Supermarkets Improve Food Quality to Retain Customers
While supermarkets have long been dominant in the food shopping industry, these establishments are feeling more pressure these days. Consumers are growing more demanding about what they expect to find in their favorite supermarkets. When shoppers can’t find what they want, Consumer Reports notes that they are quick to change stores. At the same time, supermarkets are facing competition from a variety of formats and are taking strategic steps to protect their market share, according to Packaged Facts.
The Consumer Reports survey discovered that 33% of shoppers changed their supermarket in the past year. The high price of food was cited as the top cause for this change. Consumers also start going to a different supermarket because they want more selection, better checkout service and improved food quality. A similar study from the National Grocers Association finds that high-quality produce and clean stores are key attractors for grocery shoppers. While it’s clear that a variety of factors play a role in where consumers choose to shop, the 2013 American Pantry report from Deloitte shows that typical grocery shoppers visit 5 different establishments each week to get everything that they need. These formats range from c‑stores to supercenters. Grocers should also know that e‑commerce operators are a looming threat to their market share.
Ad-ology Research reports that 38.2% of Frequent Grocery Shoppers say they don’t mind paying more for high quality products, which is 92% higher than average. In addition, 55% of these consumers have favorite stores where they like to shop, a detail which suggests that grocers should make an effort to improve the store environment and the produce quality. Grocers that advertise these changes will be rewarded by loyal shoppers.
AudienceSCAN data is available as part of a subscription to Ad-ology PRO. Media companies can access AudienceSCAN data through the Audience Intelligence Reports in AdMall.