Acosta: Shopper decisions increasingly happen before the shelf

JACKSONVILLE, Fla. — Retail growth strategies must account for a shopper journey in which consumers increasingly decide what to buy before they reach the physical shelf, according to Acosta.

In an October 15 commentary, Tamara Fleming, senior vice president of client development at Acosta, argued that traditional strategies built primarily around distribution, merchandising and shelf visibility no longer reflect how consumers discover and evaluate products.

“The shelf was no longer where many decisions were being made. In many cases, it was where decisions were being confirmed,” Fleming said.

Consumers now move between physical and digital retail while drawing on reviews, social recommendations, online content, price comparisons and other sources before entering a store. That shift has made the traditional awareness-to-consideration-to-purchase funnel considerably less linear.

For retailers and brands, Fleming said broader distribution can create opportunity but does not necessarily generate demand. Brands with smaller footprints can outperform more widely distributed competitors when they better understand the problems their products solve, how consumers discover them and what drives trial and repeat purchases.

“Reach without relevance rarely creates sustainable growth,” Fleming said.

The changing journey also requires closer coordination among sales, marketing, e-commerce and shopper insights. Fleming pointed to the digital and physical shelves, retail media, brand content, ratings and reviews, in-store merchandising and word of mouth as interconnected influences on purchasing decisions.

Technology, including artificial intelligence and increasingly sophisticated data capabilities, is adding new ways for consumers to find and assess products. Fleming said brands should use those tools to better understand shoppers rather than lose sight of the underlying reasons people buy.

“Technology is changing how shoppers make decisions. It isn’t changing why people buy,” Fleming said.

For brands seeking growth, Fleming said the emphasis should ultimately shift from maximizing presence to understanding where and how they can be most relevant to consumers.

“The shelf still matters. It always will,” Fleming said. “But the shelf is no longer the store.”

Follow Tamara on LinkedIn for her insight on scaling emerging brands in conventional retail.