Accenture Report Details on ‘New Normal’ of Grocery Shopping
According to a new report from Accenture the grocery shopping experience is “overwhelming the customer”.
Report author – Retail Lead, EMEA, Laurent Thoumine – says one common pain point is that high food prices are forcing consumers to make difficult decisions.
He says that, in the US alone, grocery prices have increased by up to 21% since 2021 and that they are continuing to rise in 2024, albeit at a slower pace.
“On top of that, government subsidies from the pandemic have stopped and supply chain challenges have run rampant”, he adds.
Laurent adds that: “while consumers have historically gravitated toward national brands, now, many people simply can’t afford them.”
Laurent discusses what is causing stress to grocery shoppers, how this is affecting the food sector and what it can do to tackle these challenges.
What is causing grocery shopping stress for customers?
Accenture says its EMEAs 2024 Consumer Pulse research shows 41% of customers find decision-making harder than it was three years ago, and that 56% feel it is more important to make the "right" decision now.”
Laurent added “Recent data shows customers bought groceries from an average of 20.7 different retailers between March 2023 and February 2024.
“This is up 23% from the same time frame between 2019 and 2020.
“Analysis of grocery shopper data from our Consumer Pulse research across 12 countries reveals key areas that cause stress in the decision-making process”, he says, which are “present across the three phases of the purchase journey: awareness, consideration and evaluation.”
He adds: Grocery shoppers experience significant stress in the evaluation state, with 80 percent of customers find it difficult to decide between various options.
“Findings from our Consumer Pulse research reveals that 72% of customers have walked away from a grocery purchase in the last three months due to decision stress. The primary reason for this is because the risk and cost of making the wrong choice is too high.”
What can grocers do?: Tesco, Ahold Delhaize, Kroger and Target as examples
Evaluate procurement, pricing and private labels
He continues: “Grocers are choosing to renegotiate procurement prices of food and beverage products with suppliers.
“Where the prices of national brands remain high, grocers are exploring the possibility of private labels.
“In 2023 private labels accounted for 19.4% of global value sales of grocery. In Western Europe, private labels make for 36% of the market share.
“Grocers and food retailers around the world are piloting the use of Digital Product Passports for food products to enhance transparency, traceability and sustainability.”
Enhance the digital core
Accenture says grocers like Tesco and Ahold Delhaize are piloting self-service kiosks that allow for customers to search for the product, review its features and have a seamless checkout experience.
The company’s data shows that customised mobile apps can allow customers to scan QR codes on products to access detailed information and reviews on smartphones, and that such apps can also offer personalised discounts and suggestions based on past purchases.
Apps name-checked include the Kroger app, which features QR code scanning for quick checkout using Kroger Pay, and for access to digital coupons and product information.
Its Store Mode, meanwhile, allows customers to find items in-store, redeem coupons and enjoy contact-free payment, enhancing the overall shopping experience.
Smart apps can also suggest product options for a recipe-based or an event-based requirements.
Embed data analytics and generative AI
Grocers, says Accenture, use data analytics to recommend products for online and in-store shopping via apps, and adds that past shopping behaviour is analysed to develop suggestions.
Accenture also says generative AI-driven applications allow customers to filter by constraints, such as a weekly budget, what’s already in the fridge, number of persons in the household, or a party theme.”
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