Posts tagged with "Retail Dive"

Self-checkout now comprises nearly 40% of grocery checkout options

November 21, 2022

Despite the frequent complaints from consumers and media reports about self-checkout lanes, grocers are continuing to push forward with the technology as labor challenges persist and consumer shopping habits evolve. Catalina, a company that transforms data into consumer insights, notes that more retailers are pivoting from manual to self-checkout lanes, reports Retail Dive.

The number of self-checkout lanes in America has increased by 10% in the last five years, and Catalina estimates that they now make up 38% of the checkout lanes in U.S. grocery chains. 

Self-checkout lanes are becoming more popular, due to social distancing measures sparked by the pandemic and the availability of automation technology, the firm said. A few retailers, such as Walmart, Kroger and Dollar General, have even started testing self-checkout-only stores, per CNN reporting cited by the firm.

Offering a mix of both manual and self-checkout lanes can appeal to a wider variety of shoppers and serve different types of shopping trips, Catalina says, based on a new study. The findings are based on an analysis of 4.5 billion transactions made by 245 million consumers in the United States in 2021.

In fact, consumers who use both self-checkout stations and staffed checkout lanes consistently have the highest retention rates and best customer value, bolstering the case for retailers to take a hybrid approach to their front ends, according to Catalina.

Catalina found that the group of shoppers who used both methods includes a mix of demographics, with consumers tending to have a higher annual household income compared to shoppers who used one checkout type exclusively.

In 2021, 39% of shoppers identified as using both checkout types depending on what they were buying, with usage evenly divided between self-checkout and manned lanes. People who used a mix of both methods had the highest customer value ($1,720) and completed the most shopping trips (36) per year in 2021, compared to people who used only one of the methods. 

“In our view, retailers should evolve to create a balance of self-checkout and manned lanes to accommodate more multi-dimensional shopper profiles, improve customer experience, enable cost efficiencies and maximize sales for the long term,” Wesley Bean, U.S. chief retail officer for Catalina, said in a statement.

The firm also found through a pilot with an unidentified regional grocer that self-checkout users who received coupons drove four times more sales growth than the self-checkout lanes with suppressed incentives.

Of the 12% of surveyed shoppers who said they only use self-checkout, Catalina found they tended to fill smaller baskets, which the firm said suggests they are likely buying household and pantry items in other channels, like at mass retailers or online. Catalina also pointed out that some retailers cap the number of items shoppers can buy using self-checkout.

Self-checkout-only tends to draw 19- to 24-year-olds and also people born between 1928 and 1945, known as the Silent Generation, the firm said.

Meanwhile, 49% of consumers still prefer only using manned lanes. That group mainly consists of Baby Boomers and Silent Generation consumers with household incomes under $100,000 and a high school education, Catalina’s research found.

“Until recently, shopper profiles generally grouped consumers by demographics and where they are on the purchase funnel,” Bean said. “Now, retailers can layer in check-out preferences and shopper affinities to create a more personalized shopping experience and reach individual shoppers with messages that matter.”

While manual checkout remains popular, the study’s findings underscore that grocers can reach more consumers and meet more shopping needs by mixing in self-checkout. Grocers who only offer one method over another may discourage certain customer demographics or purchasing behaviors, such as consumers using self-checkout for quick trips or Baby Boomers preferring traditional lanes.

Research contact: @RetailDive

Amazon to have a presence at Coachella, including pop-up shop and lockers

March 28, 2019

Amazon has plans to set up shop—literally—at this year’s Coachella Valley Music and Arts Festival, scheduled for the weekends of April 12-14 and April 19-21 in Indio, California. The online retailer will operate a curated storefront at the festival, offering such must-haves as flower crowns, feather-shape earrings portable fans, sunblock, lip balm, and disposable cameras.

The website also is offering customers the opportunity to shop ahead from the storefront from now through April 11—and have purchases shipped directly to a personal Amazon locker on-site at the festival, Retail Dive reported.

The temporary lockers already are familiar to Amazon aficionados, who already can pick up their orders at 900 lockers nationwide instead of waiting for deliveries. The lockers are located at handy places such as Whole Foods stores, apartment buildings, and college campuses, Retail Dive notes.

This is the first year that Amazon will have either a pop-up shop or lockers at the festival.  ““We want customers to make the most out of their weekend at Coachella,” Patrick Supanc, Amazon worldwide director of lockers and pickup said in a statement, adding. “Bringing the convenience of Amazon lockers to Coachella will help customers focus on their experience instead of worrying about forgetting something at home or having to carry it in with them.”

Shoppers will receive an email when a package is ready for pickup. Items from the Coachella Amazon store also can be shipped to shoppers’ homes.

To celebrate the first-ever appearance of Amazon lockers at Coachella, Amazon is giving away two VIP passes to Weekend 2 of the festival, as well as $3,000 for travel and accommodation. The winner and a guest will get to see their favorite artists and experience an Amazon Locker at Coachella firsthand. Customers interested in entering can visit amazon.com/Coachellagiveaway for more details and the official rules. The winner will be awarded by a random drawing to be held on or about April 6.

YouTube announced earlier this year that it will livestream both weekends of the festival. According to Fortune magazine, in previous years, the site only has streamed the first weekend of the festival. This year, it will add a “curated live experience” from the second weekend, with behind-the-scenes footages, artist vignettes, and a few select performances.

Among the artists to hit the grandstand will be Ariana Grande, Childish Gambino, Diplo, Kacey Musgraves, Solange, Weezer, and Wiz Khalifa.

Research contact:  amazon.com/coachella

Beauty shoppers spend 80% of ‘purchase experience’ looking at ads, articles, social media

July 17, 2018

A relatively self-serving study sponsored by Condé Nast—publisher of such magazines as Allure, Glamour, Self, Vogue, and W—has found that, in the beauty category, consumers spend 80% of their time in the “pre-search” or “influence” phase of shopping, with a spate of publications, social media, advertising, and celebrities affecting their final purchases.

The study, fielded by the research firm Tapestry and posted on Retail Dive on July 16, found that, similarly, fashion consumers spend 69% of their time in the pre-search stage and are most motivated by advertising; as compared to tech consumers, 65% of whom are influenced by ads “outside of their buying needs.”

Interestingly enough, both beauty and fashion buyers say a couple of brands are “top of mind”—even before they start looking. Fully 79% of respondents admitted they had brands in mind before their search—and 69% pay more attention to ads from sources they know and trust. In fact, more than half of shoppers (52%) spend their full decision time deciding between just two brands.

The outliers? Fifty-three percent of fashion consumers and 64% of 13- to 17-year-old shoppers purchase the brand they first considered.

With influential beauty and fashion publications in its inventory, Condé Nast found that its brands have three times more influence on consumer decisions than Google and Facebook, with three in four respondents saying they trust Condé Nast brands to recommend products. More than 90% trusted Glamour, GQ and Vogue for fashion recommendations; as well Glamour and Allure for cosmetics. Indeed, Consumers were 50% more likely to list a Condé Nast brand in the pre-search phase and think more highly of brands that advertise with Condé Nast, compared to Google and Facebook. Specifically, Condé Nast is 26% more likely to drive purchase intent than tech giants Facebook and Google, based on the study findings.

Other research has revealed that social media plays a major role in driving purchases, especially among younger consumers. A Yes Lifecycle Marketing report released last year found that 57% of consumers across different generations say social media influences their shopping decisions; while 80% of Gen-Zers and 74% of Millennials said social channels influence their shopping. Instagram was a key driver of fashion, beauty and style-focused purchase for 72%, a 2017 Dana Rebecca Designs survey found.

Research contact: @CondeNast