Day: January 24, 2022

Omicron Impact: Consumers Experiencing a Shortage of Retail Workers and Increased Wait Times at Checkout

Posted on by shopkick

Shopkick survey finds 73 percent of consumers are vaccinated but still expect retailers to enforce safety precautions as Omicron cases continue to rise

Although it is officially 2022, it may feel like years past as the Omicron variant continues to sweep the nation, forcing Americans to face another year of the pandemic. The impact is real, as the majority of consumers (73 percent) say they have noticed a shortage of retail workers while shopping in-person, as well as an increase in wait times while checking out (71 percent) and less available essential items (52 percent).Shopkick, a leading shopping rewards app, surveyed nearly 8,500 consumers across the country to gain an understanding of how the Omicron variant is impacting their shopping habits and behavior. The online survey was conducted between January 6 – 13, 2022.

Key Insights Include:

  • Consumers and Vaccines: It has been a year since vaccinations rolled out across the United States and the majority of consumers (73 percent) have chosen to get fully vaccinated, with 47 percent having also been boosted. When asked why they decided to get vaccinated, the majority said to protect themselves (85 percent) and protect others around them (81 percent). Comparatively, 20 percent say they are not vaccinated and do not plan to be.
  • Omicron Fallout: Due to COVID-19 cases rising, the majority of consumers have noticed a shortage of retail workers while shopping in-person and an increase in wait times while checking out (73 percent and 71 percent respectively). Additionally, nearly half of consumers (47 percent) have experienced a shortage of at-home COVID test kits at their local pharmacy and grocery stores.
  • Still In-Store and Gathering Indoors: Despite the spike in Omicron cases, the majority of shoppers (59 percent) are taking the same number of trips to the store as they were a month ago and over half (53 percent) are still comfortable participating in public indoor activities.
  • Shopper Safety Precautions: Consumers are still taking trips to the store, but 73 percent are taking additional precautions while shopping due to the rise of Omicron. Precautions include masking up (90 percent), using disinfectants on hands and carts (79 percent), shopping at less busy times (69 percent), using self-checkout (63 percent), using touchless or contactless payments to avoid exchanging cash (31 percent), and frequenting cashier-less stores (7 percent).
  •  Retailer Safety Precautions: Consumers also want retailers to take steps to protect shoppers, as the majority (71 percent) expect in-store safety precautions such as disinfecting carts (84 percent), enforcing social distancing (65 percent), mandating masks (72 percent), limiting store capacity (40 percent), and putting a cap on the number of essential products each shopper can purchase (37 percent)
  • Gen Z Stocks Up: While the majority of consumers (66 percent) are not stocking up on essential items in preparation for another lockdown, Gen Zers are most likely to stock up (41 percent), compared to Baby boomers (35 percent), Millennials (35 percent), Gen X (34 percent), and the Silent generation (34 percent).

“As consumers continue to shop in-store, it is essential that retailers prioritize safety and implement the necessary precautions to keep shoppers’ minds at ease,” said Brittany Billings, EVP, strategic markets & marketing at Shopkick. “The COVID-19 pandemic has been continuously forcing the world to adapt and the Omicron variant has presented new challenges for consumers and retailers alike. These survey findings further reveal the need for retailers to adopt seamless, omnichannel shopping channels that can help address the pressing issues of supply shortages and a reduced retail workforce.”

About Shopkick, Inc.

Shopkick, a Trax company, is a leading shopping rewards app, bringing moments of joy to everyday shopping – both on- and off-line. For brands and retailers, Shopkick provides high consumer engagement along the entire path to purchase. The company’s unique pay-for-performance model has been proven to deliver high ROI while driving incremental traffic, product engagement, and sales. Some of its leading brand and retail partners include Kraft-Heinz, Barilla, GE, Kellogg’s, TJ Maxx, and Unilever, among others.Shopkick is available for free on iPhone from the App Store and for Android from Google Play. For more information, please visit www.shopkick.com.

Retailers turn to hybrid cloud and AI to meet shifting consumer behaviors

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As the pandemic has transformed the nature of work with more employees working from home than ever before it has also changed how consumers shop according to new study from IBM and the National Retail Federation.

The new global study of over 19,000 titled “Consumers want it all” revealed that hybrid shopping which mixes physical and digital channels in shopping journeys is on the rise as a result of shopping habits consumers adopted out of necessity that are now becoming routine.

Of those surveyed, almost three quarters (72%) said that they use retail stores as all or part of their primary purchase method. The reasons they gave for visiting a store include touching and feeling products before buying them (50%), picking and choosing their own products (47%) and getting products right away (43%).

However, 27 percent of respondents said that hybrid shopping, where part of their shopping journey is conducted online and the other half takes place in a retail store, is their method of choice. When it came to the generation most likely to be a ‘hybrid shopper’, Gen Z consumers lead the way when compared to other age groups.

VP of research and development and industry analysis at the National Retail Federation, Mark Matthews explained in a press release how hybrid shopping represents a fundamental shift in consumer behavior, saying:

“While many surveyed consumers still place high value on the traditional in- store shopping experience, they also now expect the flexibility to build their own shopping journey – according to the behaviors prevalent to their age
range, available tools and the product category they are looking to purchase. This ‘hybrid’ approach is a fundamental shift in consumer behavior.”

Growing importance of sustainability

While adoption of hybrid cloud, AI and other technologies can allow retailers to create bespoke hybrid shopping experiences, IBM’s new study has also revealed that they’ll need to keep sustainability in mind to retain and grow their customer base.

Purpose-driven consumers that choose products and brands based on their own values like sustainability are now the largest segment of consumers surveyed (44%) according to the study. At the same time, 62 percent of respondents are willing to change their purchasing habits to reduce environmental impact which is up from 57 percent two years ago.

Half of respondents said they are now willing to pay an average premium of 70 percent for sustainability which is roughly double the premium from 2020. Still though, there is a gap between intention and action with only 31 percent of respondents saying that sustainable products made up most or all of their last purchase.

Global managing director of IBM Consumer Industries, Luq Niazi provided further insight on the study’s findings and the growing importance of sustainability to consumers, saying: “The survey shows over the last year, sustainability became increasingly important to consumers, though there’s still a gap between their intentions and actions due to lack of information in the buying process. Increasingly, it’s becoming essential that retail brands demonstrate sustainable choices and options in each step of the customer experience. At the same time, hybrid shopping has taken hold in most categories, particularly in home goods and apparel; and while stores continue to play the predominant role in grocery, hybrid shopping is growing in these categories too.” We’ve also rounded up the best e-commerce platforms and best shopping cart software.

This article was written by Anthony Spadafora from TechRadar and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com.