News • 06.02.2019

IRI finds consumer confidence making big impact on e-commerce growth

64 percent of omnichannel growth due to e-commerce

omnichannel growth; Copyright: panthermedia.net/alexlmx...
Source: panthermedia.net/alexlmx

While 2019 got off to a rocky start, with a partial government shutdown and trade challenges attributed to tariffs, consumers at the close of 2018 were buoyed by their strong household financial health and were spending accordingly. The latest IRI Consumer Connect survey results find that nearly 55 percent of consumers report their households were in good financial shape in Q4 2018, up 4 percent from Q3 2018 and 2 percent from Q4 2017. Hand-in-hand with consumer confidence is the growing and evolving e-commerce channel. In fact, 2018’s e-commerce sales increased by a whopping 35.4 percent, according to IRI’s new research, Consumer Confidence Reflected in E-Commerce Growth. 

Consumers are increasingly comfortable with online purchasing, and retailers of all stripes are upping their online offerings, working to enhance the shopper experience with simple navigation, assortment, good values and delivery options.

“Millennial and Gen X consumers are more at ease with online purchases than older generations, and as e-commerce becomes more of a routine, those shoppers are migrating offline efforts to save money to their online practices,” said Joan Driggs, vice president of Content and Thought Leadership for IRI. “Online offers a lot of additional outlets for smart shopping, including easy comparison shopping and keyword search for more informed purchases.”

E-commerce sales are shining star of CPG omnichannel universe 

E-commerce sales for the latest 52 weeks ending Dec. 30, 2018, were $58.9 billion, a 35.4 percent increase from a year ago. These sales account for only 11 percent of total CPG retail sales; however, e-commerce accounts for 64 percent of total omnichannel growth.

“Pure-play retailers garner more than half of all online CPG purchases, but traditional brick-and-mortar retailers continue to invest and win share of the e-commerce pie,” said Sam Gagliardi, head of e-commerce for IRI. “It is incumbent upon the future success of these traditional retailers to invest in the shopper experience both in-store and online.”

Non-food items, particularly personal care and home care products, are tops in online purchases. IRI E-Market Insights reports that vitamins, pet food and supplies, and skin care products are the top- selling items. Pet food and supplies are often bulky items that are inconvenient to purchase off store shelves. Vitamins, typically purchased for specific health benefits, are likely considered easier to shop for online through keyword search and with access to additional information.

Specifically, Q4 Consumer Connect survey respondents say buying online allows them to find lower-priced beauty and personal care product options — 29 percent of total U.S. consumers, 45 percent of millennials, 35 percent of Gen Xers, 27 percent of boomers and 14 percent of seniors. These results closely mirror thought on home care products, with 30 percent of total consumers, 43 percent of millennials, 36 percent of Gen Xers, 27 percent of boomers and 19 percent of seniors saying they find lower-priced options online.

While fresh and frozen items rank among the bottom of e-commerce sales categories, there are signs of significant growth, indicating that retailers — likely with the support of such flexible options as click-and-collect — are starting to crack the code on delivering fresh and frozen items via online.

Millennials and Gen Xers, the two generations most likely to find value in shopping online, are also the generations that report having the most difficulty affording needed groceries (34 percent of millennials, 36 percent of Gen Xers). More than half — 54 percent — of millennials and Gen Xers report they are less likely to make impulse purchases when buying online. With this in mind, e-commerce should be touted as a tool for helping shoppers stick to their budget. Overall, 50 percent of total respondents report they are less likely to make impulse purchases online, including 49 percent of boomers and 44 percent of seniors.

It’s no surprise that 38 percent of all consumers like ordering online and picking up in the store, because it is convenient and is a good way to avoid shipping fees. In fact, 49 percent of millennials, 48 percent of Gen Xers, 38 percent of boomers and 24 percent of seniors feel the same.

In addition to purchases of bulky or heavy items, such as pet food, shoppers are increasingly going online for more sensitive purchases. IRI E-Market Insights reports that gastrointestinal and adult incontinence products are among the largest e-commerce growth categories. These products are not what people imagine themselves needing, so when these occasions arise, it’s both a comfort and a convenience for shoppers to learn about and order products online.

“E-commerce sales will continue to climb in 2019 and beyond, with retailers increasingly investing in better ways to engage shoppers, including with improved navigation and mobile access, delivery and payment options, and endless aisle assortments,” added Gagliardi.

Source: IRI

related articles:

popular articles:

Thumbnail-Photo: The Medial Customer Journey at the POS
29.08.2019   #online trading #pos marketing

The Medial Customer Journey at the POS

Permaplay offers different concepts for a powerful and sales-promoting POS communication

More and more people are buying more and more products in more and more places. The exciting question “Who will win: stationary retailing or online trading?” has been discussed for years. Permaplay Media Solutions Managing Director ...

Thumbnail-Photo: The future of retail: AI is changing everything...
08.07.2019   #digital marketing #visual merchandising

The future of retail: AI is changing everything

AI-enabled systems help retailers understand their customers

For retailers, winning is still all about delighting the customer. The trick is to move fast enough and to be as nimble as possible to satisfy the customer not only today, but in the future. ...

Thumbnail-Photo: App creates personalised shopping experience...
26.08.2019   #mobile payment #app

App creates personalised shopping experience

The Swiss trading company Valora is opening its first cashless convenience store

The goods are chosen, scanned and paid for using the avec smartphone app. Mobile computer vision specialists Scandit’s scan engine is a key component of the customer-facing app. The future of shopping - whether online or offline - is ...

Thumbnail-Photo: Frictionless checkout across all channels to build loyalty...
04.07.2019   #mobile payment #customer satisfaction

Frictionless checkout across all channels to build loyalty

H&M and Klarna elevate the shopping experience for US consumers

H&M and Klarna announced that they have expanded their current partnership agreement to also include the US market, in the development of an unrivalled payments and shopping experience across touchpoints. Together, H&M and Klarna are aiming ...

Thumbnail-Photo: Innovative ICA store triples revenue
22.08.2019   #electronic shelf labels (ESL) #price labelling

Innovative ICA store triples revenue

Automatic price updates and product information at the shelf

Since ICA merchant, Jan Sikström, took over the ICA Ettan store in Sundsvall (Sweden) in 2016, he has almost tripled the turnover from SEK 15 million to SEK 40 million. Today, the store has 15 employees and approximately 5,000 different items ...

Thumbnail-Photo: New innovative hybrid POS solution for small businesses...
20.05.2019   #pos systems #cashpoints

New innovative hybrid POS solution for small businesses

Posiflex presents a new innovative Hybrid POS solution for small businesses

The Retail market is always evolving, and so is Posiflex. Posiflex continually stays attached to the market and identifies ahead what the market really needs. Posiflex is honored to present its latest innovative Hybrid POS solution, WT-3007A, to the ...

Thumbnail-Photo: A simple, fast, intuitive payment experience...
02.09.2019   #cashpoints #epos components

A simple, fast, intuitive payment experience

Are POS systems all about a perfect and versatile device?

"The perfect all-rounder POS device that’s ideal for all retail applications has not been created yet," says Oliver Kapahnke Managing Director at GLORY Deutschland. "But that’s OK.” In this interview, he talks ...

Thumbnail-Photo: New year brings new regulations
13.09.2019   #data management #receipt printer

New year brings new regulations

What are the big changes for German point of sales systems come 2020?

Big changes are coming to Germany’s point of sale systems starting January 1, 2020. Two terms that are tossed around in this connection are "Belegausgabepflicht" (Receipt Provision Ordinance) and ...

Thumbnail-Photo: Sales assistant Remy talks about strange customers and emotional...
25.07.2019   #customer satisfaction #pos marketing

Sales assistant Remy talks about strange customers and emotional decisions

An interview with a fictitious robot that works in retail

There is a lot of hype surrounding humanoid, socially intelligent robots and what they can do. They are interviewed, filmed and tested. Oftentimes, it’s to find out how consumers feel about the machines and how they are accepted by users and ...

Thumbnail-Photo: Well cooled shopping entertainment, please!
15.07.2019   #refrigeration cabinets #refrigerated counters

Well cooled shopping entertainment, please!

What about modern refrigeration technology?

Pierluigi Schiesaro and Gian Paolo Di Marco from Arneg, a company focusing on food service equipments, talk about refrigeration systems as "shopping entertainment".They also tell us what sustainable refrigeration could look like and why ...

Supplier

Superdata GmbH
Superdata GmbH
Ruhrstr. 90
22761 Hamburg
iXtenso - Magazin für den Einzelhandel
iXtenso - Magazin für den Einzelhandel
Celsiusstraße 43
53125 Bonn
Permaplay Media Solutions GmbH
Permaplay Media Solutions GmbH
Aschmattstr. 8
76532 Baden-Baden
APG Cash Drawer
APG Cash Drawer
4 The Drove
BN9 0LA Newhaven
Delfi Technologies GmbH
Delfi Technologies GmbH
Landgraben 75
24232 Schönkirchen