Find out how COVID-19 has accelerated the shift to grocery ecommerce, and explore the successful strategies to follow.

2020 has seen an acceleration of grocery e-commerce with globally 29% of shoppers saying they are using pick up or delivery weekly for their grocery of eat at home consumption.

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Article originally appeared on Chain Store Age

Forget the headlines. Grocery stores are nowhere near extinction due to the battle between online and brick-and-mortar grocery stores. Although online grocery is now the fastest growing grocery channel with a CAGR of 19.5%, it represents only 2.0% to 4.3% of the $700 billion U.S. grocery market, and has a long way to go to dethrone physical grocery stores. According to IGD, the U.S. online grocery market was $23.9 billion in 2018 and is predicted to grow to $59.5 billion by 2023, still less than 10% of the size of the entire grocery channel.

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Want to improve your financial performance and deepen engagement with your customers? Improving your value perception is key. How customers feel about your prices and quality are the 2 biggest drivers of financial performance and emotional connection for a brand, as shown in dunnhumby's nationwide study, the Retailer Preference Index (RPI). With findings from 11,000 US households, the study sheds light on what's most important to customers, and highlights which marketing levers retailers must pull to influence value perception. As retail continues to fragment and commoditize, understanding how to develop a strong value proposition is vital for future success.

Watch Chain Store Age's webinar to hear our Pricing and Strategy experts Ted Eichten and Eric Karlson present key findings from the RPI which can help retailers shape winning strategies.

Download today to learn:

  • What drives retailer preference among customers?
  • Which retailers are winning and losing? And why?
  • Which 3 factors have the greatest influence on performance?

In dunnhumby's inaugural Retailer Preference Index (RPI) study, a comprehensive nationwide study, we explore the evolving US grocery landscape to help retailers navigate an increasingly fragmented market, where shoppers are, on average, shopping at four grocery stores per month and regularly buying groceries from at least three other channels. The study focuses on the following questions:

  • What drives preference?
  • Who is winning and losing?
  • Why are they winning or losing?
  • What can grocery retailers do to improve preference and performance?

Existing retailer rankings by Consumer Reports or Market Force only use survey data to capture how shoppers feel about the various banners without linking the emotion to financial performance. Others, like Supermarket News, rank banners based on financial metrics but fail to capture how people feel.

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