Retail

NEW DATA: Grocery’s Amazon Effect And What’s Ahead In Its Virtual Aisles

Even as online shopping becomes more and more of the norm, 90 percent of consumers still prefer heading to brick-and-mortar stores to shop for and purchase food and other grocery products.

That’s not to say online shopping and experiences aren’t becoming more important for grocery, however. A growing number of consumers consider online experiences, paired with physical store visits, to be one of the most influential factors in where they shop, according to the latest PYMNTS Enterprise Retail Grocery Report.

Offering omnichannel features is becoming all the more crucial as tech-savvy millennials gain more spending power and influence. To win their loyalty and that of older, more affluent consumers, grocers not only need to have better prices, expanded product selection and convenient location, but also need to provide a compelling online grocery experience.

Nevertheless, grocery retailers big and small are feeling the “Amazon effect.” More customers want to pay with their phones or have access to features like curbside pickup and online deals. The ability to provide such features is going to be essential for retailers as grocery moves forward.

Key Findings from the Latest Report

  • Eighty-three percent of consumers buy grocery products every week.
  • Five percent of consumers shop and purchase groceries online, but 27 percent want a well-coordinated online and in-store experience.
  • Seventeen percent of consumers say having the ability to scan and pay with a mobile phone is the most important factor when choosing a grocery retailer.

About the Report

The PYMNTS Enterprise Retail Grocery Report gauges over 300 data points and analyzes consumers’ shopping habits at 250 of the largest enterprise retailers in the United States. The report includes data on the ways consumers are approaching retail and covers the main trends in consumer grocery shopping.

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LIVE PYMNTS ROUNDTABLE: MODERNIZING & SCALING FOR THE NEW NORMAL

The pressure on banks to modernize their payments capabilities to support initiatives such as ISO 20022 and instant/real time payments has been exacerbated by the emergence of COVID-19 and the compelling need to quickly scale operations due to the rapid growth of contactless payments, and subsequent increase in digitization. Given this new normal, the need for agility and optimization across the payments processing value chain is imperative.

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