As economic pressures continue to limit consumers' purchasing power, Shipt is seeing on-demand delivery shoppers turn to sales and focus their engagement during peak hours.
In an interview with PYMNTS, Katie Stratton, chief growth officer at Target's on-demand delivery aggregator, discussed how consumer shopping habits have changed over the past year.
“People crave convenience and value, and we're always looking for ways to provide that to our members. Over the past year, we've delivered a higher-than-expected amount of promotions around popular seasonal times. ,” Stratton said.
She further added that the company “[s] See the data and compare details[s] ” and identify the most effective ways to provide savings opportunities to members.
In fact, deal-seeking behavior is becoming very common. In fact, a study conducted last year by PYMNTS Intelligence, “Consumer Inflation Sentiment: The False Allure of Consumer Chasing Deals,” was based on a survey of more than 2,100 U.S. consumers and found that It was found that 46% of customers are deal chasers and active in making deals. Go wherever you can get the cheapest price. Retail giants are targeting this demand with seasonal sales events such as Amazon's Big Spring Sale and Walmart's beauty-focused savings event.
Housing improvement movement
In an effort to capture this seasonal trend, Shipt recently announced the addition of its first home improvement partner retailer, Lowe's, to its marketplace. Stratton noted that the launch is timed to coincide with consumer interest in “spring cleaning and outdoor entertainment.” ” By incorporating these products into the marketplace, aggregators can take advantage of seasonal demand spikes and align their products with current trends to maximize sales opportunities.
He said that by offering retailers' products on Shipt's marketplace, aggregators are able to “make weekly grocery orders easier, especially considering that consumers explicitly ask for such options in post-order surveys.” “Other than that,” he added, can encourage engagement. Additionally, opportunities to drive engagement go beyond just home improvement opportunities.
“Home improvement is a big area for people who are focused on DIY and gardening, but also for people who want to stock up on things like cleaning supplies, outdoor décor, and live plants,” Stratton says.
This diversification attracts a broader customer base and increases the likelihood of repeat visits and purchases. Additionally, home improvement products are often more expensive than household items. Including these items can increase average order value and contribute to increased revenue for aggregators.
Shipt's addition to Lowe's comes as many consumers are seeking more digital shopping options from the comfort of their homes. PYMNTS Intelligence's 2024 Global Digital Shopping Index: U.S. Edition, created in partnership with Visa Acceptance Solutions, is based on a census-based survey of more than 2,400 U.S. consumers and We found that more than one in four people prefer to purchase via digital. A channel with no interaction with a physical store. Additionally, the study found that U.S. consumers rely heavily on a wide range of digital features, with 85% regularly using multiple features.
As consumers increasingly prioritize value and seasonal needs in their shopping habits, the partnership between Shipt and Lowe's positions aggregators to respond to these evolving behaviors.