Fascinating new study out this morning from SKUlocal. While it addresses specifically grocery store operations, it has implications for all bev/al marketers.
Forty percent of all shoppers use retailer apps, and 23% will use the app to find deals and promotions before heading out to shop. Not only that, but most (58%)want scan-and-go options in store.
Online sales currently represent just 4.29% of total retail. But online sales are projected to grow to anywhere from a conservative 8.51% to a more aggressive 19.72% by 2025. That’s the equivalent of the business currently done by 3,844 stores.
Most significantly: Nearly three-quarters of shoppers say they expect to purchase their groceries online at some point in the next 10 years. The share of food dollars spent on line is expected to double during the same period.
“This transition clearly indicates that digital will become a primary channel, but not the sole channel,” the SKU study observes.
Digital offers benefits not previously available, including the auto-replenishment, home delivery and click-and-collect.
Fifty-two percent of digital grocery shoppers believe they generally find better product prices online for groceries, over-the-counter, health/beauty and pet supplies.
The auto-replenishment and home delivery opportunities obviously transfer directly to bev/al. Someone, for instance, who routine buys six bottles of wine a week could set up auto-replenishment and home delivery – whether the retailer is a grocer or liquor store.
At the same time, that presents a great challenge for marketers trying to enter the marketplace with a new product. If someone is getting their weekly supply of beer, wine or spirits, how do you convince them to give a new product a chance?
It also opens an opportunity for wineries, breweries and others to also adopt the auto-replenishment strategy. But that means the wineries, breweries and distilleries need to offer a broad price range of product.
Most people tend to have a “fancy” beer, wine or spirit, and one that’s more every day. It’s the everyday product that we suspect will be put on auto-replenishment.
SKUlocal describes itself as a leader in precision retail activation for valued partners in the CPG, healthcare and retail grocery environment.