Let’s face it: Shoppers are staying home. The combination of $4 or more for a gallon of gas and the rise of online shopping is negatively impacting store trips. Take a look at how Amazon shifted the purchase of consumer packaged goods brands that have traditionally been retail trip drivers. According to Nielsen, 9% of U.S. households are currently buying consumer packaged goods brands online, and 1,000 new households join Amazon’s “Subscribe and Save” every day. For brick-andmortar retailers, those shoppers and their trips are essentially being taken out of the market.
What’s a Retailer to do?
1. Look at your own ecommerce platform and strategy to make sure that you’re effectively meeting the needs of shoppers.
2. re-examine your in-store value proposition to make sure you’re differentiating the shopping experience in areas like convenience, enjoyment and relevance. Manufacturers need to have an “e-tailing” channel strategy (assortment, pricing and promotion) that include programs such as exclusive offers, in-store sampling, loyalty rewards and other promotions. —Todd Engels, general manager, Marketing Drive
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