Is consumer loyalty to local retailers affecting your retail ecommerce results?

Understanding where your customers prefer to shop, particularly at the local level, is fundamental for consumer packaged goods (CPG) brands in retail. In 2023, 54.3% of US retail sales occurred at local retailers. While this statistic may not shock you today, it reflects a significant shift that began before the pandemic. In fact, 82% of consumers preferred shopping close to home and supporting smaller, regional businesses.

Some shopping habits formed during the pandemic are here to stay, particularly the increased demand for click-and-collect services. Originally popular for its convenience and safety, curbside pickup quickly became a go-to choice for shoppers wanting to buy from their favorite local stores. One-third of U.S. shoppers plan to keep ordering online from their local retailers and picking up items in-store.

So, what drives consumers to support regional businesses?

Here are two main factors:

• Keeping money local: 90% of Americans prefer to shop locally to ensure their spending benefits the local community and overall quality of life. Capital One Shopping reports: “68% or $68 out of every $100 spent at local stores remains in the local economy.”
• Loyalty programs: 72% of U.S. adults participate in at least one shopper loyalty program, most of which come from local grocery and drugstores.
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To effectively engage local shoppers and boost sales, CPG brands must prioritize understanding consumer preferences and trends. Aligning retail ecommerce strategies with these insights is crucial for enhancing customer engagement.‍

Meeting customers at their preferred retail locations 

TL;DR: Brands must adapt to consumers' shopping preferences, especially at the local level. Establishing this connection is essential for driving repeat purchases and enhancing market presence as your brand grows.

Today's consumers place a high value on local shopping experiences. Brands that create regional pathways to purchase through retail ecommerce can enjoy substantial benefits, including:

• Increased brand awareness and product availability: By connecting shoppable media to landing pages or product locators featuring location-based purchasing options, brands can effectively inform consumers about where to buy their products. This transparency not only enhances product validation but also fosters brand trust, as consumers are more inclined to shop from their favorite retailers when they notice new offerings. Additionally, the geo-location aspect automatically personalizes brand media, making it conveniently shoppable for each consumer.
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• ‍Encouraging product trials: Directing traffic to regional retailers allows brands to reach audiences who might be hesitant to buy in bulk without trying a product first. Customers are more inclined to sample products at a retailer where they already have an account or where they plan to shop. If they enjoy the product, this initial trial can lead to repeat purchases or larger orders.
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• Minimized competition risk: By pointing customers directly to the regional retailers stocking their products, brands eliminate opportunities for competitors to disrupt the funnel and distract or capture their shoppers.
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By focusing on local retail strategies and understanding consumer preferences, CPG brands can effectively enhance their ecommerce performance and capture a loyal customer base. The benefits seem obvious, but many brands still encounter blockers when attempting to support these regional purchase paths. Why?‍

‍Challenges for brands going local:

• ‍Unreliable shoppability: Brands alone can’t effectively link shoppers to every retailer's ecommerce cart. The fragmented and regional nature of distribution complicates inventory management and tracking, often resulting in customers being directed to out-of-stock items. Even with the use of shoppable tools to facilitate the ecommerce journey to retail, many still depend on point-of-sale data that is outdated by 2-3 weeks.
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• Unclear performance and unactionable data: Once a shopper clicks off of an ad, brands lose insight into what happens on the retailer’s ecommerce site. They can no longer see how their ads are doing, and they can’t utilize modern performance marketing techniques to optimize or scale these regional sales (e.g. A/B tests, retargeting, lookalikes, etc.).
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Pear’s shoppable platform is uniquely able to help

‍Pear Commerce is the only retail ecommerce platform that supports retailers down to the local level with dynamic paths to purchase. With Pear, brands can connect any UPC to 3,000+ retailers, unlocking daily inventory verification so shoppers never hit dead or out-of-stock links. Pear’s actionable Store Locator, Landing Pages, Direct-to-Cart links, and shoppable PDP widgets connect to any available retailer in a shopper’s area, only displaying the store locations where products are actively available to purchase.

Pear partners with over 40 retailers to give brands access to real-time data tied to customer actions. Our platform returns actionable insights into campaign performance, giving brands the ability to measure, then optimize their campaign budgets. Each action is tied to a conversion event, fueling performance marketing. You can also build custom and lookalike audiences with Pear. If media is your focus, explore Pear Connect for instant in-ad-unit shoppability.

Ready to unlock retail ecommerce capabilities down to the local level? Schedule a demo with our team! →