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STUDY: Top retailers struggle to meet digital shoppers’ needs despite online grocery surge

CHICAGO, Oct. 13, 2020 /PRNewswire/ — Retailers fail to surface the large majority (92%) of products in their e-commerce assortment that qualify to be found via search filters based on consumer need-states such as “low sugar” and “keto,” according to Label Insight, the product transparency market leader.

For its “Empty Aisles: The Grocery E-commerce Shopability Audit” study, Label Insight conducted an analysis of 30 of the top U.S. grocery, health, beauty and pet retailers to better understand how they are meeting the needs of today’s online shoppers with specific dietary, medical, allergen and values-based needs. The report found, on average, even amongst the top 25 most popular need-state searches (e.g. “organic,” “gluten-free,” “vegan,” etc.), retailers failed to return more than half (53%) of qualifying products, leaving consumers with a limited selection to choose from.

In light of FMI and Label Insight’s recent “Transparency Trends: Omnichannel Grocery Shopping from the Consumer Perspective” report, the e-commerce shopability audit reveals a significant gap between consumer needs and the online shopping experience. FMI and Label Insight’s consumer survey found that 64% of online shoppers are making purchases for a diet or other health-related program, 55% cite allergies or intolerances as affecting the way they shop, and 53% say it is challenging to make sure a product meets the goals of their diet or health program.

“Need-state buying is big business – today there are hundreds of millions of consumers shopping based upon dietary restrictions, lifestyle, wellness goals and personal values,” said Todd Morris, CEO of Label Insight. “While most retailers offer a full assortment of products that could fill their baskets, most consumers are facing ’empty aisles,’ not ‘endless aisles,’ when shopping for their families. This is a fixable problem that needs our attention.”

Other key findings from the report include:

To learn more about the current state of the online grocery user experience and the untapped revenue opportunities that exist for retailers, download the “Empty Aisles: The Grocery E-commerce Shopability Audit” here.

About Label Insight
Label Insight drives growth for CPG brands and grocery retailers through unparalleled product transparency. As the trusted partner of over 300 retail banners, over 30,000 CPG brands, and organizations including the FDA, USDA and American Heart Association, its best-in-class product attribute data and patented data science empower companies to unlock new growth opportunities both online and in store.

Label Insight covers more than 80 percent of U.S. food, pet, and personal care products, and over 99% of all consumer online searches, with a market-leading database of over 200,000 product nutrients, 400,000 product ingredients and 9 million product claims. For more information, visit labelinsight.com.

SOURCE Label Insight

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