The nation’s favorite grocery chain is…
For the third consecutive year, a regional supermarket operator has nabbed the top spot in an annual consumer study.
Wegmans Food Markets, based in Rochester, New York, is America’s favorite grocery retailer, according to a study of more than 12,800 shoppers conducted by Market Force Information. Publix Super Markets, which tied with Wegmans for the top spot last year, is a close second. Rounding out the top five are Trader Joe’s, Aldi and H-E-B. (A more complete list is at the end of the article.)
Wegmans, which operates 97 stores, held on to the top spot with a score of 77% on Market Force’s composite loyalty index. Publix, which has consistently ranked well in the annual study, had a score of 76%, followed by Trader Joe’s with 75%. Aldi moved up a slot from last year to land in fourth with a score of 70%, and H-E-B had a repeat score of 69%.
For the rankings, Market Force asked participants to rate their satisfaction with their most recent grocery shopping experience and their likelihood to refer that grocer to others. The results were averaged to rank each brand based on a composite loyalty index score.
The study found that convenient location (62%) is the main driver for shopping a particular store. But good sales and promotions (60%), and value for money paid (55%) are nearly as important to shoppers.
In other survey findings:
• When it comes to the six customer experience attributes that matter most to consumers, Publix and Wegmans tied for two key ones – store cleanliness and item availability. Wegmans once again ranked first for its specialty department service, while Publix was the clear leader for ease of finding items.
• Trader Joe’s was found to have the fastest checkouts and it scored remarkably high for its courteous cashiers, besting second-place Publix in that category by nearly 10 percentage points.
• Fifteen percent of shoppers said they have used click-and-collect, up from 9% in 2017. Thirty-four percent are frequent users, taking advantage of click-and-collect at least monthly. Walmart, Kroger, H-E-B and Harris Teeter were the grocers most used in the past 90 days for click-and-collect shopping.
• Printed circulars have lost little ground in recent years, with 84% of shoppers continuing to use them at least weekly, and 14% using them at least three times a week. Eighty percent of shoppers said they plan their shopping trips based on the deals offered in the circulars, while 60% clip coupons and 59% use them to compare prices between stores.
• Forty-four percent reported that they use a grocery app – up from 39% in 2017 – and they’re overwhelmingly using them to obtain coupons.
• Twenty-two percent said they used a delivery services for groceries, up from 18% in 2017
• Fifteen percent have tried a meal kit delivery service at least once (up from 11% in 2017), however, nearly half (49%) were less than satisfied with the experience.
Here are the top ranked supermarkets in the 2018 Market Force survey:
1. Wegmans (77%)
2. Publix Super Markets (76%)
3.Trader Joe’s (75%)
4. Aldi (70%)
5. H-E-B (69%)
6. Fry’s (66%)
7. WinCo Foods (65%)
8. Costco (65%)
9. Harris Teeter (64%)
10. Sam’s Club (60%)
11. Whole Foods Market (60%)
12. Hy-Vee Food Stores (58%)
13. Kroger (58%)
Fourth of July spending to takes a slight dip
The timing of the Fourth of July holiday — it falls on a Wednesday this year — will put a crimp on celebrations and spending this year, but not by that much.
Americans are expected to spend $6.9 billion on food for Fourth of July cookouts and picnics next month, according to the annual survey released by the National Retail Federation and Prosper Insight & Analytics. That’s down from last year’s record $7.1 billion as fewer people say they will turn out for the Wednesday holiday. But it is still the second-highest amount in the history of the survey and per-person spending is up.
According to the survey, over 216 million Americans 87%) plan to observe Independence Day, down slightly from last year’s 219 million (88%). Nearly 153 million (62%) are planning a cookout or picnic, spending an average of $75.35 per person, a new record topping last year’s $73.42. (The numbers cover only food items and not other holiday-related items.)
Other Independence Day celebrations include partaking in fireworks or a community celebration (106 million) and attending a parade (30 million). Fourth of July is also a popular time for traveling with 31 million planning to head out of town. That’s down from last year’s 33 million and 25% said higher gas prices would affect their plans, but the decline in travel could also be related to the timing of the holiday.
Over a quarter of all Americans plan to buy more patriotic decorations for the holiday this year, according to the survey. Only 27% plan to purchase additional patriotic merchandise, but the number jumps to 44% for those ages 18-24 and declines steadily for older individuals.
Customer experience is ‘tipping point’ for choosing a brand
One bad experience can turn off a customer.
Sixty-four percent of consumers said they have avoided a brand because of a bad experience they had within the last year, according to a global survey by customer experience management firm Medallia. The findings reveal that customer experience is the top reason consumers cite for choosing a particular brand when making a purchase.
According to the “Customer Experience Tipping Point” survey, the demand for a positive customer experience is especially high in the United States, and while loyalty is on the decline, expectations are on the rise, particularly among younger groups of consumers. For example, 30% of Gen Z and 22% of Millennials surveyed indicated that their expectations of customer experience in online retail are higher today than they were two years ago.
Also, U.S. respondents reported significantly higher expectations than European consumers for personalized experiences, real-time response, and ability to chat with a live agent.
“They [consumers] expect to have a seamless and positive experience and if those aren’t met, consumers know they have options,” said Rachel Lane, solution principal, Medallia. “For companies looking to create a competitive edge, having a strong brand recognition, or even stellar product isn’t enough. Customer experience is the tipping point, and without a strong plan to create and maintain a positive experience, businesses will lose out.”
The study also revealed that:
• A single bad experience can cost a brand a customer. Forty-six percent of U.S. mobile network customers said they are likely to switch brands after having one bad experience.
• Every touch-point matters. Customers expect their experience to be seamless and efficient on and offline. For instance, 56% of online retail shoppers and 49% of retail offline shoppers expect consistent levels of service across physical and digital channels.
• Customers don’t want to be responsible for fixing a company’s mistake. According to the study, 70% of consumers report that they expect an immediate response when they submit a complaint.
Further, when customers believe they have put in more effort than a company to resolve an issue, they are twice as likely to tell friends, family or colleagues about the bad experience, and four times more likely to stop purchasing from the company, switch brands, or use the company less frequently.
• Consumers expect a personalized experience. Thirty percent of customers expect call center agents to be instantly familiar with their contact history, and 40%, on average, expect to be offered personalized experiences based on their interests, buying behavior, demographics and psychographics.
• Brands may be forgetting an important group of buyers. Many companies tailor to younger generations, but the 55+ age group is the fastest growing adult demographic in the US. This group of consumers indicated their expectations were exceeded in the last 12 months at a lower rate than any other group surveyed.
• Women and younger generations are more likely to avoid a brand because of a bad experience. Sixty-six percent of women (vs. 62% of men) globally have avoided a brand because of a bad experience (with 64% being the global average for both men and women). In addition, this behavior is even more pronounced for Millennials and Gen Z.