Key insights uncovered on the current state of loyalty in grocery explain why the total food spend increase from 1991 to 2014 was 3.7% and yet U.S. food retailers only saw a sales increase of 2.2%.
NEW YORK, January 14, 2019 — Precima will share research at the National Retail Federation Big Show 2019 that highlights new drivers of behavior, preferences and loyalty in food retail, and the steps retailers can take to compete and thrive in today’s hyper-competitive market.
The session, which will include data from an IDC InfoBrief, sponsored by Precima, titled: Preparing for the future of grocery shopping: What retailers need to do, will be presented by Steve Hasen, AVP at Precima, and guest speaker Greg Girard, Program Director, World-Wide Retail Intelligent Product Merchandising & Marketing Strategies, IDC Retail Insights. Hasen and Girard will share exclusive research featuring findings from 200 retailers and thousands of shoppers on what really drives customer loyalty.
“Our research shows that maintaining a loyal shopper base is still the most effective way for grocery retailers to compete and grow sustainably,” says Hasen. “Loyalty must be earned, consistently and repeatedly. It is gained and lost across a myriad of touch points that shoppers have with retailers, so food retailers who consider shopper loyalty in every phase of the customer journey are on the best path to consolidate spending to their stores and thrive in the new grocery landscape.”
Among other insights, the research found a lack of loyalty among many grocery shoppers, with 75% of shoppers saying they only allocate about half of their household grocery expenditures to a single store. This poses a direct challenge to grocery retailers, which strive to build a large and devoted customer base.
“The study points to three distinct trends that retailers need to prepare for starting with choice, which means offering a brand that has elements of comparative advantage, whether that’s in the product selection, pricing or customer service,” explains Girard. “Next is competition, which requires companies to adjust merchandising and delivery tactics to retain customers due to emerging alternative formats that their stores weren’t originally designed for. Last is change, needed to quickly understand shopper loyalty and then act to satisfy shopper needs better and sooner than the competition.”
The session will be held in Javits Center EXPO Hall – Level 1/Stage 4, Monday January 14 at 2:15 pm.
Aside from the session, retailers are encouraged to visit Precima on the EXPO floor at NRF 2019 (Booth #601), to learn how Precima Total Store Optimization allows retailers to optimize merchandising and marketing decisions across the entire store – for all categories simultaneously, the same way customers shop the store. Recent consumer and industry research will also be available.
Note to editors: The presentation from the session will be available upon request.
Precima is a global retail strategy and analytics company that provides tailored, data-driven solutions to drive sales, boost profitability, and build customer loyalty. Leveraging deep analytics expertise, Precima helps organizations improve their competitive position across all facets of planning and operations from pricing optimization, promotional planning, assortment optimization, targeted marketing, and supplier collaboration. Precima’s head office is located in Toronto, Canada, with global offices in Den Bosch, The Netherlands, Chicago, USA, and London, UK. www.precima.com.