Future of Nordic Grocery Retail
August 16, 2021
August 16, 2021
Covid-19's immediate impact on Nordic grocery was dramatic. Fear of contagion drove many consumers away from the physical stores and towards online shopping options, some of which struggled to cope.
At the same time the pandemic is changing the way we shop and what we buy, painting a new picture of customers' desires and shopping journeys.
Read more about the data-driven insights into the digital customer experience and how Covid-19 is transforming Nordic grocery shopping.
READ MOREWhile Consumers are increasing their digital engagement, they also want the flexibility to engage in ways that suits them. A majority of consumers now expect a seamless and complimentary omnichannel shopping experience that acknowledge their individuality and supports their willingness to shop smarter and more sustainable.
62%
of Nordic grocery shoppers would spend >5% more for sustainable options and would welcome initiatives that reduce plastic packaging and food waste, or offer a wider range of local or organic products.
63%
of consumers are either bored or confused by current loyalty schemes. Younger shoppers seek programs that offer flexible, tailored experiences that would help them achieve their personal goals.
The Nordic grocery retail is an industry in flux and the future is omnichannel. New ways of shopping are challenging long-held assumptions about the value propositions that can secure competitive advantage. Shifting customer desires are compounding the struggle for differentiation. Success hinges increasingly on creativity—yet finding the right creative mix is proving elusive.
Price still matters to consumers, but sustainability, transparency and purpose are just as important - perhaps more so. Online shopping is booming, but people still want to shop in-store. Their preferences are increasingly omni-channel.
National, regional and above all demographic differences complicate the picture. The young in particular seek more than a transactional relationship and demand meaningful experiences when they shop.
Each of the 45 touchpoints for Web, Mobile and App across the 15 Nordic grocery brands was assessed against 5 key components of customer experience: Shopping, Sign up, Logged In Checkout and Delivery. The results were evaluated against a usability scale to provide a final score.
Scores were then consolidated and weighted across touch points and countries to provide an individual country score, and subsequently an overall Nordic position.
In conclusion, Nordic retailers will increase their competitiveness by:
Customers are willing to invest in sustainable produce. It is essential that Nordic grocery retailers invest in making it easy to be a sustainable consumer.
The Nordic has more than 40% single households. Retailers that can deliver cost-efficient services to smaller households can expect an improved marked position.
Customer shopping varies as much online as they do in stores. The digital experience needs to cater for those needs with a wide product offering and delivery services.
Inspire customers, help them set and achieve personal goals, offer services that they value to build an emotional connection.
Investments in in-store technology that enables customers to use the app to navigate stores, find products and pay in a seamless way and eliminate steps like queuing and check-outs.
Grocery retailers who can innovate to meet these new customer needs, to offer personalized and tailored experiences, will establish competitive advantage now and in the future. Read the full report here to learn more.
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