A recent survey conducted by Grocery Doppio in the grocery industry has uncovered opportunities for retailers to capitalize on technology and shopper data. This poses a significant challenge to third-party grocery apps.
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GLOA recent survey conducted by Grocery Doppio in the grocery industry has uncovered opportunities for retailers to capitalize on technology and shopper data. This poses a significant challenge to third-party grocery apps.
Incisiv, an advanced industry insights firm that assists retailers and brands in navigating digital disruptions, along with Wynshop, a leading provider of digital commerce solutions for local retailers, have jointly released the findings from their July 2023 State of Digital Grocery Performance Scorecard. This Scorecard, based on analysis of shopper orders and interviews with both shoppers and grocery executives, sheds light on the current state of digital grocery.
The monthly State of Digital Grocery Performance Scorecards, one of the many resources available on the Grocery Doppio website, were based on data from 1.8 million shopper orders and input from over 31,540 shoppers and 3,041 U.S. grocery executives.
In this latest report, Grocery Doppio delved into shoppers’ attitudes towards personal data usage and technology in the grocery sector. The findings highlighted a clear demand for improvement in the traditional in-store checkout process. An overwhelming 84% of respondents expressed dissatisfaction with checkout speed, while 77% labeled in-store checkout as the most unsatisfactory aspect of their grocery shopping experience.
Interestingly, 67% of surveyed shoppers indicated their willingness to experiment with new technologies that could simplify and expedite the checkout process. Moreover, 71% stated that they would be open to sharing personal data to achieve this goal. However, a notable 94% of respondents expressed apprehensions about the security of their biometric data.
The July 2023 Performance Scorecard unveiled several key insights, including:
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Grocers’ intentions to adopt more technology leveraging shopper data:
- 71% of grocers plan to increase their utilization of data-driven technologies in the next two years.
- Self-checkout tops the list of grocers’ planned technology implementations for 2024 (83%), followed by AI personalization (63%), and computer vision systems (47%).
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Decline in third-party grocery app performance:
- Third-party grocery app orders witnessed a decline, reaching $1.6 billion in July, down from $2.5 billion in August 2022.
- This decline indicates a projected 40% drop in third-party revenue from 2022 to 2023.
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Increased digital basket sizes for larger grocers:
- While small grocers (under $10 billion) averaged 27 items per digital basket, large grocers (over $10 billion) saw an average of 43 items per basket.
- The average value of digital baskets across all grocers was $172.
Gaurav Pant, Chief Insights Officer of both Incisiv and Grocery Doppio, highlighted the challenges facing third-party apps, stating, “Third-party apps are facing a real challenge as grocers develop their own digital capabilities. Their current business model may struggle to deliver value to the market.”
Charlie Kaplan, Chief Revenue Officer at Wynshop, emphasized the importance of grocers addressing consumers’ concerns about data privacy and enhancing the overall shopping experience.
Grocery Doppio serves as an independent source of valuable grocery insights and data aimed at aiding grocers in achieving digital growth. Each month, the platform provides research-based content, fact-based observations, and performance benchmarks to help identify areas for improvement in the grocery retail sector.
To access the complete “State of Digital Grocery Performance Scorecard: July 2023” by Grocery Doppio, visit their website.
About Incisiv: Incisiv assists retailers and brands in navigating digital disruptions, offering a platform for industry executives to share and learn without competition. They provide tools to enhance digital maturity, impact, and profitability. Learn more at www.incisiv.com.
About Wynshop: Wynshop focuses on helping local store-based retailers succeed in the digital realm, offering a user-friendly digital commerce platform to streamline operations and enhance customer experiences. This leads to increased shopper loyalty and a personalized customer journey. Learn more at www.wynshop.com.
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