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Convenience


Convenient locations, one-stop shopability, and right product variety make up the Convenience pillar. Convenience is the least important factor for explaining short-term market share gains, and retailers in each of the four Covid Momentum Quartiles performed similarly on Convenience.

customers favored Speed during Covid, which correlates negatively with larger format stores where customers can do all their shopping at once. Moreover, evolving commuting behaviors from people working from home and limited mobility due to stay-at-home orders shifted which stores were now considered Convenient. While people were adjusting to new ways of shopping for food, and making trade-offs on Price and product quality and variety, they were being hit with out-of-stocks, which affected their ability to easily buy their typical brands.

Despite stay-at-home orders, changes in commuting behaviors and erratic outof-stocks (or perhaps because of these things), basket sizes were up and visits per customer were down for every retailer we studied. At the time we surveyed, the average basket size was ~30% higher for shoppers in the market. Additionally, the average share of wallet that customers were giving to their current grocery retailer was ~14% higher. Translation: customers consolidated their shopping to fewer stores, giving more money to each store. This occurred even for stores that were competitively less well-positioned for one-stop-shopability heading into Covid. In fact, stores that scored in the lowest quartile on "I can do all my shopping at this one store" had the largest increases in basket size and share of wallet during Covid. In other words, during Covid, shoppers were more forgiving of a retailers' faults in their quest to fulfil their short-term shopping needs and get home quickly and safely.

Convenience and Covid: Voice of the customer

"With work at home - I cannot shop at the grocery stores I usually shop at because they are in the town where I work - 30 minutes away and feel wasteful driving that far just for groceries."

FOR BRANDS

Retail leaders must objectively understand how their business currently considers Customers before trying to set a more Customer-centric direction and focus. There are some formal assessment methodologies, like dunnhumby's Retail Preference Index (RPI) and Customer Centricity Assessment (CCA), which offer detailed evaluations of a business' capabilities, strengths and weaknesses based on Customer perceptions (RPI) or global best practices (CCA).

The approach outlined below is not intended to replace these formal tools; rather, these observations are intended as a kind of 'toe in the water' to help retail leaders form early hypotheses and points of views. These are rules of thumb, heuristics culled from global experience. Later, leaders might use these observations to informally check progress from time to time as a way of assessing whether the "program in the stores matches the program in our heads".

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In the first episode of Customer First Radio, Dave Clements, Global Head of Retail for dunnhumby and David Ciancio, Global Head of Grocery for dunnhumby kick off the series by discussing what it means to be a truly Customer First business, share which retailers and brands today embody a Customer First mindset, and examine how Customer First materialized during the pandemic with retailers.

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Photo by Will Francis on Unsplash

The 2021 Retailer Preference Index: Who's winning and why. David Ciancio, Global Head of Grocery discusses the 2021 U.S Retailer Preference Index (RPI): Grocery Edition with the lead author of the RPI, Erich Kahner. They unveil key insights and discuss who is winning and who is best positioned for the future.

In part two of our blog series exploring some of the common challenges in setting up a Retail Media operation, we take a look at the building blocks of a strong business case.

In July last year, we estimated that grocery Retailers in the UK could be missing out on as much as £1.7bn in unrealised media revenues – equivalent to some £11bn across EMEA. While those numbers might give us an indication of the overall scale of the Retail Media opportunity, they tell us a little less about its potential on a business-by-business basis.

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