Valassis Research: Omnichannel Grocery Shoppers Spur E-commerce Transformation

Published Wednesday, Jul 31, 2019



Valassis Research: Omnichannel Grocery Shoppers Spur E-commerce Transformation
32% of Consumers Have Made an Online Grocery Purchase Within the Past Year

LIVONIA, Mich., July 31, 2019: Valassis, the leader in marketing technology and consumer engagement, today released findings from its newest research report, “Unpacking the Dynamic Online Shopper: Grocery & Retail,” highlighting modern grocery consumers’ behaviors and habits, as well as ways in which brands and retailers can attract them.

According to FMI and Nielsen, annual online grocery spend is expected to hit $100 billion by 2022 – or $850 per U.S. household – and 70% of consumers may be routinely buying consumer packaged goods (CPG) online in five to seven years. With the food and grocery industries following a similar e-commerce path as traditional retail  such as apparel and electronics – retailers and brands must adapt to changing shopper preferences, which prominently include the desire for an omnichannel experience. Keep in mind, Valassis research indicated that currently 72% of consumers who shop for groceries online say most of their purchases are still made in-store, but they don’t confine themselves to one online approach. In fact, more than one-third of online grocery shoppers use multiple methods.

According to Valassis research, in terms of online grocery shopping, 32% of consumers have done so in the past year, (rising to 48% among Amazon Prime members) and they’re leveraging a variety of ways to grab these items including store pickup and delivery. From a demographic standpoint, nearly half of consumers (48%) living in an urban area have ordered groceries online, while 25% and 19% of respondents living in suburban or rural regions have done so, respectively. 

“Grocery shopping has often been viewed as a chore, meaning consumers will spend hours planning lists and meals, clipping coupons and actually purchasing items. However, retailers and brands are working quickly to improve the experience and make the process more streamlined through e-commerce optimization,” said Julie Companey, director of grocery marketing, Valassis. “Those who create the right omnichannel promotional campaigns can gain a leg up and engage consumers while they are in the planning phase.”

When planning their online orders, consumers turn to both online and offline channels. Among online grocery shoppers, 40% look at online coupons from the store; 33% read print store circulars at home; and another 33% leverage email deals from stores and/or delivery services. Additionally, grocery shoppers are creatures of habit, with 33% selecting exact items from past online shopping lists. This number rises to 38% among those who leverage delivery services, but they can be influenced to buy an impulse item.

Related takeaways from Valassis’ report include:

  • Planned and impulse purchases are driven by omnichannel and personalized advertisements:
    • After seeing an advertisement both in print and online, 61% of online grocery shoppers are more likely to buy an item.
    • Nearly two-thirds set out looking for a particular brand when grocery shopping online.
    • 50% of online grocery shoppers are more likely to make an impulse purchase when shopping online versus in-store.
  • Grocery shoppers are brand-conscious and category-oriented:
    • When it comes to purchasing items based on category, Amazon.com and local mass retailers’ online sites (such as Target or Walmart), are among the top options for beauty care products, health items/OTC medications, household/cleaning items, pet food/care and non-perishable foods.

With a vast number of online grocery options in-market and new competitors entering the space, understanding what consumers seek when choosing their shopping destinations is key. Valassis found that among online grocery shoppers, 41% seek faster, cheaper shipping options, as well as better discounts and deals, while 33% would like to be able to apply coupons to their order (68% cite the inability to do so online as a point of frustration). Additionally, coupons are key for retailers hoping to lure customers away from their current store or service, with nearly 30% of respondents saying they’d switch based on these offers. 

Download the Valassis “Unpacking the Dynamic Online Shopper: Grocery & Retail” e-book.

About the Study

The Valassis Awareness-to-Activation Study is an ongoing study fielded in conjunction with The NPD Group, Inc., a global market research company. The sample was derived via an online survey and all participants were at least 18 years of age and living in the contiguous United States. Approximately 10,000 respondents are surveyed annually. The specific data included in this report is from the research wave fielded Nov. 26, 2018 to Dec. 17, 2018 to over 1,800 respondents and is balanced by age and gender to U.S. Census demographic profiles.

About Valassis

Valassis is the leader in marketing technology and consumer engagement. We work with over 60,000 companies and brands in a wide array of industries, partnering to anticipate consumer intent, inspire action, and create demand. NCH Marketing Services, Inc. and Clipper Magazine are Valassis subsidiaries, and RetailMeNot Everyday™ is its consumer brand. Its signature Have You Seen Me? ® program delivers hope to missing children and their families. Valassis and RetailMeNot are wholly owned subsidiaries of Harland Clarke Holdings. 

Media Contact
Mary Broaddus
Valassis
broaddusm@valassis.com
734 591-7375