September 5, 2019

Infographic: How Grocers Use Mobile to Win Over Shoppers

Written By
Andrei Faji

It’s no surprise that the grocery landscape, along with the rest of retail, is in a state of transition. While longstanding players like Safeway, Sam’s Club, Publix, and Aldi used to have a strong grasp on their competition (each other) and knew how best to win over the loyalty of the nearly 32 million Americans a day that shop for groceries, times have changed. 

From Amazon’s acquisition of Whole Foods to Walmart and Target’s deeper investment in grocery, and new startup delivery companies like Blue Apron and Hello Fresh, the grocery landscape has drastically evolved over the past decade, forcing traditional grocers to rethink their approach to customer engagement and acquisition. 

These new entrants don't only have deep pockets, but also come with their individual advantages: a strong, established customer, a digital first approach, and overall eagerness and flexibility to experiment with technology. As a result, these new players are shifting how today’s consumers across all generations interact with grocers, leading way to an increasingly digital-focused grocery landscape.

While e-commerce in food and beverage is expected to grow 18.2% ($19.89 billion) this year alone, the majority of sales are still transacted in store with only 2.0 - 4.3% of the total $641 billion U.S. grocery market being conducted online. In short, there’s still a massive opportunity for grocers to appeal to consumers digital preferences while still driving in-store engagement. 

Like all industries, offline and online doesn’t have to be a black and white conversation. There’s a middle ground between these worlds: mobile. By understanding how mobile can help grocers adapt reach and engage today’s consumers across all generations, these grocers can have a fighting chance at a piece of the $20 billion pie. 

Looking for further proof of mobile’s potential impact on the grocery market? Here are some telling stats around how each generation engages with technology to improve their grocery experience: 

Baby Boomers: (born between 1944-1964; spend on average $314 per month)

  • 12 percent of Boomers have used a delivery service to get their groceries
  • 14 percent of Boomers have used mobile coupons and 21% use smart devices to compare prices while in stores.

Gen X: (born between 1965 - 1979; spend on average $380 per month)

  • 70 percent report redeeming a digital or mobile grocery coupon within the past month 
  • 52 percent of Gen X buy their groceries online and have them delivered to their house

Millennials: (born between 1980 - 1994; spend on average $298 per month)

  • 60 percent of Millennial shoppers use mobile apps for grocery coupons or discounts
  • 20 percent of Millennials use a smartphone to find a recipe 

Gen Z: (born between 1995 - 2015; spend on average $269 per month)

  • While still early in the grocery shopping phase of their life, 3-in-10 Gen Z'ers are doing the shopping by themselves
  • 42 percent of Gen Z shoppers indicated they use a digital grocery list

The numbers don’t lie: grocers that want to remain relevant 10, or even five years from now, must have an engaging mobile strategy in place as the industry becomes increasingly digital. Whether it's developing a unique app that saves custom grocery lists or partnering with new platforms (like Dosh!), mobile is already well ingrained into today’s consumer shopping habits. 

To understand more about how Dosh has helped national grocers adopt mobile technology and drive bottom line sales and frequency in spend, check out our case study here.

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