How Grocery Brands Can Cash In on Consumer Choice at the Checkout

The cost-of-living storm that we’ve all weathered over the past year looks set to continue as inflation levels remain sky high and purse strings continue to be tightened, all of which present a stubbornly challenging picture for grocery brands. There is, however, a ray of sunshine for brands, as this tough environment has made consumers more receptive than ever to change. 

Our research shows that a whopping 75% of shoppers have altered their grocery shopping habits as a result of the cost-of-living crisis, with 33% of shoppers substituting their normal purchases with new brands. Consumers are more aware of what they’re putting in their baskets than ever before, presenting both a challenge and an opportunity for brands. Therefore it really pays to invest in understanding and analysing the consumer psyche when it comes to their checkout decisions.

How are consumers behaving?

Despite the rise of online and proliferation of alternative shopping methods, in-store remains king, with 91% of UK consumers choosing to purchase their groceries in-store. However, there are some distinct differences in how consumers behave when they shop in-store, versus online. Our research shows that real world shoppers are three times more likely to switch from their preferred brand, and 3.5 times more likely to make impulse purchases. 

Compared to shopping online, which can often be a more functional process, we know that the supermarket environment puts shoppers under high cognitive load, as they are processing the myriad of information and choices they must make. The average UK supermarket contains a staggering 45,000 stocking keeping units, with shoppers whittling that down to a basket size of around 50 items per visit.

Once in-store consumers enjoy evaluating prices and promotions, whilst also perusing brands and products to discern quality. These distractions make them more likely to deviate from their shopping list and leads to a 2.5 times greater chance they will try a new brand. 

How can brands stand out on the shelves? 

Faced with a slew of choices, consumers can sometimes find themselves overwhelmed. We’ve all experienced that feeling of paralysis when trying to decide exactly which brand of baked beans to buy, or what bottle of wine to choose when you’re entertaining friends.  When in this situation, people tend to fall back on the familiar – they default to what they already know and trust. Knowing this, we can clearly see that grocery brands need to start influencing the decision-making process before consumers even enter the store to occupy this place of trust and familiarity. 

Out of Home (OOH) advertising has long-established itself as a powerful brand building channel for grocery brands. The beauty of OOH is in its ability to reach 97% of the UK, which enables brands to effectively connect with light category buyers across a multitude of consumer occasions. The commute to work, the weekend walk to the park, or the drive to the supermarket. But Out of Home can also act as a final reminder to consumers as they enter the supermarket, switching that brand light on to remain familiar in the aisle and creating a fluent path to purchase.

Out-of-Home in action

Point of Sale (POS) Out of Home could be considered as one the original form of retail media, but in its transition to a digital first channel, it’s able to deliver dynamic, data-driven messages that connect with shoppers in the most effective moments. Our study with retail experts Shoppercentric, proved that POS Out of Home increases the fluency of decision-making at the shelf, speeding up the time in which a consumer can locate an item, the attention it received, and most importantly the likelihood to choose one brand over another.

Although the outlook for consumers continues to be stormy, by understanding and investing in customer understanding it’s clear that the cost-of-living crisis can be an opportunity for FMCG brands to build trust with their customers. By fostering familiarity with customers, through methods such as OOH, brands can continue to cash in on consumer’s increasing focus on what goes into their baskets.