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High trust but low loyalty for Aussie grocery retailers

More than two-thirds (69%) of Australian shoppers agree that grocery stores are doing a good job managing the pandemic – a significantly higher rate than the average of 54% worldwide, according to the dunnhumby COVID-19: Australia – Attitudes and Behaviour report.

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Interestingly, this figure is even higher than the trust in government, with 64% agreeing that the government is doing a good job.

The findings also show that Australians still prefer to purchase their groceries in store, with only 20% of grocery trips being done online, compared to the global average of 30%. The Australian average is also well below other APAC markets, including China and Korea, where it’s 60% and 52%, respectively.

dunnhumby Australia managing director, Kylie Gleeson-Long said Australian shoppers are exhibiting less changed shopping behaviour than what has been seen in other markets because of how well retailers have identified the need to keep people safe balanced with a good shopping experience.

“The only exception is that Australians appear to be spending more on groceries per trip, but this is probably because they are making fewer trips in total,” she said.

Customer satisfaction with in-store experiences remains significantly higher in Australia (23%) than the rest of the world (16%).

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“In light of these findings, it’s important for retailers not to become complacent, even though the extraordinary actions they have taken over the past couple of months have been praised,” Gleeson-Long added.

“Customer satisfaction is strong, but we know that loyalty among Australians is historically low, with the majority shopping across multiple supermarkets. If anything, the pandemic has highlighted how critical the shopping experience both in-store and online really is.”