View the regular version of this page.
The digital landscape is constantly transforming, making it the perfect place to shop. Want to learn more? Check out our Digital Landscape article that walks through the larger scope.
Finding Ways to Connect Shoppers and Store
For many of today’s businesses, the challenge lies in satisfying shoppers’ needs while meeting their own goals. The current digital shopper expects personalized experiences, immediate gratification, and meaningful engagement. Retailers must provide seamless omnichannel experiences by providing a tightly knit system that can meet these expectations. Thankfully, the technology available can help accomplish the goals of both parties with things like integrating tech in stores and providing flexible fulfillment options.
Graphic visualizing the connection between shoppers and retailers. On the left, a square highlights that shoppers want personalization, unique benefits, and to stretch budgets. On the right, a square highlights that retailers are looking to drive repeat purchasing, as well as unit and trip growth. Connected in the middle with lines, there is a circle stating that solutions for both can be found in utilizing digital/retail technology and AI to meet demands and catalyze growth.
What is Omnichannel?
Omnichannel is a term used in ecommerce and retail to describe a business strategy that integrates different methods of interaction, such as apps and physical stores, to create a seamless experience.
An illustration of omnichannel: a circle with three points displaying in-store, mobile, and website
Emerging Digital Priorities
Four components of emerging digital priorities: Location of Strategy, Seamless Technology, Personal Touches, and Social & Retail Media. Location of Strategy: Ecommerce players are expanding into new markets with innovative strategies, while the concept of impulse buying is evolving as brands explore online opportunities to capture those purchases. Seamless Technology: new tools are enhancing analytics and user experiences. Maintaining human interaction becomes essential as unmanned stores and self-service tech rise due to labor challenges. Personal Touches: consumers expect personalized interactions, which can boost customer lifetime value. Tailored e-assortment strategies help Classified - Confidential meet these individual preferences. Social & Retail Media: social commerce is growing, but ad targeting could be optimized amid fatigue from low-quality ads. Brands are shifting ad spend to digital channels for better engagement and deeper insights into shopping behavior.
The Value in Online
Online is currently the largest retail channel, making up over $600B of sales, and is estimated to add approximately $316B by 2029. Supermarket is the closest brick-and-mortar channel, while the Club/Cash & Carry channel is expected to grow with the largest CAGR, after online, of 6% through 2029.
A chart highlighting U.S. channel sales from 2024E to 2029E (in billions). The chart supports the statement that Online is currently the largest retail channel, followed by Supermarket.
*Total online is inclusive of Online and Pure Play breakouts.
Knowing the Shopper
It’s not just younger people who use the internet to purchase groceries. More than half of grocery shoppers prefer online grocery shopping for a stress-free, quick, and convenient experience.
In-store is most often preferred for:
- finding new items to try
- inspiration to try something
- new items that meet quality expectations
Both online and in-store shopping meet customer desires for good deals, product availability, and quality service. 60% of shoppers find convenience and time-saving important for online purchases. Additional factors include receiving items as described and quickly finding what they need. Notably, more than half of online purchasers engage with offline touchpoints before buying, emphasizing the need for an omnichannel strategy.
An infographic that looks like a internet browser shows shopper statistics: 68% of shoppers buy groceries online, more than 1 in 5 shoppers do all or most of their grocery shopping online, 40% of shoppers increased the amount of money they spend online versus a year ago, and the online shoppers are 40% millennial, 22% Gen X, and 34% suburban
Source: ShopperScape Grocery Deep Dive Q3 2024, ShopperScape Global Evolving Online Landscape 2024, ShopperScape Evolving Online Landscape Q3 2023
In Summary
- Consumers want an efficient and cost-effective omnichannel shopping experience. Businesses should use available tech to meet these needs and their own goals.
- Brick-and-mortar stores remain a foundation of shopping routines, but online has already become the largest US channel in sales and it is still gaining momentum.
- More than half of grocery shoppers prefer online shopping and span a wide range of ages, with the most engagement from Gen X and older Millennials.
The digital landscape has become increasingly complex, but that complexity also presents opportunities to connect better and grow sales and shopper loyalty. Want to learn more about integrating new tech? Talk to your Coca‑Cola Representative today.
Source: Kantar, Digital State of the Marketplace, December 2024.
RELATED ARTICLES
