Did you know that 40% of internet traffic is fake? Or, that there were 703 dangerous food recalls last year? Have you heard the 5 essentials for building trust with consumers?  We picked up quite a few insights like these when Clarkston Consulting participated in Groceryshop 2019 earlier this week.

The agenda for Groceryshop 2019 had four tracks to choose from – and each day the tracks had a different theme. Although the topics varied greatly across tracks, including topics such as digital transformation, the future of the store, using data effectively, the CPG-retail relationship and emerging technology, one word was heard in almost every section. Friction (or frictionless) was the word of the week.

How can we reduce friction for the shopper in the store?

Come check out our frictionless shopping experience.

How does a direct-to-consumer strategy reduce friction?

There were several ideas and products announced and introduced designed to reduce friction for the consumer. In this summary below, I’ve highlighted some of my favorite quotes and statistics from Grocershop 2019:

Retail Subscription Services – According to a report from Ordergroove, subscription services really do modify consumer spending habits. For the majority of retailers, their subscribers spent 60% more in the next six months after starting a subscription than those who did not enroll.  In 2011, the subscription market was $57M in sales, in 2016 this was a $2.6 market.

eCommerce – Today, 53% of offline CPG purchases are influenced by the digital channel. By 2023, in the CPG category, eCommerce will make up 70% of total organic growth.

Shopper Priorities – According to an Internet Retailer 2019 report on Online Consumer Package Goods, the most important factors to US shoppers when purchasing CPG online are (1) getting the lowest price (2) A broad selection (3) overall speed of delivery and (4) loyalty programs.

Problems for Online Grocery Shoppers – When shopping online for groceries, consumers are still facing some challenges. Some of the most common are missing products, incorrect product substitutions, out of date/short shelf-life items and late deliveries.

Fragmented Competitive Landscape – There is a more fragmented competitive landscape where convenience, quick serve restaurants, and dollar stores are taking share of foot traffic and department, apparel, and home improvement stores are losing traffic.

Fresh is Best – Retailers who are the most successful are winning in their fresh categories. Data shows that above average fresh sales and above average number of fresh items is likely to indicate higher store growth overall.

Direct-to-Consumer Subscription Growth – Up to 75% of organizations selling direct to consumer will offer subscription services by 2023. There are 3.7 average subscriptions per household and 85% plan to renew their current subscriptions. Where are subscriptions most successful so far? Streaming content, warehouse/club, music/audio, fitness, and food are the most popular subscriptions today.

While the sessions were informative some of the exhibitions were even more informative this year. From VR experiences demonstrating the future of retail to amazing grocery cart innovations, the vendors really stole the show this year. As we return to the office or the store from Groceryshop 2019, it’s time to apply these new statistics, insights, and innovations to our daily responsibilities. Stay connected with Clarkston Consulting through our newsletter to stay informed on the latest grocery, retail, and CPG trends.