How to increase sales in grocery stores when CPG eCommerce is on the rise

We don’t have to tell you twice, but running a brick-and-mortar grocery store can be costly. Naturally, you want to maximize your returns when you’re shelling out around $160,000 just on inventory. In some ways, you’re competing against local competitors, but you’re increasingly competing against eCommerce players as well.

The share of US consumers who purchased groceries online in the past year jumped from less than a quarter to more than a third, with Amazon and Walmart driving sales. Nearly 40% of those surveyed said they plan to shop for groceries online in the next 12 months, but there is growth potential in the 21% who “don’t know” if they will buy online. This may leave retailers wondering how to increase sales in their grocery stores. 

Is CPG eCommerce a Threat to Grocery Store Sales?

Despite the surges and impressive forecasts, the reality today is that only 2.7% of the $743 billion CPG market gets purchased online, up from 2.2% in 2018. Even if it reaches the estimated 8% share of US grocery sales by 2022, it’s still a relatively small amount of sales—something to consider, but certainly not a “threat” to physical supermarkets by any stretch of the imagination.

Online grocery shoppers tend to make infrequent purchases and buy in smaller amounts, according to research. Just 11.8% of online shoppers bought “most” or “all” of their groceries that way, so you can feel confident that eCommerce will not fully replace brick-and-mortar grocery stores. A recent report found that 71% of shoppers surveyed spent $50 or more shopping in-store, compared to just 54% of shoppers who spent that much online.  

With that said, it’s a wise move to brace yourself for the uptick in eCommerce shopping by creating an online presence and linking up with a service provider like Instacart or Shipt to cater to those consumers who purchase online. Analysts believe that physical supermarkets will serve as the anchor for inventory fulfillment for customers ordering online, rather than a separate entity competing with online providers. Using mobile apps like Shopkick will bridge the gap between digital and in-store experiences, providing crucial information at the purchase point and rewarding shoppers for their loyalty.

How to Increase Sales in Grocery Store Environments

1. Give them retail therapy.

Remember what draws customers to physical stores. Sometimes it’s not even the products or the convenience so much as it’s the visceral experience that provides a way to de-stress from a long day or week of work—“retail therapy,” as it’s called. Nearly three-quarters of consumers admit to stress-shopping. Consider ways of redesigning or augmenting your space to make the trip more interesting and fun such as curated music, enhanced lighting, digital displays, interactive kiosks, and perks like a free drink or bite of food while shopping to improve your aesthetic.

2. Add trending items and departments to your inventory.

Grocery store growth has largely been fueled by the rise of organic and healthy options, specialty items, and innovations like meal kits and ready-to-go prepared foods. Supermarket departments are rapidly expanding to become more of the one-stop-shops people have come to expect—new sections like high-end bakeries and gourmet cheese shops, in-store bars and wine shops, larger beauty sections and sushi bars, Starbucks counters, and full-service banks.      

3. Offer in-store promotions and deals.

In one survey, 84% of shoppers admitted that they go into the store for a need, but end up walking away with an impulse buy want due to an attractive promotion or deal. Online retailers often entice shoppers with free shipping offers and deep discounts, but you can do the same in-store.

4. Reconsider shelf space, shifting unique items to eCommerce operations.

learn how to increase sales in grocery storeThe internet is routinely turned to for “that one product you can’t get anywhere else.” More and more, retailers are relying on analytics to gain insight into consumer preferences. Start with a large selection and let consumers decide what you should or shouldn’t carry in-store. Be sure to have your best-selling eCommerce items available on shelves as well. Use online sales data to update, reposition, or replace low-selling SKUs in both physical and online shops. If a particular flavor isn’t selling well in-store, make it exclusive to your online store. Often, the highest productivity comes from a rotating selection of new and niche products that keeps the shopping experience fresh and exhilarating.      

5. Bridge the online/offline gap with the integration of mobile applications.

Leading grocers and CPG companies understand that digital media must be part of the shopping trip planning process, according to research by Deloitte. A completely integrated digital strategy recognizes that shoppers use their mobile phones to find stores, make lists, check prices, research products, compare products, share content, and purchase. Offering an in-house app or partnering with a third-party mobile shopping app can enhance in-store product interactions and deepen the brand conversation, saving shoppers time, money, and hassle. 

Kraft rewarded Shopkick app users who purchased baker’s chocolate, pudding, and marshmallows for the holiday baking season with “kicks,” which they could then put towards a free gift card of their choosing. Through Shopkick, Kraft was able to engage with shoppers along the full path to purchase, whether they were on their mobile devices at home, or in-store at the shelf. More than a quarter of shoppers converted to purchase all three items. Fifty percent of the Shopkickers said they hadn’t planned on buying any of those items when they first walked into the store. Overall, Kraft’s campaign garnered greater than 7:1 return on investment.

Find Out How to Increase Sales in Your Grocery Store With Shopkick

Digital is here to stay, but brick-and-mortar grocery stores aren’t falling by the wayside. Price, quality, convenience, and selection will always be the key drivers, no matter which shopping channel a person uses. A partnership with Shopkick lets you add value and enhance the in-store shopping experience while also rewarding and encouraging customer loyalty.    

Digital is here to stay, but brick-and-mortar grocery stores aren’t falling by the wayside.

Looking for more information on modern tools that boost CPG sales in grocery stores? Read our partners’ success stories or contact us to learn how to appeal to mobile shoppers with Shopkick.

Image courtesy of Gts

How to earn cashback on household bills—the easy way

When you live in a household with three boys like my husband and I do, very few things are predictable. We never know how much they’re going to eat in one day, although we do know it’s a lot. We never know what kind of mess will be made but we know there will be a big one. In fact, I like to joke that the only things that seem to remain constant in our house are the utility bills and the need to go back out shopping.

As you can imagine, those are also the things that put the biggest strain on my budget each month. For many years I’ve often found myself wishing there was a way to save on one or the other. Well, as fate would just so have it, I recently found a way to save on one by doing the other—I found out how to earn cashback on household bills by shopping. That’s right! You can use your everyday trips to the grocery store to help out with other expenses around the house.  

Earn Cashback on Household Bills

If bills are straining your budget like they’re doing mine, you’re going to want to check out these ways to earn cashback on household bills. 

Instacart

The first way I’ve found to earn cashback on household bills is by using Instacart. When I was first introduced to this app I was thrilled at the idea of having someone do the grocery shopping for me. Now, my budget doesn’t always allow me to take advantage of that. But thankfully, there’s another side of Instacart that I’ve found to be pretty beneficial. 

The way you can earn cashback on household bills through Instacart is by sort of reversing it and being the person who goes out and does the shopping. It’s really that simple. Someone like me who is just too busy to get to the store needs some shopping done, you go out and do that shopping, and then you have the extra cash to put toward your household bills. 

Starbucks App

how to earn cashback on household billsI guess I was maybe a little less than accurate earlier when I said that the only two things that stay constant in my house are my household bills and my need to go shopping. If I’m being honest, there’s also a third constant in my house—my own personal need for Starbucks, specifically flat whites, which are my absolute favorite. Even in the summertime, I’ll find myself stopping by Starbucks for a quick pick-me-up. And, there’s also a way to earn cashback for household bills in the process.

The way to do this is by downloading the Starbucks app. That way, every time you go into Starbucks, you’re getting points that eventually pile up and help you get free drinks. And you know what? If you’re anything like me, the money you’re spending on Starbucks drinks goes a long way, and it can really help you put a dent in your household bills. Oh, and one more tip: you can also use the Starbucks app to have your drink waiting for you when you arrive so that you can even skip the line! 

Shopkick

The last way to earn cashback on household bills also happens to be my favorite. It’s a shopping rewards app called Shopkick. What Shopkick does is give you points, which it cleverly calls “kicks,” that you can trade-in later for cashback through PayPal cash credit, or for gift cards to many of your favorite stores. Shopkick turns your everyday shopping into a way to earn rewards that you can use on later trips so that you have more money to put toward your household bills. It’s pretty awesome!

Why Shopkick is my favorite, though, is because it also turns every trip out to the store into a fun scavenger hunt to get your kicks. With Shopkick, you get kicks for things like walking into certain stores, scanning barcodes of certain products, and, of course, making purchases. I find myself looking forward to running out to the store just so I can push myself to get as many kicks as possible. When I don’t feel like going out, I can also earn kicks at home by shopping online or watching videos about partnering products in the app. Essentially, Shopkick is not only fun, but it’s also easy to use. In my book, there’s no better way to earn cashback on household bills.

So there you have it, three great ways to earn cashback on household bills.

So there you have it, three great ways to earn cashback on household bills. While I like them all, and I have been known to mix and match them in the past, I do have to say that Shopkick is my overall favorite. With three growing boys at home, I find myself doing quite a bit of shopping, especially grocery shopping. Thankfully, I have Shopkick to make it worth my while. 

It’s time to get your kicks! Shopkick makes shopping a rewarding experience. Download the app today and start to earn cashback to put toward your household bills now! 

Image courtesy of George Rudy