TRENDS TO FOCUS ON

CONDUCTING THIS IN-STORE SHOPPING RESEARCH AGAIN ALLOWS US TO CORRELATE 2022 AND 2023 RESULTS.

BY DAN SABANOSH

Great Northern Instore is again very pleased to partner with the Path to Purchase Institute on this “Examining the InStore Shopping Experience” research to better understand shopping behaviors as the landscape continues to adjust post-pandemic and in times of economic uncertainty. This year’s survey allowed us to see how some trends are changing, since we were able to correlate answers with 2022 data.

The Overall Situation

Shoppers are feeling that the pandemic is behind us, with 78% responding that COVID-19 or other global illnesses will stay the same or get better. But, they are concerned about the economy. Just over half of respondents (51%) felt inflation would get worse in the next six months. Nearly half of respondents felt the overall U.S. economy and gas prices would get worse in the next six months. This dynamic backdrop of an evolving landscape in the U.S. sets the stage for the rest of the survey findings.

Trip Frequencies

We have been tracking a continued return to the store for key categories as the pandemic recedes. The results show those trends continuing. The grocery and mass retail channels are showing increased trip frequency. Dollar stores are also showing a slight increase. Some channels, like office supply, consumer electronics and sporting goods stores are experiencing a reduction in trip frequency.

Interestingly, it is younger shoppers (Gen Z and Millennials) who are showing an increase in trips. Furthermore, shoppers with higher income brackets ($100,000-plus per year) are showing greater increases in store trips.

Particular to stock-up trips, the time spent in-store continues to decrease. However, certain segments of respondents are spending more time in the store during the stock-up trip: Gen Z, Millennial, Black and high-income bracket shoppers. Overall, shoppers are buying more items on each stock-up trip.

The takeaway for brands is that it is critical to stand out in-store to drive incremental or impulse purchase.

In-Store Shopping

The main reasons people want to go to the store are consistent with 2022. The top reason people shop a physical store is to be able to see and interact with the products they are buying. Yes, shipping costs are also a concern. Shoppers also like the immediacy of the purchase and instant gratification that buying an item in-store provides.

What is very interesting is that younger shoppers (Gen Zers and Millennials) also feel the store offers a wider selection as well as inspiration and the discovery of new products. Merchandising must build on and take advantage of these reasons, ensuring strong communication and inspiration to younger shoppers.

The main pain point for shoppers is products being out of stock. In a similar vein, the No. 2 issue respondents reported is not being able to find what they are looking for. Physical retail needs to be easy to navigate and must have products available.

Impulse

The physical store is critical for driving spontaneous purchases. Nearly half of respondents (45%) said they would make an impulse purchase most or every time at a physical store. Only 25% of respondents exhibit the same behavior online. Not surprisingly, sales are the No. 1 reason for the impulse buy. Interestingly, Gen Z and Millennial shoppers also highlight three other reasons: if the store was out of their planned item, if the product packaging was attractive and if the product was on display.

Making sure your product stands out is critical to being noticed and bought.

About

The

Author: Dan Sabanosh is director of shopper marketing for Great Northern Instore, a leading designer and manufacturer of merchandising solutions, where he helps clients be more insightful when developing their retail programs. Before joining Great Northern, Sabanosh worked for Colgate-Palmolive in both shopper marketing and brand management roles.

Spontaneous Purchase Drivers

Product was on sale or had a special offer

The store was out of my usual product, so I picked up something else

Product packaging was attractive/caught my attention

A display at the end of the aisle (endcap)

Product was advertised in the store flyer/weekly ad

Product was on display somewhere else in the store besides the usual location

Shelf sign caught my attention

I was shopping with my/a child who wanted the product

Sampled the product or saw a demonstration in the store

Sign in the store (other than at the shelf) or sticker on the floor advertised the product

Q. Think about times you have recently made an unplanned or spontaneous purchase while shopping in the store. What influenced you to do so?

When it comes to the influence of digital channels (ads on a smart TV, in the metaverse, in a livestream event and social media) on consumer behavior, respondents said they are most likely to shop through social media in the next six months. However, over half said they are unlikely to shop across any digital channels in the future.

Regarding future spending, most respondents said their spending will remain the same or slightly increase across all categories. They anticipate shopping more often for groceries, cannabis, personal care items and pet care. Office supplies, electronics, home decor, apparel and sporting goods are categories noted for less spending.

As brands and retailers look to meet and exceed customer expectations, it is important to note the issues weighing on consumers’ minds. Shoppers are most optimistic about the impact of COVID-19 and other global illnesses as well as the state of employment/wages. However, respondents believe the U.S. economy (47%), gas prices (47%) and inflation (51%) will get worse over the next six months. Forty-three percent of shoppers feel optimistic about the U.S. economy, with Gen Z and Millennials having a higher degree of optimism.

As the world continues to change, shopper feedback from 2022 and 2023 demonstrates some habits are staying the same. Can brands and retailers keep consumers engaged and shopping at physical retail? Can they innovate and reduce shopper pain points? Only time will tell, so stay tuned: our 2024 survey will have more answers and insights.

Most Attention-Grabbing Displays In-Store

Product displays at the end of the aisle

Large displays of products set at the front of the store

Temporary/seasonal displays

Displays in the walkways of the larger areas of the store

Displays near checkout

Displays in the aisles that are not part of the regular shelf

Special signs for specific products hanging from the shelf

Q. When you are shopping inside a physical store, which types of displays do you tend to notice?

Reasons for Cutting Back on Private-Label Purchases

Prices/rising costs

Quality

Cutting back on spending in general Change of shopping habits/don’t need

Prefer name brands/other brands

Out of stock/not available

Inflation/budget

Don’t like private label/don’t usually buy Selection/variety

31% 13% 13% 11% 10% 9% 6% 5% 1% <1%

Q. Why have you cut back or stopped purchasing private label or store brands at some stores compared to a year ago? [Open ended]

Loyalty to Particular Private Labels

Q. Are there any particular store-brand/private-label items that you are loyal to and consistently purchase? Please tell us about those item(s) and where you purchase them. [Open ended]

Likelihood to Shop in Specific Digital Channels

Q. How likely are you to shop in each of the following ways over the next six months?

Q. Thinking back to your general shopping preferences, approximately what percentage of all of your purchases overall do you do in a physical store versus online?

Q. And when you make purchases online, how often do you use curbside pickup, in-store pickup or delivery services?

• Reasons for Shopping In-Store, by Category • Frequency of Purchasing Private Label Products, by Store Type

• Reasons for Purchasing Private Label Products, by Store Type • Online Order Fulfillment, by Store Type • Purchasing Additional Items When Picking Up Order • Seeking Out Direct-to-Consumer Brands

Q. In the next six months, do you think the impact of each of the following is going to …?