Why do people shop where they shop? It’s a straightforward question to ask with nuanced answers that differ when it comes to channels and retailers. That’s according to What Drives Store Choice, the third installment of the Advantage360 Shopper Study that uncovers how mindset motivates different groups and investigates how price, promotion, perception and purpose intersect to influence decision making.
Store Choice, Settling in
How many stores do shoppers regularly visit? That depends on where they shop and what they value most.
As inflation continues to shape new habits, about a third of shoppers regularly shop at only one retailer, a rate that has largely held steady since 2022. That means most shoppers are making multiple trips to different stores. Which channels they choose says a lot about what they value and provides a road map for retailers to engage their customers accordingly.
What drives store choice
Cost is the focus for mass and discount shoppers, so pricing and promotion strategies are crucial when deciding what will be most effective in adding items to their basket. With more than half of shoppers looking at traditional circulars or printed coupons, timing is especially important.
Club shoppers, often with more money and bigger families, seek value and quality. They love samples and expect some exclusive products. They also know Club may not have everything they’re looking for and are willing to go somewhere else to fill in their basket.
Food and Specialty shoppers are the most loyal to their store. While they’re generally sticking with their retailer, they are more likely to switch to new products in store. They prioritize a seamless shopping experience as well as an assortment with unique items and quality options. Retailers also have an opportunity in non-food with four in 10 shoppers surveyed saying it’s important to their store decision.
Claims and Consciousness: The Role of Product Attributes
While two-thirds of shoppers say they won’t pay more for product claims, certain attributes still resonate. “Natural,” “Made in USA,” and “No artificial colors” top the list of preferred claims. Specialty and Club shoppers are more likely to seek out these features, while mass and discount shoppers focus on price and availability.
Manufacturers are taking note with product development focusing on clean ingredients and health claims. Similarly, as retailers increasingly prioritize private brand in response to shoppers switching to lower-cost channels, there’s an opportunity to create better-for-you options at a price point where shoppers will find both value and quality.
Working with shoppers across all channels
As tariffs and inflation continue to affect shoppers, manufacturers and retailers can adapt to the new normal by tailoring their strategies to meet people where they are:
- Retailers can provide added value by providing budget friendly recipes and allocating funds to everyday low price vs one-time promotions to stretch household budgets further for mass and discount shoppers.
- Availability matters and club, specialty and discount shoppers are more likely to walk or wait if their preferred produce isn’t available. Manufacturers can help retailers identify and close voids while retailers should place an added emphasis on tracking on-shelf availability.
- The food channel has the highest coupon usage and over a third of total shoppers selected a retailer for its loyalty program. Retailers can utilize loyalty coupons, digital coupons, in-store circulars and printed coupons to drive trial, help alleviate inflationary pressure and build brand loyalty.
- Health-driven innovation will define the next wave of product development but not all shoppers are willing to pay a premium. Retailers need to have an assortment that aligns to their shoppers’ interests while manufacturers need to tailor their marketing strategy to their target audiences.
Stay ahead of shifting shopper behavior and align your strategy with what matters most by exploring What Drives Store Choice, the latest shopper study from the SMARTeamTM.
This is the third of five installments of the Advantage360 Shopper Study. Download previous reports:
