Newly-released UK and US research from data science specialist dunnhumby, part of Tesco Media, has highlighted the extent to which the in-store experience still holds sway over the grocery shopping journey.
The study, Retail Media: technology, trust and retail experiences reshaping shopper decisions, surveyed 3,000 shoppers across the United States and United Kingdom (with 2,000 respondents based in the US and 1,000 based in the UK) on their habits and preferences.
It found that 84% of consumers still conduct their grocery shopping in-store with a comparatively slim 35% buying their groceries online (some buyers, of course, carry out their shops in both modes, hence why the number isn’t a neat sum to 100).
Perhaps unsurprisingly, this in-store emphasis also carries over into retail media influence, with shoppers finding in-store displays and ads more memorable and influential than those they encounter online.
In-store advertising leaves the biggest impression
When asked about where and how they recalled seeing retail media over the past week, almost half of shoppers said they recalled seeing in-store displays, while 1 in 3 shoppers recalled seeing online ads and 1 in 4 shoppers recalled seeing personalised ads or communication.
The highest proportion of shoppers (1 in 3) felt that they had been influenced by in-store ads, followed by 1 in 5 shoppers who felt they had been influenced by online ads.
Just 1 in 6 said they were influenced by personalised ads or communication – which might be down to a lack of exposure, but could also point to the need for advertisers and retailers to improve their execution of this style of advertising.
The research also surveyed shoppers on their feelings about giving up their data. Almost all (91%) of shoppers indicated they were at least somewhat comfortable with this, but with a condition: that they receive personalised offers and suggestions in exchange.
Recommendations grounded in past behaviour are favoured by shoppers
The report found that a majority (69%) of shoppers trust recommendations based on previous purchases, and that shoppers are more likely to buy from retailers who can deliver highly-personalised suggestions consistently. In the words of the report authors, “Personalisation is no longer a ‘nice to have’ – it’s a foundation for winning loyalty. Trust is strongest when recommendations reflect real behaviour.”
More specifically:
- 42% of shoppers aged 18-54 say they’re ‘very’ or ‘extremely’ comfortable sharing information about their shopping habits in exchange for better, more personalised offers
- Half of shoppers (49%) believe that it’s important for the offers and suggestions they receive to be based on accurate and up-to-date information
- When surveyed on their preferences for a range of retail media technologies, shoppers expressed the strongest favourability towards personalised pricing (64% in favour, with only 20% against)
- In-store screens with relevant product suggestions ranked second, with 56% in favour and 24% against.
Agentic aversion: Trust in fully-automated shopping experiences is still low
Despite increasing talk across the industry around the rise of agentic shopping and the potential for bots to be doing the buying, the report found that shoppers were least favourable towards fully agentic shopping out of a range of different retail technologies.
Forty-nine percent of respondents felt that fully agentic AI shopping was intrusive or unnecessary, with less than a third (29%) indicating excitement towards it. Forty-three percent also indicated dislike towards voice assistants suggesting products, although 34% were favourable towards the idea.
Two-fifths (40%) of respondents felt negative towards the idea of chatbots providing personalised support, with 33% feeling favourable.
The report authors noted that the study shows “that there is a clear distinction between accepted and understood use of technology versus emerging technologies where the benefits need to be clearer before shopper ‘buy-in’.”
The findings indicate that grocery shopping, at least, is still a highly human endeavour, as well as showing that store experiences and messaging still carry the most weight when it comes to swaying product decisions.
