THE POST-PANDEMIC GROCERY SHOPPER
Brands must prepare for what appear to be permanent changes in traditional behavior
The COVID-19 pandemic triggered wild shifts in consumer behavior, forcing brands and retailers to adapt to drastically altered shopping preferences, supply chain upheaval, mandated changes to store operations and an economic downturn – all at once. Nine months after the pandemic hit the U.S., much of the early turmoil has subsided as retailers and shoppers reverted back to the “norms” of February 2020 (although the threat of a second pandemic wave again wreaking havoc was not out of the question as this magazine went to press).
Some of the critical changes in shopper behavior are lingering, however. While they may initially have been forced to change their shopping activity in response to safety concerns or even local-government regulations, it now seems clear that many shoppers like the new habits they’ve adopted and have no intention of returning completely to their pre-pandemic routines.
An online survey of more than 1,000 primary household grocery shoppers conducted in September by the Path to Purchase Institute examined shifts in a wide rangeof behaviors, including online shopping, alternative fulfillment, brand swapping and price sensitivity, and how those changes have evolved over the course of the pandemic. Here, we’ve compiled some of the most critical findings related to grocery shopping.
In cooperation with:
SPECIAL REPORT:
P2PI SHOPPER BEHAVIOR MONITOR
Pre-Shop Behavior Frequency, Early Pandemic vs. Now
Check home inventory
Plan household meals/menus
Shopping list (print)
Store sales flyers (digital)
Coupons (digital)
Recipe search
Coupons (print)
Store sales flyers (print)
Shopping list (digital)
Compare prices across stores
Consult others in household
Read product reviews
Consult others via social media
32%
50%
7%
11%
38%
52%
6%
4%
31%
53%
9%
7%
30%
49%
15%
7%
30%
48%
14%
9%
29%
46%
16%
9%
28%
47%
16%
9%
27%
51%
13%
10%
26%
47%
20%
7%
26%
50%
12%
11%
More Often About Same Less Often Don't Do This
22%
51%
19%
9%
21%
46%
22%
11%
17%
33%
41%
9%
Online Retailer
Dollar
Mass/Supercenter
Grocery Store
Convenience Store
Discount Grocery
Specialty/Natural Grocery
Wholesale Club
Drug Store
Home Improvement
Health & Beauty
Pet Store
Craft Store
Sporting/Outdoor
Office Supply
Electronics Store
Clothing Retailer
Brick-and-Mortar Shopping Trip Frequency by Channel, Early Pandemic vs. Now
34%
44%
23%
47%
39%
14%
30%
46%
25%
29%
51%
20%
27%
47%
26%
26%
45%
29%
23%
43%
34%
23%
44%
33%
20%
55%
26%
20%
44%
36%
19%
40%
41%
19%
51%
30%
19%
38%
43%
More Often About Same Less Often
17%
40%
43%
16%
40%
44%
16%
38%
47%
15%
38%
48%
Mass, online and grocery retailers are the store types that shoppers are shopping at more frequently during the pandemic. Walmart, Amazon and Target are the most often mentioned retailers.
SHOPPERS WERE ASKED IF THEY ARE SHOPPING ANY RETAILERS MORE OFTEN AS A RESULT OF THE PANDEMIC:
mention a retailer or store type that is Mass/
Supercenter
mention a retailer or store type that is Online
mention a retailer or store type that is Conventional Grocery
mention a retailer or store type that is Dollar
28%
23%
11%
9%
mention
17%
5%
4%
4%
22%
mention
mention
mention
mention
said that they are not shopping more frequently at any stores
SPECIFIC RETAILERS MENTIONED:
Online retailers and mass merchants were the most common channels that shoppers have started to shop during the pandemic. Walmart, Amazon and Dollar Tree were the retailers mentioned most often.
SHOPPERS WERE ASKED IF THERE ARE ANY RETAILERS THEY STARTED SHOPPING DURING THE PANDEMIC:
SPECIFIC RETAILERS MENTIONED:
mention a retailer or store type that is Online
mention a retailer or store type that is Mass
mention a retailer or store type that is Conventional Grocery
mention a retailer or store type that is Dollar
15%
10%
5%
5%
mention
mention
mention
7%
9%
2%
Change in Shopping Trips, by Fulfillment Method
14%
21%
53%
26%
13%
18%
10%
17%
10%
17%
Shopping In-Store
Buy Online for Contactless Delivery
Buy Online for In-Person Delivery
Buy Online for Curbside Pickup
Buy Online to Pick Up In-Store
Sept 2020
april 2020
Anticipated Use of Fulfillment Methods, Post-Pandemic vs. Now
Shopping In-Store
Buy Online for Contactless Delivery
Buy Online for In-Person Delivery
Buy Online to Pick Up In-Store
Buy Online for Curbside Pickup
32%
48%
2%
18%
More Often About Same Less Often Will Not Shop This Way
25%
35%
25%
15%
24%
39%
25%
11%
21%
35%
29%
14%
21%
32%
32%
14%
Adoption of Subscription Services
49%
Beauty products
Snack foods
Health/wellness
Clothing/apparel
Shaving products
Pet products
Meat/protein
Meal delivery prep
Wine delivery
Kid friendly
% SIGNING UP FOR TYPE OF SUBSCRIPTION SERVICE DURING COVID-19 PANDEMIC
Changes in Key Shopping Behaviors, Then, Now and Anticipated
Before Pandemic
Early Pandemic (April 2020)
Today-During Pandemic (September 2020)
Predicted-After Pandemic
Although extreme behaviors have abated to a significant extent, shoppers are still more like to identify themselves as planners rather than impulsive buyers.
Planner
Impulsive
22%
17%
15%
28%
17%
46%
18%
10%
10%
17%
22%
18%
14%
11%
34%
21%
16%
16%
14%
34%
Before Pandemic
In & Out
Browse
Early Pandemic (April 2020)
Today-During Pandemic (September 2020)
Predicted-After Pandemic
13%
10%
22%
33%
22%
They want to get in and out of stores faster than before and are less interested in browsing through aisles.
52%
17%
8%
9%
14%
22%
17%
19%
17%
26%
16%
13%
21%
22%
28%
Before Pandemic
Stock Up
Few Items
Early Pandemic (April 2020)
Predicted-After Pandemic
13%
15%
20%
24%
27%
And the desire to reduce the number of trips they make to the store may very well have more shoppers in permanent stock-up mode and less inclined to pop in for just a few items.
32%
19%
13%
14%
22%
19%
18%
16%
16%
32%
17%
16%
19%
16%
33%
Before Pandemic
Brand Loyal
New Brands
Early Pandemic (April 2020)
Today-During Pandemic (September 2020)
Predicted-After Pandemic
17%
17%
14%
15%
37%
However, steadfast brand loyalty does seem to have waned a bit as shoppers often had to try new brands due to out of stock issues and the desire to avoid additional trips to find their favorite brands.
14%
11%
17%
20%
39%
13%
14%
18%
15%
40%
11%
13%
16%
14%
45%
Before Pandemic
Quality
Price
Early Pandemic (April 2020)
Today-During Pandemic (September 2020)
Predicted-After Pandemic
17%
13%
18%
25%
30%
Price does seem to be winning out over quality more often than before, although not to any dramatic degree considering the impact the pandemic’s impact on the overall economy.
14%
9%
18%
27%
33%
13%
11%
22%
21%
35%
11%
11%
19%
21%
38%
Before Pandemic
Online
In-Store
Early Pandemic (April 2020)
Today-During Pandemic (September 2020)
Predicted-After Pandemic
8%
5%
16%
51%
19%
The momentum for e-commerce has abated somewhat, with shoppers moving more toward the middle between online and in-store options. It seems clear that, now that they’ve experienced the benefits of online grocery shopping, most shoppers have adopted an omnichannel approach.
21%
12%
13%
33%
21%
11%
10%
19%
29%
30%
9%
10%
20%
30%
31%
Today-During Pandemic (September 2020)
Before Pandemic
Early Pandemic (April 2020)
18%
has unquestionably advanced the adoption of innovation and technology by retailers and shoppers and contributed to a more rapid change in the evolving face of retail. Understanding the dynamic changes that retailers are embracing, prior to and because of the pandemic, is imperative as this knowledge assists CPGs in knowing what services and products are currently most important in today’s vendor, supplier and shopper relationships.
However, success doesn’t always hinge solely on executing where and what is shiny and new. It also relies on understanding how these new products and services help deliver business growth through a lens of good practices in customer business fundamentals.
Regardless of data and media sophistication, behavioral shifts among shoppers and the drive for omnichannel engagement, it is the need to drive traffic, win trips and build store preference that is the heartbeat of all retailer business strategies (including e-commerce players) and growth plans.
While the pandemic has undoubtedly created a heightened need of where and how CPG partners must react to win immediately, the research findings discussed in this article suggest that the long-term impact on shopper behavior – specifically regarding channel choice and trip type – will be less dramatic. As a matter of fact, significant shopper behavioral shifts seen in April 2020 have nearly returned to pre-pandemic levels and are not projected to change significantly when looking ahead to life after the pandemic. Further, the momentum for online shopping has somewhat abated, with shoppers moving more toward the middle in the online versus instore debate.
This does not mean shifts in channel choices or trip types can be ignored. In fact, the opportunity for manufacturers lies in understanding where the most pronounced shifts reside so they can further map and adjust their future focus. Those who plan and act now for the potential “boomerang” will be prepared to win in the “new normal” to come.
With nearly 47% of respondents claiming they shop online retailers more often today than during the early stages of the pandemic, there’s no doubt that COVID-19 has further raised the stature of online as a revenue stream. It has also caused retailers and brands to innovate with greater speed, and as a result, they’ve experienced a period of significant growth due to online buying behavior.
However, as time has revealed, that growth has slowed compared to the highs seen in April. Despite this leveling off, the importance of having ane-commerce strategy in place should remain a strategic priority for both retailers and brands. However, that requirement should be tempered and not pursued atthe expense of minimizing the opportunities that will continue to exist across all commerce channels. Consider this: In the early pandemic stages, just 26% of shoppers were visiting stores; today, more than 53% of shopping trips are made in-store, an increase of 27 points compared to April.
In fact, shoppers who claim they’re shopping more or about the same across channels indicate their online purchasing will diminish post-pandemic – although not dramatically (between 1%-2%). What’s important to understand is that online retailers have now achieved a point of relative equality among channel choice. They’re not catching up anymore but now keeping pace.
The unlock here for manufacturers is not about an all-in shift or narrowing of focus because of COVID-19’s impact on shopping behavior, but rather the
ability to adopt new strategies permitting wins across all channels including
e-commerce, while supporting customers in their omnichannel efforts.
Adaptability Is the New Advantage
Westrock
20%
In the early pandemic
stages, just
of shoppers were visiting stores; today, more than
of shopping
trips are made
in-store, an increase of 27 points compared to April.
The opportunity for manufacturers lies in understanding where the most pronounced shifts reside so they can further map and adjust their
future focus.
53%
26%
26%
12%
10%
8%
7%
6%
6%
6%
5%
4%
4%
4%
2%
Shopping list (print)
Check home inventory
Plan household meals/menus
Compare prices across stores
Coupons (print)
Coupons (digital)
Store sales flyers (print)
Shopping list (digital)
Recipe search
Consult others in household
Consult others via social media
Read product reviews
Store sales
flyers (digital)
% RANKING AS MOST IMPORTANT
17%
17%
16%
16%
16%
16%
16%
16%
13%
11%
Tried a new subscription service during the COVID-19 pandemic
By Liz Fogerty
To Learn More Click Here
In cooperation with:
Back to Top
THE 800-POUND E-COMMERCE, ONLINE BUYING GORILLA IN THE ROOM
THE COVID-19 PANDEMIC
About the author: Liz Fogerty is chief strategy officer at Edge Marketing. In the world of borderless retail, Edge is conversion obsessed. Edge creates enduring bonds between people and brands through agility, brave thinking and retail prowess.
Which of the following actions are you doing more often, less often or about the same amount compared to the early stages of the pandemic?
Please indicate whether you are shopping at the following types of stores more, less or the same amount compared to the early stages of the pandemic.
How often have you utilized the following purchase options his month and in April 2020?
Please indicate whether you will do the following types of shopping more, less or the same amount after the pandemic compared to today.