Deep DiveChina Consumer Tracker: Avoidance Steady Despite Rising Flu Cases Echo Gong, Senior Analyst March 6, 2023 Reasons to ReadThe Coresight Research biweekly China Consumer Tracker takes a regular temperature check on Chinese consumers’ behaviors and sentiment, based on exclusive proprietary survey data. In this report, we present findings from our survey conducted on February 20, 2023. Data in this report are: Avoidance of public places, by type of public place—latest data and two-week PPT changes Activities that consumers have done in the past two weeks What products consumers have bought in-store and online in the last two weeks Expectations for economic conditions and personal finances in the next 12 months A timeline of selected Covid-19 policy changes in China since December 2022 Other relevant research: Read the full series of China Consumer Tracker reports China Consumer Tracker Preview: Early Data on Shopper Behavior and Sentiment Key Festivals and Holidays for Promotional Campaigns in China in 2023: Calendar Retail 2023: 10 Trends in China E-Commerce Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveUS Grocery Retail and Recessions: Learnings from the Past and Recommendations for the Future John Mercer, Head of Global Research and Managing Director of Retail Research Sector Lead: Philip Moore, Global Head of Data and Managing Director of Market Research March 6, 2023 Reasons to ReadWe analyze grocery retailing during past recessions—namely, the dotcom recession (2001), the Great Recession (2008–09) and the Covid-19 recession (2020). We discuss sales growth for food at home and food away from home, as well as EBIT margins, inflation trends, food security and more. We offer recommendations for grocery retail companies should the US economy see a reversion to a weakening trend—covering private label, social responsibility, loyalty programs, retail media and more. This free report is produced in partnership with food industry association FMI. Data in this report include: Year-over-year change in US grocery retailers’ sales and food services and drinking place sales, 2000–2022 Year-over-year change in grocery retailers’ sales versus food-at-home inflation, January 2000–October 2022 US food retailers’ net operating margins, 2000–2021—and basis-point change during recessions Year-over-year change in consumer price index (CPI), 2000–2022 Average inflation levels in food, 2000–2022 Year-end store counts and revenues of US selected major discount retailers—pre-, during and post recession periods CPI vs. PPI (producer price index) in grocery, 2000–2022 Companies mentioned in this report include: Ahold Delhaize, Amazon, Dollar General, Kroger, Grocery Outlet, Nash Finch, Roundy’s, Supervalu, Walmart Other relevant research: The Future of US Grocery Retail: Quantifying US Grocery Market Dynamics Through 2030 E-Commerce Outlook: US Grocery—Inflation Triggers Slowdown in Growth Market Outlook: US Food Away from Home—A Challenging Economic Backdrop To Weigh on Growth in 2023 Global Economic Outlook Looking More Positive: What’s New All Coresight Research coverage of food and grocery retail More reports on retail media More Innovator Research from Coresight Research This report is available for free and can be accessed by registering for a free account. This document was generated for
Analyst CornerWeinswig’s Weekly: Temu vs. Shein John Mercer, Head of Global Research and Managing Director of Retail Research March 5, 2023 Reasons to ReadEach report in the Weinswig’s Weekly series reflects on a topical theme in retail. We also highlight our key research from the past week and upcoming reports to look out for, so you don’t miss out. This week’s note, “From the Desk of Deborah Weinswig” (CEO and Founder of Coresight Research) presents a head-to-head comparison of cross-border marketplace Temu with fast-fashion player Shein, covering sustainability, supply chain and more. Other relevant research: 10 Things To Know About Temu Shein in Fast Fashion Global Fast Fashion: Market Poised for Strong Growth, but Sustainability Challenges Remain Read last week’s Weinswig’s Weekly, which discusses the new Coresight Research Innovator Matrix report series, with the first installment evaluating players serving the last-mile delivery sector. This document was generated for
Research DigestInsights Video: US Retail and Consumer Outlook John Mercer, Head of Global Research and Managing Director of Retail Research March 3, 2023 Reasons to ReadIn this Insights Video, we discuss the US retail and consumer outlook. We consider whether real declines in retail sales will continue, whether US retail is overinflated, why we may be entering an era of renewed services spending—and why the consumer economy resembles a game of chutes and ladders. Data in this report include: US retail sales—recent growth rates, real multi-year expansion and Coresight Research growth projections Proprietary Coresight Research US survey data on consumers’ reactions to inflation in retail The balance between consumer spending on retail goods and discretionary services Consumers’ excess savings levels and the pace of depletion Coresight Research survey data on US consumers’ savings firepower Consumer credit levels and asset-price changes Other relevant research: US Consumer Outlook and US Retail Outlook for 2023—Presentation Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveUS Consumer Tracker Extra: The Impact of Debt and Financial Security on Shopping Habits Owen Riley, Analyst March 3, 2023 Reasons to ReadThe Coresight Research monthly US Consumer Tracker Extra series offers a more detailed or specific take on trends and data from our weekly surveys of US consumers. In this report, we assess how factors beyond mere income, such as debt and financial security, influence US consumer behavior, based on proprietary survey data from the period December 2022–February 2023. Data in this report include: Consumers’ debt as a proportion of monthly household income Where consumers shop for food and nonfood, by debt level, financial security, location and income bracket Which channel consumers use to shop for food, by debt level Companies mentioned in this report include: Walmart, Albertsons, Ahold Delhaize, Dollar General, Dollar Tree/Family Dollar, Amazon, Target, Kroger, Aldi, Costco, Macy’s, Kohl’s Other relevant research: Read the full series of US Consumer Tracker reports Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Store TrackerWeekly US and UK Store Openings and Closures Tracker 2023, Week 9: US Openings Up 21% Aaron Mark Dsouza, Data Analyst March 3, 2023 Reasons to ReadOur Weekly US and UK Store Openings and Closures Tracker reports on store closures, openings and bankruptcies. Data in this report include: 2023 week-by-week comparisons of announced store closures and openings in the US and the UK 2022 week-by-week comparisons of announced store closures and openings in the US and the UK 2023 major US store closures and openings 2023 major UK store closures and openings Companies mentioned in this report include: At Home, Bath & Body Works, Camping World, Grocery Outlet, Meijer, Outdoor Voices, Schnucks and Walmart. Other relevant research: Weekly US and UK Store Openings and Closures Tracker 2023, Week 8: US Closures Jump 36% in One Week Store Tracker Extra: US and UK Store Openings and Closures 2022 Review and 2023 Outlook The full collection of Weekly US and UK Store Openings and Closures Tracker reports Complementing our weekly report, the Coresight Research US Store Tracker Databank offers our premium subscribers access to openings and closures data from 2012 to 2023 year to date, filterable by sector and year. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportFebruary 2023 Monthly Consumer Update: US, UK and China Shivani Mehrotra, Analyst Sector Lead: John Mercer, Head of Global Research and Managing Director of Retail Research March 2, 2023 Reasons to ReadWe examine the latest data and assess the overall trends in the US, the UK and China across the following key consumer indicators: earnings versus inflation, retail sales and food and fuel prices. Data in this report are: Average weekly earnings versus consumer prices in the US and the UK—year-over-year change Per capita disposable income versus consumer prices in China—year-over-year change Consumer prices for food at home and gasoline (automotive fuel) in the US, the UK and China—year-over-year change Total retail sales (excluding automobiles and automotive fuel) in US, the UK and China—year-over-year change Other relevant research: January 2023 Monthly Consumer Update: US, UK and China The Coresight Research US Retail Sales Databank Our full collection of monthly reports Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveE-Commerce Outlook: US Home-Improvement Market—Retailers Expand Their Online Offerings Royce Baretto, Analyst Sector Lead: Anand Kumar, Associate Director of Retail Research March 2, 2023 Reasons to ReadWe explore the US home-improvement sector’s recent online performance, as well as future e-commerce prospects and the online strategies of many major players and innovators, including Floor & Decor, Home Depot and Lowe’s. Data in this report include: The e-commerce sales of US home-improvement specialist retailers for 2018 through 2027 (estimated) The online penetration rate of US home-improvement specialist retailers for 2018 through 2027 (estimated) The online shopping habits of home-improvement online shoppers, per proprietary Coresight Research surveys Major US home-improvement specialist retailers, ranked by 2021 e-commerce revenue Companies mentioned in this report include/are: Amazon, Floor & Decor, Home Depot, Lowe’s and Walmart Other relevant research: Leveraging Customer Data in US Home and Home-Improvement Retailing: Moving Toward a Customer Data Platform Head-to-Head in US Home-Improvement Retailing: Home Depot vs. Lowe’s How the US Home and Home-Improvement Market Can Target Millennials Market Outlook: US Home-Improvement Retailing—Personalization and the Resurrection of In-Store Retail Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Deep DiveEuropean Grocery Retail Dynamics Amid Broader Inflationary Trends Sujeet Naik, Analyst Sector Lead: John Mercer, Head of Global Research and Managing Director of Retail Research March 2, 2023 Reasons to ReadWe discuss EU and UK grocery retail sales and inflation metrics in the context of broader inflationary pressures, drawing data from national statistical offices Eurostat and the ONS (Office for National Statistics). Data in this report include: Electricity and natural gas prices for consumers—EU Inflation for housing, water, electricity and other fuels—EU and UK Nominal and real growth in food, drinks and tobacco retail trade—EU and UK Nominal and real growth in non-specialized food stores retail trade—UK Consumer price index, EU and UK—food and non-alcoholic beverages and total inflation, plus inflation rates by country and food category Companies mentioned in this report include: Ahold Delhaize, Asda, Carrefour, Casino, REWE, Tesco Other relevant research: All Coresight Research coverage of food and grocery retail Battling High Input Costs: European Apparel Retailers’ Key Strategies Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Store TrackerUS Store Tracker Extra, February 2023: Tractor Supply Openings Drive Total New Retail Space to 33 Million Square Feet Aaron Mark Dsouza, Data Analyst Sector Lead: Swarooprani Muralidhar, Director of Research March 2, 2023 Reasons to ReadThe US Store Tracker Extra monthly series offers insights into retailers’ store closure and opening announcements and details on closures and openings as a percentage of total store base and square-footage impact. This report also offers a comparison between year-to-date announced closures and openings, as of February 24, 2023, versus the comparable period in 2022. Data in this report are: Year-to-date announced US store closures and openings estimates for 2023, by retailer Year-to-date announced 2023 US store closures and openings estimates in gross square feet, by retailer US announced store closures and openings: week-by-week comparison of 2023 versus 2022 Companies mentioned in this report include: Amazon, Bed Bath & Beyond, Hobby Lobby, Macy’s and Whole Foods Market Other relevant research: US Store Tracker Extra, January 2023: US Retailers To Open 27 Million Square Feet of New Retail Space Click here to view our full collection of Weekly US and UK Store Openings and Closures Tracker and monthly US Store Tracker Extra reports The Coresight Research US Store Tracker Databank offers our premium subscribers access to openings and closures data from 2012 to 2023 year to date, filterable by sector and year—click here to view. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportDigitally Native Vertical Brands in the US Beauty Market: Unique Brand Positioning and Expanded Partnerships Fuel Growth Sunny Zheng, Analyst Sector Lead: Anand Kumar, Associate Director of Retail Research March 1, 2023 Reasons to ReadWe discuss the growth and competitive landscape of DNVBs (digitally native vertical brands, also sometimes called direct-to-consumer, or DTC, brands) in the US beauty market—including trends that brands are leveraging to better serve this market and capitalize on its opportunities. Data in this report include: DNVBs—total sales in the US beauty market, and year-over-year growth, 2019–2027E DNVBs’ share of the total US beauty market, 2019–2027E Gross margins of selected beauty brands in their most recent fiscal years Most recent round of funding by selected US DNVBs in beauty Companies mentioned in this report include: Beauty Pie, Charlotte Tilbury, Drunk Elephant, e.l.f. Beauty, Estée Lauder, Fenty Beauty, Hero Cosmetics, Huda Beauty, L’Oréal, Madison Reed, Trinny London, True Botanicals, Tula Other relevant research: Market Outlook: US Beauty Retailing—Clean Beauty and Premiumization Drive Growth Our Inclusive Beauty series covers product offerings to serve a wider range of customers, including older people, male consumers and customers of different ethnicities. Retail-Tech Landscape: Digitally Native Vertical Brands (DNVBs) The Coresight Research Digitally Native Vertical Brands (DNVB) Databank provides details of US consumer-goods brands that have established themselves selling products digitally. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportInflection Points in the Global Economy in 2023 Shivani Mehrotra, Analyst Sector Lead: John Mercer, Head of Global Research and Managing Director of Retail Research March 1, 2023 Reasons to ReadWith central banks continuing to tackle still-elevated inflation in a number of regions, interest-rate decisions form the biggest known inflection points in the global economy in 2023. In this report, we provide a macro calendar of developments, with a focus on the US, the UK, China and the EU (European Union). Other relevant research: February 2023 Leading Indicators of US Retail Sales: Projecting Soft Retail Growth Ahead of Midyear Uptick US, UK, EU & China Quarterly Economic Update, 4Q22: Decelerating Indicators Point Toward Economic Slowdown Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for
Insight ReportFive Strategies for Success in US Grocery Retail: Leveraging First-Party Data To Offer a Connected Shopping Experience Manik Bhatia, Head of Cobranded Research Sector Lead: Steven Winnick, Vice President—Innovator Services March 1, 2023 Reasons to ReadWe present five key strategies for grocery retailers to win customers while ensuring long-term retention, with a focus on using first-party data to drive personalization. Our insights cover loyalty programs, retail media and more. This free report is produced in partnership with Swiftly, a US-based retail technology solution provider. Data in this report include: · US grocery retail market size—total and online, 2022E vs. 2030E · Proprietary survey findings—benefits of using first-party data; areas of personalization in which brands/retailers and consumers believe brands and retailers excel; changes in spending levels since US consumers joined a loyalty program Companies mentioned in this report include: Amazon, Deliveroo, Dollar Tree, DoorDash, Kroger, The Save Mart Companies, Walmart Other relevant research: Previous Coresight Research x Swiftly research: A Guide to Multiplying Retail Media Dollars The Future of US Grocery Retail: Quantifying US Grocery Market Dynamics Through 2030 More Coresight Research coverage of retail media All our reports on the food and grocery retail sector Executive SummaryIn this report, we discuss five key strategies for grocery retailers to win in customers while ensuring long-term retention, with a focus on using first-party data to drive personalization. Market Scale and Opportunity Coresight Research estimates that the US grocery market will grow at a CAGR of 3.3% between 2022 and 2030, reaching $1.9 trillion, presenting a huge opportunity for grocery retailers. The online channel is set to outpace total sales, growing at a CAGR of 8.4% in the same period to $147.2 billion, we estimate. Coresight Research Analysis The role of the retail store is changing, becoming more important in supporting the cross-channel shopping experience. It is important for retailers to understand that customers today gravitate toward retailers that offer a fully integrated shopping experience across both online and in-store channels. The long-term focus of grocery retailers should be to build end-to-end operational capabilities to own the customer relationship. First-party data can be a retailer’s most valuable resource in driving sales and customer loyalty if collected, managed, and used effectively, helping provide a personalized shopping experience. Data from loyalty programs enable retailers to understand, segment and reward their customers through personalized incentives that excite shoppers, as well as offer personalized recommendations based on customers’ interests, which can increase customer loyalty and basket size. Retailers can also access customer data by integrating their loyalty program into third-party platforms. Retailers should focus on building widely spanning retail media capabilities. Retail media allows retailers to utilize their rich customer data to offer a greater personalized experience to shoppers while offering a high-margin alternative revenue stream. What We Think Grocery retailers should focus on offering connected omnichannel shopping experiences to customers. Having the right technology solutions can help facilitate unified experiences and services. As first-party data is critical for retailers to drive sales, retailers need to plan and implement initiatives to gain control of customer data and the customer relationship. Introduction Succeeding in grocery retail is becoming increasingly difficult amid stiff competition and thinning profit margins due to the rise in e-commerce. It has become more important than ever for retailers to own and manage their end-to-end operations effectively. Moreover, consumers today are interested in new, innovative digital experiences focused on convenience and personalization. Grocery retailers need to focus on effectively deploying technologies that enhance the omnichannel shopping experience and connect shoppers with personalized ads, loyalty programs, coupons, digital shopping lists and advertisements. With the increasing prevalence of omnichannel, it is imperative for retailers to meet shoppers across all touchpoints while ensuring consistent and unforgettable experiences. Retailers are increasingly turning to technology solution providers to bolster their digital presence. In this report, we discuss five key strategies for grocery retailers to win customers while ensuring long-term retention, with a focus on using first-party data to drive personalization. This report is sponsored by Swiftly, a US-based retail technology solution provider that offers retail tools, mobile platforms, analytics tools and a retail media network, enabling retailers to accelerate sales and build loyalty while enabling brands to reach more shoppers and amplify campaigns using the power of first-party data. Market Scale and Opportunity Coresight Research estimates that the US grocery retail market will grow at a CAGR of 3.3% between 2022 and 2030, reaching $1.9 trillion, presenting a huge opportunity for grocery retailers. The online channel is set to outpace total sales, growing at a CAGR of 8.4% in the same period, to $147.2 billion, we estimate. Figure 1. US: Grocery Retail Market Size (Left; USD Bil.) and Online Food Retail Market Size (Right; USD Bil.) Grocery retail market size includes sales of all products by food retailers and grocery sales of selected major mass merchandisers, warehouse clubs and discount stores Source: IRI E-Market Insights™/Coresight Research While stores are the go-to destination for grocery purchases, retailers are not undermining the potential opportunity that grocery e-commerce presents. We believe that inflationary pressure will continue to fuel omnichannel commerce as cost-conscious shoppers seek the best value across shopping channels—both online and offline—which increases the need for a seamless and connected shopper experience. However, while online grocery sales continue to rise, the significance of physical retail stores cannot be undermined. US-based e-commerce giant Amazon opened its first physical grocery retail outlet in August 2020 and has focused on expanding the format since—opening 40 stores across the US. We believe that grocery retailers should focus on building an omnichannel strategy that is streamlined and effective at every customer touchpoint. Five Strategies for Success in US Grocery E-Commerce: Coresight Research x Swiftly Analysis We present five strategies for retailers in the US grocery market in Figure 2 and explore each in detail below. Figure 2. Five Strategies for Success in US Grocery E-Commerce Source: Coresight Research 1. Offer a Seamless Omnichannel Shopping Experience to Customers Consumers are using multiple channels to purchase and research products, plan their shopping lists and find the best savings. They gravitate toward retailers that provide a seamless and convenient shopping experience by carefully integrating online and offline channels and offering a digitized in-store shopping experience. To succeed in today’s retail environment, retailers must offer a frictionless omnichannel shopping experience for customers that allows them to select the channel that best suits the purchase occasion––in-store, mobile app or website. By taking an omnichannel approach, grocery retailers can connect with customers and offer personalized experiences through the shopping journey. They can also attract and influence customers at the point of sale, where final purchasing decisions are made. This enables retailers to increase their share of customers’ wallets, which is critical as most grocery retailers operate with slim margins. According to a survey conducted by Symphony RetailAI of 421 million baskets purchased in the US and Europe in the first quarter of 2021, omnichannel shoppers shop more frequently and spend up to 20% more than in-store-only shoppers. As part of an omnichannel approach, grocery retailers can implement multiple store-based strategies that leverage advanced technologies to remain ahead of their competition. These include, but are not limited to, endless-aisle solutions, which allow shoppers to purchase any product in a retailers’ online catalog for home delivery when they cannot find those products in the physical store. In addition, retailers can offer a truly blended omnichannel experience and increase customer loyalty by having an integrated mobile platform that offers personalized content to shoppers—such as product recommendations and promotions—based on their location. In-store digital signage Source: Spectrio For small and medium-sized companies looking to catch up with the competition and gain greater market share in the future, partnerships with third-party technology providers such as Swiftly present a key opportunity to integrate online and in-store experiences and offer connected shopping experiences to their customers. According to Henry Kim, CEO of Swiftly, as the retail industry rapidly consolidates and consumers continue to struggle with rising costs, retailers need to act now to solidify digital customer relationships and build new margin-rich revenue streams. He highlighted that Amazon and Walmart are continuing to put pressure on retailers through innovation and the introduction of advanced technologies. Gain Full Control of the Customer Relationship We think that, in the long term, retailers will focus on building their own end-to-end capabilities to own the customer relationship. This is important because it enables retailers to control their messaging and brand image across the entire customer journey, from product discovery to delivery to returns, as well as offer a seamless shopping experience via their own websites and mobile apps. US-based grocery retailer The Save Mart Companies (TSMC) partnered with Swiftly in December 2021 to improve its existing mobile application. According to the CMO of TSMC, the improved user-friendly app provides an integrated loyalty and e-commerce experience designed to make the shopping experience even more convenient. While partnering with third-party delivery companies has the upside of not missing out on order volume to competitors, the downside is that it costs retailers end-to-end control over the customer relationship. For instance, with delivery partnerships, any negative experience (such as delays) that are outside of the retailer’s control can be detrimental to their relationship with the customer. Additionally, third-party delivery companies charge high commission on every order they fulfill—which can be 8%–12% of the transaction value, leading to deep cuts into retailers’ profit margins. Larger retailers realize this and have taken steps to gain full control. For example, Walmart has focused on owning the last mile through its Spark Driver delivery platform and InHome delivery service. We believe that it is equally important for retailers of a smaller size and scale to take control of the end-to-end customer relationship, including the last mile. 3. Collect and Manage First-Party Customer Data A critical component for retailers in gaining control of the customer relationship is the collection and management of first-party customer data. The importance of owning first-party customer data has increased due to the tightening of consumer privacy laws and the gradual phase-out of third-party cookies. For example, Google plans to phase out third-party cookies in its Chrome web browser in 2024. First-party data can be a retailer’s most valuable resource in driving customer loyalty if collected, managed, and used effectively. This is because, collected directly from consumers, such data are reliable and enable retailers to generate accurate and unique customer insights that can help create a more seamless and personalized shopping experience. By tailoring the shopping journey—including marketing—based on customer data, retailers can improve conversion rates and increase the likelihood that customers will make repeat purchases. During an interview with CNBC in September 2022, Yael Cosset, Senior VP and CIO at Kroger, said that the retailer is leveraging data to engage with customers across its digital channels, including apps, and websites to make relevant customer interactions and offer personalized shopping experiences. According to a Coresight Research survey of US-based executives whose organizations use first-party data for marketing, conducted in November 2021, driving sales (online) is the topmost benefit of using first-party data—cited by more than half of all respondents (see Figure 3). While driving sales is the topmost benefit, sharing targeted information (promotions, etc.) and building brand recognition can help retailers reap higher conversion rates and a larger average basket size from a more loyal customer base. Figure 3. Benefits of Using First-Party Data (% of Respondents) Base: 142 US-based executives (managing omnichannel operations) whose organizations use first-party data for marketing purposes Source: Coresight Research Retailers can capture some data through loyalty programs in third-party delivery apps (which we discuss further in the next section), but access is limited, resulting in a less-than-complete picture of the consumer. Third-party companies, on the other hand, can collect information on what shoppers are searching for, orders that are added to the cart, the number of times items are added and what was placed in the cart but not purchased. This level of customer insight positions delivery companies well to present direct competition for brick-and-mortar grocery retailers, with extensive knowledge of shopper behavior and the ability to personalize the purchasing and delivery process. For example, DoorDash and UK-based food and grocery delivery company Deliveroo have each opened brick-and-mortar grocery stores—in August 2020 and October 2022, respectively. The growing quick-commerce market is seeing vast amounts of customer data being made available to third-party delivery companies, driving the imperative for retailers to find the right balance between partnerships and establishing their own sources of first-party data. 4. Leverage First-Party Data To Optimize Loyalty Programs and Drive Personalization Succeeding with long-term customer retention requires brands and retailers to offer a seamless and personalized shopping experience. However, there is a gap between brands’/retailers’ perception of their personalization capabilities versus how consumers perceive them. For example, around seven in 10 (71%) brands and retailers based in the US and the UK think they excel in marketing personalization, but only 34% of consumers agree, according to recent Coresight Research survey findings. Figure 4. Areas of Personalization in Which Brands/Retailers and Consumers Believe Brands and Retailers Excel (% of Respondents) Base: 5,014 US and UK consumers and 260 US and UK brands and retailers, surveyed in October 2021 Source: Coresight Research The key to effective—targeted, tailored and timely—personalization lies in how well retailers can use their first-party data to draw insights. Loyalty programs are a key source of first-party data, which grocery retailers can leverage to tailor offers and promotions and therefore increase customer loyalty and basket size. Additionally, retailers should focus on leveraging all data available to continue to improve their loyalty programs. When used effectively, purchase data, for example, can help retailers optimize their tiered loyalty programs and improve promotion targeting. There are two primary ways in which retailers can effectively leverage first-party purchase data: Having an integrated approach to data collection from various sources such as retailer apps/websites, POS (point-of-sale) systems and, in some cases, in-store beacons enable retailers to draw unified insights in real time that can strengthen their promotion and marketing management. Having a single view of the customer through data from multiple sources can help retailers make more informed and effective decisions and yield better shopper targeting. We believe that grocery retailers that own and manage proprietary customer data can derive better insights about shopper behavior that allow them to build personalized loyalty programs, which can boost sales. According to a Coresight Research survey conducted in March 2022, almost half of US consumers who are members of a retail loyalty program reported that they now spend more with that retailer than before they joined its loyalty program—indicating the revenue-generating opportunity of loyalty programs for retailers. Figure 5. US Consumers with a Loyalty Program Membership: Changes in Spending Levels Since Joining a Loyalty Program (% of Respondents) Base: 329 US respondents aged 18+ who are members of a retail loyalty program, surveyed in March 2022 Source: Coresight Research Retailers should continue to mine data from loyalty programs to understand, segment and reward their customers, including fine-tuning personalized recommendations based on their interests. 5. Build Customer-Centric Retail Media Capabilities Retailers can use first-party data and customer loyalty data to increase personalization in retail media—a form of advertising where brands utilize retailers’ digital and physical channels to showcase their products and increase revenue. Expanding their retail media capabilities adds a high-margin advertising business to grocery retailers’ revenue streams, providing an innovative way to combat declining profit margins amid rising delivery and fulfillment costs fueled by labor shortages, inflation and supply chain issues. Providing a more targeted retail media experience can drive a higher return on ad spend (ROAS) for brand partners, allowing grocery retailers to command higher advertising rates—i.e., CPM (cost per mille [per thousand impressions]). US-based retailer Dollar Tree’s Family Dollar brand partnered with Swiftly in April 2021 to launch its retail media business, Chesapeake Media Group. The retail media business allows CPG brands to utilize onsite and offsite retail media to reach targeted customers. The onsite platform enables advertisers to use dynamic ad placements, sponsored searches and product recommendation tools. In 2021, Amazon and Walmart reported global retail advertising revenues of $32.1 billion and $2.1 billion, respectively, highlighting the huge market for retail advertising. Coresight Research estimates that the global retail media industry was worth $75.1 billion in 2022, up 80.1% year over year. For more insights on how to capitalize on this emerging opportunity, read Coresight Research and Swiftly’s separate report, A Guide to Multiplying Retail Media Dollars. What We Think Grocery retailers that offer omnichannel shopping experiences to customers, and are constantly investing in advanced technologies focused on offering seamless shopping experiences for customers, are likely to emerge as winners. The tightening of consumer privacy laws and the gradual phase-out of third-party cookies further drives the need for retailers to collect and manage first-party customer data. As personalization is critical to driving sales, and competition is increasing in the grocery space, retailers need to plan and implement initiatives to gain control of customer data and customer relationships. Implications for Brands/Retailers Grocery retailers should focus on implementing an omnichannel strategy that provides a connected experience for customers––and the right technology solutions can help facilitate these experiences and services. Grocery retailers should expand their end-to-end operations and take control of their customer relationships and data. Grocery retailers should leverage customer loyalty programs to access first-party data and generate insights into shopper behavior, preferences and demand. Grocery retailers should build their retail media capabilities to generate incremental revenue. Implications for Technology Vendors Technology solution providers that help retailers offer a truly blended omnichannel experience to shoppers can work with grocery retailers to build and manage their end-to-end operations. About Coresight Research Custom Reports Coresight Research Custom Reports are produced as part of commercial partnerships with leading firms in the retail, technology and startup ecosystems. These Custom Reports present expert analysis and proprietary data on key topics in the retail, technology and related industries, and enable partner companies to communicate their brand and messaging to a wider audience within the context of brand-relevant research. This Custom Report is sponsored by Swiftly, a US-based retail technology solution provider. For more information, visit Swiftly.com. This document was generated for
Free Data GraphicThree Things You Need To Know: US CPG—The Consumer Health Category Coresight Research February 28, 2023 Our Three Things You Need To Know series provides free snapshots of Coresight Research data and findings. This graphic presents selected insights on the consumer health category in the US consumer packaged goods (CPG) sector. Subscribers can access the full research behind this graphic here. To find out how to subscribe, click here. Currently, the consumer health category within the US CPG sector is marked by spin-offs by major incumbents. Moving forward, the category will provide serious growth prospects as consumers remain focused on health and wellness. Our full report discusses the performance and outlook of the consumer health category as well as the competitive landscape and themes we are watching in the space in 2023 and beyond. This document was generated for
InfographicNext-Generation Product Information Management: From Spreadsheets to AI—Free Infographic Terence Ng, Senior Analyst Sector Lead: Steven Winnick, Vice President—Innovator Services February 28, 2023 Reasons to ReadWe present selected insights into product information management (PIM), covering current challenges faced by brands and retailers, and the benefits of AI (artificial intelligence)-driven PIM, based on Coresight Research survey findings. This free infographic is sponsored by product experience management (PXM) solution provider Digital Wave Technology. Other relevant research: Read Coresight Research and client’s full report on this topic to learn more: Next-Generation Product Information Management: From Spreadsheets to AI Innovator Intelligence: Product Information Management—Creating a Single Source of Truth in Omnichannel Retail More Innovator Research from Coresight Research This document was generated for