New research commissioned by Vestcom, the industry leader in shelf-edge media and subsidiary of Avery Dennison (NYSE: AVY), reveals a unique consumer-lens to the digitization of retail stores in the US.
Given the increasingly competitive grocery store landscape, with shoppers more switched on to discounts and dynamic advertising than ever before, the role of in-store digital screens could prove vital in the battle for customer loyalty and increased sales. As retailers begin to test different approaches to digitizing their stores, there are many considerations to ensure their investments pay off – none of which are more important than the impact on shopper experience and behaviours.
A survey of 1,000 respondents across the US, conducted in partnership with the Path to Purchase Institute, shows:
- Nearly half (47%) of shoppers believe digital screens have a positive impact on their in-store grocery shopping experience
- One-in-four (27%) shoppers report trying a new product or buying an item they hadn’t planned to based on the influence of an in-store digital display
- Almost half (46%) of shoppers say ESLs that enable grocery retailers to adjust prices in real-time offer them better value
- However, younger generations are more skeptical, with nearly a third (29%) of Gen Z respondents expressing concerns that ESLs could potentially promote price gouging
The research also provides specific clues to help retailers formulate an in-store strategy that will win over shoppers, revealing preferences on placement and content of screens, trade-offs between ESLs and paper tags, and the impact of a more digitized environment.
Ned Peverley, Vestcom’s vice president and general manager, says: “Digital formats will undoubtedly play a major role in stores of the future, within a hybrid environment that brings together the optimal mix of digital and physical experiences. Retailers want solutions that reduce complexity, which is driving the uptake of centralized management and execution of in-store media and price communication. Vestcom is in a unique position via our storeLink platform to help partners shape a holistic approach to in-store activation that best serves their customers, drives operational efficiency and ultimately delivers profitable returns.
