Nov 27, 2007
Study: Customers Prefer ‘Intimate, Customized’ Grocery ShoppingSource: NRF/SIRS Marketing

Americans are sending a clear message to retailers: Bigger isn’t necessarily better. A multiyear study, conducted by market research firm SIRS and profiled in the November issue of the National Retail Federation’s STORES magazine, shows that less really is more when it comes to where and why consumers shop where they do for groceries. The data consists of consumer research first tallied in 2002, then replicated in 2005 and again this year.

According to the study, consumers now base their shopping decisions on their emotional needs, which include the overall perception of the shopping experience – atmosphere, trust and customer service and whether a store is fun and enjoyable. In fact, 35 percent of consumers in 2007 said they preferred an enjoyable experience to traditional, rational factors such as price and convenience, compared to 30 percent in 2002.

The study found that many retailers are beginning to customize stores based on customer preferences. Organic and ethnic stores are among the concepts a few large retailers are trying. When it comes to the overall shopping experience, SIRS’ research found that Wegman’s topped the list with a rating of 70 (on a scale of 1 to 100, with 46 being the national norm). Publix ranked second with a rating of 69, followed by Bloom (58), Safeway “Lifestyle” (56), Kroger Marketplace (54), Wal-Mart Supercenter (51), Sweetbay (50) and Super Target (48).

“The decline of the attractiveness of the big box stores; the aging of America; the growth in the importance of convenience; personalized service; and the emotional ‘where-to-shop-driver’ customers are causing a tipping point in favor of smaller stores for the first time in more than 20 years,” says SIRS CEO Chris Ohlinger.