Respondents in Brazil, France, Germany, the U.K., and the U.S. express heightened price sensitivity, economic insecurity, and suspicion of unfair retail prices
BOSTON--(BUSINESS WIRE)--For retailers already navigating gale-force winds caused by the whipsawing shopper, competitors, and market changes, there is no end in sight. A recent global shopper study conducted by Progressive Grocer and its parent company EnsembleIQ uncovers startling shifts in shopper behaviors occurring during the COVID-19 era, many of them likely to persist well beyond the pandemic.
The results of the DemandTec-commissioned study, which surveyed shoppers in Brazil, France, Germany, the United Kingdom, and the United States, present retailers with clear and urgent imperatives. Among the most head-turning findings:
1. There has been a dramatic five-fold increase in shoppers who say they primarily shop online, rather than in-store, during COVID, from 7% to 35%. After so many months of changed behaviors, they are very unlikely to return to pre-COVID shopping patterns. Retailers must make online commerce a cornerstone of their ongoing strategy, including sourcing science-based dynamic pricing capabilities that move at the pace of ecommerce.
2. While shoppers were very price-sensitive even prior to the pandemic, they are even more price-sensitive today. More shoppers rank price as the #1 most important factor contributing to their overall shopping experience than any other factor, trailed by product quality and product availability as #2 and #3.
3. The pandemic-induced reduction in shopper income will keep shoppers keenly price-aware. Today, a whopping 41% of shoppers report a lower income than pre-COVID, and females at 45% are more likely to report reduced income than males.
"This hot-off-the-press study confirms how profoundly COVID-19 has shaken up traditional shopper behaviors and retail assumptions, and how fundamentally changed the shopper's behavior will be even post-pandemic," said DemandTec President Cheryl Sullivan. "Retailers today must have science-based, full-price lifecycle optimization in place so science can rapidly gain insight into fast-changing shopper, market, and competitive conditions and adjust prices to an optimal state. Without science, they risk losing out to retailers who leverage optimization capabilities to present shoppers with prices and promotions that are relevant to them."
To download a complimentary copy of the research, please visit https://progressivegrocer.com/what-covid-19-can-teach-retailers-about-navigating-winds-change-now-and-later. To view a webinar discussing the study's results and how retailers can operationalize key learnings, visit the replay of "Recovering Shopper Loyalty in the Post-COVID World." Moderated by Mike Troy, Editorial Director of Progressive Grocer and Retail Leader, the panelists included DemandTec President Cheryl Sullivan, Tops Markets' Director of Decision Support and Pricing Lenny Smith, and EnsembleIQ's Senior Research Director Beth Brickel.
About DemandTec by Acoustic
DemandTec, an independent business unit of Acoustic, is committed to taking AI pricing to new heights. With deep and commanding worldwide retail pricing domain knowledge and experience, DemandTec enables retailers and CPG partners to deliver optimal pricing, promotions, and markdowns to thrive in today's hyper-competitive retail landscape. DemandTec addresses retail pricing challenges today and into the future with relentless focus, commitment and ongoing investment. For more information, visit www.demandtec.com or follow us on LinkedIn or Twitter.
Acoustic is an independent marketing cloud with the open platform needed for success in a dynamic world. We're reimagining marketing technology by lessening the burdens of repetitive tasks and equipping marketers with powerful technology that is simple and easy to use. We give marketers more time to do what really matters—to think bigger and put themselves back into the work. We help marketers aim higher, bringing humanity back into marketing. Acoustic serves an international client base of more than 3,500 brands, including Fortune 500 companies, providing digital marketing, marketing analytics, content management, personalization, mobile marketing, and marketing automation solutions. For more information, visit www.acoustic.com.