Behavior changes make no stop at channel choices and again, rational factors prevail.
After a two-year period of less frequent shopping due to COVID-19 restrictions, consumers are now switching retailers and shopping around to find the best deals. This presents a risk, as the likelihood of a brand being repurchased on consecutive occasions drops by 50% when shoppers switch stores1.
Store choice factors
When choosing their retailer, shoppers will look for attractive pricing and convenience – such as self-check-out –, at the expense of service and quality factors.
While hard discount lost some of its momentum in the past few years, it is now the only channel, where consumers plan to shop more in the next six months. Across Europe, super- and hypermarkets, weekly markets, and even online shopping are expected to face some reductions in the single-digit range with shoppers intending to buy less in these channels. Specialty stores as well as delis, convenience and drugstores could lose most: between 16 and 18% of shoppers intend to visit these retailers less.
1 Source: Europanel BG20
Having been the big winner of the COVID-19 pandemic, online shopping has decelerated since, but is expected to stabilize across Europe. While online shoppers do appreciate the channel for the possibility to check prices and buy promotions in order to keep the total basket cost at bay, delivery costs threaten to become a dealbreaker.
Online growth has decelerated
Whereas we have seen a trend away from stationary specialist stores, online category specialists will be more able to uphold their business this year, as will e-supermarkets. By contrast, flash delivery, delivery platforms and meal boxes will be losing buyer share, as it is in especially those channels that shoppers intend to shop less than before.
Online shoppers value savings aspect, but delivery costs could be a bottleneck
E-grocery and e-specialists most popular
Online will, nonetheless, stay relevant for specific categories and brands. Products that shoppers intend to increasingly buy online – up to 15% more – include home and personal care, staple foods, pet supplies and alcoholic beverages. As described above in “Categories under pressure”, some of these categories are subject to special scrutiny and the first ones to be cut in a budget squeeze. It is therefore extremely important to have as many touchpoints with consumers as possible - neglecting online could prove to be a vital mistake.
Online important for categories in danger
Overall, shoppers are more “creatures of habit” online than in stationary retail, providing opportunities to build brand preference and loyalty.
