Progressive Grocer: In-store Analytics Steps Up – Understanding shopper behavior is key
September 26, 2016
Progressive Grocer Magazine’s September issue highlights the importance of in-store analytics and focus areas for grocers to differentiate their stores from competing banners. Below are some excerpts from the article:
Because they stock largely the same products, the distinction between stores is blurred at best and nonexistent at worst. But there are exceptions. At one end of the spectrum is Walmart, which brands itself as the low-price leader; at the other end are large retailers such as Whole Foods Market and Trader Joe’s, as well as smaller operators like Jungle Jim’s and Stew Leonard’s that offer a unique in-store experience. Meanwhile, most other grocery retailers are stuck in the muddy middle, struggling for a way to maintain shoppers and attract new ones. The stakes are high to get it right, because the demographics of shoppers and their behavior in the store are constantly changing. Alert grocers need to be aware of these changes to ensure that merchandising strategies, assortments and the in-store experience are appropriate and effective. But how is that done? More and more, grocers are turning to in-store analytics.
VideoMining’s Sharma agrees that in-store analytics is crucial to the success of a grocer. He likens not having in-store analytics today to hosting a website without any analytics on click-through rates and web traffic. In other words, it would be a huge competitive disadvantage. “While analytics from transaction data and loyalty cards helps grocers target promotions and understand performance, it does not provide insights on how to convert more shoppers into buyers and improve store performance,” he says. Because research has consistently revealed that almost all purchase decisions are made in-store, experts say that knowing how those decisions are made and how to influence those decisions is extremely helpful. Sharma rhetorically asks grocers:
- How do you redesign the store to make it easier for shoppers to navigate?
- How do you lay out the categories to improve the shopping experience?
- How do you position displays for driving impulse purchase?
- How do you cater to specific demographics such as Millennials or Hispanics?”
Read the full article here.