Friday, November 22, 2024

Three-Quarters of Young Consumers Favor Click-and-Mortar™ Grocery Shopping

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Millennials and Generation Z consumers are not satisfied choosing between digital and physical channels to do their grocery shopping — they want it all.

By the Numbers

The PYMNTS Intelligence study “ConnectedEconomy™ Monthly Report: The Urban-Rural Health Divide Edition” drew from a survey of nearly 2,500 U.S. consumers about how they engage with digital technologies in various aspects of their lives.

Supplemental research from the report revealed that among younger generations, most consumers prefer to make grocery purchases across both digital and physical channels, making them Click-and-Mortar shoppers.

The study found that 78% of millennials, 76% of bridge millennials and 73% of Gen Z shoppers buy groceries across both digital and physical channels. Conversely, only half of Generation X consumers and 21% of baby boomers and seniors do the same.

The findings indicate a generational shift in shopping behaviors, suggesting that retailers need to adapt to the growing preference for hybrid shopping models among younger consumers.

The Data in Context

Walmart, the world’s largest grocery retailer, discussed on an earnings call with analysts Thursday (May 16) how its Click-and-Mortar™ technologies are contributing to growth, with Chief Financial Officer John David Rainey highlighting “digitally enabled solutions such as Scan & Go and curbside pickup” as drivers of improved performance in the quarter.

Similarly, Kroger is seeing its Click-and-Mortar™ offerings as a key part of laying the groundwork for long-term success.

“Customers value the ability to shop on their own terms with zero compromises, and we are increasing the number of omnichannel households in our ecosystem,” Chairman and CEO Rodney McMullen told analysts on the company’s most recent earnings call. Customers who shop both in-store and online spend three to four times more compared to in-store only shoppers. Personalization is also driving digital engagement and remains one of the primary ways we deliver value for customers beyond low prices.”

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