Covid 19 has put normal life on hold. It’s hard to find an area of life it hasn’t infiltrated. Given all this, it’s only natural that the virus has had a massive impact on global shopper behaviour. While most shops are shut, supermarkets the world over have been forced to adapt to incorporate vital health …
Covid-19… fewer shoppers=increased brand exposure Read More »
Competition from data rich ecommerce is forcing bricks and mortar retailers to adapt or die. In order to prosper, high street retailers need to understand what’s really going on inside their stores. Online shoppers’ behaviour is closely scrutinised and constantly monitored. As soon as a shopper logs on to an e-commerce website …
Retail’s Black Hole – what’s really going on inside stores? Read More »
Queuing may be quintessentially British but it’s indisputably bad for customer satisfaction. Which ultimately means it’s bad for sales. The-doom mongers may constantly predict the Armageddon of bricks and mortar shopping, but the reality is that there are still a wealth of shoppers that prefer to purchase instore rather than online. Ensuring …
£Millions lost at the checkout: the value of behavioural analytics Read More »
It is hard to see, read or hear any news article about traditional retail these days without hearing about footfall being down and shoppers deserting bricks and mortar. It’s not all doom and gloom though. There are some easy ways to avoid becoming victims of the ‘Amazon effect’. In particular, analysing behaviour of shopper’s instore …
Walkaways – the missing metric that could save Retail Read More »
80% of the choices that shoppers make in-store take less than 20 seconds…
For as long as I care to remember the adage that 70% of purchase decisions are made in-store has floated around in conversations and articles in the retail community and been used as a justification for investment in in-store shopper marketing activity. In recent years there has been much conjecture over the 70% figure. So …
Grocery shopping is a task based activity. Often times we will walk into an aisle and play out a heuristic script which leads us to select the same product that we always have. Searching for that product is a process of elimination guided by familiar signals such as the shape and colour of packaging. In …
When you ask people how much of a supermarket (how many aisles) they visit when they go shopping, a large proportion will tell you that they visit nearly all of it. In fact this is far from the truth. We know this from studying shopper behavior in supermarkets using CCTV video footage to monitor shopper traffic.
Although the growth in on-line sales is unquestionable, that’s not a reason for retailers or manufacturers to take their eye off the ball with Bricks & Mortar.
In the UK a mere 4.4% of grocery sales are on-line and the IGD predicts that this will rise to 8.9% by 2019. OK that’s strong growth but it still leaves over 90% of sales to be accounted for by physical stores.
A similar picture is also abundantly clear in the US where bricks and mortar represents a massive 90% of total retail sales and remarkably the preference for the physical channel is stronger among teens than any other age group according to management consultants AT Kearney.
So there is clearly a healthy future for bricks and mortar in the retail mix, but with the transparency of the internet and the ability of shoppers to search, compare and buy products from across the globe from the comfort of their armchairs what lies behind the on-going draw of the physical store?
Grocery retailing is undoubtedly a volume business where marginal changes in shopper behaviour can have a massive impact on the balance sheet. To use an example, some five and a half billion litres of milk are sold in the UK each year with the top 5 grocery multiples accounting for nearly three quarters of this …