Insights

The Need to Deliver a Better In-Store Experience
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The Need to Deliver a Better In-Store Experience

Almost 5 million Australian shoppers claim they don’t have the time to shop around for groceries. And many will only shop when the need is absolutely pressing. The total number of shopping trips in the market has fallen by 4% over the past couple of years, with online gaining occasions from other outlets – as well as increasing the average basket size (in dollar spend).

What this ultimately means is that there are fewer opportunities to convert a shopper to a sale while in-store. Retailers and manufacturers need to think very deeply about how to best influence each shopping experience to maximise the potential of a sale.

The rise of time-poor consumers has not translated into more smaller, top-up shops. Over the last three years, our research has consistently shown that more than three-in-five shoppers still focus on their main shop to optimise their time – and many are now turning to the convenience of online. The total number of shopping trips in the market has declined overall, but online grocery has seen an increase in the number of shopping trips and dollars spent.

That being said, there is still an opportunity to win over the shopper when they are in-store. Unlike an online environment where consumers will always tend to be heavily swayed by price; for bricks and mortar stores, the overall shopping experience is crucial and in-store execution and shopper activation must take centre stage.

Understanding in-store shopper behaviour and their priorities is essential in determining the right offering. Our research shows that three-in-four shoppers (74%) prefer to shop in a well-organised store with a pleasant ambience. While convenience and assortment attributes are the most influencing factors for where a person chooses to shop.

Solutions like Nielsen’s recently launched SmartStore uses virtual reality technology to help retailers measure, evaluate and optimise a range of retail concepts and therefore how to influence shoppers at the moment of truth. And, it helps advertisers measure the effectiveness of point- of- sale merchandise based on what shoppers “see, think and do”.

The in-store experience will always add a sense of premiumness and convenience that can’t be matched. However, with shoppers increasingly rationalising their spend and their time, it is increasingly important that retailers and manufacturers understand in-store shopper behaviour and their priorities in order to lure them with the right offering.