive brands since the beginning of the COVID-19 pandemic. Surveys show shoppers affected by the pandemic are likely to be frugal for years to come, will be willing to try new products to save money and are perhaps less brand loyal now than any time in recent years. Being price competitive is extremely important now and in the future.
Easy meal time options. What’s for dinner? For a growing number of consumers during the last year, it’s been at the grocery store. During the pandemic, shoppers depended on grocery stores for easy-to-prepare, ready-to-cook and hot meals as demand for restaurant meals plummeted. Restaurant sales are now rebounding, but research shows that by offering the right products, your store can hold on to mealtime customers.
Keeping up with changing times can be extremely challenging. At UNFI Professional Services, we’re here to help your store adapt and prosper. Let’s talk about how we can help you position your store for success for years to come. Just e-mail us at [email protected]
