A rise in in-store retail shopping is underway. With the Covid-19 vaccinations becoming more readily available and easier to access/administer, people are feeling more comfortable with 'normal activities,' including grocery shopping. A recent study by Inmar Intelligence found that 27% of consumers are headed back to the stores, while 38% will continue an online and in-store combo.
But, what does this mean for Grocers and CPG companies?
There may not be a mad rush of consumers bombarding stores, but retailers need to strategize. Grocery will once again be competing for that 'share of stomach'. The time of 'last minute' items, or the 'in-a-pinch visit' is not quite back to regular and shoppers' are still taking a stock-up approach. Therefore, retail facilities must accommodate an increase of shoppers looking to bulk-up on ALL items.
“Retailers must prepare for this longer-term shift, not only in terms of stock, but also providing today’s hybrid shoppers with a seamless omnichannel experience across a variety of touchpoints. No matter the age, shoppers expect to receive personalization, convenience, and cost savings during each of their grocery trips.”
- Spencer Baird, Inmar Intelligence Executive Vice President
Wait: It's not only groceries consumers are purchasing in stores.
Another poll taken by Inmar Intelligence found the same consumers returning to stores either full-time or part-time will also increase their restaurant and dine-out visits. 38%, in fact. Of those, 51% are between the ages of 26-35. Why the feeling of social situation comfort? More people fully vaccinated and offices re-opening their doors.
With people becoming more social and involved in social atmospheres, cosmetic sales have seen an upturn. Considering the beauty industry saw a 30% closure due to the global pandemic, this direction is beyond welcomed. - McKinsey & Company
Before the global pandemic, 85% of people used to buy various beauty products in the stores. After the first round of closures and Covid-19 practices were enforced, cosmetic sales dipped drastically. And, as 2020 continued, they fell further. Makeup and various beauty products were purchased less and 17% of women stopped wearing makeup completely on account of the coronavirus. Why? 39% of women said they stopped wearing makeup because of the mask-wearing policies, remote working (31%), and social distancing (11%)
Now that the world is opening back up, individuals who purchased and wore cosmetics previously are returning to the beauty world. And, those same individuals who purchased their products in retail and grocery stores are coming back to the beauty aisle. And, they are bringing their bulk-mentality with them.
Ask yourself- how have you prepared? What is your game plan? How do I focus on a category that was perhaps disregarded? That's where TNG Retail Services can help.
Even during 2020, a major grocery retailer asked us to complete 300 stores. This year we were awarded 1300+. Why? Because our team understands the complexity of cosmetic resets. Each section has multiple vendors with unique displays, graphics, and fixtures. Each location needs to be strategically planned and executed. And, that does not even take into account products and manufactured displays arriving separately. Or, controlling the fixtures logistics. All those moving pieces are a big burden for grocery stores. Not too worry. We're prepped for that.
Covid-19 creates unpredictable shopper-experiences. It is an opportunity for retail. For all of your major moves, promotional plans, and reactivation of categories, TNG Retail Services activates your vision in store.
If you're curious about learning more, contact us.