Survey says grocery has reached its digital tipping point
Has the grocery industry finally reached its long anticipated digital tipping point? A new survey report from Deloitte answers in the affirmative.
Grocery shoppers are making decisions on what they are going to buy before they get to the store and their choices are increasingly influenced by their online and mobile experiences, according to Deloitte, which found that digital’s influence has nearly doubled year-over-year. Today, 51 percent of grocery purchases are digitally-influenced.
“The majority of food and beverage purchases still happen in the store, but consumers’ online or mobile experiences impact those purchases much earlier in the shopping journey,” said Barb Renner, vice chairman, Deloitte LLP and U.S. consumer products leader.
Digital’s influence on other channels, including apparel and consumer electronics, has been well established, but its role in grocery has been less developed. According to Deloitte, digital’s influence in all retail stores has grown from 14 percent of all purchases to 56 percent today. The influence of mobile has also grown dramatically in recent years, going from five percent in 2013 to 37 percent now.
Among retail channels, purchases of consumer electronics are most influenced by digital (69 percent), followed by automotive (59 percent), home (58 percent) and apparel (56 percent).
Deloitte’s findings show significant room for grocers to improve on the digital front. Only 31 percent said that digital experiences offered by grocers makes shopping easier for them.
Grocery shoppers are using digital in various ways:
- Seventy-seven percent are using recipe websites and blogs;
- Eighty percent are using a digital device to research products from retailer and manufacturer sites;
- Twenty-nine percent are trying products based on online reviews and searching for information from blogs and social media sites along with loyalty apps.
Shoppers who use digital options (home delivery, in-store coupons, etc.) either before or after going to a store are also more likely to make purchases than consumers who do not use them.
“Consumer products companies and retailers who create those digital touchpoints have a much better shot at getting the shopper’s attention and loyalty before competitors, many of whom aren’t even in the game yet,” said Ms. Renner.
- Grocery Reaches the Digital Tipping Point With the Majority of Sales Now Influenced by Digital Along the Path to Purchase – Deloitte/Cision PR Newswire
DISCUSSION QUESTIONS: Do you agree that the grocery channel has reached a digital tipping point? How are digital interactions changing the way consumers shop for groceries? What are the most effective ways grocers can use digital touchpoints to make shopping easier?