Dive Brief:
- Consumers were more happy with their supermarket experiences in 2017 than 2016, according to the new American Customer Satisfaction Index (ACSI) 2017 Retail Report, detailed in a recent article by The Shelby Report. Grocery stores gained a point for an ACSI score of 79.
- Publix reigns as the most popular chain with a top score of 86, up 2 points from 2016. Trader Joe's is right behind with 85 points. Walmart, meanwhile, had the lowest score (71) among supermarkets for the 13th consecutive year.
- Internet retail sites fell one point, but are still strong at 82 points. Amazon topped this category with 85 points, a decline of one point from 2016. Grocery chains were one of the strongest retail segments last year — 12 of the 22 stores studied improved their 2016 scores.
Dive Insight:
Supermarkets are focusing on their customers and in-store experience, which has paid off with improved customer satisfaction. As more consumers go online to purchase their food and beverages, retailers have little choice but to find ways to make shopping in a brick-and-mortar store more attractive than buying items on the computer.
Recent years have shown something of a roller coaster ride when it comes to how shoppers feel about grocery retailers. The most recent American Consumer Satisfaction Index (ACSI) saw approval ratings for supermarkets grow 6.8% to a score of 78 out of 100 in the fourth quarter of 2016, according to The Shelby Report. But just a year earlier in 2015, supermarkets registered their lowest ACSI score in more than a decade, dropping 3.9% to 73 points.
The one point improvement reflected in the 2017 report is more modest compared to the past, but it’s reassuring news for supermarkets trying to retain shoppers.
Publix and Trader Joe’s swapped first and second places from 2016, with Publix on top this time. Publix’s "service-first" approach to retail has made it a top contender in consumer satisfaction year after year. Trader Joe’s remains loved for it’s quirky, quality products at reasonable prices and unique shopping experience.
At the other end, Walmart maintains its rank as the lowest scoring retailer with 71 points, down a point from last year. Consumers may like the discount chain’s cheap prices, but they don’t appear to like actually shopping there.
Supermarkets with top scores have been able to succeed thanks largely to thinking with a "customer-first" attitude. As online giant Amazon moves into the grocery space with its recent Whole Foods acquisition, brick-and-mortar stores know they need to stand out to keep customers. The best way to keep shoppers walking through their doors appears to be providing excellent customer service.
For its part, Amazon rules the online retail category with a score of 85, down one point from 2016. Many aspects of the online shopping experience, from checkout and payment to shipping options, also are down from last year, indicating room for improvement for all online stores.
Warehouse leader Costco was the most popular discounter with a score of 83. Sam’s Club and BJ’s tied for second at 80 points. Target dropped two points to 77, and Dollar Tree was down almost 4% to 77. These changes indicate that aside from Costco, discounters aren’t appealing to consumers as much as they did in previous years. Low prices won’t be enough to keep customers coming back if dips like these in customer satisfaction continue.